The most popular iron ore with a total purchase vo

2022-07-31
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Holding the "China price" of 600million tons of purchased iron ore for an indefinite period

holding the "China price" of 600million tons of purchased iron ore for an indefinite period

China Construction Machinery Information

Guide: holding the Chinese price of 600million tons of purchased iron ore for an indefinite period of time experts say that a substantial increase in industrial concentration is an important prerequisite for enhancing the voice and pricing power. According to the data of the General Administration of customs, in 2009, China's effective measurement range was 2% ~ 100% fsin December, the cumulative import of iron ore was 627.78 million tons, a sharp increase of 41.6% year-on-year, accounting for

the "China price" of iron ore with a total purchase volume of 600million tons is far away. Experts say that a substantial increase in industrial concentration is an important prerequisite for enhancing the voice and pricing power

according to the data of the General Administration of customs, China imported 627.78 million tons of iron ore from January to December 2009, a sharp increase of 41.6% year-on-year, accounting for 60% of the global iron ore trade. Although the total amount of iron ore purchased is more than 600million tons, the "China price" that the Chinese people have been looking forward to is far away. On closer examination, this is due to various complex factors such as the lack of unity of the previous negotiating subjects and the relatively scattered negotiating forces, resulting in the failure of huge chips to exert their due power

according to the plan of China's iron and steel industry development policy, the output of the top 10 iron and steel production enterprises in 2010 will account for more than 50% of the national output, while the current figure is only 36.79%. This highly decentralized industrial structure cannot form the overall bargaining power of "consistent external" in the negotiations, and the scale advantage of imported iron ore is difficult to be transformed into bargaining advantage, which was confirmed again in the negotiations in 2009

"accelerating the process of industrial integration and reorganization, further eliminating backward production capacity, establishing world-class large and super large iron and steel groups with international competitiveness, and greatly improving industrial concentration are important prerequisites for enhancing the voice and pricing power of China's iron and steel industry in the international iron ore market." My iron and steel Consulting Director xuxiangchun stressed

"in the development of the iron and steel industry, in the process that the price of raw materials may fluctuate significantly, the two sides of the iron ore transaction must take into account the interests of the other side. In this case, it is certainly not conducive to the sustainable and stable development of the downstream industry and the establishment of a long-term stable relationship between the two sides. It should be said that only a win-win situation between the buyer and the seller can make the two sides less affected by the constant stress (general negligence) a long way to continue. " Zhuhongren, member of the leading Party group and chief engineer of the Ministry of industry and information technology, pointed out at the conference on the operation of industrial communication industry in the first quarter of 2010 held on the 22nd

"at present, China's iron and steel industry is facing the pressure of a substantial increase in the price of iron ore. from the current industrial structure of our country, a large amount of iron ore in the basic raw material industries such as iron and steel needs to be solved through import channels. In this case, if the price of iron ore rises significantly, it will undoubtedly bring great pressure to the operation of the iron and steel industry." Zhuhongren said

according to the calculation of Guosen Securities, China's pig iron output in 2010 was about 610million tons, of which 60% was produced by imported iron ore, and about 40% of the imported iron ore was long-term agreement ore. if the price of iron ore rose by 30%-100% in 2010, equivalent to USD/ton, the cost of China's iron and steel industry would increase by 27.6 to 91.9 billion yuan

"the cost of iron ore accounts for 40% of the overall steel making cost. If the price of iron ore rises by 100%, the cost of the whole steel industry will be greatly increased until the products are fully formed, which will put a lot of pressure on the steel industry, which is already in a non-profit state, and may suffer a comprehensive loss." Xuxiangchun said

"In terms of the profit margin of sales revenue of the iron and steel industry, it was at the level of 4%~5% in 2008; however, it fell to only 2.9% in 2009; in January and February this year, that is, the profit margin of sales revenue was about 3%. If we face a substantial rise in costs, it will undoubtedly bring great difficulties to the operation of the industry. If the pressure of price increases can not be digested or transferred through product price increases, this This industry may face a very difficult situation. " Zhuhongren expressed concern about this

at the same time, the problem of overcapacity in China's iron and steel industry is still prominent. In 2009, China's iron and steel industry has clearly made specific rules for the ability of electrical equipment to protect personal safety and avoid electric shock, which has reached 700million tons. In that year, the surface consumption of crude steel in the domestic market was 565million tons, of which about 30million tons entered the social inventory, and the actual consumption was less than 530million tons. However, the production capacity is still expanding blindly. In 2009, the growth rate of fixed investment in the steel industry remained at about 20%

"according to the spirit of the No. 7 document of the State Council, recently, the relevant departments of the Ministry of industry and information technology have been connecting with the specific indicators of the provincial competent industrial departments to eliminate backward production capacity. We want to try to break down various tasks to each province, region and city in May." Zhenglixin, deputy director of the industrial policy department of the Ministry of industry and information technology, introduced

as for the standard of how to define the backward production capacity that the industry is generally concerned about, zhenglixin further emphasized: "the elimination standard stipulated in Document No. 7 does not clearly define the problems of the East, the middle and the west, but in the process of eliminating the backward production capacity, it will actively help the regions with heavy tasks to eliminate the backward production capacity to help them actively do a good job."

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