Downstream market downturn Forced domestic steel mills to the signal delivered to the upstream areas of iron ore. "We have reduced the number of buy ore from three mines abroad to purchase from other countries to buy iron ore strategy into a small amount of multi-batch, in accordance with the actual demand to buy is no longer stockpile." North Lin told the author of a steel procurement department heads.
According to customs statistics, from January to May, China's iron ore imports of 308.22 million tons, increased 9 percent, while growth in iron ore imports, import prices continued a downward trend from January to May, the average import price of iron ore per tons of $ 138.4, down 13.9 percent. London research group CRU has also said that Chinese production is relatively weak, the price of iron ore in the first quarter year on year has fallen by 20%. Chinese steel mills in the first quarter net loss, this is the first loss since 2000. In the global ocean transportation of iron ore, 60 percent will be shipped to China.
"Foreign mining in the competition for the Chinese market, this market as the most important destination of sales, however, as the world's largest ore consumer, China's steel mills has been loss. Ore price fluctuations depends on the steel price trend. The heap regarded products to China, will aggravate the price war between them. This will allow the mine, including the Big Three are more intense competition in China. "Analysts believe that. Not just the steel industry, home appliances, telecommunications, coal pricing, coal bed methane development, the patent owner the right to speak of Chinese enterprises in international competition is gradually strengthened.
Indeed, China's largest steel producing countries, the huge demand for iron ore, has been overseas mine scrambling to seize the market. Before subject to the soaring price of iron ore, making steel enterprises in China significant increase in the cost of production, coupled with the second half of last year to demand the downturn, steel mills first loss since 2000, so the Chinese steel mills began to use identity as the largest consumer of iron ore, iron ore pricing competition.
If the iron ore pricing bias in China, then it should be said that domestic steel mills began to unite external to seize power, to reduce the three major ore purchases, purchase from other countries, a small amount of multi-batch, on-demand procurement, not stockpile, only everyone in the same direction to enhance the overall competitiveness, then the competition of foreign mines to the Chinese market, iron ore pricing should be far away from China.
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