With the European region experienced a sovereign debt crisis and economic recession, the shrinking steel market, ArcelorMittal and other steel giants have cut production, the European iron ore manufacturers will be more iron ore exports to the world's largest steel producers, in China. Recently, carrying 56,000 tons of iron ore in a Romanian cargo ship docked at the Bohai Sea Caofeidian port, and since then have been entering the country, including Romania, Japan and other 29 countries of iron ore.
 
The analyst pointed out that whether China can "eat" more and more imported iron ore, depending on the current level of crude steel output.
China Steel Association data show that in late May of this year, 77 large and medium-sized steel enterprises in crude steel output decreased by 3.9%. Among them, the largest yield reduction Xinji Orson and Dongbei Special Steel, respectively 60% and 50%. This is or will be the main reason for steel late strictly control the amount of iron ore purchase price, thus forming one of the upward resistance of domestic iron ore.
 
Coupled with the global iron ore market is still in excess, the continuing imbalance between supply and demand will probably continue to traction imported iron ore prices to advance to the lower mark.
Future period of time, the global mining industry will face many major obstacles: China slowdown in economic growth, as well as the uncertainty of the U.S. and European economies have a huge impact on the global mining companies.
 
Many risks of the mining industry are derived from the downstream supply and demand. At present, the construction steel market is still weak, although industrial demand rose slightly, but the excess supply and price volatility risks remain.
 
According to market monitoring shows: June 20, quoted in the mainstream of the imported ore external disk market in India 63.5/63% iron ore fines in the 139-140 U.S. dollars / ton; mainstream offer of 58/57% iron ore fines in the 114-116 U.S. dollars / ton, continuation of last week slight upward trend, the rate of increase of between $ 20-30.
 
The analyst pointed out that the imported ore market offer smooth, but the deal was no significant improvement. The steel mills are still running "low inventory" procurement policy, the imported ore market demand has always been unable to effectively enlarge. Despite the low grade printing powder, the Australian iron ore and bar mine offer rose, but the actual transaction price is not ideal.
 
Industry-wide losses and profit situation of Forced Chinese steel mills to take small quantities of multi-batch operation, and strictly control the charging cost of procurement. It is understood that the domestic steel procurement wishes is not high, the phenomenon of some steel mills for the hedging cost of procurement of low-cost cargo has been no shortage of these low-priced cargo mainly from Indonesia, Iran, Malaysia and other non-mainstream ore.
 
To analysts, said: "Foreign mining companies are in competition for the Chinese market, however, as the world's largest ore consumer, China's steel mills has been losing money. Ore price fluctuations depends on the steel price trend, regard the product heap to This will allow the Big Three, including the miners in the competition is more intense. "



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