Iron Ore Price Increase Does Not Affect The Safety Of The Steel Industry
But price increases are too high
highlighted “voice of China” less than
As China’s steel enterprises with the three ore suppliers?? Brazilian company CVRD, Australia RioTinto companies and BHPBiliton negotiating representatives, Shanghai Baosteel, every effort had to accept the new year after the iron ore price up 71.5 over the previous year % reality.
View was expressed that not only domestic steel companies to tremendous cost pressures, will also affect the safety of the Chinese steel industry.
Is in Beijing to participate in the National “two sessions” from Baosteel, Shougang Group, Anshan Iron and Steel Industry Association and the Chinese representatives, members of this acceptance of “Economic Information Daily” reporters, said the new annual iron ore price increase was not As for the threat to the safety of China’s steel industry, but the Chinese steel industry must reflect on how international trade negotiations to increase ore our “voice.”
71.5% increase negotiating mechanism to determine
National People’s Congress, Ai Baojun, general manager of Baosteel told the reporter that, due to historical reasons, the international iron ore resources are mainly concentrated in Brazil, CVRD, Australia’s RioTinto and BHPBiliton three ore supplier, while in the past, mainly from France A Cello Steel, Nippon Steel and U.S. Steel each behalf of the European Union, Asia and the Americas, three major steel companies with iron ore giant negotiations to determine the transaction price. 2004 China Steel Industry Association, was organized by representatives from the Shanghai Baosteel Group China’s accession negotiation mechanisms alone. Ai Baojun said, “But the situation now is still in principle, with three miners on behalf of any negotiated price, the implementation of the other people here.”
Negotiations this year, that is, February 22 Nippon Steel Corporation was the first Brazilian CVRD announced that they have agreed to lock ore rose 71.5%; followed by POSCO announced that it agreed to this price increase; Although the French Arcelor steel prices are dissatisfied with this, but still received the final results. In this context, the Chinese negotiation companies have accepted 71.5% of last resort ore price increase.
“In essence, this year’s ore price rise is fundamentally determined by supply and demand.” Ai Baojun that the global economic recovery in 2004 steel demand, leading to increased demand for iron ore, only to corresponding rise in the price. “Over the past 10 years, the international steel industry recession, especially in Europe and the United States, the steel industry or even be seen as a sunset industry, leading to closure of many mines, no closure is also restructuring before the formation of the current three major ore suppliers to the global iron ore resources monopoly; the global steel industry started to recover last year, ore suppliers began to demand this year to share the proceeds of the. ”
Ore prices to make iron and steel enterprises are passive
For 90% of the ore Baosteel need to rely on imports for 71.5% of the price increase will bring immense cost pressures, the cost of 1 ton of pig iron will thus increase by almost 200. “We feel some pressure, however, steel prices in China in the international market is still the lowest, with Japan, South Korea, compared with the prices of all, we were still very competitive.” Ai Baojun said with confidence.
The case may be better than that of Baosteel, Shougang’s dependence on imported ore is only about 50%. However, the National People’s Congress, Shougang Chairman Zhu Jimin told reporters that, while our imports relative to less than Baosteel, but such a large ore price rise, is still enormous pressure on us, the cost will certainly be greatly increase, it is estimated this will have to pay Shougang 1.5 billion yuan. “Steel can only try to digest this upward pressure, try to reduce, delay the delivery to the downstream industries.”
Baosteel and Shougang
compared, guarding mines, self-sufficiency rate of over 90% of the Anshan Iron ore prices may no hint of the international impact of changes in NPC, Liu, general manager of Anshan Iron and Steel? Starting from the Chinese steel industry, that “We originally thought that the international ore prices this year may be 50% to 60%, the current rate of caught us by surprise. Japanese steel companies the result of negotiations the Chinese steel companies are passive, although no impact on our Angang, But the Chinese steel industry should be noted that this matter. ”
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