Banded iron ore price rise imminent madness steel – iron ore price rise – Metal industry
March 16 afternoon, China Steel Industry Association issued a statement on its official website: "local time on March 11 afternoon, the European Union steel industry on its official website issued a statement strongly opposed to iron ore producers want to raise prices 80%? 90% of the plan. China Iron and Steel Industry Association, agrees and support. "iron ore prices once again pushed to the cusp, into the public spotlight.
Steel as deposit banks China Steel Association
monitoring 68 key steel enterprises large and medium steel output up 10% last year, but profits fell 31.43%, the average Sell Profit margin is only 2.46%. Recalling the recent years, steel prices declining profit margins in 2007, the 68 enterprises the average sales profit rate of steel was 7.26%, 3.23% in 2008, 2009, dropped to 2.24%, 5.47% is far lower than the national industry average selling margin. A steel boss jokingly money invested steel-making, as interest on bank deposits.
Early as last December, Baosteel Group analysis, the profitability of steel prices worldwide does not support ore prices this year, further price increases if the ore, steel prices will further increase losses, and major international ore supply Business should be a rational, long-term and win-win point of view with the downstream steel industry relationships.
With expert analysis, iron ore price rise 3 percent, iron and steel industry-wide profits would shrink 4 percent. Some experts point out, ore prices are "Banded."
Steel prices may be volatile Customs figures show from January to February this year, China imported a total of 96.07 million tons of iron ore, the amount of 8.93361 billion U.S. dollars. By projection, the first two months the average price of domestic steel mills, iron ore imports for the 93 U.S. dollars / ton, compared with 2009 senior co-price gains exceed 30%.
Profit margins continue to be squeezed, steel prices started rising prices. March 15, Wuhan Iron and Steel announced price policy in April, sales prices in March, based on hot-rolled, cold rolled coils up 300 yuan / ton, zinc up 200 yuan / ton (all excluding tax). Just before the March 10, quietly announced in April Baosteel's price adjustment policy of construction steel, wire rod prices rose 150 yuan / ton to 300 yuan / tons.
During two sessions this year, the Association of Steel, Wuhan Qi Lin Deng, chairman, says that if the sharp rise of iron ore to Chinese steel enterprises are only two choices: one is to reduce production, reduce losses; second is to improve steel price, transfer cost pressures.
But in the presence of domestic demand, steel prices cut difficult to achieve; while raising prices, is bound to transfer to downstream industries and Car , Shipbuilding, Home Appliances Prices of other industries. "No matter which way, would have a negative impact on the national macro-economic." Tang Lin said Kawasaki.
European Union steel industry said in a statement also said that if a substantial raise iron ore prices become a reality, it is not just the impact with the steel industry and downstream manufacturing and construction will also be involved, ultimately affecting the entire consumer market.
Pricing should reflect the "Chinese interests"
"China is an important producing iron and steel products, steel enterprises in China is the world's largest consumer of iron ore, according to international practice, an important consumer side in the pricing mechanism should play an important role, it should be in the iron ore to China's interests reflected in the negotiations. "Jian Chinese Commerce Ministry spokesman Yao in the March 16 press conference.
The current three Mine Proposed "to change a long association model, the establishment of stock index or spot sales of iron ore" requirement, Yao strong and decisive reply, in the Ministry of Commerce calls for preserving the iron ore pricing mechanism for long-term agreement, I hope mine's supply-side and national steel companies can long-term agreement to jointly safeguard mechanisms to avoid sharp fluctuations in iron ore prices.
I am a professional editor from China Manufacturers,
and my work is to promote a free online trade platform.
http://www.cheaponsale.com/ contain a great deal of information about
fiber optic endoscope , ecg module
welcome to visit!
Processing your request, Please wait....
