China's steel enterprises' profits are eroded by h

2022-08-19
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The profit of Chinese steel enterprises is eroded by high priced iron ore by another 7%

the profit of Chinese steel enterprises is eroded by high priced iron ore

China Construction machinery information

Guide: the death of iron ore negotiations for six consecutive years has become a heavy yoke on the neck of Chinese steel enterprises, and the cumulative increase of iron ore for six consecutive years has reached an amazing 400%. It is reported that the three major iron ore suppliers may raise iron ore prices by another 7% from the current level in the first quarter of 2011. High

the six consecutive years of iron ore negotiations have become a heavy yoke on the neck of Chinese steel enterprises, and the cumulative increase of iron ore for six consecutive years has reached an astonishing 400%. It is reported that the three major iron ore suppliers may raise iron ore prices by another 7% from the current level in the first quarter of 2011. High ore prices devour the profits of Chinese steel enterprises. The rise in iron ore prices led Chinese steel enterprises to pay more than 100 billion yuan for the bill in the first September of 2010. As the price of iron ore has risen year after year, a large number of funds have been attracted into this industry. At present, new projects of iron ore in the three mines are constantly being put into construction, and their production capacity will be released around 2014. At that time, the tight supply and demand situation of iron ore will be reversed, and the price will also face an inflection point

iron ore prices are high and may rise by another 7% in the first quarter.

it is reported that the three major iron ore suppliers may raise iron ore prices by another 7% on the current level in the first quarter of 2011. According to the new price mechanism implemented in April 2010, the international iron ore price will be adjusted once a quarter, and the average price of iron ore in the spot market for three consecutive months will be used as the main basis for adjustment

data show that in the three months from September 1 to November 25, the iron content in Qingdao port, China is 62%, and the arrival price of iron ore is $145.95 per ton (including freight). The average price of iron ore arriving at the port in the previous three months was 136.51 US dollars/ton. This means that according to the new price mechanism, the international iron ore price will increase by 7% from January 2011

according to the statistics of the industry consulting organization "my steel", on November 29, 63.5% of the "wind vane" of the spot market, Indian iron ore was quoted at $170 to $172 per ton (including freight). This is about $3 per ton higher than the quotation of $165 to $169 per ton last week

at the same time, some steel mills also told the media that although they have not received an offer, the price will definitely rise in the first quarter of 2011

the annual negotiation mode has been abandoned, and quarterly pricing may lead to soaring prices.

in the past 30 to 40 years, the three mines have been supplying about 100 million tons of iron ore to Europe and Japan each year after moderate stretching, most of which are Changxie mines, and the Changxie mine price is also calm. According to statistical data, in the 20 years from 1981 to 2000, the annual price adjustment range of iron ore did not exceed 20%, of which more than 10% was 7 times, while the years of price rise and decline were basically half and half. In 2003, China became the world's largest importer of iron ore, and China also became an important participant in the long-term association negotiations. However, in the long-term association negotiations over the years, Chinese steel enterprises have accepted the results of the rise in iron ore prices again and again. The death of iron ore negotiations for six consecutive years has become a heavy yoke on the neck of Chinese steel enterprises, and the cumulative increase of iron ore for six consecutive years has reached an amazing 400%. For every $1 increase in iron ore in the negotiations, Chinese steel mills will increase the import cost by $500million a year

BHP Billiton of Australia, the world's second and third largest iron ore supplier, and Sinochem Group, as the foundation of product manufacturing, have abandoned the annual iron ore price negotiation mechanism that has been implemented for more than 40 years since April 2010 and adopted a new mechanism of quarterly price adjustment

the current index pricing is based on the number of friction plates, spring plates, pressure plates and power take-off shafts of Singapore Platts finger clutch, and the CIF price of iron ore with 62% iron content in Qingdao port. The long-term association price generated under this mechanism is close to the spot price, which increases the cost of steel enterprises and at the same time, the profit of miners is higher than that of previous years

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