China is still passive in trying to maintain the b

2022-08-18
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When the iron ore negotiation is in progress: maintain the bottom line of 30%, China is still passive

when the iron ore negotiation is in progress: maintain the bottom line of 30%, China is still passive

China Construction machinery information

Guide: a new round of iron ore negotiation that affects the national steel industry and even the entire Chinese macro-economy is now in progress. It is reported that representatives of steel enterprises such as Baosteel and WISCO have held negotiations in Singapore, Rio Tinto and other three major iron ore giants in the world, The China Iron and Steel Industry Association, which led the negotiation in 2009 (below...

a new round of iron ore talks affecting the national iron and steel industry and even the entire Chinese macro-economy, including new electronic information materials, catalytic materials, semiconductor materials and inorganic non-metallic functional materials, is now in progress. It is reported that steel enterprise representatives such as Baosteel and WISCO have been negotiating in Singapore, Rio Tinto and other three global iron ore giants, and the China Iron and Steel Industry Association, which led the negotiations in 2009 (hereinafter referred to as "CISA") can only "retreat to the second tier" this year

the negotiation mode returns to the leadership of Baosteel

it is understood that at the end of 2009, iron and steel enterprises held a preparatory meeting for iron ore negotiation, at which Baosteel was clearly designated as the negotiator again. In this regard, Jia LiangQun, deputy general manager of "my steel", said that if no one can change the results and let the steel enterprises talk about it themselves, it is more in line with the actual production of the enterprise, and Baosteel is the most representative enterprise

as the most representative mainstream steel enterprise, Baosteel has always been the representative of China and international iron ore giants in iron ore negotiations. But this situation changed in 2009. Due to the irreconcilable differences in interests between Baosteel and other steel enterprises, CISA assumed the heavy responsibility in 2009, which will not only affect the company's sales, but the result is not ideal. Due to the inability to reach an agreement with the international iron ore giants, the iron ore negotiations in 2009 actually ended in nothing

it is understood that the contract performance period of iron ore negotiation in 2008 ends on March 31, 2009. From April 1st, 2009, China's steel enterprises used the long-term association mine provided by the three major mines, and temporarily settled at a temporary price of 20% off the 2008 long-term association price. According to the Convention, after the long-term association price negotiation for the new year is finalized, the iron ore price paid by the steel enterprises will be refunded for more and supplemented for less. Since the "temporary price" of the first 20% discount at the end of May 2008 was higher than the initial price, according to the principle of refunding more and making up less, the three mines should return part of the price of iron ore to Chinese steel enterprises. However, since China has not announced the negotiation price of iron ore with the three major mines, and there is no formal basis for more refunds and less compensation, the three major mines are not willing to return this money

it is estimated that because China failed to negotiate the final price with the three major mines in 2009, Chinese steel enterprises paid an extra US $827million for this, which has reached about 5.6 billion yuan at the current exchange rate of about 6.8 yuan per US dollar

or forced to follow the price of Japan and South Korea

the tough attitude of CISA in 2009 failed to successfully establish a "Chinese price". It seems more difficult for steel enterprises such as Baosteel to achieve this goal when they returned to the negotiating table in 2010

it is revealed that at present, Rio Tinto, BHP Billiton and vale, the three global mining giants, only negotiate the benchmark price of iron ore with other Asian customers such as South Korea and Japan, and take a "love to talk" attitude towards Chinese enterprises, snubbing Chinese customers. Australian miners close to the above mining giants said that at the beginning of the iron ore negotiations this year, Japanese and Korean steel companies had agreed with the trend of iron ore price rise, and the place of the game between the two sides was the price rise. Rio Tinto has completed the first round of negotiations with Japan and South Korea. The former requires the price of iron ore in 2010 to increase by about 40% on the basis of 2009. Although Japan and South Korea have not accepted it at present, they "do not exclude it"

it is understood that the bottom line of the Chinese negotiation is that the price increase will not exceed 30%. However, considering the actual situation of the domestic steel industry, such a goal is extremely difficult to achieve

on January 27 this year, zhuhongren, spokesman of the Ministry of industry and information technology, introduced at the press conference on the economic operation of the industrial sector of more than 90million tons and the communications industry in 2009 that China imported 630 million tons of iron ore in 2009, with a year-on-year increase of 41.6%, and its external dependence increased from 44% in 2002 to 69%. In other words, nearly 70% of the iron ore used in China comes from overseas imports. Industry experts said that this is the fundamental reason why China has been unable to have a say in the iron ore negotiations between China and foreign countries for several years

Li Xinchuang, President of China Metallurgical Industry Planning and Research Institute, predicted in his latest report "analysis and prediction of China's steel situation in 2010" that the domestic steel production capacity will continue to increase in 10 years after the Ministry of industry and Information Technology launched the "specification conditions for automotive power battery industry" (exposure draft) in 2016. In 2009, China's steel production capacity was about 700 million tons, a record high

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