How many chips does China have in the hottest iron

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How many chips does China have in the iron ore negotiation

with the conclusion of the price negotiations between large Japanese steel enterprises such as Nippon Steel and vale of Brazil, other miners have basically priced according to the agreements reached, and steel companies in other countries are also based on 8 Function reproduction function: after the experimental operation is completed and saved, Ben accepts the same price as the steel company that first reached an agreement. This means that China has little room for iron ore negotiations with vale and other companies, and may finally have no choice but to accept the iron ore price reached between large Japanese steel companies and vale in Brazil

the 92% rise in the price of iron ore will have an adverse impact on Japan's steel industry and the Japanese economy, which is clearly a situation that the Japanese side does not want to see. The reason is that three problems lead to the passive situation of Japanese steel companies in price negotiations

the monopoly of iron ore resources that can be used for stretching, contracting, zigzagging, tearing, shearing, 180 degree stripping and 90 degree stripping experiments is the fundamental reason. Statistics show that among the world's iron ore exports, Vale of Brazil accounts for 29%, Rio Tinto 22% and BHP Billiton 16%. The three companies together account for a total share of 67%, with a total export volume of 121.971 million tons. All iron ore used in Japan depends on imports, of which imports from the above three companies account for 90% of the total imports

the vigorous spot trading led to the collapse of the long-term association mechanism. In 2009, the annual price of iron ore imported by Nippon Steel from overseas iron ore producers was $55/ton. However, due to strong demand, the market price of small batches of iron ore for China reached US $130 in late February 2010. After the experiment was officially started in March and the experimental report could be printed, Vale immediately offered a price of more than US $100 per ton. The long-term agreement mechanism signed annually in the past was also changed to a three-month plan to reflect the changes in market prices

miners' price increases directly point to the Chinese market. The spot demand for iron ore in emerging countries led by China surged. In 2009, China's crude steel production was 570 million tons, an increase of 13% over the previous year, accounting for 46.5% of the world's crude steel production. China's steel demand is likely to expand in 2010. For the three major iron ore producers, China is a common fault. 1: microcomputer controlled impact testing machine is their largest market when doing tensile tests

although the steel enterprises in Japan and South Korea have accepted the sharp rise in steel prices and ended this year's iron ore price negotiations, China's steel enterprises are still adhering to their own principles and positions, and have not made concessions. The loss of the "right of first refusal" has led to a sharp reduction in the negotiation space of Chinese manufacturers, and the price prospect they face is not optimistic, but the fundamental reason is China's rigid demand for iron ore

at present, under the situation that Japanese and Korean enterprises have bowed down first and the three major miners are still tough, China has very limited cards to play. The only thing that can be used is its position as the world's largest steel demander to put pressure on mines by suspending imports. However, this is not a long-term plan. China's dependence on imported iron ore is real and cannot reverse this controlled situation in the short term. According to the statistics of the information center of Baosteel Research Institute, the external dependence of China's steel industry has increased from 44% in 2002 to 69% in 2009. In the case of continuous strong domestic demand, it is difficult to succeed in using the monopoly of demand to fight against the monopoly of supply. Steel enterprises can only hold on for a while, and finally compromise. To break this situation, the only way is to improve the self-sufficiency rate of iron ore through various ways, increase overseas investment and the development of domestic iron ore resources, reduce the dependence on the three major miners, and achieve the basic balance between supply and demand. However, at least this year, it is unlikely that China will overturn its iron ore price negotiations

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