HC Valve Network: According to Voice, “the Central Canton News” 16:12 media coverage of China Steel Industry, iron ore is the pressure in his head like a boulder. Since last year, the economic crisis has given way to the steel industry battered by the recent iron ore spot prices are again rising trend of the year hit a new high after another.
Comparison of the data from the early point of view, the most important raw materials as steel, iron ore, starting from early September to continue to rise, more rapid gains recently, has already risen to the highest point during the year.
Ended December 25, the import price of iron ore in the domestic market has risen to 116-118 U.S. dollars / ton, and early in September of 80-81 U.S. dollars / ton compared to the rate of increase reached 45%. With the short supply of iron ore imports, the domestic iron ore prices continue to rise.
As of December 25, Hebei, Tangshan Coal Mine, for example, a grade of 66% Powdered Iron prices have risen to 880 yuan / ton, compared with early September, up 20%. With the new year, is widely expected iron ore prices will be 10% -20% rise, further driving up its cost, while coke, steel billet and steel scrap are also different levels of the steady rise in the cost of a supportive role to become increasingly evident.
Industry generally believe that the sharp rise of iron ore spot prices, not only will further squeeze the profitability of steel space, but will affect the long-term agreement price of iron ore next year, so that mine with the steel mills in the Game a more favorable position, but as a major global consumer of mineral resources and one of importing countries, which China is a bad news.
In fact, spot prices rose, in a long-term agreement in 2010 iron ore price negotiations, the game’s balance is to Australia, Rio Tinto, BHP Billiton and Brazil’s mining giant Vale and other tilt.
Recently, JP Morgan and other major investment banks have raised their long-term agreement on the 2010 iron ore price forecasts. Brazil’s CVRD, President of heat? Egeneili recently stated publicly that the recovery in demand, the industry will rise on iron ore prices next year, a consensus has been reached, the rate of increase is expected to reach 10-20%.
And Baosteel statement that, from a global perspective, the profitability of steel enterprises do not support the iron ore prices next year. In the global steel industry, a substantial decline in overall capacity utilization, steel prices fell, the major iron and steel enterprises in the loss of the edge of the situation, the prices of iron ore space will be restricted. No matter how uncompromising
both supply and demand, argue, one thing is sure, large-scale iron and steel enterprises in China with the big three iron ore negotiations will be more difficult. SABUNG AYAM