China Should Take the Initiative to Adjust Its Own Iron Ore Demand

Rectify the iron ore market order, so. Can alsosupply of iron ore products. This shows that have
take the initiative to adjust to achieve reasonablea good grasp of the pricing of iron ore and other
growth in Chinese demand for iron ore controlsteel mills can only be determined by negotiations
and regulation goals.Take the initiative to adjuston the Big Three to follow the price.
China's iron ore demand, it should be from theThe reason why China and abroad in today's iron
curb overcapacity in the steel industry to curbore negotiations, always passive, inferior position,
local governments in pursuit of GDP to expandas far as can be seen on the analysis. In fact
the production capacity of steel and iron ore tocaused by a variety of factors in addition to iron
rectify market order, etc. to take measures.ore negotiations to continue "arguing", but also
China's iron ore out of the current difficultiesshould be taken "to retreat" strategy, take the
faced by the negotiations.initiative to adjust the current iron ore demand in
Conservative deadline for the global iron oreChina and strive in the future and foreign iron ore
negotiations. With the deadline approaching, April 1.negotiations take the initiative and favorable
In particular the international iron ore giants longposition.
association of unilateral sharp rise of iron oreThe author believes this. Can be adjusted from
prices in 2010 and foreign iron ore in negotiationsthe following three pronged approach in China iron
or will again in dire straits. So, how to treatore demand.
international iron ore giants of the sky high claims?2009 growth rate of fixed investment in steel
China should take active measures to escapeindustry persist in about 20%. According to Li in
such negotiations conducive to the situation?the industry believed the Minister's speech shows,
These issues are worth considering.Trends in ironfirst, overcapacity led to rapid growth of China's
ore prices appears to die hard. Here, from theiron ore demand one of the main. For example.
present situation. There may be a prominentCurrently, China's steel production capacity of
impact of the following four aspects.about 660 million tons, of which the real needs of
China's iron ore demand was growing rapidly.only 4.7 million tons of excess capacity of 1.9
According to relevant statistical data, 1st. Themillion tons. Thus, excess capacity led to China's
current domestic iron and steel productionrapid growth in iron ore demand, reaching 20%
capacity reached 660 million tons, is expected inannual increase.
2009 to more than 700 million tons, the iron andTake the initiative to adjust China's iron ore
steel production capacity is close to 50% of thedemand,. First to inhibit the steel industry
world In addition, in 2009 China imported 630overcapacity. By accelerating the pace of the
million tons of iron ore compared with 41.6%restructuring of the steel industry, through
growth in 2008 China Railway ore import volumemergers and reorganizations, eliminating the
of trade has accounted for 75% of the global ironbackward, to enhance production and operation of
ore trade increased by nearly 70% of thestandardized management to further enhance the
external dependence of the first of China'sindustrial concentration and eliminate backward
economic recovery, there is no cut steel output,steel production capacity, so that a smooth
resulting in China's iron ore demand is still veryadjustment of talent demand growth of China's
strong.iron ore, and to regulate iron order to create
Iron ore demand in Asia and Europe to restoregood conditions for imported ore.
growth. With China's slow recovery of theCoupled with the imbalance of regional economic
economy outside of the second. Particularly indevelopment, the second is due to the role of
Asia and Europe, the recovery of the steeliron and steel enterprises are very big on local
industry began to rebound in steel productionGDP. Local GDP and be willing to pursue the local
needs more iron ore supply. The European Union,government launched the steel project, or out of
for example, is currently recovering from the EU'sthe region's backward steel production capacity,
steel production, but because it had a lowsaid "insensitive" As a result, leading to the side of
inventory of iron ore, complex products willChina's steel industry, complaining about the
definitely increase the demand for iron ore."excess capacity" while also continuing to expand
International investment bank took theproduction, iron and steel production "surge "The
opportunity to "make trouble," the financialtrend is not the situation as income. This has
property of iron ore, "the market for iron orecontributed to China's iron ore demand growth,
price fluctuations significantly. The face of Chinaanother major culprit.
and the Chinese outside of the huge demand forShould take the initiative to adjust China's iron ore
iron ore, third. The international investment banksdemand,. The invisible hand of the market alone,
have released analysis report is expected to price"can not be solved have to rely on" executive
of iron ore this year, the Association will continueinterference "ability to solve this problem. In
a long sharp rise in spot iron ore prices had led toparticular, the need to implement the scientific
rise in spot iron ore mines at present the threedevelopment concept, cancellation GDP
CIF has already broken 150 U.S. dollars ton.assessment, effectively change the mode of
Conversely, iron ore prices quick shot, but alsoeconomic growth.
the international investment bank speculation inThis has contributed to China's current iron ore
the iron ore to obtain huge profits.demand "inflated," one of the main. This is
Oligopoly, the fourth. Let the three iron ore giantsbecause three of China's iron ore market disorder.
in the resource is king "era is definitely a strongChina's current iron ore spot market and long co
position. So called" oligopoly "refers to a smallexistence of two markets and two kinds of
number of sellers (oligopoly) market dominantprices, spreads led to rampant speculation and
market status. Based on analysis, BHP Billiton, Riocause excessive imports of iron ore spot market
Tinto and CVRD the three iron ore giantsprice of a false prosperity and a significant shake.
monopoly industries, and took control of the