HEBEI DONGDING CHEMICAL TRADE CO.,LTD , https://www.hebeiopct.com
Analysts believe that the results of this negotiation have broken the practice of previous negotiations and that the iron ore market may enter a turbulent era in the future. In addition, the cost per ton of steel in the industry will increase by 123 yuan over the previous year. Different from the large-scale steel enterprises that hold long-term supply agreements, many small and medium-sized steel enterprises that rely on spot transactions will be greatly affected.
Henan steel companies certainly could not escape the impact of this iron ore price bull market.
According to Yin Hanbiao, the secretary-general of the Henan Iron and Steel Industry Association, in 2007 Henan's demand for iron ore import procurement was more than 7 million tons, and import dependency accounted for about 40% of total demand. Most of the small and medium-sized steel companies that take the spot trade are bound to have the greatest impact. According to last year's Henan pig iron output conversion, this year's cost will be increased by more than 1.2 billion yuan. "The focus of the Sino-Australian talks is that Australia intends to reduce the total amount of medium and long-term contracts by 10% and allow more Chinese steel mills to accept spot trading." Secretary of the board of directors of a large-scale steel company believes that the high import dependence of raw material rations. The status quo is a fatal weakness that restricts the development of small and medium-sized steel enterprises.
Some optimistic small and medium-sized steel enterprises in the province believe that the cost of iron making by domestic steel mills using imported Australian ore will increase by around RMB 120 per ton, which can be adjusted by price adjustment to absorb the pressure of rising costs.
Enterprises with pessimistic views accounted for the majority. They believe that because of the price of various resources such as fuel and transportation in the past two years, the pressure of enterprises on the cost has been very great. The price of iron ore has risen domestically. Raw material prices in the market will inevitably rise.
On June 23, Sino-Australian iron ore price negotiations finally reached an agreement in the final round: Rio Tinto's PB, Yangdi, PB ore mines will rise on a 2007 basis. 79.88%, 79.88%, 96.5%.