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The Chinese steel industry will face an unprecedented reshuffle, steel prices dropped back to 18 years ago, how the steel industry can spend the dark period? Qingdao Port, one of the major ports as domestic iron ore imports is facing a shortage of land situation. As of August 24, China stocks totaled has 98.95 million tons of iron ore in the 30 major ports, the total stock hit a new high in the past 23 weeks. Compared with the same period last year, total inventories increased 3.74 million tons. High inventories reduced demand for iron ore making prices to hit a three-year low. The latest imported ore index is 94 points, compared with the same period last year a decrease of 47.5%, which means the variety of major iron ore prices close to the cut. After crazy investment in the last three years, the domestic steel mills serious excess capacity. Since the second half of last year, China's economic weakness further reduced demand for steel. Domestic steel mills and foreign iron ore giant had to pay the bill for the crazy three years ago. Decline in performance of the three iron ore giants 2009 years ago, a Iranian businessmen managing import and export trade in Yiwu cooperate friends to start iron ore trade. Until this year has been so smooth. Last year, the company sold 300 million tons of iron ore in China, this year could not reach 1 million tons." The sales manager of the company, Mr. Ban said. And company has 100,000 tons and 30 million tons of inventories in Iran and domestic port respectively, a lot of inventory has to stay at the dock for four or five months. However last year these ore from Iran to China within 20 days will be able to find a buyer. In April this year, the Iranian businessman and friend prepare to open up a new mine in the local Iranian, but because few orders were received from China, which was unlimited duration. At the end of last month, BHP Billiton announced to postpone a scale of up to $ 80 billion of spending plan. The plan centered on China, in the next five years to expand its iron ore, coal, energy and base metals sectors. This resolution is in the context of the company's annual profit fell 35%, this is also the first time that the company of profit declines within three years. A few days ago, an analyst at Citigroup point out that Rio Tinto's earnings per share fell about one-fifth, the operating cash flow decreased by 60%, close to the lowest level since the 2009 financial crisis. The experts believe that the Chinese steel production does not appear to have fallen sharply, but the high company of iron ore and steel stocks as well as the future economic development of expectation is sufficient to allow the Big Three to remain cautious for the future, "There is no doubt that the global miner began to worry about the end of the" super cycle "of China's economy for iron ore. ERW Steel pipe, Tinplate, Steel Wire, Steel Section manufacturer, supplier and exporter
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