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Domestic large-scale steel mills, said the current head of iron ore mines have been put forward three major long-HS price of iron ore this year, up 50% of the requests, which makes this low-profit status in the increasingly worrying situation of the steel industry. The source said that Rio Tinto iron ore this year, made a long association bid was 50 percent higher than last year's request, and BHP Billiton hopes for some steel mills to implement the spot index price, Vale requires spot prices this year and last year's price of a long association difference on the basis of a further price rise 50 percent requirement. "Baosteel will certainly not ahead of Japan and South Korea steel prices to accept a 50% price rise, or certainly lead to condemning the one, and now steel prices generally low profitability, 50% of the price increase pressure for us," the source said. "But if Japan and South Korea first accepted this price, we can only forced to accept, because the mines could not supply, but the steel can not be cut." "My steel net" analyst Xu Xiangchun, said China's steel prices are now very passive, only by raising prices to shift costs to the downstream, but the market demand can be smoothly absorb up, not a good prediction. He pointed out that steel inventories are still too high. February 22, in 26 large and medium cities, the main steel products of up to 15.68 million tons of social stock, up 51% over the same period last year. The high iron ore spot prices of iron ore negotiations also made the situation even more detrimental to China's steel enterprises. Starting from the last Friday until yesterday, grade 63.5% Indian fine ore to shore up quotes 140-142 U.S. dollars / ton, the highest in nearly 18 months since a new high. As China's steel industry concentration is low, iron ore demand is strong, over the years of iron ore negotiations on China's steel industry has always been in a passive position, there is no right to speak. The soaring price of iron ore to Chinese steel prices has brought a heavy cost burden. In 2008, because of the iron ore spot prices under the hype of all parties are constantly rising, but to accept China's steel prices by almost 80% of the long co-price gains. Two months later, the financial crisis broke out, iron ore spot prices fall, domestic and international steel prices also fell after another, resulting in 2008 China's steel industry, industry-wide losses. In 2009, the financial crisis, has a long association price down 33%, but because of China Steel Association adhere to a higher discount, no agreement between the price, thus turned to the spot market, China's steel prices, or privately with the signing of 33% of the three mines The so-called interim agreement discount prices. 2009 iron and steel industry sales profit margin fell to 2.2%, down 53.4%, China's industrial profit margins less than half of 5.47%. China Steel Association honorary president of the Wu Xichun said: "With such a low profit margin, companies might as well not to produce, direct deposit bank enjoying the interest on the cash." If the iron ore will rise again, the present domestic overcapacity, high inventory the status quo, in 2010 China's steel industry will face even more severe situation. The e-commerce company in China offers quality products such as China Cute Wireless Mouse , China Cartoon Character Toys, and more. For more , please visit Personalized Corporate Gifts today!
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