International miner "Yang Seek": China iron ore spot transaction investigation

concerned, sneak.　　CISA June 1 explicitly rejected "Rio Tinto and Japan and South Korea Steel enterprises reached the ' price reduction of 33% ' iron ore Chang," the three major international miners are still at the negotiating table with the Chinese side continued "Cold War." But Rio Tinto "do not expect negotiations with the Chinese steel mills will soon result."　　In fact, after the fourth quarter of 2008, they have a new strategy in the Chinese market-spot trading. 2009 years ago, in 5 months, Chinese iron ore imports were 32.65 million tonnes, 46.74 million tonnes, 52.08 million tonnes, 57 million tonnes and 55 million tonnes respectively. According to historical data, the normal monthly import volume of Chinese iron ore is only 30 million tons. According to the United Metal net iron ore analyst Hu estimates: "At present, in the Chinese market, the proportion of spot ore is at least 50%."　　"In the opinion of CISA Secretary General Mr Shan, traders and small and medium-sized steel mills have supported China's" vast majority of iron ore imports, and the two and the three major miners are mainly "spot transactions."　　Citigroup reported that the big three international miners "accelerate the spot sales to China is unusual move", "may be aimed at locking the future market share, weakening the contract pricing system (Chang)."　　While CISA is still struggling to "Chang" a bigger drop, the "yang" of the three international miners is a drastic reduction in reliance on "long-contract contracts". Rio Tinto has publicly disclosed that, by early June 2009, about 50% of its iron ore production in the Pilbara was sold through the spot market.　　In 2008, the ratio was only 9%.　　A medium-sized steel Plant "honored" Wanfang (alias) is Hebei province Wuan a medium-sized private steel enterprises in charge of the recent, his work is focused on, "the Organization of brothers and enterprises to buy a joint mine."　　At the end of March 2009, spot iron ore prices fell to 62 U.S. dollars/ton, compared to the 2008 Chang, the decline has reached 50%, a record low. At that time, Wanfang and several other steel enterprises in charge of the decision, will be the iron ore import volume together, directly from the three major mines to buy mine.　　For more than 10 years, it was the first time the steel plant had bought a mine directly from an international miner. Prior to this, because there is no "iron ore import qualification", Wanfang mainly through two ways to purchase foreign mines: first, pay the import value of about 5% of the Commission, through the import of qualified traders purchase; second, from large steel mills in the hands of high-priced buy "second-hand" long association mine.　　Wanfang said that this directly led to the cost of its import ore than large steel mills above 20%. Today, Wanfang is sending people to Rio Tinto's shipping meeting in Shanghai every month.　　In fact, in such a shipping meeting, "Iron ore import qualification" has been in the name, "Who wants the goods are issued." "In the beginning is a ship into the ship, very cautious, and then slowly increased the purchase volume, May into more than 1 million tons." Last year we went from the spot market to 5 million tons, estimated to be 10 million tons this year.　　Wanfang said. June 8, in the acceptance of this newspaperInterview, old million mood is good: "This year, we can hang up the number, how much can take." But in the past, we don't even think about it.　　June 9, the United metal net provided data showed that the international iron ore "spot FOB price" of about 58 U.S. dollars/ton, lower than Rio Tinto and Japan and South Korea reached the "new Chang" 60 USD/ton. "We feel that the price will not fall any further, and the long Association price (which the Chinese side will talk about) will not be lower than this price."　　Wanfang said.　　Three major miners to lower the threshold the three international miners deliberately put low posture, the achievement of China's small and medium-sized Steel Enterprises "honored." A trader who also has no "iron ore import qualification" told our correspondent that the spot deal between Rio Tinto and BHP Billiton had "become more and more insane" from the beginning of 2009.　　According to its disclosure, Rio Tinto "every month in Shanghai, who want to send goods, the settlement method is also more flexible", even, "Rio Tinto's shipments have fallen to 30,000 tons, and the previous lowest shipping unit is also 1 ships (200,000 tons)".　　In the opinion of my vice president of Steel network, Rio Tinto and BHP Billiton's plan to expand spot mining sales is not surprising, Jialiang "the urgency of its sales desire, the threshold so low". "BHP Billiton now has the heart to do ' spot index trading ' and Rio Tinto has a ' packaging strategy ' for Chinese clients, either with the initial price or the spot market.　　"A senior member of a high level to our correspondent said. Brazil's Vale, which has always been secretive about the spot market, has for the first time publicly affirmed the spot market deal. In mid-May, Zhu Kai, president of Vale China, said to reporters: "We have never sold ore in the spot market."　　"As for Vale's" spot strategy "in China, Citigroup said" It is unusual for Vale to speed up spot sales to China "because," Vale is usually to sell most of its iron ore to the more geographically close European and American markets ".　　The top executives said Vale did carry out spot trading in the Chinese market because it was "not willing to accept the price requirements [in the iron ore negotiations] higher than Rio Tinto" and had to join the spot market.　　Vale may eventually give up Chang, for two reasons: Vale is unwilling to sell at low prices, and the second is that even if Chang is signed, it will be difficult for China to lock in sea freight, which is bound to affect its sales, given the soaring sea freight costs.　　Vale has also changed its previous "haughty attitude" to sell more spot mines in China. "Previously, not performing a long concord with the client, Vale was adamant not to supply it to the spot, but now, without performing the contract, it can also buy its spot mine."　　And, unlike Rio Tinto and BHP Billiton, Vale will also take the initiative to help customers find boats to make up for a two or three times times more vulnerable than the seaborne cost of Australia.　　International miners ' hands ready 1981 to date, the three major international miners to the "long association" and "Spot Mine", is always the hands of preparation. The so-called "Chang" that, after the iron ore supplyNegotiations between the vendor and the consumer will determine the price of iron ore within a financial year and, once the price is determined, the parties shall execute it within one year in accordance with the price set.　　For consumers (steel companies), it means locking costs.　　And compared to a year locked "Chang", "spot price" is completely builders, immediate response to the economic environment and market supply and demand changes. Until 2008, "Chang" is a normal state of being below the "spot price".　　Get the difference between "spot mine" and "long co-mining", become the direct power of international miners to increase spot sales. CISA's data showed that in 2007, 21 Chinese steelmakers and Rio Tinto signed a "long association" contract of 60.73 million tons, but Rio Tinto's actual supply volume is only 52.37 million tons, the contract execution rate is 86.24%.　　Among them, 7 enterprises contract execution rate below 80%, the lowest is only 53.17%. Because the spot price is too high, the interest is driven, the mine looks for the reason not to send the long association goods, the resale spot. "Hu said.　　Rio Tinto sold less than 15 million tonnes of spot ore in 2008, accounting for about 9% of the total, while BHP Billiton sold 19 million tonnes of iron ore to the spot market, accounting for 15% of the total.　　But after the fourth quarter of 2008, the situation reversed-iron ore "spot price" below "Chang". However, the big three miners are still seeking to expand the spot mine sales. "In the 4 quarter of 2008, steel mills do not have a long association mine, mining No way, had to sell spot."　　"Hu said.　　But for the big three miners, it's not all bad. In addition to avoiding low lock prices, there is a chance to wait for the market to rebound.　　In early June, when Rio Tinto announced a high-profile "spot sales of iron ore to 50%", it also released a signal to demand parties, including China, that it does not rely on long contracts.　　On June 4, UBS also stated in a report that in the future, iron ore sales may be in the spot market, "China will gradually become a major spot buyer", "We look at the spot market as a growth market, so the iron ore producer's income, will increasingly reflect the cash market contribution to corporate income."　　The flow of iron ore but in Jialiang's view, the three major miners "spot transaction" also has the momentum of the composition. "Each year, the big three will push the Chinese to compromise by pulling up the spot market price or by threatening to increase spot sales," he said.　　"It's just that the dark war in the spot market this year is more exciting and intense than in the past," Jialiang said. "Since 2009, the boom in China's iron ore spot market has been far from the market's expectation." "But the decline in demand in the steel market is the fact that the amount of iron ore that does not match the development of the industry is clearly contrary to the objective law of the market." According to customs data, in 2009 1-May, China's iron ore imports were 32.65 million tonnes, 46.74 million tonnes, 52.08 million tonnes, 57 million tonnes and 55 million tonnes respectively. And in the first 4 months, the average increase was 22.9%.。　　According to the local traders and steel companies to the monthly report to CISA iron ore import data, as of April, iron ore imports of the top 5 enterprises, 3 are large traders. In the view of Mr Shan, the secretary general of CISA, it is the spot trade between the traders and the small and medium-sized mills and the three major miners that underpins the current "most iron ore imports" in China.　　Mr Shan further explained that in the case of the general loss of steel enterprises, large steel companies will generally strictly according to the production needs of imports, if the main imports of large steel enterprises, iron ore imports will not "exceed the normal import volume (30 million tons/month)".　　In fact, this is a day-long iron ore, still waiting for China's capacity to digest. The port is the window that directly observes the iron ore circulation condition.　　According to CISA statistics, at present, the national main port iron ore inventory of 70.77 million tons, for normal port inventory 2.3 times times. And this reporter from the domestic three major iron ore ports (Qingdao port, Rizhao Port, Tianjin Port) to understand that as of June 5, the three major ports have varying degrees of ports phenomenon. Among them, Qingdao port ports 4-5 days, inventory of 9.3 million tons, Rizhao port ports 7 days, inventory of 9.4 million tons, Tianjin port ports 15-16 days, inventory of 5.66 million tons.