10% Long Association Mine was resold iron ore "property flips" last year swept away more than 20 billion

Every reporter Zhangchao from Beijing although in 2006 issued the "on the promotion of iron ore import agency," this year, in a high-profile advance of the iron and steel industry import trade Order self-discipline Convention, the iron ore import agency, but CISA to standardize the domestic iron ore import order was not realized.　　Customs data show that in May this year, China's total imports of iron ore 241.89 million tons, an increase of 25.9%, some iron ore traders even wantonly import and stockpiling of iron ore, iron ore disorderly rise than before, reselling the disease of the ore has not been fundamentally removed.　　Shing, Deputy Secretary-General of the Chamber of Commerce of China's metallurgical industry, said that some large steel companies would usually import some extra iron ore for their own use in order to gain trade profits, while small and medium-sized traders traded in domestic ore, many more than once. Multiple resell middlemen intercept profiteering "half of our iron ore comes from small and medium traders who are not qualified to import iron ore. Tangshan Fengrun District A steel enterprises in charge told reporters.　　It is understood that the company's steel production capacity of less than 2 million tons per year, in the eyes of large steel companies and traders, the basic can be ignored, in addition to buying from the domestic market, the company can only from a number of small and medium-sized traders buy goods. Reporters in my steel, billion and other websites found a large number of not CISA import qualification list, but sell iron ore trading company. After several rounds, the reporter to buy ore in the name of the contact is located in Nanjing Shanxi Road, 33rd, a name Nanjing import and Export Co., Ltd. Mr. Zhu.　　Mr Zhu told reporters that the big respect company is "with foreign miners have direct contact." Mr Zhu admits that the company does not have an iron ore import qualification, "but no qualification does not represent the inability to import." He said the company got all the mine agent price, and then through the "platform company operation." However, he said that this year's business is not as good as last year, "No imports last year, from other people's hands and then resell can make money." "In the first half of last year, there were a lot of" property flips "like big companies. "It seems that only 112 of enterprises with imported qualifications, in fact, under the development of 300~500 home, a large number of middlemen in the inside profiteering, small and medium-sized steel enterprises to take the interests of them."　　"My steel network deputy general manager Jialiang told reporters. "Generally is the agent increases 30%~50% resell to the middleman, the middleman increases 50% or even more reselling to the steel enterprise, some also passes through many hands to resell." "A trader with import qualifications told reporters.　　According to his estimate, last year middlemen reselling iron ore profits not less than 8 billion yuan.　　In an interview with the media, Xutao, deputy general manager of Tangshan Jianlong Company, said that 2008 long co-mining price of about a ton of 700~800 yuan, but in July, Tangshan Jianlong from the hands of the agency to buy the price per ton of up to 1400 yuan, after several resell, iron ore price doubled nearly. Qingdao Iron ore agent business people do not deny that iron ore prices doubled one said he said sinceOwn company is the first class agent, resale "Increase 50%", a lot of ore has been resold many times, prices may rise again. But Mr Zhu thinks doubling prices is the past.　　Taking 63.5% of India's iron ore, for example, this year he gave reporters a price of $69.75 a tonne, and in the same period last year he can sell more than 3 times times the prices. "When the market is good (middlemen), when the market is poor there is no room to pour, the middleman is less."　　At Umetal, director of the union metal Net iron ore channel, said the reselling of iron ore was a lucrative industry for a long time last year. A handful of businesses borrowed privileged profit Jialiang told the Daily Economic news, only in the first 8 months of last year, China imports 320 million tons of iron ore, of which the proportion of the long association is close to 60%, of which more than 10% of the long Association of mines were taken to the market reselling, "at least 30 million tons, the average price per ton at more than 500 yuan."　　According to Jialiang estimates, last year, the import enterprises to resell the long association of ore income at least more than 20 billion yuan. In a telephone interview with the Daily economic news, Qingdao, Shandong, an iron ore import enterprise Staff default of the issue of agency fees, he said this is the industry's open secret, belonging to the "industry rules."　　At Umetal also said that steel mills sell iron ore profits even higher than traders. Some analysts said that last year, a large iron and steel company in the south of the year sales of nearly 4 million tons, pure profit of not less than 1.8 billion yuan, accounting for its total profit of nearly 30%. "Last year, the benefits of large steel enterprises are not very good, if there is no external support for iron ore, many enterprises are unsustainable capital chain."　　"The person said.　　Jialiang told reporters that China currently has iron ore import qualification of enterprises a total of 112, although the state has "agency fees 3% to 5%" provisions, but in the actual operation process, the provisions on agency fees have become scrap. "The import agent is for the small and medium steel enterprises that have no import qualification, but in fact it has become the privilege of making profits for a few large enterprises or traders."　　"The director of Steel enterprise who does not want to be named said.　　According to the relevant policies, only enterprises with iron ore import qualification can enjoy the Chang of imported iron ores, and small and medium-sized steel enterprises can only have imported qualified Enterprise agent trading ore. As for why to increase fares, some traders explained to reporters that last year's iron ore is a seller's market, the supply and demand relationship is more tense, so we generally fare increase.　　He said the fare increases were high and low, and that his company's average fare increase "should be 50%".　　However, such a reason seems too prevarication, reporters found in the interview, the temptation of huge profits is agents, intermediaries are willing to "second-hand" or even "three hands" "four hands" reselling the real reason.　　It turns out that steel companies and traders with imported qualifications have been importing iron ore for nearly two years, but this import is not really a rational act. Because of this, at the beginning of this year's China Iron and Steel Industry Association Council meeting, CISA Secretary General Mr Shan said that the 2008 Chinese steel Enterprises Import order is very chaotic, excessiveImports of iron ore 100 million tons, only this one Chinese enterprises to pay more than 180 billion yuan, Mr Shan also said that this is the main reason for the loss of Chinese steel companies. "The profits from reselling iron ore may be much higher than the production of steel," he said. "Jiang, chief researcher of the CIC energy industry, told the Daily economic news. Foreign media data show that January-May this year, China's cumulative imports of iron ore 242 million tons, compared with a year earlier year-on-year growth of 26%.　　In the first quarter of 2009, the entire steel industry sales revenue was only 449.99 billion yuan, down 22% from the same period, the overall loss of 3.31 billion yuan, and 2008 the first quarter of the steel industry to achieve a profit of up to 44.16 billion yuan. "In other words, in the domestic steel industry as a whole is still depressed, the real demand does not exist, iron ore imports are constantly hitting new highs, which can only show from steel companies to traders in the raw material iron ore game, which is certainly profitable, otherwise they will not be so happy."　　"Jiang said. The agency was questioned. In fact, the state of the process of selling iron ore in the course of import is not today, and it was prevalent a few years ago.　　In order to resolve this confusion, in 2006, CISA and Minmetals jointly issued the "on the promotion of iron ore import agent system," in order to gradually promote the iron ore import agency and the record, "opinion" requires importers to import iron ore before the import information submitted to the Ministry of Commerce.　　But at Umetal said that the record has been carried out, but the filing system is only for iron ore imports to record, and in the sales do not record, which also directly lead to agents reselling ore can not be limited.　　February 2009, CISA adopted the "Iron and steel industry import trade Order self-discipline Convention", the Convention again stipulates that no imports of mineral qualifications or small small and medium-sized iron and steel enterprises to take the principal agent for the import of iron ore, in order to prohibit traders to pour ore, fry ore.　　However, from the previous media has burst "small steel enterprises defection" and other market rumors, the provisions appear to have little effect.　　At Umetal told reporters, because the agent policy of the right to the wrong, coupled with the current spot price has been lower than the intention of the Chang, the market for the agency has not produced much to cater to. From the actual situation of reporters interviewed, in the market instability, small and medium-sized steel mills are more willing to choose flexible and cheap spot market to buy ore, Shanxi Zhongyang Steel management told reporters that they will of course choose a lower price of the spot mine.　　Zhongyang Steel and new Jin steel have been confirmed to have signed a long-term supply agreement with Vale. In fact, CISA's intention to implement the Agency is to standardize the import order of iron ore, on the other hand, to safeguard the interests of small and medium-sized steel companies.　　However, many small and medium traders and professionals have raised objections to the agency, they believe that the number of domestic steel enterprises, scale differences, uneven development level, is unlikely to use a price to restrain everyone. Shing said, "many state-owned large steel mills sell ore to a variety of distributors, small and medium-sized steel enterprises in itself is notRight, if they do not regulate their behavior, will only lead to a greater monopoly. Zhang Changhan, the world's steel dynamic analyst, said that CISA's agency was originally a study of Japan and Korea, but not as much.　　It is understood that most of the Japanese steel companies by three wells, Sumitomo, such as several major trading agency procurement agent, and several major companies and clear regional boundaries, which can coordinate with each other, but also to ensure the stable price of iron ore. "The agency itself is not a problem, the key is how to choose ' Agent '."　　Jiang said that instead of looking for some small and medium steel enterprises dissatisfied with their homes, it would be better for CISA to do the "agent" and co-ordinate the planning so as to avoid the "backfire" tragedy in the iron ore negotiations. CISA adheres to the bottom line iron ore into the "post-long association era" every reporter Zhangchao from Beijing yesterday is the traditional international iron ore price negotiation deadline, many long-term contracts will expire at the end of the day's business hours.　　The FT's article said Rio Tinto had once again threatened to sell iron ore in the spot market if it failed to reach an agreement by June 30. But as of press time, the two sides did not reach any agreement. CISA Secretary Mr Shan yesterday in a telephone interview with the Daily Economic news, "The steel Association has been prepared for the worst and we will stick to the bottom line."　　Zhang Changhan, senior analyst at the World's steel dynamics, said that starting July 1, iron ore will enter the "post-long era" of no benchmark price. The impact of the current situation on the enterprise is not as serious as expected.　　"My steel network deputy general manager Jialiang yesterday easy to say, June 30 is not" Doomsday ", can reach long association also does not affect the production of steel enterprise. "At least for the moment it's not feeling affected.　　"Hebei Province, a large steel plant managers told reporters that the current company is in accordance with the spot price purchase, the previous period of time, the spot price even than Chang still have advantages, the company's existing stock of ore can guarantee 3 months of normal production. According to people familiar with the situation, although there are a number of steel companies in the long association contract expires on June 30, but many contracts have additional terms, "steel companies can be renewed on this basis." "The small and medium steel enterprises that do not enjoy the long-term treatment will not pay much attention to the negotiation of the long association, earlier in the interview with the" Daily economic news ", Hebei, a steel company without iron ore import and export rights, said clearly," long association negotiations are steel concord big business, and we do not matter. " Compared to long-time negotiations, the company is more willing to put its energies into the spot market. "and has been signed with the three major mine long-term supply agreement of Shanxi New Jin steel A person is quite complacent," We are also counted for the rainy day. "Since last August, steel mills have not carried out Chang."　　Jialiang said that, in the aftermath of the financial crisis, last year's Chang actually ended after August, with steel companies and mines either in cash or on a discounted basis for ore trading. Ample iron ore inventories have also made many domestic steelmakers less anxious about negotiations. Customs data show that the total of our country in the previous MayImports of iron ore 241.89 million tons, iron ore inventory has been more than 100 million tons, "these stocks until August is not a problem."　　"Jialiang said. Both sides are still talking. Although analysts are pessimistic about the consensus on both sides, the signals from both sides are "still in negotiations".　　The Financial Times quoted sources as saying that on the night of June 29, the world's three largest mining giants have been in intensive supply negotiations with Chinese steelmakers. "There is no doubt that both the mine and the steel companies want to achieve this year's price agreement, but the analysis is huge and the chances of reaching an agreement are slim."　　"The foreign media concerned about the iron ore negotiations are almost unanimous in this view.　　After the three mines and the world's iron and steel companies to reach the annual benchmark price, CISA has been adhering to the bottom line of the hard-line stance, but in the real market prices soared in the reality, mining enterprises do not retreat. According to Barclays Capital statistics, spot prices for iron ore shipped to China have risen about 25% per cent in June.　　June 29, iron ore spot price rose to 4 months of the highest level, reached 81.5 U.S. dollars per ton, more than the mine and Japan and South Korea steel mills reached a decline of 33% Chang. "Spot price increases will make the mine in the negotiations with CISA more hard-line stance." "Jialiang said. Rio Tinto has also threatened to sell iron ore in the spot market if it fails to reach an agreement by June 30.　　In fact, Rio Tinto is selling almost half of its iron ore this year.　　Nonetheless, Rio Tinto and Vale have recently signaled that they are still negotiating with their Chinese clients to quell speculation that the talks have broken down in the market. "Mines need to sell ore, China needs ore, neither side can leave."　　Jialiang said the industry is widely expected, "still in consultation" will be the future of the two sides common rhetoric.　　Although CISA and the mines are "still in talks", Zhang Changhan said the gap between the two sides is great, perhaps unable to reach an agreement, the last decades of the annual iron ore index pricing system may end, iron ore trading may enter the "post-long association era." "China is the world's largest iron ore market, and we have to establish a new price negotiation mechanism based on our actual needs," Mr Shan in an interview with the Daily economic news. "In this case, the market forecast may favour a semi-annual pricing or quarterly pricing, but in an interview with the Daily Economic news, Mr Shan did not agree."