Analyst: Neither negotiation nor worry will affect the daily operation of large steel mills

-Our correspondent Liu Li-Liang iron ore long co-mining contract today ushered in the final deadline, which means that after several months of iron ore price negotiations also to a stage.　　So what will happen to negotiations? Industry insiders believe that, because CISA is still tough, the negotiations are expected to delay to July, in fact, some companies such as Baosteel has been secretly with mines in accordance with the new initial price of the implementation of the 2009 contract.　　When the negotiations are over, if China talks about another price, it will replenishment the contracts that have been executed, so the outcome of the negotiations does not actually affect the domestic large steel mills. According to the rules of the negotiations, the Asian market of Australia and Brazil, the initial prices have been determined, Vale for the Asian market and the European market prices have been consistent over the years, so the traditional meaning of the ore price negotiations have ended, China should in principle, according to the rules of the price.　　However, during the iron ore price negotiations, the hard-line stance shown by CISA as a negotiator has been of particular concern to all markets.　　CISA in the Australian mine, the Brazilian mine, after the determination of prices, refused to price, tough attitude, said the price does not reflect the real supply and demand relationship, the price will cause a total loss of Chinese steel enterprises.　　While CISA is still tough, vowing not to compromise, and the other side of China's steel prices are showing a rising trend. Data show that, as of the weekend, China's steel benchmark price index rose significantly on the chain, compared to the previous week up 2.13%, up 4.44% from May, which is already the 11th consecutive week of steel prices rose, visible domestic steel market is gradually warmer. And the price continues to increase the production and operation Environment of steel mills also significantly improved, in May many domestic steel production and sales volume are significantly increased, according to reports, CISA's 72 large and medium-sized member enterprises to achieve a profit of 1.262 billion yuan, is nearly 9 months since the entire industry for the first month to achieve profitability, and the first 5 months, China's steel companies still lose 2.046 billion yuan. "May steel mills operating level is better, thanks to the iron ore negotiations before the purchase price of raw materials is relatively low." 　　Industry insiders say. China Iron and steel industry net guoying that the outcome of the negotiations, regardless of what will be, reflects the existing problems of China's iron and steel enterprises. In his view, China should try to find more suppliers of iron ore to reduce dependence on large ore suppliers, go out, have planned and step investment in foreign iron ore enterprises in order to acquire more resources, and integrate and co-ordinate iron and steel enterprises so as to stick the iron ore negotiations. On the other hand, to change the current domestic overcapacity situation, reduce the excessive use of iron ore; In addition, improve the profitability of domestic steel enterprises, improve product value-added, reduce the cost of raw materials to the impact of corporate profits, so that we can really improve the iron ore negotiations in the right to speak.