Iron ore imports to be urgently needed

Recently, Hu and other 4 Rio Tinto employees suspected of theft of state secrets by the State Security Department arrested, Shougang Mining import and export company General Manager Tan Yixin for commercial crime was detained by Beijing police, in the community caused a stir.　　Many believe this is the prelude to a national effort to overhaul the domestic iron ore trade order. This judgment, whether accurate or not, but the need to rectify the iron ore trade market order and the urgency, but there is no doubt.　　The market has been so messed up that the country has suffered significant economic losses and has reached a point where it is not. Since 2003, the world's miners have used China's huge increase in demand for iron ore prices, successive years of profiteering, has risen by 4.6 times times last year. China in 2008 after exhausting all efforts, still have to accept the Brazilian ore price 65%, the Australian ore price 79.88% of the history of the highest rise.　　In the past 6 years, China's steel companies to spend more than the price of more than about more than 700 billion yuan, equivalent to the same period of Chinese steel enterprises profits combined 1 time times more. Before 2002, China had little say in the iron ore market because of its small imports, but since 2003, when China became the largest importer, it still had no say and no influence on the negotiating situation.　　Each negotiation with the Chinese failed, had to submit to the other high price, the world's three major mining giants each time seems to be the pulse of China, the Chinese hand is at hand, no matter how hard China, as the Monkey King always jump out of Buddha's palm. This is because foreign businessmen always hold the trade secrets of China. It is understood that at the beginning of the annual negotiations, the three mines will immediately send people to understand the production of various steel mills, intelligence collection activities are also very intensive, Rio Tinto last year set up a one-to-one research group, in each area of the mainland steel mills have dedicated market research staff. Of course, it's still clear.　　As for the dark, the Australian Chinese stern Hu may have only uncovered the tip of the iceberg. Why is China's huge imports not gaining the corresponding advantage? Because the internal main body pluralism, the benefit divergence is bigger, disperses outward, the result is divided by all. There are more than 2000 Chinese steel companies, uneven technical level, backward production capacity and advanced technology for the market; Property rights are complex and diverse, both state-owned, private and mixed joint-stock, or even Sino-foreign joint ventures, while in the state-owned camp, there are central enterprises such as Baosteel, there are many local government direct management enterprises.　　Different interests starting point and different economic and technical cost, so that they have different demands on the price of raw materials and products. And the National Iron ore import qualification Management system, in the face of complex interest relations, its scientific rationality appears to be riddled with holes. First, this system is considered to take care of the interests of large state-owned enterprises, the interests of many small and medium enterprises are sacrificed. To obtain this qualification of some enterprises, will be low-cost imports of long association of mining high prices to those who do not have the qualification of small enterprises; second, there are a number of qualified traders, only the legal fee is as high as 10%, no qualification of the enterpriseIndustry felt seriously exploited, had to deal directly with foreign businessmen. (Li Fuyong)