Limit iron ore to CIF China may accept 33% decline

Actively deal with the two Billiton and iron ore price negotiations-limit the price of iron ore to the shore China or will accept 33% decline in MA steel shares one person in charge said that the raw material fuel price fluctuations to steel enterprise performance uncertainty-Our reporter Liu Li-liang, the Ministry of Industry and the "two Billiton" joint comments, Will pay close attention to the possible impact of its joint, and actively study the corresponding countermeasures. Yesterday, the reporter learned from people familiar with the situation, China or will take restrictions on Brazilian and Australian iron ore to the shore price, the standard reference to Japan and Australia reached a 33% decline in the agreement, if higher than the price, will cancel the import qualification.　　Industry insiders pointed out that this will increase China's bargaining chips in the iron ore negotiations, and will affect spot prices, while the production of domestic steel mills impact. "The ' two-tuo ' joint will inevitably cause a great impact on China's steel industry, damaging the interests of China's steel companies." "Founder Securities Deng Wei-rong said that because China is the world's largest iron ore importer, China last year imports 440 million tons of iron ore, accounting for the world's iron ore trade volume of about 50%." After 2002, international iron ore prices rose for 6 consecutive years. The average CIF price of Chinese imports in 2002 was only $25/ton, up to 136 dollars/ton in 2008, up 5.4 times times.　　In the past 6 years, China's steel companies have been spending more than more than 700 billion yuan on rising prices, equivalent to more than one times the combined profits of Chinese steelmakers. Therefore, the Ministry of Industry has proposed that safeguarding the interests of Chinese steel enterprises from the domestic and foreign two aspects, first, we should pay close attention to the impact of the "two-extension" joint, actively study the countermeasures, improve China's discourse power in the international iron ore pricing; The second is to combine the characteristics of China's resources, increase exploration and development and research efforts, Avoid long-term dependence on imports. Earlier, the World Steel Association and the China Iron and Steel Industry Association also issued a public statement against the "two Billiton" joint.　　Chinese Ministry of Commerce spokesman Yao Jian said 15th that if a certain condition is met, the "two Billiton" case will apply to China's anti-monopoly law. "Although our country in the iron ore price negotiations continue to insist on a tough stance, do not accept the new annual price, the negotiations for a long time delay, and even directly into the 2010 negotiations, but in fact, the steel mills and mining trading has not much impact." Hu, of the URC Union Metal Research Center, said. According to its disclosure, China or will take the limit of Brazilian and Australian iron ore to the shore price, the standard reference to Japan and Australia reached a 33% decline agreement, if higher than the price, will cancel the import qualification.　　If true, this will increase the bargaining chip in China, but this will violate WTO rules, affect spot prices, and then the production of domestic steel mills impact. Jian, an observer for the Joint Advisory economy in Asia, said the final deadline for 2009 International iron ore price negotiations is still two weeks away, but China's tough stance has made it acutely felt that Chinese steelmakers are preparing for a break-up, even though China has nearly billion tons of iron ore stockpiles, the world's biggest buyer, but if the talks break down, The eventual damage may still be in theNational steel industry. "The price of iron ore imported this year has a big impact on the profitability of steel companies, and coal prices are also higher, and the cost control of enterprises is greater."　　"The sharp fluctuations in raw materials and fuel prices will create uncertainty about the performance of the steel companies this year," said a head of the MA steel stock. A person in Laiwu Steel group said the domestic steel industry needed to prepare for a long winter, especially under the pressure of overcapacity, insufficient demand, rising social inventories, unclear iron ore negotiations and imports of low-cost foreign products, particularly in the case of a deep freeze in export markets.