China Steel Association: Responding to a sharp increase in price of imported ore must be "inside and outside"

On April 29, 2011, the China Iron and Steel Industry Association held its second industry information conference in 2011. The report pointed out that in the first quarter of this year, the actual purchase cost of 57 domestic large and medium-sized steel production enterprises, coking coal rose 15.17% year on year, injection coal rose 21.35%, metallurgical coke rose 8.77%, domestic iron ore fines rose 42.71%, imported iron ore Stone rose 54.41%. In the first quarter, the average manufacturing cost of steelmaking iron and steel for enterprises rose by 27.52% year-on-year.

In addition, in the first quarter of this year, 17.717 million tons of iron ore was imported, and the average import CIF price was US$156.62/ton, which was a year-on-year increase of US$60.31/ton, or 62.62%.

The Steel Association proposes that the whole industry should actively respond to the adverse effects of the significant price increase of imported iron ore. Faced with the highly monopolistic position of the three major mining companies, they should think calmly and respond positively:

First, we must focus on the highly monopolistic situation of international iron ore seaborne trade, continue to adhere to the “going out” development strategy, increase the investment, development, and shareholding of overseas iron mines, and further increase the proportion of overseas equity mines;

The second is to urge the state to strengthen its policy support for domestic mine production and construction, achieve long-term stability, and continuously increase the output of domestic iron ore;

The third is to standardize the order of imported iron ore market, continue to do a good job in the management of import iron ore agent system and import of iron ore flow.