Iron ore negotiations are still making progress.
On March 7, Wang Yifang, deputy of the National People's Congress and general manager of Hebei Iron and Steel Group Co., Ltd., said that Chinese steel companies and global iron ore producers have decided to implement this year's iron ore benchmark price from January 1. He also revealed that although the benchmark price execution time has been agreed, the price has not been determined.
“The international mining giant actually made concessions and didn’t know what the next step was,†said Zhu Xi’an, a steel network analyst.
Talk about Fangfang or Vale China's steel companies and global iron ore producers agree on the implementation price of the benchmark price, and determine to implement this year's iron ore according to the “Chinese fiscal year†(ie January 1 to December 31) Base price.
The reporter learned that this is the authoritative voice of the most breakthrough progress that China has delivered since the iron ore negotiations in the new year. Compared with last year, determining the implementation time of the benchmark price, no matter for the difficult iron ore negotiations, or for the Chinese steel enterprises that are suffering, is undoubtedly the current staged results.
However, He Rongliang, an analyst at the China Merchants Productivity Promotion Center, said that it is vague that China and miners have agreed on the date of implementation of the iron ore benchmark price. “Which miners have determined the benchmark price? This is a problem.â€
A steel company unnamed person in charge told the "Daily Economic News" reporter that the three major miners are different in their respective advantages and disadvantages. The global iron ore producers mentioned here are likely to be Vale. It is reported that, depending on the market location, Vale needs to strengthen market ties with China and will find ways to approach the Chinese market, thus demonstrating the need to cater to the Chinese market.
As of press time, it has not been officially confirmed. "Determining one is also an agreement, and three are also determined." Industry insiders said that there can be no acceptance, even if the benchmark price is determined.
The above-mentioned steel enterprises said that the three major miners currently monopolize 80% of the world's iron ore resources, and China's negotiating position remains passive. He said that the benchmark price execution time in some European countries is generally from April 1 to March 31. The Chinese side has always insisted on sticking to the long-term price mechanism, and now it has broken this rule. If the three major miners must demand higher gains, China's steel companies will face two situations: one is the loss of Chinese steel companies; the other is that Chinese steel companies are transferring the rising cost of iron ore to downstream industries, such as automobiles. Home appliances and other industries.
The division of demand has caused the destruction of cooperation. The reporter learned that since last year, BHP Billiton has lost interest in the benchmark pricing mechanism, resulting in repeated delays in negotiations and eventually “nothingâ€.
According to foreign media reports on March 5, Brazil's Vale is planning to increase the price of iron ore for Brazilian domestic steel companies from April, an increase of 80%. This measure reflects another step in the Vale away from the fixed annual benchmark price.
"The difficulty of this year's negotiations is not smaller than last year. At present, the basis for cooperation between the two sides is relatively weak," said He Rongliang.
It is reported that along with the modernization process of China, India and other emerging industrial countries, the demand for iron ore has gradually increased, and the "two extensions" are closely linked, which further increases the international iron ore monopoly. The demand for iron ore market is growing and tending to differentiate, and sellers are developing towards monopoly. The strength of both sides is changing, resulting in the destruction of the cooperation foundation.
"I can accept it, it is to accept the acceptance of the universal recognition of Chinese steel companies. Last year, the two sides collapsed once." Zhu Xi'an said that even if this year is not discussed, steel companies can not stop production, they must also go into the mine. There is a reference price.
On March 7, Wang Yifang, deputy of the National People's Congress and general manager of Hebei Iron and Steel Group Co., Ltd., said that Chinese steel companies and global iron ore producers have decided to implement this year's iron ore benchmark price from January 1. He also revealed that although the benchmark price execution time has been agreed, the price has not been determined.
“The international mining giant actually made concessions and didn’t know what the next step was,†said Zhu Xi’an, a steel network analyst.
Talk about Fangfang or Vale China's steel companies and global iron ore producers agree on the implementation price of the benchmark price, and determine to implement this year's iron ore according to the “Chinese fiscal year†(ie January 1 to December 31) Base price.
The reporter learned that this is the authoritative voice of the most breakthrough progress that China has delivered since the iron ore negotiations in the new year. Compared with last year, determining the implementation time of the benchmark price, no matter for the difficult iron ore negotiations, or for the Chinese steel enterprises that are suffering, is undoubtedly the current staged results.
However, He Rongliang, an analyst at the China Merchants Productivity Promotion Center, said that it is vague that China and miners have agreed on the date of implementation of the iron ore benchmark price. “Which miners have determined the benchmark price? This is a problem.â€
A steel company unnamed person in charge told the "Daily Economic News" reporter that the three major miners are different in their respective advantages and disadvantages. The global iron ore producers mentioned here are likely to be Vale. It is reported that, depending on the market location, Vale needs to strengthen market ties with China and will find ways to approach the Chinese market, thus demonstrating the need to cater to the Chinese market.
As of press time, it has not been officially confirmed. "Determining one is also an agreement, and three are also determined." Industry insiders said that there can be no acceptance, even if the benchmark price is determined.
The above-mentioned steel enterprises said that the three major miners currently monopolize 80% of the world's iron ore resources, and China's negotiating position remains passive. He said that the benchmark price execution time in some European countries is generally from April 1 to March 31. The Chinese side has always insisted on sticking to the long-term price mechanism, and now it has broken this rule. If the three major miners must demand higher gains, China's steel companies will face two situations: one is the loss of Chinese steel companies; the other is that Chinese steel companies are transferring the rising cost of iron ore to downstream industries, such as automobiles. Home appliances and other industries.
The division of demand has caused the destruction of cooperation. The reporter learned that since last year, BHP Billiton has lost interest in the benchmark pricing mechanism, resulting in repeated delays in negotiations and eventually “nothingâ€.
According to foreign media reports on March 5, Brazil's Vale is planning to increase the price of iron ore for Brazilian domestic steel companies from April, an increase of 80%. This measure reflects another step in the Vale away from the fixed annual benchmark price.
"The difficulty of this year's negotiations is not smaller than last year. At present, the basis for cooperation between the two sides is relatively weak," said He Rongliang.
It is reported that along with the modernization process of China, India and other emerging industrial countries, the demand for iron ore has gradually increased, and the "two extensions" are closely linked, which further increases the international iron ore monopoly. The demand for iron ore market is growing and tending to differentiate, and sellers are developing towards monopoly. The strength of both sides is changing, resulting in the destruction of the cooperation foundation.
"I can accept it, it is to accept the acceptance of the universal recognition of Chinese steel companies. Last year, the two sides collapsed once." Zhu Xi'an said that even if this year is not discussed, steel companies can not stop production, they must also go into the mine. There is a reference price.
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