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China Steel Association will provide a unified iron ore impo

     Zhong Guangwang Beijing August 1, according to Voice of China "Global Chinese Radio Network" 12:15 to reports, China

Iron and Steel Industry Association "in 2009 the third conference, industry information," was held in Beijing

yesterday, it was announced in a then the heavy news: China's foreign import of iron ore pricing mechanism will make

significant adjustments in the future will be a unified iron ore import prices.

    China Steel Association: The reunification of iron ore import prices

    In accordance with international practice, by the supply and demand determine the price of the negotiations as a

national uniform price, iron and steel enterprises and commercial enterprises must be rigorously enforced to avoid

speculation. Currently there are two iron ore market price is equivalent to the wholesale price of a preferential

price, the other is the spot price, is equal to the retail price, it is this the price mechanism, resulting in some

imported qualified companies in order to earn more Big profits, reselling iron ore. Therefore, China Steel

Association believes that the proposed unified national price of imported iron ore is expected to change the current

market pricing chaotic situation.

    In the uproar of the "Rio Tinto case", the letter of the Ministry of Steel union workers and other relevant

government departments have several times said that the next step is to intensify our efforts to rectify the order

of China's imports of iron ore. Steel in the previous six co-executive director of the third conference, China's

steel industry VIP who we are using "non-rectification can not be completely resolved" and other hard-line attitude,

emphasized that the current chaos and order in the domestic iron ore supply and demand distortions.

    China Steel Association, said the Secretary-General Shan Shang-Hua: Once in 2009 China imported iron ore price

of national unity, all the Chinese enterprises, have to perform a price. In the present the most sensitive moment,

the attitude of those influentials, is bound to lead, "Rio Tinto's case," the outstanding 09 under the influence of

the annual iron ore negotiations go.

    Experts: This year will be little effect on short-term exploratory stage

    So, to resolve the confusion in China's iron ore imports the most effective measure that? The introduction of

this provision of the next iron ore negotiations will play what kind of impact? China Voice Connection energy

experts Metallurgical Institute of Beijing University of Science and Technology Professor Xu Zhongbo.

    Moderator: Xu Professor, Hello!

    Professor Xu: Hello.

    Moderator: excessive imports of iron ore in the first half of the domestic situation is very serious, resulting

in a large number of imported iron ore port stocks of domestic backlog and the unloading time of shipping from Hong

Kong to be extended. This has not only pushed up the sea freight, but also seriously disturbed the iron ore trade

order, do you think the consequences for this reason?

    Professor Xu: mainly iron ore traders they think may be the future market price of iron ore will rise, sea

freight is relatively low, a lot of imported iron ore, on ports, until a time when prices re - Sell. Imports most

are the top ten of the largest iron ore traders. Here a large central level, ample funds but did not play a much

smaller role, mainly in the big play a role.

    Moderator: According to statistics, imports of iron ore 112 eligible enterprises, while the actual import

enterprises reached 152, so some experts analyzed that qualification should be imported iron ore concentrate to 5-10

in the hands of domestic large steel companies to; only the right to be more sharply focused on imports in order to

solve the problem. Expert opinion do you agree? Or do you think the domestic iron ore market to rectify trade order,

it should be several areas where the task? Effective measures for that?

    Professor Xu: Because foreign imports of iron ore businesses are steel itself, his own to buy their own, so they

may be more rational analysis of the market. Because China is a big traders want to buy low and sell high, they have

developed the interest-driven, good intentions is to reduce imports. The easiest way I think our Chinese market

economy, steel imports of iron ore to give them more right to buy for ourselves there will be no reselling of the

problem. Because all of the steel can buy the iron ore contract price, then reselling of steel mills and iron ore

traders are definitely eliminated.

    Over the past time to ask the small steel mills can not buy iron ore, steel mills because of the small green is

not good, hope that they stay in the game, and now look at this wish is not realized, but to create profitable in

inverted iron ore. Work out a new letter to the Ministry of science policy, after the steel mills, big or small,

need to close the steel mill is to see whether environmental compliance, it is very science.

    Moderator: Actually, we all know that in 2009, this dramatic and the smell of gunpowder filled the iron ore

negotiations, China's negotiators have always wanted to efforts to establish a new model for China's imports of iron

ore, and gradually to change the world iron ore trade overseas by a small number of foreign enterprises the pricing

mechanism. So this provision was adopted for the next iron ore negotiations, what kind of impact can play?

    Professor Xu: I think this provides for the negotiation of iron ore this year, or no major impact on next year,

this is basically the foreign, including Japanese, Chinese, Europeans are waiting to negotiate the price out, but

the Chinese to negotiate for a long time with no results, so they talked themselves out. Foreign steel mills are the

final buyers and sellers negotiate the final. I think now that the domestic demand for steel is increasing, I think

it is a facade. The fourth quarter, you will find that demand does not increase, steel will be cut, steel prices

will fall in iron ore prices will fall this year, since it has been dragged on for so long, it can drag its feet.

Including the foreign economy as a whole has not changed for the better, waiting time has no effect on the steel

mill operations. So this year is equal to saying that an exploratory stage, of course, that if they want Brazil to

propose a reasonable price wise, preferring to lose out a bit with the Chinese to make friends, but they do not have

this vision it is difficult to say. Central Taiwan is now old and out of two ads, they are going to want to make

friends, they want long-term interests, this time with the Chinese is their best chance to make friends.