Posted by
Rayee on Tuesday, August 10, 2010 2:13:25 AM
With this year Iron ore price The outcome of negotiations to finalize, including Baosteel, Wuhan Iron and Steel and other leading domestic steel enterprises, including in turn increase the cost. A person of a steel enterprises has revealed, simultaneously inside and outside and find another cheaper Iron ore Sources, will help the domestic steel prices to break the BHP Billiton iron ore giants such as the three "inhibition."
2007, signed in Iron ore prices 65% of the agreement from April 1, 2008 onwards have been officially implemented. Outcome of the negotiations this year, the domestic steel channels enterprises have accepted the proposed Rio Tinto ore powder PB, Yang Di powder ore, PB ore in 2007, up 79.88 percent respectively on the basis, 79.88%, 96.5% of the conditions. Some analysts initially estimated this way, the cost of ore per year WISCO to increase by 10 billion yuan, the steel channels prices will increase the cost of 7.0 billion. With domestic coke, coking coal prices continue to rise, the operating costs of steel channels prices increasing pressure. Wuhan Steel shares
filing shows the company's first quarter of 2008 operating costs of about 12.7 billion; but in the second quarter iron ore prices, the company's operating costs in the second quarter increased to 16.8 billion, compared with the previous quarter growth of 32%. The company's Discussion and Analysis of its operation is also clear that in the first half of 2008, as iron ore, coal and other raw material prices continue to rise to the company has put pressure on operating costs.
These people said recently that the development of domestic resources is difficult in the main channel of high prices of imported cases, to find alternative sources of ore can effectively alleviate the rising cost of steel channels prices.
First, if one can change the status of iron ore import channels, in addition to the existing importers to open up new channels for imports will help steel channels enterprises to grasp the initiative of negotiations.
Data show that the world's iron ore resources are mainly concentrated in Australia, Brazil, Russia, Ukraine, India, Canada, South Africa. Apart from Australia and Brazil, which in addition, Russia's iron ore resources are very abundant. Russia's iron ore resources are mainly embedded in the Siberian region, the current proven reserves of 40 million tons of iron content in 40%. At present this part of the region's mineral resources are mostly undeveloped. Chinese steel channels enterprises, etc., if acquired through intervention, may be able to find another road access to resources.
Present reality is that domestic steel channels enterprises the main source of imported iron ore is Australia's BHP Billiton and Rio Tinto and CVRD in Brazil, strong dependence of its iron ore supply, and therefore negotiations was often threatened to stop supplies.
In addition, the full use of domestic iron ore poor, by improving the process can be addressed to some extent the difficulty of lack of ore. Although the lean ore occupies the main position of domestic ore source, but some poor ore and mineral resources, there are some potential.
Have information to show that China's total iron ore reserves of about 46.2 billion tons, accounting for 17.86% of total world reserves of about iron ore resources per capita was only a quarter of the world average. In the proven iron ore, lean ore in the majority, taste of iron ore is only 10%. Low-grade domestic iron ore resources
, complex and high need to spend a lot of time and cost of mineral processing. Therefore, steel prices generally choose "afar", a large number of imported iron ore. However, brokers researchers that, while domestic iron ore resources are insufficient to symptoms, but also how much help some steel prices lower the cost of imported iron ore.
In fact, steel prices in recent years some of the positive development of the domestic mining. Shougang's Hubei Hubei Province in addition to the high phosphorus iron ore, heavy steel are also developing mines in Sichuan Liangshan. China Steel Association said one expert, the development of domestic mines is conducive for a favorable position in international negotiations.
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