deputy secretary-general of the china iron and steel association

the three ore monopoly is very strong, their financial strength is relatively strong, a few years ago to rely on ore price skyrocketing has earned windfall profits, so even they now sales are down some of itsitself will not have much impact.deputy secretary-general of the china iron and steel association, chief analyst chi jingdong also believes that the ore price is not easy to fall there is another important reason is that the ore from the mines to the steel mills need to go through a lot of aspects such as transportation, ports, trade companies, the chainon is not a business, this may lead to downstream timely feedback to mining enterprises.the same time, the mine can be adjusted by certain aspects rhythm and the number of market supply,when downstream demand reduction, you can increase the amount of inventory of the intermediate links, which directly led to the current high port stocks. production processes slow down, in short, to regulate the supply of the market through a variety of means, so as to maintain the price of iron ore is relatively stable,he said.chi jingdong this comes down to the ability to control overseas mining of high-quality resources, and admitswithout this ability to control, it is impossible to have such a swap capability.remove the mine itself, the actual operation of the steel mills of ore price noimportant reason for a substantial price.although the steel factory steel market price down, said demand weakened, but the steel mills have not cut ore price to form a strong support.joint metal mesh ore division general manager, senior analyst zhang jiabin now steel mills sad day, but the of its procurement ore willingness to reduce the performance more cautious when purchasingtime to buy much, but multiple purchasethe total amount has not been reduced.for this argument, the aforementioned the shandong steel prices and publicity department director agrees, he pointed out that the procurement will be based on the actual situation of the current production, now, and certainly do not want to look too procurement of mine, basicallyhow much to buy,on the other hand also reduce inventory.his steel mills,we in the ore inventory downward pressure, thus reducing the size of the funds used, the original inventory cycle is 21 days, 14 days, sometimes shorter or even 11 days.he said that, in the case of sales profit margins continued to decline to do so to make an inventory of the funds.such do bring change is the single procurement ore reduced purchase frequency increased, but the yield of the steel mills did not change much, one ton of crude steel fixed consume a certain amount of iron ore, the total orethe demand is no change.ore price just lowered short-term, but relatively firm did not fell sharply.ultimately, as long as the steel mills do not cut, then the demand for raw materials is still rigid.nonesteel mills by mine high prices and sluggish downstream demand double squeeze within the enterprise and industry, which are generally known, after the financial crisis will have a particularly serious, but now, especially when on the downstream price asymmetrychanging.the foregoing shandong staff, said steel prices.china steel association data show that 1-5 months of 2012, large and medium-sized iron and steel enterprises realized profits of only 2.533 billion yuan, down 94.26 percent year-on-year, which enterprises suffered losses totaling 11.749 billion yuan, 32.5% loss.the economic slowdown and weak demand, a serious imbalance in the relationship between supply and demand.in this environment from url:http://crusher.crusherb2b.com/country/b2b_chinacrusher.html