2012年11月13日星期二

steel enterprises borrow the market troughs game big three ore price do not buy it

none the steel companies hoping to market trough opportunity game with the big three, the hope to drive down the price of iron ore, and to improve the profitability of the industry.but in a monopoly position in the big three are not buying it.mysteel research center lightness of iron ore as a scarce resource products easy up rather than going down the possibility of the return of long-agreed price mode.steel prices to do long-term psychological preparation of the face of high prices of iron ore.none korea, china steel prices recently through a variety of channels, the pressure on the big three, the big three can change the pricing model of the iron ore monthly, quarterly, and return to the previous annual pricinglong associationmode.however, faced with the voice of the steel prices, the big three and disapproval.cvrd iron ore and strategy department heads martins has said in an interview with overseas media,as long as the volatility of the price of iron ore still exists, it is difficult to implement longer-term pricing system.martins, is expected, the next two years, iron orethe prices will be in between 120-180 u.s. dollars / ton.due to the downturn in steel demand in china in the first half of this year, steel demand for iron ore is inhibited, forcing some manufacturers to postpone the iron ore from the mines delivery.another giant rio tinto president of international operations alandavies in an interview with reuters, also said,i think it will not go back to, because our client had hoped to take a short-term pricing mechanism, which is exactly what we have achieved.davies subtext in 2008-2009 when the global financial crisis, due to the iron ore spot prices, most steel producers, especially chinese steel mills contrary to the long-term pricing contracts with the mine, hoping to take the spot pricing.since then, the three mines began to perform quarterly, monthly or spot pricing system.now, steel enterprises want to return the original long association, short-term pricing models have already tasted the sweetness of the big three's apparent reluctance.as of now, the big three, only bhp billiton has not this position.however, due to the interests of the big three are basically the same, has always been the same into the same, therefore, the industry is expected to bhp billiton to return to the issue of thelong associationwill be resolutely opposed.industry analyst told this reporter,japanese and korean steel mills on annual pricing with three mines, we can not, because japan and south korea only two or three too many steel mills only to 2015,iron ore supply is greater than demand, the supply and demand reversed, china's steel mills can hike.none of the big three opposed the return to thelong associationmode, but the big three have said,not optimistic about economic fundamentals, weak downstream demand, coupled with a number of new projects coming into production, mid-iron ore prices will continue to fall.insiders predicted even as downstream demand weakened further, between the big three likely price war occurs, especially cvrd and rio tinto, bhp billiton price competition between.closer to china, korea, japan, shipping distance, has been australia's iron ore in the competition has been in the ascendancy, cvrd at a disadvantage due to higher sea freight.in order to reverse this unfavorable situation, vale invested heavily in plans to build 35 40-ton valemax iron ore transport ship.as of now, there are already 15 valemax put into use before the end of 2013, all 35 valemax will be delivered.the these valemax put into operation, will greatly reduce the cost of brazilian iron ore shipped to china, korea, japan and other major iron ore demand market, so as to enhance the competitiveness between vale and two extension.in addition, the big three continue to expand production capacity, and also in stark contrast with the downstream demand decreases.rio tinto recently announced that it will invest $ 3.7 billion expansion of large-scale iron ore mining in the pilbara of western australia (pilbara).we forecast that the manufacturer needs to yield 700 million tons of iron ore to meet the demand in the next seven to eight years, while the proportion in which about 25% -28%.president of international operations of rio tinto davies said.however, the optimistic expectations of future demand for iron ore giant, corporate executives, many steel and iron and steel industry analyst, said china's future iron ore demand growth will be slowed down significantly, substantial growth in previous yearsthe momentum is certainly difficult to sustain.the industry agreed judgment in 2015, the iron ore supply will exceed demand.iron ore prices will inevitably come down.the analyst said thatfor the supply of iron ore, the miners still keen on china's strong demand for expansion with confidence. ultimately, only the miners fierce competition for customers and each other on price.valevalemax have been put into use, will increase the vale of competition in china's iron ore market, freight stability are critical for mining companies and steel mills, the australian ore freight advantage is expected to be weakened, leading asian ironore market price competition is more intense.ben article for reference only and does not constitute investment advice.investors operate your own risk.

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