[Nickel, chromium ore] Chinese enterprises should actively respond to chromium nickel ore resources risk

Since the second half of 2006, China's imports of chrome ore and nickel prices have soared, forming a tight resources. high price situation. The industry believes that led to the current situation is mainly due to iron and steel enterprises decentralized procurement enterprises, too many channels, making Price confusion. Appeal to the industry, the country should strengthen import of chrome ore, ferrochrome and nickel raw materials enterprises macro guidance, the implementation of a market access system improving access threshold; Meanwhile, China's steel, mining, ferroalloy and other industry organizations should continue to play an active coordinating role. Stainless steel producers with nickel, ferrochrome suppliers to strengthen long-term cooperation, gradually from the current decentralized external to the joint external, This helps select suitable products, and enhance Pricing Right, help reduce freight and procurement costs.
Current market chrome ore, nickel ore tension and the reason is China's stainless steel production capacity of the fast release. In 2006, China's crude steel output of stainless steel, 530 million tons in 2005 compared with an increase of 214 million tons. At present, the country has built stainless steel smelting capacity of 10 million tons, more than the entire European smelting capacity. As the stainless steel industry's rapid development, China's concept of chronology ferrochrome consumption of about 1.8 million tons, This has not only promoted the domestic ferrochrome industry's rapid development, but also spurred the chrome ore import also allows foreign ferrochrome substantial increase in the volume of imports. Chinese stainless steel industry development, and an increase in imports of chrome ore, chromium iron, while also boosted chromium ore, ferrochrome prices improved.
China ferrochrome production of chrome ore about 95% more on imports, chromium ore resources are concentrated mainly in South Africa, India, Kazakhstan and other countries. As the cost of imported raw materials is high, China mainly relies on imports of chromium ore, Nickel production of ferrochrome and nickel iron enterprises subject to the rising prices of raw materials production cost pressure simultaneously allow our ferrochrome prices significantly higher than international prices. In particular, India, South Africa and other countries to raise tariffs and restrictions on export policy, exacerbated by the shortage of resources and the improvement of market prices. Ferrochrome, nickel prices climbed, leading to the downstream stainless steel production enterprises substantially increase the cost of production; and the consumer market for stainless steel at high prices of stainless steel products for limited capacity, made of stainless steel production enterprises are facing dual pressures. Domestic stainless steel production enterprises and chrome ore, nickel ore dealers and ferrochrome, nickel, iron production enterprises should cooperate with each other, enhance external negotiating capacity and price negotiations right to speak, and to jointly cope with chromium ore, nickel ore prices skyrocketing and resources about the dangers of tension.