[Iron ore] In recent years, China's imports of iron ore market trend analysis

By the rapid development of the iron and steel industry, from 2003, China's iron ore imports surged, iron ore prices to rise, and continuously set the historical record, the domestic steel enterprises profit has been compressed while foreign suppliers of iron ore profit is huge. China's iron and steel industry significantly accelerate growth starting in 2001. China's 2000 crude steel output in the growth rate 4.18%, in 2001 crude steel output growth at 18% Since then domestic crude steel production to an annual average of 22.59% in the growth rate of growth (Figure 1) With the domestic steel industry's rapid development, the iron ore increasing dependence on the outside world, Iron ore imports in 2003 from the beginning of volume and price Chai Sing. From Figure 2 and Figure 3 shows ,2001-2003 first half domestic price of iron ore is basically stable operation of the state, prices have been hovering between 24 -28 dollars / tons. from the second half of 2003, the iron ore market prices to break long-term stable situation, which has been soaring, in 2004, swept to the highest point, the average price of 73 dollars / ton, Subsequently, the 2005 -2006 The price of iron ore has been on the high end. in 2005 the average price of iron ore imports 66.74 U.S. dollars / ton, the average price of imports, is the highest in the year, in 2004 and 2006 respectively in the average price of imports 61.09 U.S. dollars / ton and 64.12 U.S. dollars / ton. Enter 2007, iron ore prices scale new heights, The first four months of imports of iron ore in the average price 71.82 U.S. dollars / ton, the highest average price in April. to 75 dollars / ton.
At present, China's iron and steel industry is on the upswing period, will maintain a rapid growth rate, So the demand for iron ore will continue to increase, the growth of domestic ore still can not make up for the shortfall in the current iron ore, Steel industry raw materials bottlenecks have become increasingly prominent, but also rely heavily on imported iron ore. For this reason, to promote the international iron ore prices keep rising. In recent years, with China and India and other countries substantially increase production of iron ore, shake to a large extent and Australia will certainly develop, Extension of Brazil and River Valley's three major iron ore giant monopoly, This is conducive to stabilize the international iron ore and sea freight prices, increased imports of iron ore country's bargaining chips. In February 2007, the Indian government announced on iron ore exports to levy high tariffs to restrict the export of iron ore, China and India due to the iron ore trade mainly in cash, the prices were the most affected. Although traders were "unile" boycott attitude, but has failed to stop the Indian government to levy tariffs introduced determination. India's Ministry of Finance on May 3 announced that the ore grade 62 to 300 rupees levy rate (about 7 U.S. dollars / ton). 62 below grade collected 50 rupees (1.17 U.S. dollars / ton) rate. Indian government imposed export tariffs on the move again to the international iron ore spot market into a tonic, From the beginning of iron ore in March began a new round of Biao or, in April a record-high average price of imports. reach 75 U.S. dollars / ton. This fully reflects the global countries are strengthening control of resources, especially non-renewable resources. In order to change the import of iron ore in a passive situation, domestic traders and steel enterprises are actively seeking solutions, While vigorously developing the domestic iron ore resources, and on the other hand increase in the share of the contract goods, with the iron ore suppliers to forge closer relations of cooperation, but also actively expanding multi-channel imports. from other countries to increase the volume of imports, to reduce the risk of imports.
4-5 in 2007 the Chinese government has taken a series of measures to control the export of steel, In particular, export taxes and export permits the implementation of the system, its role has started to become apparent, effect will be to fully reflect the second half, it will be to some extent inhibited steel exports, the impact of steel production enterprises, reduce the demand for iron ore, which led to China's imports of iron ore prices decline. However, in the international mineral resources to reduce the overall environment, the price of iron ore to decline significantly; and the world's rapid economic development in recent years, will also promote the steel industry to maintain a certain growth, 's demand for iron ore will remain strong, it is expected that in recent years the international iron ore prices will continue to operate at a high level.