Development and Iron Ore Demand Situation for China Steel Industrial Got Most Attention

As one of the main global iron ore market, the development and iron ore demand situation for China Steel Industrial got most attention. Recently, in the meeting with subject of "Strengthen International Cooperation, Accelerate Penetration of Mine Finding", all seats are occupied in iron ore seminar. Authorities from China Steel industry and representatives from organization for domestic and overseas market analysis deliberated on development of steel industry and trend of iron ore market. Tiejun Luo deputy director from raw material and informatiztion industry department pointed out, strengthen the ability of resource protection is an important work for steel industry in "Twelfth Five-Year Plan". "In order to strengthen the ability of resource protection, industrial and information department with relative department built up mechanism of guarantee and coordination for iron ore protection. From leading industry development, amounts control, define measures for resource protection, specify the order of iron ore market, and minimize utilization of steel, to encouraging enterprises to step out for developing iron ore resource and even build steel mill in foreign countries, comprehensively facilitate coordinated growth for steel industry", said by Tiejun Luo. According to statistics, from January to September of this year, our country manufactured 0.946 billion of tons iron ores with 24.5% year on year growth which highly satisfied the demand for steel making. Meanwhile, the import iron ore also kept increasing. It is noticeable that the ore exporting countries and areas to us are also increasing, from past 48 to current 63. In these years, the CIF price of iron ore in 2003 is 32.8 USD/ton which increased up to 128.4 USD/ton in 2010, increased nearly 4 times. The price of coal from domestic or overseas are also kept increasing. However, meanwhile the rising range of downstream steel demand and price is afar lower than the rising range of coal and mine. Jimin Zhu appeals, market fluctuation of iron ore is getting aggravated, even tendency of finance. I hope users and mine dealers can build up long-term mechanism of cooperation, in order to meet common win and healthy development situation. According to report, China steel enterprises started developing mine in overseas from last century 80's. Stepped up after 2005, now there are dozens of overseas projects are signed cooperated contract and operated. However, "current developing mine in overseas is getting risky; include political economy risk, legal risk, FX risk and technology and manpower risk. We should discover a mechanism for domestic and foreign cooperated development and meet common win," pointed out by Jimin Zhu. Source: steeljs.net