China Investment Consulting Network News reported that the domestic large-scale steel mills, said the current head of iron ore mines have been put forward three major long-HS price of iron ore this year, up 50% of the requirements, which makes this in a low-profit status of the situation of the steel industry more and more worrying.
Baosteel will not first accept the
The source said that Rio Tinto iron ore this year, made a long association bid was 50 percent higher than last year's request, and BHP Billiton hopes for some steel mills to implement the spot index price, Vale requires spot prices this year and last year's price of a long association difference on the basis of a further price rise 50 percent requirement.
"Baosteel will certainly not precede the Japan and South Korea steel prices to accept a 50% price rise, or certainly lead to condemning the one, and now steel prices generally low profitability, 50% of the price increase pressure for us," the source said. "But if Japan and South Korea first accepted this price, we can only forced to accept, because the mines could not supply, but the steel can not be cut."
"My steel net" analyst Xu Xiangchun, said China's steel prices are now very passive, only by raising prices to shift costs to the downstream, but the market demand can be smoothly absorb up, not a good prediction. Xu Xiangchun pointed out that the steel stocks are still too high. February 22, in 26 large and medium cities, the main steel products of up to 15.68 million tons of social stock, up 51% over the same period last year.
This year the situation will become more severe
The high iron ore spot prices of iron ore negotiations also made the situation even more detrimental to China's steel enterprises. Starting from the last Friday until yesterday, grade 63.5% Indian fine ore to shore up quotes 140-142 U.S. dollars / ton, the highest in nearly 18 months since a new high.
Iron and steel industry sales in 2009 fell to 2.2% profit margin, down 53.4%, China's industrial profit margins less than half of 5.47%. China Steel Association honorary president of the Wu Xichun said: "With such a low profit margin, companies might as well not to produce, direct deposit bank enjoying the interest on the cash." If the iron ore will rise again, the present domestic overcapacity, high inventory the status quo, in 2010 China's steel industry will face even more severe situation.
The agreement price negotiations have been pending
In 2008, because of the iron ore spot prices under the hype of all parties are constantly rising, but to accept China's steel prices by almost 80% of the long co-price gains. Two months later, the financial crisis broke out, iron ore spot prices fall, domestic and international steel prices also fell after another, resulting in 2008 China's steel industry, industry-wide losses.
In 2009, the financial crisis, has a long association price down 33%, but because of China Steel Association adhere to a higher discount, no agreement between the price, thus turned to the spot market, China's steel prices, or privately with the signing of 33% of the three mines The so-called interim agreement discount prices.
International steam coal price will be a long association rose nearly 40%
It is reported that the ongoing annual long-Society, Japan and Australia thermal coal price negotiations is likely to final pricing at 95 ~ 100 U.S. dollars / tons, and more close to 100 U.S. dollars / ton. On this reckoning, 2010 ~ 2011 Annual International steam coal prices rose by a long association close to 40%.
The latest data show that Australia's Newcastle Port thermal coal price has reached 96.43 U.S. dollars / ton.
Coking coal, the learned, because China and India on the international coal market, the demand tends to be strong coking coal, coking coal price movements have become more active companies hope to promote Australia in the past quarter, priced alternative to the annual price.