Chinese Steel Prices To Break The Curse Of Iron Ore

Currently hebei iron and steel, baoshan iron and steel, wuhan iron and steel and other top chinese shandong front of large steel companies have developed a corresponding iron ore self-sufficiency plan and put into practice, thereby reducing dependence on international three mines. possessed of iron ore in chinese steel prices will probably spell failure. wisco now controlled the whole …
Currently hebei iron and steel, baoshan iron and steel, wuhan iron and steel and other top chinese shandong front of large steel companies have developed a corresponding iron ore self-sufficiency plan and put into practice, thereby reducing dependence on international three mines. possessed of iron ore in chinese steel prices will probably spell failure.
Wisco now has control of the world’s iron ore resources reach one hundred million tons. september 18, wuhan iron and canada clm companies to develop mine production of 162,000 tons of iron ore arrived in wuhan unloading. this marks the wuhan iron and overseas resource base construction has made substantial progress.
Although such as wuhan iron and steel enterprises large number of iron ore annually eaten amazing, annual demand for iron ore at 20 million tons or more, but do not underestimate this a mere 162,000 tons of this figure, which is a good start .
It is reported that there will be 6 million tons this year, wuhan iron ore returning overseas development, accounting for 25% of the ore demand. deng qilin, general manager of wuhan iron and steel said that after five years of wuhan iron ore will be fully self-sufficient.
At the other steel enterprises to worry about iron ore prices, wuhan iron and steel was able to spend their own cheap overseas ore mine, wuhan iron and steel in recent years mainly due to vigorously implement the strategy of going out. wisco deng qilin, general manager, said, through acquisitions, mergers, equity participation, wuhan iron and steel established a number of overseas resources supply base. the company received the amount of interest in iron ore resources of 100 million tons, all put into production, mine capacity for more than 90 million tons / year, to meet the needs of more than 85%, plus its own part, wuhan iron ore will be fully self-sufficient .
Coincidentally, as domestic steel production largest steelmaker hebei iron and steel group, also plans within five years to gradually get rid of dependence on foreign iron ore business.
Hebei steel group chairman wang hongren mining company, said recently that the next five years, hebei iron and steel group will be an annual increase of 5 million tons of iron ore self-sufficiency in the amount of speed, and gradually get rid of dependence on external ore concentrate to make the end of the second five production capacity reached 35 million tons, self-sufficiency rate of 35%, coupled with domestic iron ore supply, dependence on the outside the mine more than 50% from the current reduced to less than 30%. in addition, hebei iron and steel group intends to selectively acquire shares of international mining assets.
Same concern as well as baosteel. recently, baosteel chairman xu le jiang said that baosteel is considering a difference in the global distribution of iron ore resources, may establish their own offshore resource base in africa, canada, south america and other places, to ensure that future strategic supply baosteel iron ore required .
Last november, baosteel group, 286 million australian dollars in cash of approximately 1.804 billion yuan  bought australian iron ore and coal businesses aquila15% stake, becoming its second largest shareholder. meanwhile, shares of baosteel chairman he wenbo confirmed that baosteel plans to further increase similar efforts to open up overseas iron ore resources.
Addition to the steel enterprises, shandong iron and chongqing iron and steel has recently accelerated the pace of building offshore resource base, long ago, this newspaper has reported that shandong iron and steel exclusion of billions heavily to buy mine in africa. chinese steel enterprises to go out looking for iron ore resources, construction, offshore resource base has achieved some success.
Iron ore curse or will fail now, china’s steel industry is suffering serious internal and external problems, while excess capacity of domestic steel production, on the other hand, rio tinto, SBM , cvrd three international mining style all their own, even Sand Making Machine resort to coercion way to force china to accept ore prices.
Reason why the international iron ore giants of the chinese steel enterprises wild speculations often successful, and in recent years, china’s dependence on foreign iron ore rising related. data show that in 2009, china’s dependence on foreign iron ore up to 63.9%. in this case, the aforementioned three mines of iron ore spell an idea, chinese steel prices and the chinese steel industry, ranging from headaches, while long-term reduced to three mines coolies.
To get out of this situation, the chinese authorities adopted a number of appropriate measures, such as cuts through the elimination of outdated steel production capacity, promote the steel industry mergers and acquisitions to improve industry concentration and the right to speak, and to support the domestic iron ore enterprises, these measures now achieved initial results.
From the latest customs data show that in august, china’s total iron ore imports last month to reduce the 13%   which 44.61 million tons of iron ore imports from australia last month decreased by 16%. this course has reduced uncertainty prompted chinese mills mainly in procurement, as well as with the recent significant growth in domestic iron ore production is not without relevance.
In mr xu view, china has been significantly diversified sources of iron ore, which is a very good thing. from iron ore import sources, china’s iron ore country of origin has grown to more than 40 countries, in addition to australia, brazil and other countries, traditional resources, currently china is still Vertical Roller Mill south africa, mongolia, vietnam, kazakhstan, cambodia, peru, argentina and capital investment and overseas countries made progress.
Iron ore imports in china each year 80 million tons below the current mining interests overseas iron ore resources in china’s steel enterprises involved in cooperation (including projects under construction) has 190 million tons / year, china’s steel raw material supply prototype has diversified progressive rendering.
Mr xu believes that the future of the international oversupply of steel raw materials overall context, the chinese enterprises to go out the external environment will become more relaxed, find new mineral resources overseas mining investment and participation in mining mergers and acquisitions, new steel the strategic layout of plants and other international industrial chain will become more frequent. in the long run, this will get rid of long shrouded Quarry Crusher in the head of china’s steel industry resource monopoly shadows. one day, possessed of iron ore in chinese steel prices will probably spell failure.