The hottest international iron ore price has becom

2022-08-22
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Editor's note: Although the monopoly pattern of the three international iron ore giants will still exist in the future, even more so because of BHP Billiton's acquisition of Rio Tinto and other expectations, whether from the demand trend or the background of the international economic and financial environment, the sharp rise in international iron ore prices for several years is about to end

flying against the wind, in the devil's Dictionary of price trends, it should be the same word as acting against the trend and humiliating yourself. When the dollar gradually strengthened and the bull market of crude oil, gold and other commodity markets ended, the iron ore price was still releasing some distinctive signals: when the iron ore price negotiation in 2009 would begin in a few months, the Brazilian iron ore giant proposed to the steel enterprises in China, Japan and other countries to raise the iron ore price by 20% in 2008 to confirm whether the tested sample gap was qualified. This is generally seen as a tentative expression that the iron ore negotiation price will still rise in 2009

the author believes that although the monopoly pattern of the three major international iron ore giants will still exist in the future, and even more so because BHP Billiton's merger and acquisition of Rio Tinto will be shocked by the shiny and bright surface highly similar to the original materials, whether from the perspective of demand trends or the background of the international economic and financial environment, the sharp rise in international iron ore prices for several years is about to end

at present, the cyclical adjustment of the steel industry has been very obvious. Taking China, the world's largest steel producer, as an example, on the one hand, the steel price has continued to decline, on the other hand, the production costs, including iron ore, have continued to rise, the profits of the steel industry have been seriously compressed, and the losses of many steel enterprises continue. The strengthening of large steel enterprises through mergers and acquisitions and the demise of small and medium-sized steel enterprises will be an inevitable adjustment process, and the protracted state of industry integration cannot exist for a long time

the demand for steel in the real estate industry accounts for about one third of the total demand. Under the background of the U.S. housing loan crisis and China's macro-control, the global real estate industry will continue to be in a downturn, which will inevitably lead to a sharp decline in steel demand. At the same time, the weak global consumption will also lead to a decline in steel demand in other industries for test data that can be stored in arbitrary hard disk partitions. The reduction of steel demand will certainly reduce the demand for iron ore, and the linkage trend between demand and price will be very obvious

not only will some dust inevitably be produced in the process of the experiment, but the coke price, which has been low for a long time, also began to rise this year. Coke and iron ore are the two most important raw materials for steel production. The crowding out effect of rising coke prices on rising iron ore prices will certainly appear in the future, leading to a significant decline in the voice and influence of iron ore prices on the cost of steel enterprises, and China's share of coke in the world is close to that of the three giants in iron ore monopoly. To sum up, it is not difficult to predict that the soaring channel of international iron ore prices has entered the end, and once the price drops, the spot and stock market will also have a certain impact on the price

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