Alert Iron Ore Trade In The "integrity Failure" - The Price Of Iron Ore, Iron Ore - Steel

in Steel
4 1 Japan is implementing a new round of international mineral prices start the day, but until mid-April, China's steel industry and the Australian iron ore suppliers Iron ore talks Still in a stalemate.

In 2005 Iron ore talks , Because the first Japanese steel mills and iron ore producer price increases reached 71.5% agreement, Chinese enterprises will eventually be "swallowed their anger," to accept. In 2008 iron ore negotiations, the old theater once again. In fact, Japanese companies before the end of iron ore negotiations, once released, "smokescreen" to mislead the Chinese steel companies. If the Japanese steel mills had previously said that Japan's negotiations in 2008 will not rush an agreement with the supplier, will first wait and see China in the negotiation process. But in fact, the Japanese Nippon Steel and Brazil's CVRD is the first company to reach ore prices 65% to 71% of the agreement.

This year in February, the domestic negotiators reluctantly accepted the price of Baosteel. By convention, the other two --- Australian iron ore suppliers BHP Billiton and Rio Tinto should also follow the rise. But the two iron ore giants still refuses to accept the price, not only offered to "CIF settlement" proposal, and even long-term agreement proposed change to the existing ore pricing issues. Some analysts believe that Asian steel mills as a major iron ore suppliers, Australia iron ore giant may be delaying tactics, and may first seek to reach a price increase agreement with the Japanese steel mills. Australia rules undermine the negotiations, attempt to have high ambitions of profit shown.

Reform and opening up, China's international business from doubling. In the interest of the temptation, many original integrity of the heart may be inclined, the original integrity of its attitude toward a "failure." We must guard against these "failures."

2005, when the domestic steel prices that the outcome of the negotiations when the suspense no longer, but said BHP Billiton, due to freight differentials, mine arrived in Australia CIF Asia cheaper than in Brazil for 20 U.S. dollars / ton, "differences" in part of the Australian manufacturers should be reflected in the fare being charged, that is, outside the 71.5% increase in dollars per ton surcharge 7.5-10.

Also in 2005, when China's steel enterprises have to accept ore price up 71.5% of the reality, the Chinese began to turn its attention to India's iron ore producing country. But soon it was pointed out that not only India's iron ore grade is relatively low, and traders are generally not as good as Europe and the United States credibility traders, "As China and India trade mostly in bulk, tear up the contract in private, often do the bidding unilateral happen. "summer of 2007, India suddenly announced that all exports of iron ore will charge 300 rupees / tonne tariff. This "emergency" has created a stir, China's steel enterprises, "Stone protest." But the ultimate favor of the Indian Parliament or the Ministry's proposal of steel, beginning March 1 temporary tariffs in May established a tax of final regulations. The tax policy of India Iron ore price The end of the year has risen to 12, 115%, successfully passed all the tax levy to the body of Chinese enterprises.

2007 in the autumn of tight iron ore supply and demand, in January to August the Chinese pig iron production increased by 16%, while the output of the first half of the international Big Three rose only 8.4%. Media reports said, "make matters worse, often by mining giant announced that severe weather, equipment breakdowns, strikes and other force majeure, delay or cancel shipment to artificially control the supply of rhythm, so that supply and demand to the benefit of supply-side direction." "To meet the iron ore negotiations in 2008, three giant intends to continue to reduce the supply of iron ore on the Chinese market."

Must be mentioned is that many people pin their hopes on foreign companies signed a "long-term agreement" on the case for the ore trade, is also true for ore transportation. Then, the "Agreement" What? Integrity is maintained by a convention. Credibility is the key to ensure that the agreement be honored. In the interests of the powerful temptations, and other major political forces in the interference from the face of any contract, agreement or rules of the game's integrity may be challenged at any time. June 2004, the Japanese Government through the Shipping Amendment Act to provide for a tonnage of 100 tons of foreign vessels will be to increase the insured, the official foreign ships entering Japanese ports raise the "threshold."
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Alert Iron Ore Trade In The "integrity Failure" - The Price Of Iron Ore, Iron Ore - Steel

This article was published on 2010/11/13