Saturday, March 3, 2012

Pain of the iron ore importers: crazy prices, losing trust

In the just concluded 2010 Conference of iron ore field, in addition to steel mills and mine bosses angry, there are dozens of imports and exports in charge of shuttle, aims to iron ore industry chain, maintaining himself in a piece of the action.
"On the current rise of 100% ore price, we are very confused, how can such a high price. "A steel import and export trade of Guo Manager a look of disbelief and helplessness to talk to journalists, such a crazy price, has already exceeded the extent to which enterprises can afford," this time Russia's customers, give us a price. We used to check a quarter at a time, without even a quarter, and we now check ".
2009 628 million metric tons of imported iron ore and concentrates in China, an increase of 41.6%. Customs import and export monitoring and early warning of the latest topics in the special mention, per cent from the January this year China's iron ore imports showed a significant decline. Reported that the last quarter of 2009, monthly imports of iron ore from the steady growth in China, imports significantly enlarged. But this year's January imports fell, fell by 25%. Meanwhile, the prices of imports in June last year after fell to $ 68 per tonne, showing trend of apparent recovery has been running above the $ 80 a tonne for 6 consecutive months. Beginning in January, falling up situation began to appear.
At the meeting site, said to reporters several heads are engaged in import and export business, enterprises commonly held negative attitude towards the future. In the actual needs of domestic steel mills limited, under the situation of economic crisis have not in the past, iron ore prices chonggao, this means that profits of domestic steel mills in China have little space, enterprises engaged in import and export trade is also dead.
One for the import of the alignment Manager said, such a high price, did not dare too much inventory, "now we do trade can not see clearly now, on the situation of the enterprise of the year concerned.
In addition to iron ore price rises, downstream on the iron and steel enterprises have gradually lost their trust in each other.
Guo Manager recently happened to be going through this kind of suffering. "Our main transportation by rail, maritime also has two. We have done this month Ukraine list, because of the high market prices, and now they do not ship. When we were ordering the ship cheaper, now risen, the other party is not satisfied with, find a reason not to ship. "Guo manager says," they don't keep promises, we battled the candle, only thing businesses can do, is the loss of tens of thousands of dollars of bank services.
Valin steel General Manager Cao Huiquan, also known as, currently on the iron ore industry chain, all credit raised doubts on each other, this is a very difficult point in iron ore price negotiations. Due to the decline in credit, actually makes the market transaction costs, and the increased costs will be reflected in the end of the chain.

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