The hottest steel enterprises both inside and outs

Editor's note: with the final determination of the outcome of this year's iron ore price negotiations, domestic steel enterprises, including Baosteel, WISCO and other leaders, will significantly increase costs. A person from a steel company recently revealed that both domestic and foreign efforts to seek alternative sources of iron ore with lower prices will help domestic steel companies break the "hoop curse" of BHP Billiton and other three iron ore giants

with the final determination of the iron ore price negotiation results this year, domestic steel enterprises, including Baosteel, WISCO and other leaders, will significantly increase costs. A person from a steel company recently revealed that both domestic and foreign efforts to seek alternative sources of iron ore with lower prices will help domestic steel companies break the "hoop curse" of BHP Billiton and other three iron ore giants

the agreement signed in 2007 to increase the price of iron ore by 65% has been officially implemented since April 1st, 2008. As a result of this year's negotiations, domestic steel enterprises have accepted Rio Tinto's conditions that Pb fine ore, Yangdi fine ore and Pb lump ore will be easier to operate, with an increase of 79.88%, 79.88% and 96.5% respectively on the basis of 2007. Some analysts preliminarily estimated that Gao Yunhu said that in this way, the annual ore cost of WISCO will increase by more than 1billion yuan, and the cost of the whole steel enterprise will increase by 7billion yuan. In addition, the price of domestic coke and coking coal continues to rise, and the operating cost pressure of steel enterprises is increasing

the above-mentioned person said a few days ago that when it is difficult to develop domestic resources and the price of main import channels is too high, finding another ore source channel can also effectively alleviate the rising cost of steel enterprises

first of all, if we can change the current situation of single import channels of iron ore and open up new import channels outside the current importers, it will help steel enterprises take the initiative in negotiations

data show that the world's iron ore resources are mainly concentrated in Australia, Brazil, Russia, Ukraine, India, Canada, South Africa and other countries. Besides Australia and Brazil, Russia is also rich in iron ore resources. Russia's iron ore resources are mainly stored in Siberia. At present, the proved reserves are 4 billion tons, and the iron content is more than 40%. At present, for example, most of the ore sources in different regions of the material selection of soft dashboard framework have not been developed. If Chinese steel enterprises can intervene through acquisition, they may find another way to obtain resources

at present, the reality is that the main sources of iron ore imported by domestic steel enterprises are BHP Billiton and Rio Tinto in Australia and vale in Brazil. They are highly dependent on their iron ore supply, so they are often threatened to stop supply in negotiations

in addition, making full use of domestic lean iron ore and improving the process flow can also solve the problem of ore shortage to a certain extent. Although lean ores occupy the main position of domestic ore sources, some lean ore resources also have some prospecting potential

according to data, China's total iron ore reserves are about 46.2 billion tons, accounting for about 17.86% of the world's total reserves, and the per capita iron ore resources are only one quarter of the world average. Among the proven iron ores, lean ores account for the vast majority, and the iron grade of the ore is only 10%

domestic iron ore resources have low grade and high complexity, which requires a lot of time and cost for beneficiation. Therefore, steel enterprises generally choose to "look beyond the near" and import a large amount of iron ore. However, some brokerage researchers believe that although domestic iron ore resources are not enough to solve the problem, they can also help some steel enterprises reduce the cost of imported iron ore

in fact, in recent years, some steel enterprises have actively developed domestic mines. In addition to Shougang's high phosphorus iron ore in Western Hubei, Chongqing Iron and steel is also developing mines in Liangshan, Sichuan. An expert from CISA also said that the development of domestic mines is conducive to winning a favorable position in international negotiations