Under the strong bullish expectations of “consistentâ€, the three major mines are making reluctance to sell iron ore during the negotiations.
Due to the sharp reduction of iron ore supply in the mine, the BCI index of the Capesize Freight Index has been declining due to “light businessâ€, resulting in a “low sea freight rate, high CIF priceâ€. From the current situation, this year's iron ore long exchange rate may rise much more than expected, steel companies profit margins will accept a new round of tests in 2010.
The mine has shrunk dramatically. "This year's ore shipments are very, very small. So far we have received a shipment." An insider who is responsible for the iron ore trade work of a large steel company told reporters. His steel company ranks in the top three in the country and is one of the representative enterprises of iron ore negotiations. He revealed that the three major mines are hoarding ore in a “stable and worry-free wayâ€. “For mines, one day will make more money for one day. So it is estimated that there will be very few goods on the market before the outcome of the negotiations in April.â€
The shrinkage of the mine has been “connected†to the shipping market. At present, the freight rate of the Tubarão-Qingdao route in Brazil is about US$25/ton, and the freight rate of the Western Australia-Qingdao route is US$9/ton, which is 8% and 24% lower than the high level in January this year. In addition, the supply of cargo ships is increasing, and the BCI index has been used in the near future.
While the steel mills were forced to buy stocks at a large scale, there was also news that BHP Billiton, one of the three major mines, had negotiated with the domestic steel mills for a new year’s long supply contract, and proposed temporary prices last year. On the basis of the increase of 40%, a letter of credit will be issued for settlement, otherwise the contract of Changxie Mine will be cancelled.
In fact, the price of the three major mines changed from the beginning of the year. As some of the steel mills' long-term contract has been completed in 2009, the three major mines began to take the new round of long-term price has not yet decided, refused to follow the price of last year's long association, and instead began to raise prices according to the spot price. After the price of the 2010 Senior Association is negotiated, the price increase will be reduced.
"The mine can not be supplied, but the steel mill can not be produced, and can only be forced to accept." Hu Kai, an iron ore analyst of the United Steel Network, told reporters. Under this circumstance, the two types of steel enterprises can be slightly "sufficient": one is the enterprise that owns the mine resources, and the other is the steel enterprise that owns some maritime power. "We have started to take the spot mine, but we are getting the goods from the port, that is to say, the sea freight will be lower." The steel company said.
40% may just start to "go according to this situation, 40% of the increase may become the extent of steel mills seeking mine signing." Hu Kai said that in view of the current violent rise of spot mines, the spot price has been quite Last year, the price of the long association was twice. At the same time, mines represented by BHP Billiton are pushing index pricing. Their appetite is not limited to 40%, and may point to 80% or more.
The insiders of the aforementioned steel enterprises said that the 40% increase is indeed very high, but it is not impossible. And for the increasing pressure on price increases, "steel mills are actually very helpless."
The increase in the price of minerals, which is 40% or higher, is increasingly testing the steel industry, which is generally in a low-profit state. At present, it seems that a number of steel mills are shifting costs downstream by intensively raising the ex-factory price. Whether the market demand can smoothly absorb the rise, it remains to be seen.
Due to the sharp reduction of iron ore supply in the mine, the BCI index of the Capesize Freight Index has been declining due to “light businessâ€, resulting in a “low sea freight rate, high CIF priceâ€. From the current situation, this year's iron ore long exchange rate may rise much more than expected, steel companies profit margins will accept a new round of tests in 2010.
The mine has shrunk dramatically. "This year's ore shipments are very, very small. So far we have received a shipment." An insider who is responsible for the iron ore trade work of a large steel company told reporters. His steel company ranks in the top three in the country and is one of the representative enterprises of iron ore negotiations. He revealed that the three major mines are hoarding ore in a “stable and worry-free wayâ€. “For mines, one day will make more money for one day. So it is estimated that there will be very few goods on the market before the outcome of the negotiations in April.â€
The shrinkage of the mine has been “connected†to the shipping market. At present, the freight rate of the Tubarão-Qingdao route in Brazil is about US$25/ton, and the freight rate of the Western Australia-Qingdao route is US$9/ton, which is 8% and 24% lower than the high level in January this year. In addition, the supply of cargo ships is increasing, and the BCI index has been used in the near future.
While the steel mills were forced to buy stocks at a large scale, there was also news that BHP Billiton, one of the three major mines, had negotiated with the domestic steel mills for a new year’s long supply contract, and proposed temporary prices last year. On the basis of the increase of 40%, a letter of credit will be issued for settlement, otherwise the contract of Changxie Mine will be cancelled.
In fact, the price of the three major mines changed from the beginning of the year. As some of the steel mills' long-term contract has been completed in 2009, the three major mines began to take the new round of long-term price has not yet decided, refused to follow the price of last year's long association, and instead began to raise prices according to the spot price. After the price of the 2010 Senior Association is negotiated, the price increase will be reduced.
"The mine can not be supplied, but the steel mill can not be produced, and can only be forced to accept." Hu Kai, an iron ore analyst of the United Steel Network, told reporters. Under this circumstance, the two types of steel enterprises can be slightly "sufficient": one is the enterprise that owns the mine resources, and the other is the steel enterprise that owns some maritime power. "We have started to take the spot mine, but we are getting the goods from the port, that is to say, the sea freight will be lower." The steel company said.
40% may just start to "go according to this situation, 40% of the increase may become the extent of steel mills seeking mine signing." Hu Kai said that in view of the current violent rise of spot mines, the spot price has been quite Last year, the price of the long association was twice. At the same time, mines represented by BHP Billiton are pushing index pricing. Their appetite is not limited to 40%, and may point to 80% or more.
The insiders of the aforementioned steel enterprises said that the 40% increase is indeed very high, but it is not impossible. And for the increasing pressure on price increases, "steel mills are actually very helpless."
The increase in the price of minerals, which is 40% or higher, is increasingly testing the steel industry, which is generally in a low-profit state. At present, it seems that a number of steel mills are shifting costs downstream by intensively raising the ex-factory price. Whether the market demand can smoothly absorb the rise, it remains to be seen.
Basin Faucet,Wash Basin Faucet,Jaquar Basin Tap,Kitchen Basin Tap
WENZHOU HUAGUAN SANITARY WARE CO,.LTD , https://www.wzhuaguan.com