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Rocket of iron ore price affects downstream industry cost directly
From;    Author:Stand originally

In bay the year negotiation of long-term contract enters iron ore " special " always, in facilitating square with force develop " brand-new " of the price reach, and as bay square iron ore is long-term consultative price continuity " climb litre " , the cost of steely enterprise also is raising continuously. Analytic personage points out, this also will make the cost of downstream industry is affected directly.

"Minatory " the compromise below?

According to the agreement of convention and contract of one's early years, annual on April 1, business of iron ore production and the iron ore that iron and steel produces an enterprise to should carry out New Year to spend are long-term consultative price, if fail,reach new price at the appointed time, the negotiation can be lengthened, supply just continue according to the price supplied iron ore last year, after coming to an agreement " retreat more fill less " .

But notable is, in the contract that signs with mine company, have " deadline " agreement, after be restricted in this first phase namely, any one party have authority one-sided to remove contract, stop to perhaps receive money for goods. Association of Chinese iron and steel industry an in-house personage yesterday reporter, to most steelworks of China, this one deadline basically was on June 30, and the time limit that sets in the contract of Japanese steelworks was on September 30 commonly.

Be in then enter after June, bay square mine company for many times " threaten " if be in " be restricted greatly " later both sides of supply and demand still did not come to an agreement, change the price to taller spot market sale with respect to meeting general iron ore. And before this, need and need develop is more rolled out the proposal that builds index of merchandise on hand of iron ore price to the market, hope the annual negotiation henceforth by " index of merchandise on hand " replace.

According to reporter understanding, compare with the photograph of taller long-term agreement price on affirmatory and certain level, what just worry more in is long-term since supply a contract for a long time what form to be cancelled, such, mechanism of long-term negotiation price mixes traditional iron ore supply a mechanism to also will be broken thoroughly, this also is medium square " compromise " the reason of the higher price that accepted demand of force develop place.
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