Baosteel determines the initial price of global iron ore negotiation on behalf of China for the first time

Baosteel Group announced on the evening of the 21st that Baosteel and Vale, the world's largest iron ore producer, had reached an agreement on the international benchmark price of iron ore in 2007, with the price of fine ore rising by 9.5%. This is the first time that Chinese steel mills have obtained the first pricing right in the process of fully participating in the global iron ore price negotiation for four consecutive years. According to the negotiation results released by Baosteel Group, the prices of fine ores produced in the north and south of Vale will increase by 9.5% on the basis of 2006 prices. The benchmark prices of Karajas fine ore and standard fine ore in the new year are US $0.7320 per dry ton and US $0.7211 per dry ton, respectively. After the negotiations, Baosteel personnel said that China has become the world's largest consumer of iron ore in recent years. The price agreement between Baosteel and Vale is the first time that Baosteel, on behalf of Chinese steel manufacturers, has reached an annual benchmark price with iron ore giants in the world. Baosteel has previously participated in the global iron ore price negotiations on behalf of Chinese steel mills for three consecutive years, and has never obtained the right to make the first offer. In 2005, Nippon Steel Corporation of Japan and Vale of Brazil reached the first benchmark price, and Chinese steel mills were forced to follow. In 2006, Baosteel's negotiating position was significantly improved. Most of the time, the main negotiating position was on the side of Chinese steel mills. However, in the end, German ThyssenKrupp and Vale reached an initial offer, and Chinese steel mills had to follow suit. This time, Baosteel won the first pricing right in one month or so after the start of the global iron ore negotiation in the new year. Market analysts here believe that this shows that China's negotiating position has been further improved, and also reflects the ability of Chinese steel mills in global price negotiations. Market insiders believe that the 9.5% increase in the benchmark price of this IPO is basically in line with the current supply and demand of the international iron ore market. As the main inflow of international iron ore seaborne trade, China's demand for iron ore is still growing, but the growth rate has shown obvious signs of stabilizing and slowing down. The investment in fixed assets excluding mines in China's steel industry has shown a negative growth this year, and the steel consumption intensity in the domestic market has also declined. The global iron ore price has risen by 71.5% and 19% respectively in the past two years. This time, the benchmark price increase of Chinese steel mills "talked down" fell back to 9.5%. Analysts said that this basically reflects the "trend curve" of the iron ore market, and is also a balance between the interests of both the supply and demand sides.

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Liaoning issued a plan for the integration of mineral resources development

According to the information of the Department of Land and Resources of Liaoning Province, in view of the unreasonable layout of mine development, the low degree of scale and intensification, and the "many, small and scattered" problems of mining enterprises, the Department of Land and Resources of Liaoning Province, the Provincial Development and Reform Commission, the Provincial Department of Public Security, the Provincial Department of Supervision, the Provincial Department of Finance, the Provincial Economic Commission, the Provincial Bureau of Industry and Commerce, the Provincial Environmental Protection Bureau The Provincial Work Safety Administration and other departments jointly formulated and issued the Integrated Plan for the Development of Mineral Resources in Liaoning Province to effectively protect and reasonably develop mineral resources and improve the management, development and utilization of mineral resources. The Plan specifies the detailed objectives and tasks of mineral resources integration: --The mine development layout is obviously reasonable. Only one mining right is set up in a mining area to completely solve the problems of large mines, small mines and multiple mines. --The structure of mining enterprises was obviously optimized. The concentration of mineral resources to advantageous enterprises with advanced mining technology, high development and utilization level, good safety production equipment conditions and effective protection of the ecological environment of the mining area has significantly improved the scale and intensification of mining enterprises. --The level of development and utilization has improved significantly. The recovery rate and beneficiation recovery rate of mineral resources meet the design requirements, the symbiotic and associated minerals are comprehensively utilized, and the mining solid wastes such as waste rocks and tailings are safely stored and re developed. --Work safety has improved significantly. We will improve the conditions for safe production in mines and curb the occurrence of major accidents. --The ecological environment of the mine has improved significantly. We will establish and improve the deposit system for mine environmental governance and recovery, and formulate plans for mine ecological environment protection and comprehensive governance. --The number of mines has decreased significantly, and the number of mines in the province will be controlled within 5000 by the end of 2007. (From China Nonferrous Metals News)

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