First, it is not conducive to the stability of the industrial chain supply chain and seriously affects the survival of iron and steel enterprises!
At present, most domestic iron and steel enterprises are meager profits, relying entirely on large output and small profits but quick turnover to barely maintain the normal operation of enterprises! The rise of iron ore directly leads to the increase of steel cost, which seriously affects the international competitiveness of China steel enterprises! To tell the truth, China Steel has seized a part of the international market by its high quality and low price, and the real high-end steel is in the hands of others. Without price advantage, can China steel enterprises still have international competitiveness?
If the price increase of iron ore is transmitted to steel products, it will definitely cause a chain reaction of domestic industrial enterprises, and industrial enterprises will also pass the price increase on to consumers! Why did the United States launch a trade war? The purpose is to force the price of industrial products in China to rise, thus losing its international competitiveness? Isn't this in the interest of the United States?
China imports about 67% of iron ore from BHP Billiton! The price of iron ore has exceeded 1 000, a record high, which is very unfavorable to China's economy. It is equivalent to sending money directly to the Australian government!
Second, the main reason for the soaring iron ore promoted by foreign media is the listing of vaccines. The COVID-19 epidemic is coming to an end, the global economic recovery is expected, and the market demand is increasing!
At present, from the perspective of domestic economic development, the retaliatory economic recovery advocated by foreign media is questionable! China real estate tends to be saturated, plus the national policy that houses are used for living! The vacancy rate of houses in many small and medium-sized cities has risen sharply, and many houses have been neglected at all, and the steel required for building houses has been greatly reduced; The new infrastructure advocated by the state is actually big data artificial intelligence, which mainly needs high-tech materials such as chemical industry, graphene and silicon crystal garden. Steel accounts for only a small part of the new infrastructure!
Luo Tiejun, vice president of China Iron and Steel Industry Association, said that this wave of crazy price increase of iron ore was caused by the collusion of reactionary forces at home and abroad, taking the opportunity to make trouble, monopolizing iron ore resources such as Australia and Brazil, deliberately reducing market supply and driving up prices. In the international block trading market, the abnormal bidding of traders boosted the index to rise, and the futures market approached the delivery date and the bulls deliberately forced the liquidation, which was artificially caused!
If we want to avoid the impact of soaring iron ore prices on steel enterprises, first of all, China should reduce its iron ore imports to a single country. If iron ore imports are concentrated in a certain country, it will be extremely unfavorable to China's economic development. Secondly, China should continue to open its iron ore import channels and disperse its iron ore imports to different countries to avoid monopoly. At present, China is also expanding iron ore import channels and diversifying risks; Finally, through the technical upgrading of the steel industry, the steel output will be increased, the recycling of scrap steel will be improved, and the dependence on iron ore will be effectively reduced.
The rapid rise of iron ore price has brought great influence to China iron and steel enterprises. China iron and steel enterprises must speed up scientific and technological innovation, increase steel output, promote technological transformation of iron and steel enterprises, and realize the coordinated development of economy and environment.