Quarter Will Be Priced Into Steel Enterprises Nightmare

Represented by BRIC emerging-market economies

, excluding China, India, Brazil and Russia belong to the iron ore resource-rich countries, which can be self-sufficient. The dependence on iron ore resources in China for more than 50%. Based on the economics of price discrimination law firms to increase prices with monopoly pricing power frequency equal to enhance the degree of price discrimination, profits increase as a result of its monopoly. That is up phase, the mine operators to raise prices, access to high monopoly profits, and in the market downturn, suppliers can be based on a two-volume and price considerations, tend to reduce the monopoly price, upgrade Pin Capacity to maintain the whole industry chain to maximize profits, profit distribution pattern of the industry chain will clearly tend to ore supply side. Iron ore mining costs about 20 dollars, but price has reached 190 U.S. dollars, the mine's profit is evident. Fluctuations in the price elasticity for the mine operators have great room for adjustment. For it is quite detrimental to China's steel makers, steel mills are squeezing profit margins at any time, especially the large steel mills in the past reselling iron ore miners to the profitability of small channels will cease to exist, medium and small steel mills, raw material prices will stand the same starting line, and will cost as much as possible to the downstream transmission.

Quarter Will Be Priced Into Steel Enterprises Nightmare

By: dpdo

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