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Hardware Network HC: New year's long-term iron ore contract negotiations started, China Steel Industry Association to rectify the chaotic domestic iron ore import market showed the "trump card." Reporter yesterday learned that iron ore import contracts Proxy System on January 1 next year strictly enforced, then there is the import qualified enterprises will be strictly controlled the flow of imported ore, ore against arbitrary increases resale, sold without import qualified enterprises by collecting agency fees only way.
Ore import agent "Iron and Steel Association has adopted the implementation of the iron ore agency programs, and has gradually informed the major steel mills and ore importers." China Steel Industry Association ("CISA"), the Secretary-General Shan Shang Hua told reporters yesterday that, starting next Jan. 1, with iron ore import qualified enterprises will be strictly monitoring the quantity and flow of iron ore imports, the number of steel imports to meet the year to the amount produced mainly from , but no ore import qualified for the import agent of some companies, import companies can only charge a relatively fixed agency fee, not free to sell for a premium increase.
In this model draws on the practice of Japanese companies. In Japan, a large steel is responsible for determining the contract price, after long negotiations, by a few large traders as a proxy for imports, import prices agency fee is 1% ~ 3%. The agency established by the Chinese import price fee is 3% to 5%.
This is the Steel Association to regulate the import of iron ore trade order management measures taken by another major. In fact, from the beginning on November 1 last year, imports of iron ore has been carried out for the record system, the implementation of imported iron ore contract information reporting system on the iron ore import qualified enterprises, such as the implementation of the flow of imported iron ore Information reported to the registration.
The past two years, with imports of iron ore, the number of qualified companies has been cut. In 2005, the company has imported more than 500 qualified, in one fell swoop in 2006 down to 118 in 2007, it reduced the number of 6. Currently, qualified steel iron ore imports have more than 70, more than 30 traders.
However, while the import qualified enterprises has decreased again, but more "fuel" of having the right to import qualified enterprises to import long-term agreement after ore contract prices are not for personal use, but sold without import qualified enterprises, The degree of domestic iron ore spot prices led to rising foreign mining companies have been required to improve long-term agreement to provide a reason for the contract price.
Large quantities of ore import traders import or accumulation of ore through, and then the high price of steel sold to domestic small and medium enterprises, which is the cause of Port there are still more than 6000 tons of ore Pressure Port reason.
"Take a look at Japan and South Korea, steel mills need most are imported iron ore, but only has two of China's iron ore price, price and spot price of a long association, they can do, why do we do not? "single is still China, said," The key is system and monitor strict. after ore market demand, not easy to promote the agency, now ore market downturn, it is a good opportunity to rectify the domestic market. "
Monitoring is not easy However, "my iron and steel" Research analysts have won that section, to control the import of iron ore in China after the current flow and trading in the regulation is not an easy task. Shang Hua
single disclosed in the future between the relevant regulatory authorities or inspection organizations, will have a dedicated iron ore import qualified enterprises to supervise, breach of provisions on the abolition of import qualification. Meanwhile, the agency must record the contract, not only to prevent resale, you can also control the flow of iron ore, iron and steel industrial policy does not comply with national companies.
On ongoing iron ore negotiations, one still Hua pointed out: "Next year is a year long-term contract price in the end, or half or even quarter price pricing is possible, the key is how to establish a comprehensive supply and demand sides pricing mechanism, we will also taken into account a reasonable profit mine, to find a reasonable price. "
