China help steel mills challenge three ore price

At present, the world's three largest mining vale, Rio tinto, BHP billiton and emerging mining fortescue accounted for more than half of the global supply of ore, and complete cost CFR (cif) are less than $60.
Highly monopoly pattern,Large diameter pipes Schedule 40 steel pipe make the production enterprise can moderately control the pace of new capacity release. In the second half of 2013 iron ore new capacity should be more, however, iron ore prices this year compared with the steel prices are still up slow down quickly. Since July this year, its biggest rebound has reached 25%, while steel prices rise 11% but at the same time period. Iron and steel enterprises in China in August first saw a little profit of dawn,90 degree pipe fitting long radius elbow September was journey into losses.
China's steel industry has a fatal weakness. For more lean ore, China's iron ore mine production cost is high, an average of $105, when the ore prices, many elimination is China's first iron ore mine.
Monopoly supply pattern is easy to form a monopoly, and the price.
China's iron ore imports account for 60% of the global total. However, Chinese steel mills are the day gets longer without getting rid of the demand side,API 5l Grade B oil line carbon steel pipe supply side for a long time but with the embarrassment of excess profit.
Even so, the iron and steel enterprise did not give up the game. They affect prices by adjusting the inventory. Over the past two years, this is particularly obvious, namely the price fluctuation in the iron ore and steel mills to stock of raw materials and reduce inventory cycle is appropriate. The iron ore market price is high,Industry Standard Welding Neck Flange many steel mills stopped buying and consumption of inventory; Spot prices fell to a certain time, steel mills started to fill inventory.
Shanghai rebar inventories last week, 6.06 million tons, far lower than at the beginning of ten million tons of high and low inventory after nearly two years. Last week, China's import iron ore port stocks, 72.46 million tons, far lower than at the beginning of the year, 90 million tons, which is nearly four years of inventories low.
And low inventory then stimulate the steel mill to fill inventory desires - iron ore imports hit a record high in September. But then, ore prices rose to more than $130, iron and steel enterprises want to cry again.