Stabilize the market and curb mine prices

 Including imported iron ore, huge profits in any industry are unsustainable and should have a reasonable price level. This price level should be based on the balance of supply and demand and rely on market regulation. "On September 2, Angang's deputy general manager Guo Xianzhen expressed his views on the issue of imported iron ore, which has been widely concerned by the steel industry chain this year, in an interview with a reporter from China Metallurgical News.
　　 Since the beginning of this year, the prices of bulk commodities such as oil and iron ore have risen rapidly and have remained high for a long time, driving the price of steel products to rise, and adversely affecting the stable operation of the industrial chain and supply chain.
　　 Unreasonable ore prices cause harm to downstream
　　 Guo Xianzhen bluntly said that the rapid increase in commodity prices is a kind of harm to downstream industries. Although from the Platts iron ore price index on January 4 and August 30, the price difference of 62% grade iron ore was only 6.7 US dollars per ton, the ups and downs of the ore price trend during the period were enough to turn the river into the sea. To describe. On May 12, the price of 62% iron ore reached US$233.1/ton, a record high. Under the speculation of capital, it is self-evident that the financial properties of iron ore itself have helped its price rise.
　　 "Crazy Stone" makes the downstream industry too much to speak out. According to data from the National Bureau of Statistics, in July, my country's PPI (Production Price Index) rose 9% year-on-year, an increase of 0.2% compared with June. Among them, the price of means of production rose by 12%, an increase of 0.2%; the price of means of subsistence rose by 0.3%, the same as in June. Judging from the manufacturing PMI (purchasing manager index) in July, the purchase price index and ex-factory price index of major raw materials were 62.9% and 53.8%, respectively, which were 1.7 percentage points and 2.4 percentage points higher than that in June. Manufacturing procurement costs have generally risen. Under the level of cost transmission, many downstream companies have to purchase raw materials on demand, and companies that cannot effectively pass on the cost pressure can only choose to postpone the construction in order to wait for the market outlook.
　　 In order to ensure the stability of the supply chain of the industrial chain, the state has paid great attention to the problem of excessively rapid increase in commodity prices, and has held several meetings to emphasize the need to stabilize the bulk raw material and fuel market. With the implementation of the policy of reducing crude steel production in the iron and steel industry, my country's demand for imported iron ore has fallen sharply, and iron ore prices have fallen accordingly.
　　 According to data from the China Iron and Steel Association, in late August, key statistical iron and steel enterprises produced a total of 22,57,200 tons of crude steel, and the average daily output of crude steel reached 2.0527 million tons, down 3.99% month-on-month and 4.98% year-on-year. The impact of policy effects on my country's crude steel output is obvious.
In late July, the price of imported iron ore entered a volatile downward channel. The lowest fell to $130.2 per ton on August 19, which was the lowest point since the beginning of this year and a full drop from the high point on May 12th. US$102.9/ton.
　　 In Guo Xianzhen's view, the current iron ore prices have not fallen enough. He predicts that due to factors such as the reduction of domestic steel production capacity, the increase of domestic mine output, and the increase in the proportion of scrap steel use, there is still a large room for the price of imported iron ore to fall in the later period.
　　 All parties in the industry chain still have room for effort
　　 Stabilizing the market and restraining ore prices not only require iron and steel companies to make a difference, but also require the concerted efforts of all parties in the industry chain. Guo Xianzhen believes that steel companies, steel industry, industry associations and government departments still have room for policy “combination punches” in this regard.
"Taking Anyang Iron and Steel as an example, we always adhere to the line of variety, quality and efficiency, and promote transformation and upgrading with high-quality development without increasing the supply of steel." Guo Xianzhen introduced Anyang Iron and Steel's role in stabilizing the market and stabilizing steel prices. Measures taken by the relevant parties. On the one hand, adhere to the "double high" (high-end customers, high-end products) leadership, continue to optimize the product structure, continuously increase the sales of high-end and efficient varieties, and make every effort to build a special steel product series; on the other hand, adhere to the innovative marketing model and increase the proportion of direct supply and direct sales , Promote online sales and spot retail, correspondingly reduce agency sales, and strive to build a new marketing pattern dominated by "terminal sales", which provides strong support for stabilizing the market and steel prices.
　　 All parties in the steel industry chain should also take further measures to stabilize steel prices and curb ore prices.
　　 Guo Xianzhen introduced that in terms of stabilizing steel prices, steel companies should fully cooperate with relevant ministries and commissions and industry associations to optimize the steel supply structure and maintain the balance of market supply and demand. For industry associations, relevant raw material industries and enterprises should be coordinated to promote the return of raw and fuel prices such as iron ore, coke, and scrap steel to a reasonable level, so as to reduce the production costs of iron and steel enterprises.
　　 In terms of curbing ore prices, one is to encourage the development of short-process steelmaking. From the industry level, it calls on the country to introduce relevant policies to increase scrap recycling and application while supporting electric furnace production. The second is to accelerate industry mergers and reorganizations, continuously increase industry concentration, and strengthen iron ore bargaining power through the "group for warmth" of steel companies. The third is to increase the iron ore self-sufficiency rate: on the one hand, increase support for domestic mines and increase domestic iron ore supply; on the other hand, provide support for iron and steel companies to develop overseas mineral bases. The fourth is to accelerate the establishment of a new pricing mechanism. Through industry associations, they call on the national level to establish a standardized market price mechanism as soon as possible, to focus on the control of bulk commodities such as iron ore, and even rise to the legal level to severely crack down on the use of relevant indexes to speculate prices and harm the interests of the country and the industry.