In recent years, China's export industry has shown a typical feature of large-scale, that a large number of imported oil, metal ores and other primary products and raw materials, through production and processing and then are exported to foreign countries.glue stick Meanwhile, a large number of infrastructure boost domestic iron and steel, cement, electrolytic aluminum and other products, the demand for infrastructure, in order to stimulate the domestic steel industry for the growing demand for iron ore.
Unfortunately, the domestic iron ore resources can not meet the demand of domestic manufacturing enterprises, while 70% of global iron ore trade by Brazil's CVRD, Australia's Rio Tinto and BHP Billiton by the monopoly. Since the unequal status of supply and demand sides,glue gun each of China's steel enterprises have to face the supplier price increases. European steel companies this year, with Rio Tinto, BHP Billiton's iron ore import prices to reach far below the price of Chinese enterprises to get more aroused strong repercussions in the country. Planning Institute is responsible for a domestic iron and steel even thereon, shall prohibit the export of coke as a means of counterattack. The reasons are: the current account of China's coke production and trade more than half of the world is an absolute monopoly, if the coke export restrictions, the global steel production is bound to a substantial decline in demand for iron ore will be reduced by about 50 million tons, thus China in iron ore negotiations leave enough space and chips.
I do not doubt the potential power of China's coke weapons, but the following three points need to attract people's attention:
First, the coke and steel business enterprises belong to two different industries. Increasingly market-oriented economy in China today, whether there are sufficient grounds to return to the old planned economy, through the visible hand of corporate interests at the expense of coke, iron and steel enterprises in exchange for the so-called book profits? Even coke iron and steel enterprises to reduce subsidies to enterprises which suffered losses, but the loss of international market, how to do? Iron and steel enterprises ability to undertake long-term sustainability of this loss?
Second, the limited export of coke is a double-edged sword in the fight against the opponent at the same time that he can not discuss what is actually cheaper. For example, in 2005, the fear of China's coke export restrictions, India has decided to increase the tax on the export of iron ore to curb iron ore exports, aimed at forcing China agrees to iron ore, coke replacement, but the fare is actually both a species lose-lose situation. Not difficult to imagine, if the total ban on export of coke in China, is likely to cause an immediate worldwide trade war, which the international image of China's peaceful rise shape, and are contrary to WTO principles.
Third, even if the limit of coke exports by Australia and Brazil to China iron ore suppliers have made a temporary compromise, whether it means the Chinese steel industry access to cheap iron ore from this once and for all it? According to the basic principles of economics, the lower the price the greater the demand. As China's appetite for more and more steel companies, the iron ore price rise eventually, it is not in any man's will transfer. It is reported that China's coastal ports, iron and steel enterprises hoarding piled 6,000 tons of iron ore. This shows that for the current plight of the very high part of the reason, from the Chinese steel companies themselves.
Therefore, the Chinese iron and steel enterprises in the face of high prices caused by monopolies, and their hopes of administrative protection of government departments, as from their own, find out why, seriously think about it: this large number of imports, whether the pattern of low-end production can continue? In the national economy during the industrial restructuring and upgrading all the time, only the iron and steel enterprises to increase productivity, improve technology, transformation to high-end steel products, providing more high value-added products, is the fundamental way to resolve the needs of the plight of .