Brazil's mining giant CVRD has made to the Chinese steel industry will increase in 2010 iron ore benchmark prices, 90% -100%. Of Industry and Information Ministry spokesman said that if the majority of imported iron ore by 2010, or here, China's iron and steel industry may be full loss.

    Chinese steel prices the way out?

    China Steel Association has been advocating consolidation in the market. At present, the iron ore import qualified enterprises with 112, the actual import enterprises reached 152, in order to rectify the market, the steel association will strengthen the assessment of qualification of import and export traders. The steady reduction in the number of traders as an important measure to stabilize prices of imported iron ore. It is reported that, in the China Iron and Steel Industry Association, under the auspices of a dozen Chinese steel prices have given a joint letter to the Prime Minister, hoping to solve the problem of imports of iron ore rose to the national level. China Steel Association's request is supported by the Ministry of Commerce and other departments for their support.

    China Steel Association is also seeking international alliances. China Steel Association said in a statement to support European Steel Union in its official Web site issued a statement strongly opposed to iron ore producers want to raise prices 80% to 90% of the plan.

    However, the former vice president of Shougang Development Research Institute, Dai Guoqing do not think this can solve the fundamental problems. He said: "The trend in the price of imported iron ore fundamentally speaking, is determined by domestic demand. While the domestic demand for iron ore is again steel price trends in domestic demand and the market decide. Steel Association to the importer fare increase impulse and the "disorderly competition" as an important reason for iron ore prices is wrong, will not receive a substantial effect. "

    For the ongoing iron ore negotiations, the industry rather pessimistic, he said, "In the current circumstances, China has no need to fight for starting price, and might as well let the Big Three and Japan, the European Union talk. They talk out of prices may be more favorable to China. "

    How to break the monopoly of the international iron ore giants?

    Chinese steel prices is now not only invest in mines in Australia, but to look into the Americas, Africa and other places.

    March 12, Wuhan Iron and Steel Group and China-Africa Development Fund Co., Ltd. "state mining project in Liberia Equity Transfer Agreement" signed in Beijing. Wuhan Iron and Steel to pay 68.46 million U.S. dollars held by the Fund in the acquisition of China-Africa leeland 60% stake. Wuhan Iron and Steel to invest in the formal identity of the person into the state mining projects and to gain control.

    Africa was also eyeing iron ore supplies Corporation, China Railway Materials January 6 this year, to 152.6 million pounds of the cost of acquisition of 12.5% of African mining companies stake and received at least 20 years to buy iron ore opportunities.

    Strengthen domestic and international exchanges, understanding of foreign mine iron ore import situation conducive to resolving the problem. Like with the previous international ore suppliers and steel prices and domestic traders will once again sit down together to discuss the issue of imports of iron ore.

    China Steel Industry Association, Qi Tang Lin, general manager of Wuhan Iron and Steel, said: "China's steel enterprises would like to get rid of by the people" Kabo Zi "fate, we must go out. Imported iron ore prices soaring, let us overwhelmed, do not go out there would be no way out. "

    In addition, the Ministry of Land and Mineral Development Management Division LIU Lian and 19 said that the next 3 to 5 years, China's domestic iron ore output is expected to more than 1.3 billion tons.

    Since 2003, the domestic iron Mining and Dressing industry, investment in fixed assets totaled 192 billion yuan, iron ore output from 2003 to 260 million tons in 2009 to 8.8 million tons, an average annual growth of more than 20%.

    Land and Natural Resources officials said in 2010, the central and provincial funds have started the implementation of the geological survey, the total size of up to 150 billion yuan. Recently, the SASAC issued the relevant policies, enterprises 50% of exploration costs on profit in examinations to add back these measures gradually introduced, will greatly stimulate business investment in prospecting and mineral resources. Through continuous efforts, China's iron ore exploration and development patterns will be greatly changed.