After the letter position in the Public Ministry, in 2010 iron ore price negotiations, who represents China - has been speculation that the outside world with a clear answer to the question.

In the January 27 letter to the Ministry of part-time work held in 2009 to run the annual industrial communications industry press conference, spokesman for the Department of Public letter to Zhu Hongren said the letter to the Department will work with relevant departments to support the China Iron and Steel Association and the Chamber of Commerce common external to Minmetals negotiations at the same time, iron and steel enterprises to carry out negotiations with foreign countries on behalf of by Baosteel.

In accordance with the practice in previous years, as early as December last year iron ore supply and demand of the two sides have begun price negotiations for the new year contact. However, as of now, both sides adopted a "cautious and low-key" approach to face the new year iron ore price negotiations.

On January 28, the China Securities newspaper reporters came to the Rio Tinto Group Shanghai office. Here, as Rio Tinto is responsible for sales and purchasing departments, are still maintained since July last year, "Hu KINGSTEK case" after the alert, which also showed the number of parties through the complex twists and turns last year's iron ore negotiations in a state of mind.

Negotiations must be greater emphasis on strategic

In 2009 China imported 630 million tons of iron ore, up 41.6%, the foreign dependency rate in 2002 to 44% to 69%. In 2008, China's iron imports 4.4 million tons, accounting for five total domestic demand into. Chinese demand for iron ore imports objective continues to deepen.

In 2009, China's iron ore price negotiations culminating in a "let the matter rest," the results that ultimately acquiesced in Rio Tinto and Nippon Steel to cut prices 33 percent to reach an agreement. At present, the spot market grade of 63% of Indian iron ore spot prices to 130 U.S. dollars / ton, the price was higher than 80%.

Zhu Hong Ren on January 27 at the meeting said that the current international iron ore market is dominated by three giants monopoly, "We hope that several major iron ore suppliers, it should be from the industry's long-term and fundamental interests, as well as with the China Iron and Steel focus the industry's long-term friendly cooperation as soon as possible to reach a fair and reasonable price acceptable to both parties agreement. "

At present, China is not anxious, like last year's external position, the three iron ore giants are not the same as in previous years, frequent contact with China's steel industry, both sides in the struggle for changes in the market insight and patience.

After the news that three major iron ore suppliers have been around China and Japan, South Korea steel prices in Singapore were contacted. However, this attempt with Japan and South Korea reached a "starting price" approach, in the current practice has nothing at all of the iron ore price negotiations on the table is not surprising that China needs in this environment, "on China price" . To this end, insiders pointed out that in addition to strength, one can not ignore the whole negotiation strategies.

"Internal unity" only take the initiative

ZHU Ren said, "China's iron ore negotiations, which are corporate self-discipline, the price determined by the market." This is China's iron ore price negotiations for the actual situation. The three iron ore giants controlled 70% of global iron ore market, but China, as the world's largest iron ore demand side, not without able to "quantity-for-price" approach.

Last year, the process of iron ore price negotiations, China has suggested that registration and recording system for iron ore imports for imported iron ore market review of the flow, reducing the internal disorder conditions and disorderly competition between each other, so as to avoid artificially increase the price of iron ore.

This approach, in which the key is "internal unity." This is an important condition for China to seize the initiative as one.

As at the end of the year, in the Chamber of Commerce and Minmetals China Steel Association record that has imported a total of 112 qualified traders, and so long to buy ore inevitably will be unable to organize a unified price negotiations outside the main body. The import trade of iron ore last year, the problem was reflected most vividly.

In addition, the "going out" is also one effective way to solve the problem. Japan, Korea and other steel prices continued stake in the three major iron ore producers, including foreign mining firms, including the practice, it is worth drawing on domestic enterprises. In fact, last year, domestic enterprises in the global market has been frequently gains, not only of about five pens of overseas iron ore interests, but also newly added to South Africa, Ukraine and other emerging markets, long HS mine.

Insiders pointed out that in order to China's current economic growth rate, iron and steel industry will still continue to maintain a high growth, demand for iron ore is still in a corresponding increase, and only adopt a "house in order the order of iron ore imports, the external diversity prospecting "The proactive strategy, can really not be controlled by others.