Chinese Iron ore market operation characteristics
time : 2014-06-11 17:24 Come from :Excellence
Iron ore is the major raw material of steel, accounting for 60% of the cost of pig iron. As the Asia steel industry is rapidly developing, there are several market operating properties come into being in the iron ore market.
Over the past decade, the global iron ore consumption has increased by 88.0%, with an average annual growth rate of 5.9%, of which China's iron ore consumption is approximately 4.2 times of the average rate, becoming a major driving force. Over one third of the iron ores are domestic, which the others are imported. The iron ore major exporters are Australia, Brazil, India, etc, while China, Japan and European countries are major importers.
The iron ore prices are mainly influenced by several factors. The macro economy has great impact on iron ore price because the strong economy means strong demand. The iron ore production cost and the iron ore producing countries’ policy are also very important.
The benchmark price has been widely used in the transactions, but since last year, short-term contracts based on spot price are set up which make the iron ore market more transparent than before.
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