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Iron ore "two Tuo" give up joint venture Hebei steel plant breathe a sigh of relief

iron ore "two Tuo" give up joint venture Hebei steel plant breathe a sigh of relief

China Construction machinery information

Guide: on the 18th, under the opposition of the global steel industry and multinational regulators, Australian iron ore giants BHP Billiton and Rio Tinto announced, The plan to establish an iron ore joint venture in Western Australia will be cancelled. For Hebei steel industry, which needs to rely on imports for half of its iron ore, the international iron ore market

on the 18th, under the opposition of the global steel industry and multi-national supervision and data analysis become 10 points easier, Australian iron ore giants BHP Billiton and Rio Tinto announced that the original plan to establish an iron ore joint venture in Asia through a series of transmission mechanisms such as a gearbox to drive the screw rod to rotate in Dali, Western Australia would be cancelled. For Hebei Iron and steel industry, which needs to rely on imports for half of its iron ore, the concerns about the international iron ore market moving towards "duopoly" and the further lack of discourse power of steel mills in negotiations have been temporarily eliminated. However, industry analysts also told this newspaper that the three major mining enterprises in the world, which hold 70% of the share of seaborne iron ore, will continue to control pricing dominance, and domestic steel enterprises are still difficult to get rid of the existing passive situation in price negotiations

incident: Global opposition is effective

BHP Billiton and Rio Tinto are the world's largest and third largest iron ore manufacturers respectively. The main mining businesses of the two companies are concentrated in Pilbara, Western Australia. According to the agreement in June last year, the "two extensions" plan to establish an iron ore production joint venture to share the ports and other infrastructure resources of both sides. The scale of the joint venture transaction is as high as US $116billion, which is said to save us $10billion for both parties every year

previously, antitrust agencies in the European Union, Australia, Japan, South Korea, Germany and other countries have expressed opposition to the "two development" joint venture, and the China Iron and Steel Industry Association has always expressed "firm opposition" to the joint venture plan. It can be said that this plan has been unanimously opposed by the steel industry all over the world and the anti-monopoly agencies of various countries. On the 18th, after the announcement of abandoning the joint venture, the share price of "two Tuos" fell only slightly, indicating that investors had long been prepared for the abortion of the plan

steel enterprises: temporarily relieved

after the news came out, steel enterprises at home and abroad generally welcomed it, believing that the possibility of the international iron ore market moving towards "duopoly" was temporarily eliminated. Many steel mills and iron ore traders in Hebei told this newspaper that the cancellation of the joint venture by the "two expansion" should be a "breath of relief" good news for local steel mills, but it only means that "a worse monopoly" will not appear. At present, the current situation of the joint control of the market by the three major miners cannot be changed in the short term

Zhang Lin, an analyst at Lange Iron and Steel Information Research Center, told this newspaper that this incident will not have a direct impact on the current iron ore market, but dispelled the concerns of some enterprises. If the joint venture of "two development projects" is successful, in the face of the "two oligarchs" of Australia and vale of Brazil, the bargaining space of Chinese steel mills in price negotiations will be further squeezed

Market: it has risen slightly recently.

since October (the fourth quarter), the three major miners have reduced the export price of iron ore to Chinese steel mills by 10%, which is lower than that of Japanese and Korean steel mills by 13%. This is the first price reduction after the shift to quarterly pricing. For the reason of price reduction, industry analysts generally believe that the high ore price and the sluggish domestic steel demand lead to the decline in iron ore demand

however, as steel prices have rebounded slowly again recently, domestic iron ore imports and prices have risen slightly. At present, the imported spot ore has risen to $160 per ton (about $150 FOB Australia)

industry analysts said that on the one hand, iron ore prices are running at a high level, and on the other hand, steel export tax rebates are being cancelled. Hebei Iron and steel enterprises will still face operating pressure in the fourth quarter