Two Expand Europe'S Price Rise 71% China'S Steel Enterprises Relative Competitiveness Decline

As a big iron ore demand country, China suffered unfair treatment in this year's international iron ore negotiations.

According to sources, BHP Billiton and Rio Tinto have reached 71% agreement with the European steel company for iron ore, which is the same as the European price before the vale of Brazil, but lower than the Asian market price reached by Australia and Baosteel before 96.5%.

At present, BHP Billiton and Rio Tinto declined to comment on the news, but Rio Tinto spokesman confirmed that the European price agreement has been reached.

For the "two extension" differential treatment approach, joint metal network analyst Hu Kai believes that the main reason is that its export volume to Europe is very small, followed by the existence of the disadvantage of distance.

During the negotiations on iron ore in China and Australia, a head of the China Steel Association once said that China's price would never be allowed to appear specifically for China's steel mills, and it would be the bottom line of China's negotiations.

But in fact, the bottom line has been broken.

At present, the following market situation has emerged: two prices in the same market (65% in Brazil, 79.88% in Australia, 79.88% in Asia), two in the same mining company (BHP Billiton, Rio Tinto 79.88% in Asia, 71% in Europe).

Analysts believe that the only result of China's iron ore negotiations this year may be to maintain long-term contracts and reduce more foreign exchange losses, while large steel mills with long-term contracts have also maintained the cost advantage of using small scale steel mills in spot mines, but the competitiveness of Chinese steel enterprises to European and American and Japanese steel enterprises will decline.