Brazil is happy. On January 6, the news said that the world's largest iron ore supplier Vale's iron ore exports in 2010 reached 28.5 billion US dollars. The news pointed out that "a decade of Brazilian mining companies' share of exports increased from 2% to nearly 12% in 2010. It shows its important position in the Brazilian economy."
At the same time, domestic analysts are worried not only about the experience of Chinese steel mills in the iron ore field, but also the reality that the Chinese economy has been “kidnapped†by many countries and enterprises in many resource fields.
Iron ore profit contrast
Foreign analysts pointed out that because of the "China demand" support, Vale has not been surprised to achieve such sales. Data shows that Vale's market share in China is rising. Last year, it wanted to establish a distribution center for iron ore in China to enhance its influence in China. However, this motion was finally rejected by the relevant departments. In addition, Vale has taken the lead at the end of last year, intending to increase China's iron ore prices by 8.8% in the first quarter of this year compared to the fourth quarter of last year.
In the eyes of the industry, it is certainly not only Vale, but also Australian iron ore suppliers Rio Tinto and BHP Billiton. Previously, the "two extensions" announced many quarterly financial reports were quite good, and even by foreign financial institutions have been optimistic, and gave a good rating.
The three major miners are happy, but the Chinese steel industry has to bear the double squeeze caused by “high mineral prices and low steel pricesâ€. A few days ago, some sources quoted authoritative sources as saying: "The Chinese steel industry spent $26.1 billion (about 175 billion yuan) on the price increase of imported ore in the first 11 months of last year, which is more than twice the profit of the main industry of China's steel industry last year." Compared with the 3.5% of the industry's profits previously mentioned by the Ministry of Industry and Information Technology, it is no more than the sales of Vale.
Relevant persons of China Steel Association said to the media, "If you deduct the profit of the iron and steel joint venture mines, many steel companies are in a state of loss." According to another source, "China's steel industry last year's profit of 85 billion yuan, after deducting investment income. 8 billion yuan, the main business profit is only 77 billion yuan."
“Under the background of the three major miners monopolizing the entire market, it is difficult for Chinese steel companies to do a very good job in profitability.†Yesterday, an analyst who had long tracked iron ore negotiations told the International Finance News reporter, “ The loss of profits of Chinese steel companies will continue in the next few years."
Resource discourse power loss
What is worrying is not only the lack of price in China's iron ore industry, but also the restrictions on other resources.
Copper concentrates have been reported from Japan a few days ago, copper concentrate processing and refining costs will rise to 80 US dollars per ton and 8 cents per pound, which indicates that China's 2011 copper concentrate processing fees will rise sharply. (Japan's copper concentrate processing fees have a directional role in China's negotiations), and related profits will flow to the largest listed copper producers in the United States, Freeport McMullen Copper and Gold, Rio Tinto, BHP Billiton and other mining giants. Some media are worried that China's copper concentrates are negotiating "the fear of iron ore."
Even the export products that were previously considered are firmly in the hands of other countries. Although Sinopec, PetroChina (11.14, -0.10, -0.89%) and CNOOC's overseas M&A results are “gorgeousâ€, China's crude oil dependence has continued to increase, and this figure rose to 55% in 2010. "Or it will rise at a rate of 2% per year." Relevant experts once told the International Finance News reporter.
The “trajectory†of coal is similar to crude oil. After becoming the net importer of coal for the first time in 2009 (about 3% of foreign dependence), the total net import of coal of 130 million tons in the first 11 months of 2010 exceeded the total of 103 million tons in 2009. At the same time, the mode of “exporting and re-importing†of China's coal resources is being questioned by some analysts.
"China has some resources, the price is very low, such as rare earth. No resources, prices are rising, such as crude oil, coal, iron ore." Yesterday, China Merchants Productivity Promotion Center analyst He Rongliang on "International Finance The newspaper reporter said.
Improve industrial investment planning
"Although it is exaggerated to say that the Chinese economy is kidnapped by a few foreign companies, from the current situation, it is a fact that foreign capital constantly controls China's upstream resources." Yesterday, Cui Xinsheng, chief researcher of China Value Index, told International Finance News. The reporter said, "The reason for this is that on the one hand, China's development model in some areas is simply copying the Western system; on the other hand, Chinese companies do not understand the true meaning of the market economy, and it is obviously inexperienced in commercial negotiations. In addition, in the case of global excess liquidity, mastering resources has become a "must-have topic" for developed countries."
"We should quickly resolve the current situation of foreign resources subject to foreign investment." Cui Xinsheng believes that "China should improve the already lacking industrial investment planning function as soon as possible, change the status quo of relying on foreign investment and foreign investment, and solve deep-seated institutional problems and reflect on resource strategy. ."
He Rongliang believes that this is the result of the transformation of the thinking mode of international enterprises. "In contrast to the past, the profits of the global industrial chain are mainly left in the manufacturing industry. At present, the added value has already flowed into the raw materials and design. This is the transfer of enterprises in developed countries. The root cause is also an important reason for their firm control of the right to speak. And they have successfully penetrated into all aspects of mining and sales."
He Rongliang said, "This is the direction of Chinese enterprises to learn. State-owned enterprises should make greater contributions to China's right to speak in the field of resources."
At the same time, domestic analysts are worried not only about the experience of Chinese steel mills in the iron ore field, but also the reality that the Chinese economy has been “kidnapped†by many countries and enterprises in many resource fields.
Iron ore profit contrast
Foreign analysts pointed out that because of the "China demand" support, Vale has not been surprised to achieve such sales. Data shows that Vale's market share in China is rising. Last year, it wanted to establish a distribution center for iron ore in China to enhance its influence in China. However, this motion was finally rejected by the relevant departments. In addition, Vale has taken the lead at the end of last year, intending to increase China's iron ore prices by 8.8% in the first quarter of this year compared to the fourth quarter of last year.
In the eyes of the industry, it is certainly not only Vale, but also Australian iron ore suppliers Rio Tinto and BHP Billiton. Previously, the "two extensions" announced many quarterly financial reports were quite good, and even by foreign financial institutions have been optimistic, and gave a good rating.
The three major miners are happy, but the Chinese steel industry has to bear the double squeeze caused by “high mineral prices and low steel pricesâ€. A few days ago, some sources quoted authoritative sources as saying: "The Chinese steel industry spent $26.1 billion (about 175 billion yuan) on the price increase of imported ore in the first 11 months of last year, which is more than twice the profit of the main industry of China's steel industry last year." Compared with the 3.5% of the industry's profits previously mentioned by the Ministry of Industry and Information Technology, it is no more than the sales of Vale.
Relevant persons of China Steel Association said to the media, "If you deduct the profit of the iron and steel joint venture mines, many steel companies are in a state of loss." According to another source, "China's steel industry last year's profit of 85 billion yuan, after deducting investment income. 8 billion yuan, the main business profit is only 77 billion yuan."
“Under the background of the three major miners monopolizing the entire market, it is difficult for Chinese steel companies to do a very good job in profitability.†Yesterday, an analyst who had long tracked iron ore negotiations told the International Finance News reporter, “ The loss of profits of Chinese steel companies will continue in the next few years."
Resource discourse power loss
What is worrying is not only the lack of price in China's iron ore industry, but also the restrictions on other resources.
Copper concentrates have been reported from Japan a few days ago, copper concentrate processing and refining costs will rise to 80 US dollars per ton and 8 cents per pound, which indicates that China's 2011 copper concentrate processing fees will rise sharply. (Japan's copper concentrate processing fees have a directional role in China's negotiations), and related profits will flow to the largest listed copper producers in the United States, Freeport McMullen Copper and Gold, Rio Tinto, BHP Billiton and other mining giants. Some media are worried that China's copper concentrates are negotiating "the fear of iron ore."
Even the export products that were previously considered are firmly in the hands of other countries. Although Sinopec, PetroChina (11.14, -0.10, -0.89%) and CNOOC's overseas M&A results are “gorgeousâ€, China's crude oil dependence has continued to increase, and this figure rose to 55% in 2010. "Or it will rise at a rate of 2% per year." Relevant experts once told the International Finance News reporter.
The “trajectory†of coal is similar to crude oil. After becoming the net importer of coal for the first time in 2009 (about 3% of foreign dependence), the total net import of coal of 130 million tons in the first 11 months of 2010 exceeded the total of 103 million tons in 2009. At the same time, the mode of “exporting and re-importing†of China's coal resources is being questioned by some analysts.
"China has some resources, the price is very low, such as rare earth. No resources, prices are rising, such as crude oil, coal, iron ore." Yesterday, China Merchants Productivity Promotion Center analyst He Rongliang on "International Finance The newspaper reporter said.
Improve industrial investment planning
"Although it is exaggerated to say that the Chinese economy is kidnapped by a few foreign companies, from the current situation, it is a fact that foreign capital constantly controls China's upstream resources." Yesterday, Cui Xinsheng, chief researcher of China Value Index, told International Finance News. The reporter said, "The reason for this is that on the one hand, China's development model in some areas is simply copying the Western system; on the other hand, Chinese companies do not understand the true meaning of the market economy, and it is obviously inexperienced in commercial negotiations. In addition, in the case of global excess liquidity, mastering resources has become a "must-have topic" for developed countries."
"We should quickly resolve the current situation of foreign resources subject to foreign investment." Cui Xinsheng believes that "China should improve the already lacking industrial investment planning function as soon as possible, change the status quo of relying on foreign investment and foreign investment, and solve deep-seated institutional problems and reflect on resource strategy. ."
He Rongliang believes that this is the result of the transformation of the thinking mode of international enterprises. "In contrast to the past, the profits of the global industrial chain are mainly left in the manufacturing industry. At present, the added value has already flowed into the raw materials and design. This is the transfer of enterprises in developed countries. The root cause is also an important reason for their firm control of the right to speak. And they have successfully penetrated into all aspects of mining and sales."
He Rongliang said, "This is the direction of Chinese enterprises to learn. State-owned enterprises should make greater contributions to China's right to speak in the field of resources."
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