As the world’s largest producer and consumer of steel, China’s steel companies are preparing to sit down with Rio Tinto, BHP Billiton, and Brazil’s Vale to finalise iron ore prices next year. If BHP Billiton succeeds in taking Rio Tinto into its pocket, steel makers headed by Chinese manufacturers will be in a passive position in bargaining.
Once Rio Tinto and BHP Billiton merge, a global natural resources giant will be born. Its mines spread over six continents and will account for more than one-third of global iron ore production. Coupled with Brazil's Vale, the three giants will account for nearly three quarters of global iron ore production.
Professor Liu Jianming of the Chinese Academy of Sciences believes that after the merger of the two mining giants, their right to speak in the minerals market will increase, which will have a huge impact on the international mineral market. This is not a good thing for other companies, including Chinese steel companies.
In the past, international steelmakers, who are the main consumers of iron ore, may also be able to lower iron ore prices by "dividing" Rio Tinto and BHP Billiton, but now they are using fewer and fewer tools to bargain. At present, the long-term agreement for iron ore is around 80 US dollars per ton, and the spot price is much higher, and it is moving toward around 180 US dollars per ton. Iron ore suppliers are expected to increase their long-term agreement prices by 30% to 50% next year.
However, even if BHP Billiton fails to successfully merge with Rio Tinto, Chinese steel manufacturers will still have a disadvantage in the beginning of negotiations. A spokesman for the UK’s largest steel producer, the Cruze Group, said recently that due to the tight supply of global steel products, the steel industry is likely to face a further increase in raw material prices.
It is reported that China currently accounts for nearly half of the world's iron ore consumption, and even domestic inferior iron ore that meets about half of China's demand. Its price has also doubled since the beginning of the year.
In addition, including the soaring freight rates and the differences between spot and futures prices also support the sharp rise in iron ore prices.
At present, the control of the mining industry continues to be concentrated in the hands of a few overseas listed companies. Through a series of integrations, the company has grown into a global supply giant, and the aggressive offensive of BHP Billiton to expand its competitors' capabilities to expand acquisitions reflects this trend. BHP Billiton, Rio Tinto and Brazil’s Vale control many of the world’s largest mines, especially in Australia, Chile and Canada. This trend has increased the profitability of overseas mining companies, but the limited supply also means that buyers are hard to find. Turn to other iron ore suppliers.
Agricultural are used primarily in inner tubes or tubeless tires for agricultural vehicles, and work with air or water (for tubeless tires).Tube type air-liquid valves: TR218A, TR220A, TR618A, TR621A TRJ-650, TRJ670 etc.
Agriculture and OTR Tire Valve
Agricultural Tire Valves, OTR Tire Valve, Buy Agricultural Tire Valves
Ningbo Heyu Tire Repairs Co., Ltd. , https://www.auto-repair-tool.com