HBIS dependence on three miners to decrease to be 20pct
2011-08-18 09:36:56 [Print]
It is reported that domestic steel enterprises repeatedly suffer a defeat in negotiating with the top three miners in recent years.
Mr Wang Hongren Board Director and General Manager of HBIS Mining Company, domestic steel enterprise should dominate the negotiation by controlling domestic iron ore resources.
Mr Wang Hongren said international iron ore price showed upward trend with fluctuations in the first half of 2011. He believed the price would go downward trend in the rest of the year and the average price would be above USD150 per tonne. Global top three miners’ monopolization in iron ore market wouldn’t be vibrated in short term and iron ore price is impossible to slump.
He said that besides, many capitals home and abroad enters into iron ore exploration area and iron ore capacity would be released in the next 3 to 5 years. At the meantime, domestic steel capacity would be limited and iron ore exploration would be confronted with more competition. Therefore, domestic miners should speed up exploration of domestic mining resources so as to raise domestic iron ore production.
Mr Wang said “In that case, we can finally get the power in iron ore negotiation.”
As per report, HBIS possessed 5 billion tonnes of iron ore resources so far and its possession of iron ore resources would reach 8 billion tonnes at the end of 12th five year with annual iron ore fines production capacity of 35 million tonnes to achieve self supply of around 50%. At that time, HBIS dependence on the three miners would decrease to be around 20%.
Mr Wang Hongren Board Director and General Manager of HBIS Mining Company, domestic steel enterprise should dominate the negotiation by controlling domestic iron ore resources.
Mr Wang Hongren said international iron ore price showed upward trend with fluctuations in the first half of 2011. He believed the price would go downward trend in the rest of the year and the average price would be above USD150 per tonne. Global top three miners’ monopolization in iron ore market wouldn’t be vibrated in short term and iron ore price is impossible to slump.
He said that besides, many capitals home and abroad enters into iron ore exploration area and iron ore capacity would be released in the next 3 to 5 years. At the meantime, domestic steel capacity would be limited and iron ore exploration would be confronted with more competition. Therefore, domestic miners should speed up exploration of domestic mining resources so as to raise domestic iron ore production.
Mr Wang said “In that case, we can finally get the power in iron ore negotiation.”
As per report, HBIS possessed 5 billion tonnes of iron ore resources so far and its possession of iron ore resources would reach 8 billion tonnes at the end of 12th five year with annual iron ore fines production capacity of 35 million tonnes to achieve self supply of around 50%. At that time, HBIS dependence on the three miners would decrease to be around 20%.
