The Ministry of Industry and Information Technology clearly proposed that iron ore guarantee capability needs to be improved

The "Twelfth Five-Year Development Plan for the Iron and Steel Industry" officially issued by the Ministry of Industry and Information Technology recently clearly puts forward the enhancement of the iron ore resources guarantee capability and the establishment of two foreign and domestic resource protection systems. The iron and steel industry will strive to basically establish a raw material security system for the iron and steel, coal, and other iron and steel industries by 2015. The self-sufficiency rate of domestic iron ore will remain above 45%, and foreign iron ore resources will control the amount of imported iron ore. above 50.
Zhong Xuezhi, a researcher in the energy industry at China Investment Advisors, pointed out that the establishment of an iron ore resource security system has a strong urgency. In the first eight months of this year, China's cumulative import of iron ore was 448 million tons, an increase of 42.71 million tons, an increase of 3.5%; the average landed price of imported iron ore reached US$163.72 per ton, an increase of US$44.2/ton from the previous year, an increase of 38% . Just because of the increase in iron ore prices, China’s steel industry has spent more than US$20 billion in foreign exchange, and the cost of the steel industry has increased by more than 130 billion yuan.
Although the Ministry of Industry and Information Technology proposed in the "Twelfth Five-Year Development Plan for Iron and Steel Industry" to strengthen the protection of iron ore resources, its implementation is very difficult. One is that because of the limited supply of iron ore in the country, it is difficult to increase the growth rate significantly. The second is that iron ore projects invested by domestic enterprises in foreign countries have so far not been able to play a large role, and various constraints have limited the construction of overseas iron ore resource bases. Third, the concentration of the domestic steel industry is still too low, and it is difficult to form a joint force in negotiations with the three major mines.
Zhang Yulin, research director of China Investment Consulting Co., Ltd., said that in order to safeguard the interests of the steel industry and ensure the stable development of the national economy, the government should actively promote the optimization and upgrading of the steel industry, eliminate backward production capacity, and use differential pricing, financial incentives and other means to promote the expansion of the steel industry. Strong, improve the overall competitiveness of the industry. At the same time, domestic steel companies should change their thinking and actively participate in the iron ore financial market, from passive participants to active participants, and to use market rules as much as possible to obtain maximum benefits.
The "2011-2015 China Steel Industry Investment Analysis and Forecast Report" published by the China Investment Advisor shows that as China's urbanization is still underway, the demand for steel in the future will remain strong, which will to a certain extent Supported the price of iron ore. In order to cope with the high iron ore price, it is necessary to establish a sound iron ore resource security system.

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