| Iron ore is the most important production material for the steel industry.For China,which is in the middle and late stages of industrialization,the strategic value of iron ore is more obvious.At present,the demand for iron ore in the world is weak,and the price of iron ore is fluctuating at a low level.The high-cost mining enterprises in the upstream mining enterprises have been gradually eliminated,and the steel production capacity of the downstream steel enterprises is excessive.The market situation faced by enterprises is difficult.In order to find out the main factors affecting the cost difference of iron ore at home and abroad,and to fully understand the status of China’s iron ore in the global market competition,the iron ore cost through the three levels of typical global mines,enterprises and countries.Conduct a comparative analysis to determine the availability of major iron ore producers in China and around the world,with a view to providing some reference for China’s mine development investment and operational decisions.Based on the methods of comparative analysis,empirical analysis and case analysis,and based on field research and literature review,this paper calculates the iron ore cost data of the three levels of state,enterprise and mine in 2007-2017,and selects it at each level.Typical representatives,such as the enterprise level,select five iron ore enterprises from Angang Group and four international miners as typical cases,and analyze the cost from the five cost components of mining cost,processing cost,management expenditure cost,tax cost and freight cost.The trend of change,and then targeted to find out the reasons for the high cost of comprehensive production of iron ore in China.Through the total cost of break-even and available price analysis,the iron ore cost data was verified,and the available price,available reserves and available production of iron ore in the world’s major iron ore suppliers were determined.The study found that:(1)China’s iron ore comprehensive production costs are much higher than the world average,equivalent to four times that of Brazil,three times that of Australia,2.3 times that of South Africa,and twice that of India.(2)The high cost of iron ore mining and ore processing cost is the main reason for the high total cost of iron ore in China.(3)In 2007-2017,the proportion of China’s iron ore mining cost and freight cost to total cost decreased,and the proportion of management expenditure cost remained basically unchanged,while the proportion of ore processing cost and tax cost increased.(4)Iron ore prices will remain between US$50-70/tonne in the next 2-3 years.In the case of no profit in the enterprise,when the iron concentrate market price is 50 USD/ton,the reserves of iron ore in Vale,Rio Tinto and BHP Billiton can still reach 17.849 billion tons,2.961 billion tons and 7.16 billion tons;Production can reach 366 million tons,333 million tons,and 257 million tons.(5)China is less competitive in the global iron ore market.The iron ore market is a typical oligopolistic market with mastery of bargaining power.As a major importer of iron ore,China is subject to the iron ore price negotiations,and China’s steel industry has become the agent of the four major miners,with little benefit. |
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