The Effect Of Global Mines' Pricing System On Profitability Of Downstream Industry Chinese Mines

Since the origination of human being society, there is never end of fighting fotthe resources. The origin of morden war has been linked with striving for theresources which are limited and spreaded unevenly on the geographical scope. As thealways result, those precious resources were redistributed (or could say, the interestpattern remodeling would always be carried out. The importance of mineral resources,as the wheel of turning the industrialized course or even the economic developmentfor the countru as a whole, is self-evident for the western world, emerging economies,even for the whole world. The conclusion could be made out of question that thecontrolling of mineral resources (or pricing mineral resources) is nearly equal to themastery of economic direction around the world in the future. Therefore, both oftheoretical and practical significance have been rooted in the research work for thepricing system of several important mineral resources and within which thefudemental elements interacted and interalated that form it.The iron ore, crude oil, refined cooper, primary aluminium and coal have beenchoosen as the ressarch objects in this thesis. To start with, the systematic theories,including the general theory of product pricing form, the theories that could affect thefluctuation of product price and the related pricing systm theories, have beenintroduced at length. Through putting the economic or other relevant theories intopractical analysis, the traditional and current elements that could affect the pricechange of mineral resources and the market structure of mineral resources areelaborated. The research objects (the mines metioned above) will be exemplified indetail to dscribe how these traditional and current elemts in market interacted witheach other and under which the information of the two of mainstream pricing systemsnowdays has been presented (that are the pricng system on the basis of futures priceand on the basis of long-term framework contract. Then, the mask of the shareholdersfor multinational corporation and futures exchange, that have controlled the most ofmineral resources around the world, will be unweiled so as to domenstrate the finalbeneficiary, during the curruent price raising trend for mineral resources. Nevertheseless, the emergingly economies as China, with the large demand for themineral resources as the raw material, have to pay the extra cost for the rise in price.The innovation of this thesis could be positioned as that the quantifiable methodhas been adopted for analyzing how large the price rising of mineral resources inrecent ten years has influence on the profit margin of mines public companies on thewhole industry chain, so that the influence of price rising in mineral resources onChina's microeconomic entities can be shown. At the end, the combination of theinfluence of rise in price of mineral resources on microeconomic entities, the futuredemand of mineral reousrces from the downstream industry and the advancedacquisition system overseas of developed countires have been analyzed in detail, onthe basis of which the several methods have been raised to avoid the price fluctuationfor mineral resources by author, under the circumstances that without the pricingpower for Chian on the global scope.