Study On The Influence Of Iron Ore Negotiations To Freight

In recent years, as the China's iron ore imports increase as years, the iron ore price rised every year, and the freight of iron ore also rised corresponded. The rising of the iron ore price and the freight at the same time led to cost increase of the iron and steel industry, and then influenced the related manufacturing industry even to the entire domestic economy, so the iron ore price and the freight has become the focus of iron and steel industry and other related manufacturing industry. And the Iron Ore Negotiations is of greastest important to the iron ore price, so the Negotiations certainly become the focus of all aspects. In this background, the article studies on the influence of Iron Ore Negotiations to freight from the point of shipping companies engaged in iron ore transportation, in order to obtain analysis results of guiding significance on management and operation of the shipping companies.The thesis includes three parts: Firstly, the article analyses the present situation of international iron ore trading market—analyses the production and trading of the iron ore, and then simply intrduces the Iron Ore Negotiations. Secondly, the article analyses the present situation of China's iron ore imports: analyses the necessity of China to import iron ore by comparing the supply and the demand of iron ore in domestic, then analyses the source of China's imported iron ore and its price, and simply compares and analyses the China's imported iron ore freight and the imported iron ore price. Lastly, the article studies on the influence of Iron Ore Negotiations to freight based on the earlier analysis: the article first studies on the relations between China's imported iron ore price and the freight, and comes to the conclusion that Iron Ore Negotiations could influce the development trends of the freight; and then obtaines the influence of Iron Ore Negotiations to the freight volatility by comparing the weekly freight statistics before and after the World Iron Ore Negotiations.The investigation of this paper provides a useful reference to make decision in management and operation for the shipping companies serving for China's imported iron ore transportation. The conclusion of this paper could help those shipping companies to grasp the development trends and the volatility charters of the freight, and then could help those shipping companies to improve their profitability and competitiveness.