Oligopolistic Pattern Of China's Iron Ore Bargaining Power

With the consistent development of economy, car, construction and manufacture industry advanced rapidly. Then steel industry is drove to grow rapidly. As the basal energy sources of steel industry, in the process, iron ore certainly become one of the important necessary strategic materials. Due to the severe insufficiency of the resource and great increase in the import of iron ore, China has to import iron ore to fill up the gap between the supply and demand. So iron ore of China could develop continuously and stably. In the near few years, the import volume of china iron ore increase continuously. But the business price of international iron ore did not drop, but continuous increase instead, which directly impact our country's iron ore market and rise up the cost of iron ore and its downstream industry. Then the profit is declined. And it impacts our country's GDP to some extent. Therefore the topic of improving Chinese price-negotiating ability in the international business and china's price-setting power on iron ore has aroused great concern among people from all circles, especially experts and scholars home and abroad.Based on the analysis of iron ore production and trade situation, china iron ore business is in dire need of a suit of feasible strategy to evade the industry deal risk aroused by price fluctuation, to evade the hidden trouble of country economic development, and to maintain resource and economy safety of our country. So the study on iron ore's negotiating price ability will be greatly meaning. Furth more, the analysis and strategy about the Chinese negotiating price ability will explore policy on pricing right of many goods in international trade.The thesis applies the empirical analysis method and quantitative analysis method. The thesis makes a study on international iron ore market about the operation mechanism, the structure and the behaviors between the supply and demand. The thesis narratives the overview of international pricing system in iron ore and the lack of pricing- negotiating right in iron ore of our country. It analyzes the influence on Chinese economy and the cause of scarcity in pricing-negotiating ability of iron ore based on the supply- demand model and oligopoly theory. Finally, according to the cause concluded from the before for reference, the thesis put forward countermeasures for improving the price-negotiating ability of our country.