Study Of Competitive Strategy Between China's Steel Companies And Iron Ore Companies

With the fast growth of our economy since 1990s, the Iron and Steel industry also grew very fast. The Iron and Steel output step up at a fast pace. This cause our demand for Iron Ore grew also very fast. But our production of Iron Ore could not meet the demand from Iron and Steel industry. So we have to import a large amount of Iron Ore. In 2008, the amount of imported Iron Ore reached 440 million ton, about 50% of the global seaborne Iron Ore.Normally, as the biggest buyer, we should have large influence on the price of Iron Ore. But in fact, we did not get the power to influence and determine the price of Iron Ore. A large part of the profit from our Iron and Steel industry shifted to overseas Iron Ore producer. So study on how we compete with Iron Ore producer is very important for the healthy development of our Iron and Steel industry.This article firstly introduces the current situation about global Iron Ore resource/production and global Iron and Steel industry. Then, we carefully analyze the current international Iron Ore price negotiation mechanism and put forward some suggestion. After that, we carefully analyze our competition strategy and the current situation about our Iron Ore market. We point out some of our shortcomings. Finally, we put forward some suggestion based on that.The conclusion is based on a large amount of reliable database and careful analysis of them. I hope that this article will help the healthy development of our iron and steel Industry.