Analysis On Influencing Factors And Strategy Of Chinese Iron Ore Import Trade

Iron and steel industry is the basic industry of our national economy. And iron ore is the import raw material of producing iron and steel. With the rapid development of iron and steel industry, capacity has got released. And this has caused more and more need of iron ore. Although China is a country with rich iron ore resources, the future limitation of its development and mining technology, our own produced iron ore can't meet the need of the development of the national economy, we have to import more and more iron ore. We imported about 70 million tons in 2000, which accounted about 13.70% all over the whole imported iron ore. At the same time we are the second in the world. We imported about 150 million tons, which accounted about 25.41% and this is 3% higher than Japan's imported iron ore. This time we have to be the first in the world. In 2009 Chinese iron ore imports are up to 628 million tons and its dependence on overseas close to 60%, Iron ore is very import for Chinese economy development.This paper begins as the current situation of the world's iron ore trade. It analyzes the reserve and distribution of iron ore resources in the world, and described the transport channel, support and demand situation and three important suppliers in the world。Then this article also analyzes the general situation of China's iron ore trade, including the import volume, transport channel, import cost situation. At the same time it points out the current problems. Then this paper goes on to the factors that affect the iron ore trades, and selects some factors and Chinese iron ore imports to do empirical analysis in order to find out the major economic factors that impact China's iron ore trades. In the conclusive part of this paper, based on the analysis of China'iron ore trade problems and their impact factors, I make some suggestions from the basic concept of trade, strategy and measures to promote China's iron ore foreign trade.This paper points that we have to insure normal supply of iron ore, establish iron ore futures and improve the sea transport. I hope this paper can help improve iron ore.