Pricing Of China's Iron Ore Imports

The steel manufacture is the basic industry of China’s industrial system, which plays an important role in the national economy. The importance of iron ore which is the basic material for making iron and steel can also not be ignored. With acceleration of China’s industrialization and urbanization, the steel manufacture has an increasing demand for iron ore. Since2003, China has become the biggest iron ore consumption and import nation in the world. However, under the background that the three major mines holding control of the pricing right of iron ore, the international iron ore price keeps rising. Because China don’t have the import pricing right of international iron ore, so in a microscopic view, the product cost of China’s iron and steel enterprises rises, and it exerts great pressure to the development of related enterprises; in a macroscopic view, it has a strong impact on China’s inflation level, China’s economic interest and economic security.With financialization of the international iron ore pricing mechanism, the uncertainty of iron ore’s importing price will be more severe, and the contradiction between China, the big iron ore importer and its shortage of pricing rights will be more intense. So, under this background, this thesis focuses on the research of the inner pricing mechanism of the international iron ore, and provides principles and measures for China to earn the iron ore import pricing right based on the thorough analysis of the reasons why China lacks the pricing right.The research of this thesis consists four parts:Part one mainly explains the research background and meaning of this thesis, presents the research status at home and abroad, and introduces the research content and methods.The first chapter of part two analyses the international market supply and demand situation of iron ore and the historical evolution of the international iron ore pricing mechanism based on the mass data gathered; Chapter two explains the current situation of China’s lacking of iron ore import pricing rights and its all aspects of influence on China’s economy. The first two chapters pave the way for part three.Part three is the key part and objective of the thesis. Chapter three analyses the reasons and chapter four puts forward measures. Chapter three carries out an in-depth discussion on the reasons why China lacks the import pricing rights for the international iron ore. On the one hand, international oligopoly and permeating of international financial capital are the deep reasons that China don’t have the pricing right. On the other hand, China’s economic policy and the weak basis of China’s steel manufactures make China further lose its pricing rights. Chapter four introduces the measures for China to fight for the international iron ore import pricing right.The fourth part is the conclusion which summarizes the thesis and makes a prospect of this subject.