The Influence Of Different Pricing Mechanism For Iron Ore Trade In China

China is the world’s steel production country and the world’s first iron ore importer. Although large iron ore reserves in China, but China’s domestic iron ore resources more lean ore, and the existing mining technology and ore dressing is difficult, production efficiency is not high. Restricted by iron ore resource properties and difficult exploitation, domestic iron ore production is difficult to meet the demand of iron and steel production, available quantity and per capita quantity far cannot meet domestic demand for raw materials of super large iron and steel production capacity, the Chinese steel mills have to seek the road to import.Over the past few decades, due to the iron ore importer, the vast majority of imports of iron ore from Australia, Brazil and other rich countries, the iron ore trade under the long association, price mechanism, the absolute monopoly of iron ore resources due to the seller, the seller’s bargaining power in the negotiation is relatively strong, pricing power is always in the hands of a few big monopoly iron ore exporters. Although since 2004, China sent baosteel, cisa and other large steel mills and organizations to participate in the long association, price negotiations, but no room for bargaining in terms of price negotiation, still passive to accept the results of the iron ore prices. 第 2 页 Flexible pricing era as the iron ore market, price index as the benchmark, price range and pricing model is flexible, in the spot market price is not dominant, more and more financial factors will join them. All kinds of price index, financial derivatives trading platform and iron ore, the iron ore market factors affecting more and more complex, the market price volatility is great, China has the largest iron ore spot market, in a new machine.Under the changes, follow the steps, also launched its own index, and futures trading platform, etc., trying to improve the passive position in the iron ore market.New pricing mechanism to produce great changes have taken place in the iron ore market, thus to study the influence of different pricing mechanism for iron ore trade market, the price mechanism, the reason for the shift to improving China’s iron ore trade and the development of iron and steel industry is of vital significance. This paper attempts to from the iron ore market development in the process of two kinds of pricing mechanism, this paper analyzed different pricing mechanism for the different effects of iron ore trade in our country, explore the essence of the mechanism transformation. From microeconomic perspective, the iron ore market belongs to oligopoly market, therefore the monopoly model theoretically analyses the reason of market pricing and transfer pricing mechanism. In the empirical research on the influence of different pricing mechanism, in terms of first USES granger causality test for two kinds of pricing mechanism for imports change validation comparison, the influence of dynamic comparison method is used again for different pricing mechanism to validate the effect of pricing power. The results show that under the flexible pricing mechanism, China’s iron ore trade buyer’s status has improved, trade condition has been improved to a certain, the change of the pricing model for our country has a positive influence.According to above analysis about iron ore trade in China was put forward to improve practical, targeted measures, hoping to help the healthy development of China’s iron ore trade and economic. Coping strategies including complying with the trend of iron ore price financialization, improve and strengthen the existing financial system and the product, and introduce more related financialization of products, so in the future iron ore financialization aspects occupy more market share. Develop national security strategy, vigorously support domestic mine development, optimize the industrial layout, improve domestic mines, mine steel balanced development.