Iron ore in advance the balance sheet date, the Chinese steel enterprises, or 13.8 billion loss
March 8 a long association the 2010 iron ore contract according to the "fiscal year of China" (that is, from January 1 to December 31) the settlement of the news caused widespread concern. If true, the Association for fiscal year 2010 iron ore prices well above long-anticipated last year, domestic steel prices due to the balance sheet date may be a great loss of face in advance, the amount even up to 13.8 billion yuan.
Industry address him "read"
It is reported that the NPC, Hebei Iron and Steel Group General Manager of Yi-Fang Wang said that China still insisted on benchmark iron ore pricing mechanism, there is no iron ore price negotiation mechanism to adjust the plan and has the global iron ore producers to benchmark price shall time to reach agreement, determined by the "China fiscal year" (ie January 1 to December 31) Executive this year's iron ore benchmark price. For the news, Hebei Iron and Steel Group yesterday did not deny foreign propaganda department.
Long Association of iron ore contract settlement date is usually in accordance with the rules of corporate Japan and South Korea, on April 1 every year for a fiscal year began. Although the price of the year 2010, not yet released, however, would be more substantial than last year, has become the generally expected to rise. Therefore, if the balance sheet date in advance, it means that could have a relatively lower for the year 2009, the price has been implementing a long association on March 31 this year, China's steel enterprises, must now starting from Jan. 1 began to pay much higher mineral price. Has been in a small profit for the state's steel industry, this decision directly call the industry "can not read."
Or pay two billion U.S. dollars in 2009 to a long association price, the Australian iron ore fines by 33%, about 60 U.S. dollars FOB / ton; Brazil powder ore prices fell 28%, fob about 54 U.S. dollars / ton. For 2010, the increase is 50% of the latest news.
A market calculations with reporters: If 50% of the rate calculation, the new Australian mine to a long association FOB 90 U.S. dollars / ton, the Brazilian ore, 81 U.S. dollars / ton, respectively 30 U.S. dollars spread among / ton and 27 U.S. dollars / ton. China's imports of iron ore last year, 628 million tons, of which imports of Australian ore is about 260 million tons, Brazil imported about 140 million tons ore. According to conservative estimates, more than domestic enterprises to use the ratio of the two long association mining 70%. That means, in theory, the domestic steel prices may advance the balance sheet date to pay 20 billion dollars more in loans and approximately 13.8 billion yuan!
According to CISA statistics, statistics of the 68 included medium-sized steel enterprises in the year 2009 a profit of 55.388 billion yuan has only (including investment income, assets, reversal of impairment losses 16.752 billion yuan). This is a cost overrun of the ore, steel prices will occupy nearly a quarter of the profits.
It must be noted that the situation will be different. Because last year's long association contracts have been implemented, some finished steel, this newspaper had also reported a large state-owned steel enterprises in China have begun to buy physical ore, therefore, have gone through the long association of the amount of steel prices, the settlement day advance will not affect too.
"Unless this is the Steel Association is committed to building the 'Chinese model' part. Push 'Chinese model' with 'Chinese financial year', in the long run, it should still meaningful." Iron ore industry analyst, a reporter question, "but why not choose the timing of a smaller price gap to a smooth transition, and to spread such an obvious choice this year, the year of it?" another steel industry analyst, put it bluntly: "If the balance sheet date, really early, iron ore is equal to half of the negotiations failed. "
Industry address him "read"
It is reported that the NPC, Hebei Iron and Steel Group General Manager of Yi-Fang Wang said that China still insisted on benchmark iron ore pricing mechanism, there is no iron ore price negotiation mechanism to adjust the plan and has the global iron ore producers to benchmark price shall time to reach agreement, determined by the "China fiscal year" (ie January 1 to December 31) Executive this year's iron ore benchmark price. For the news, Hebei Iron and Steel Group yesterday did not deny foreign propaganda department.
Long Association of iron ore contract settlement date is usually in accordance with the rules of corporate Japan and South Korea, on April 1 every year for a fiscal year began. Although the price of the year 2010, not yet released, however, would be more substantial than last year, has become the generally expected to rise. Therefore, if the balance sheet date in advance, it means that could have a relatively lower for the year 2009, the price has been implementing a long association on March 31 this year, China's steel enterprises, must now starting from Jan. 1 began to pay much higher mineral price. Has been in a small profit for the state's steel industry, this decision directly call the industry "can not read."
Or pay two billion U.S. dollars in 2009 to a long association price, the Australian iron ore fines by 33%, about 60 U.S. dollars FOB / ton; Brazil powder ore prices fell 28%, fob about 54 U.S. dollars / ton. For 2010, the increase is 50% of the latest news.
A market calculations with reporters: If 50% of the rate calculation, the new Australian mine to a long association FOB 90 U.S. dollars / ton, the Brazilian ore, 81 U.S. dollars / ton, respectively 30 U.S. dollars spread among / ton and 27 U.S. dollars / ton. China's imports of iron ore last year, 628 million tons, of which imports of Australian ore is about 260 million tons, Brazil imported about 140 million tons ore. According to conservative estimates, more than domestic enterprises to use the ratio of the two long association mining 70%. That means, in theory, the domestic steel prices may advance the balance sheet date to pay 20 billion dollars more in loans and approximately 13.8 billion yuan!
According to CISA statistics, statistics of the 68 included medium-sized steel enterprises in the year 2009 a profit of 55.388 billion yuan has only (including investment income, assets, reversal of impairment losses 16.752 billion yuan). This is a cost overrun of the ore, steel prices will occupy nearly a quarter of the profits.
It must be noted that the situation will be different. Because last year's long association contracts have been implemented, some finished steel, this newspaper had also reported a large state-owned steel enterprises in China have begun to buy physical ore, therefore, have gone through the long association of the amount of steel prices, the settlement day advance will not affect too.
"Unless this is the Steel Association is committed to building the 'Chinese model' part. Push 'Chinese model' with 'Chinese financial year', in the long run, it should still meaningful." Iron ore industry analyst, a reporter question, "but why not choose the timing of a smaller price gap to a smooth transition, and to spread such an obvious choice this year, the year of it?" another steel industry analyst, put it bluntly: "If the balance sheet date, really early, iron ore is equal to half of the negotiations failed. "
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