Comprehensive Impact of Temporary Shutdown of Bucket Elevator

From time to time, China has no say in important strategic domestic commodities such as crude oil and iron ore, and the price fluctuations can only actively endure the violent and shaky effects of domestic commodity prices. Although China is the world's largest buyer of iron ore, large and medium-sized iron and steel enterprises in the country are still subject to the three major mining companies during the iron ore talks. They basically do not have the right to speak. The soaring price of iron ore allows steel companies to eat. All sweetness.

The launch of iron ore futures will certainly affect the price of domestic iron ore. As the world’s largest consumer of steel products and a large iron ore consumer, the prospective level of iron ore futures is expected to be more pessimistic. If we can effectively draw on the interests of the coke contract system, and grasp the amount of each hand and access threshold, the future liveliness is expected to be on par with the rebar standard futures.

However, under the combined influence of high concentration of upstream resources and temporary planning by European and US financial conglomerates, before China’s steel production has dropped and before the Chinese steel enterprises’ rights and minerals planning has not been realized, arguing for the right to speak and disagreement is a matter of preference. .

Regarding the fight for the right to speak of iron ore, although it will play a role as a wind vane, China, as a big consumer nation, sells more evacuation. The three major foreign star groups in foreign countries concentrate and monopolize the mastery of ore, so the market price of ore still needs to be referenced. The pricing of the three major red stars.

In addition, there are already two domestic trading companies that can conduct iron ore futures trading. They are divided into the Singapore Commercial Exchange (SMX) and the Indian Commodity Exchange (ICEX). The major disadvantage of China's iron ore futures lies in indirect proximity to upstream consumption. The group, at the same time, can effectively reduce the access threshold for Chinese customers. At the beginning of the listing, there is a deep-rooted customer base. In the country, settlement in the unit of national currency can also avoid the loss of profits caused by exchange rate fluctuations.

With regard to iron ore futures, the concept of iron ore futures has been discussed for a few years, but before the 2010 iron ore spot length association ended, Red Star, Red Star, China Steel, Shougang equaled the company’s long-term cooperation. They are not eager to get involved in derivatives, and even some local time traders also carry out low-cost entry into the mines and then sell them at low prices to enterprises without export rights, so that domestic steel mills are always at a disadvantage when they meet with the three major miners.