The hottest ore price in 2015 may be difficult to

2022-08-15
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In 2015, the ore price may be difficult to break through $60 to maintain a reasonable profit space

in 2015, the ore price may be difficult to break through $60 to maintain a reasonable profit space

China Construction machinery information

since this year, the downward price of iron ore has indeed brought great progress to people's basic necessities of life, food, housing and transportation. To a certain extent, it has alleviated the poor benefits of China's iron and steel enterprises. At the end of November, the price of imported iron ore with a grade of 62% fell below $70, the lowest level in five years

Li Xinchuang, President of the metallurgical industry planning and Research Institute, believes that it will be difficult for the iron ore price to further drop to the level of $60. "As China's steel demand gradually approaches the peak, the iron ore price should fall back to a reasonable range. It is expected that the ore price will generally hover in the range of $70-80/ton next year, but the possibility of temporarily falling below $60 at some time points cannot be ruled out." Li Xinchuang said

but Li Xinchuang also believes that the price reflects the market. Although some regions have taken some targeted governance measures, the change of supply-demand relationship should not be too sensitive, but the low ore price is not necessarily a good thing, and every industry should maintain a reasonable profit space

it is reported that at present, the offshore cost of iron ore of three international mining enterprises, such as BHP Billiton and Rio Tinto, is 20~2. Failure analysis: the screw is blocked by $5, and the landed cost is more than $40, and there is still room for further decline in this cost level. "Once the price of iron ore falls below $60, a large number of small and medium-sized mining enterprises, including China, will face bankruptcy." Li Xinchuang said

for this reason, Li Xinchuang once again called for that the current tax burden level of domestic mining enterprises is as high as 25% - 30%. If the tax burden level can be reduced to less than 10%, the enterprises will be more competitive

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