The Analysis of Pricing Tendency of China’s Imported Iron Ore and Consequent Risk Prevention.pdf

The Analysis of Pricing Tendency of China’s Imported Iron Ore and Consequent Risk Prevention LI Xia School of Economics and Trade ，Henan University of Technology, P.R. China, 450001 Abstract China is one of the worlds largest developing countries. In recent years, economic taking-off propels the rapid development of steel industry. This will inevitably lead to the increasing demand for iron ore. Although China’s iron ore resource is among the highest reserves in the world, it is still far from being able to meet the domestic demand The supply of iron ore is heavily dependent on imports, and the dependency on imported iron ore is rising. The prices of Chinas imported iron ore have continued to rise recently. It has had a negative impact on the healthy, stable development of the domestic steel industry and related industrial sectors. The paper analyzes the possible range of price fluctuation of Chinas imported iron ore and its factors in recent years, and make a forecast of the price trend in the foreseeable future. On basis of it, the author tries to present her views on how to evade the price risk of Chinas imported iron ore. Key words The imported price of iron ore, Trend of price fluctuation, Risk prevention 1 Introduction The trade activities of China’s importing iron ore could date back to early 1980s. Since then, overseas iron ore poured into China accompanying the operation of Baosteel Group. The import of iron ore to China is experiencing a stable and considerable rise. The import dependency of iron ore exceeds 50% and the import price climbs year by yea