Research On Strategy Of China Bargaining For Iron Ore In Monopoly Market

With development of China's steel industry and boost demand for iron ore, China has become the most country for iron ore impartation since 2003.For the reason that international iron ore export markets has tend to be concentrated and china's imports be highly dependent upon three ore monopolies, China have not bargaining power to match with maximum imports in international iron ore price negotiations and be exposure to wild risk of economic development.Based on the principle of game theory and the cartels model, by collecting and analyzing the data of production and imports, the theme represents how the pricing mechanism of international iron ore along with supply and demand situation got together with chain relationships and midway interests. The result is that the international iron ore market has the characteristics of supplier- monopoly and the main exporters have been leading prices. China has to import vast amount iron ore for the volume of china own-products cannot meet domestic demand.All this lead to china's highly external dependence and low bargaining power in international iron ore price negotiations. Learn from Japan's experience of steel and iron industry development and overseas investment, this thesis draw the conclusion that china improve steel industrial concentration and regulate domestic market; introduce financial capital into steel industry and establish overseas iron ore futures market to increase the power on price.