Study Of China's Import Strategy Of Iron Ore Based On Analysis Of Market Force

As the production scale of China's steel industry are expanding continually, the demand of iron and steel enterprises for iron ore are growing bigger and bigger. In 2003, China surpassed Japan, becoming the superpower for importing iron ore. In 2010, China has imported 6.19 million tons of iron ore, it's about 58% of the world total exports of iron ore, 63% of foreign dependence, and iron ore has become a veritable "magnet." Although China's iron ore resources are relatively abundant, but low grade, only 33% for average grade, no matter the production or the grade, the domestic iron ore can not meet the strong demand of the steel industry. Although China is the biggest buyer of iron ore, we don't have the corresponding discourse power in the international iron ore market. Under the case of rising costs of imported raw material, the profit of iron and steel enterprises are being squeezed continually. Then the analysis of iron ore market and the propose of specific import strategy is becoming particularly important. This analysis is about based on the market forces, the strategic research of China's iron ore imports.Firstly the article uses an empirical model to measure the iron ore exports market force of Australian, Brazilian to China and Japan, based on the analyzes of international iron ore market situation and China's iron ore imports trading situation, for china, were 48%, 40%, for Japan, were 35%, 28%, which indicated that iron ore has a bigger market power for china, comparing to Japan. And then analysis the reason why the suppliers have the big market influence in China's iron ore export. This part will be from four aspects to discuss: China's iron ore import demand, market concentration of iron and steel enterprises, and the situation of China's overseas mines investment, import countries of China's iron ore. At last it will propose the strategies of improving China's iron ore imports situation. The strategic measures include: easing the demand of iron ore importing strategy; industrial concentration strategy; importing diversification strategy; steel companies"go global"strategy.