Research On The Determinants Of Import Price Fluctuation In Iron Ore And Countermeasures

the huge demand of China for steel. And as one of the important raw material of steel,the demand of iron ore have gone up steadily. Although China's iron ore reserves are substantial, but because of the high cost of mining, low quality, so Australia and Brazil became the main source of imports in China. 2013 China imports accounted for 65.5 percent of total world imports and imports accounted for 72% of China's total consumption. As the world's largest iron ore consumer, China's demand for iron ore trade has become a barometer of the international market, pushing the yearly increase in prices of iron ore. But since 2003, the first time Chinese steel mills to join the international price negotiations of long-term agreements for iron ore, only 2007 made the benchmark deals with the three giants, the prices hiking had make the Chinese steel industry suffer.This process the establishment of global annual "benchmark" prices has traditionally been of benefit to both the iron ore miners and the steel companies, as it introduces long-term stability to what has always been a sector prone to boom and bust. But with China's soaring demand and thus lead to the prosperity of the spot market, so long term contract does not meet the needs of the pricing mechanism to maximize the benefits of the three giants. In the three giants strongly push toward the end of the old annual benchmark pricing system, instead of index pricing, the duration of agreements is shorter, the price of iron ore volatility is more intense, reflecting on the spot market in a more timely, current price fluctuations reflect changes in the relationship between supply and demand.This paper is divided into six chapters; the first chapter introduces the background and significance of this study and the current situation of domestic and foreign research. The second chapter describes the current situation and trade import and export trade, China imported iron ore in the world. The third chapter reviews the historical evolution of iron ore pricing mechanism. Fourth chapter uses the 2012-2014 monthly data, select the factors that may affect the price for the empirical analysis. Through cointegration analysis, Granger causality test, the result is the dollar index, total imports and crude steel have a significant impact on import prices. The fifth chapter in order to influence the results of the factor analysis presented to the government and to stabilize the market price of steel companies to compete for the right to speak of iron ore price recommendations. The investment-driven economic growth, building infrastructure, that boostingIn this paper, the impact of price changes from the basis of supply and demand starting to study the factors affecting the price of imported iron ore, combined with the "New Silk Road", the latest news in real time recommendations, which is positive and practical significance.