Study On The Reinforcement Of China's Market Power In International Iron Ore Market

In recent years,China's iron ore imports accounted for the proportion of total global iron ore trade has been more than 70%,which is worthy of the name of the first import country.However,huge demand for imports made China passive in world iron ore market rather than bring corresponding market power for it.Mainly embodied in the evolution process of the iron ore pricing mechanism and the lack of discourse power in the price decision,the decline of Chinese iron ore price index and the profit of domestic steel manufacturers are constantly squeezed,etc.In this context,There is s no doubt that make a scientific and objective measure for China's international iron ore market force.in-depth exploration of obstacles to improve China's iron ore international market power and put forward coping strategies will be of great significance,and this is the main purpose of this research lies.Full-text except the introduction part is divided into five parts.The second part is the international iron ore trade market structure analysis.Based on the analysis of the major iron ore exporter and importer the global iron ore supply and demand situation,and analyze the iron ore price history evolution.In the third part,we define the international market power and analyzes the main sources and its measuring methods:International market power is defined as under certain conditions.A country for a particular industry or industry in the international market control ability.This control power includes import and export volume adjustment ability,the international market share rate,production price control,value-added of products,the ability for control of market information,and analysis the possible sources of international market power.Followed by the he main market forces measurement methods.In the fourth part,through the establishment of the iron ore trade partial equilibrium model.Then measure china's iron ore trade buyer market power between Australia and Brazil.To make a conclusion that although there are certain market forces in china,it still weak relative to the iron ore seller's market power.The fifth part makes a detailed analysis on the reasons that hinder the market power of iron ore Chinese promotion from the international market power source point.The sixth part is based on the analysis and put forward specific suggestions to improve Chinese iron ore market forces.Therefore,this paper analyzed underlying causes of the low iron ore market power in china from the perspective of the international market power sources.found the main reasons hindering the improvement of China's iron ore market power:(1)The scale of china iron ore reserve and supply are too small to control international iron ore market.(2)Unreasonable barriers to entry and exit.The entry cost of domestic mining companies is too low,which can't form scale effect and high profits.The entry the cost of iron and steel enterprises may be high,but the industry is still showing some integration issues.While overseas mining industry is faced with high costs of entry,unsure exit barriers and other factors.(3)Inadequate cost control.For one thing is the high cost of domestic iron ore production and unreasonable taxes,for another is the higher cost of iron ore trade.(4)Information control ability is insufficient,on the one hand,reflected in the weakness of information security and access,on the other hand,China's iron ore index influence is limited.Finally,relate policy recommendations should be put forward to enhance the Chinese iron ore market power in accordance with deficiencies.(1)Optimize the tax structure of domestic iron ore enterprises;promote domestic iron ore business mergers and restructuring,bigger and stronger domestic iron ore mining companies.(2)Coordinate the relationship between the domestic interest organizations,including the optimization of the relationship between iron and steel enterprise managers interests and the interests of the steel enterprises,the relationship between steel companies and iron ore producers,the domestic steel industry and ocean shipping industry relationships.(3)Enhance our government and industry association's abilities of obtaining information;including subsiding international iron ore exploration.Increasing national condition investigation input to the iron ore resource countries.Offering relative help to iron ore business investigation and evaluation of investment projects.Enhance the influence of domestic iron ore index.