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Since 2003, iron ore prices in the international and domestic markets have continued to rise rapidly, rising by 18.6% in 2004, and by another 71.5% in 2005. The price increase of iron ore will affect the development of downstream industries in different degrees. Taking the chemical equipment manufacturing industry as an example, the purchase cost of steel generally accounts for about 85% of its raw material cost. Therefore, the increase in iron ore prices in 2003 caused a loss of 249 million yuan for the entire chemical equipment manufacturing industry. However, since 2004, as the country’s macro-control efforts in the steel industry have increased, and the structural adjustment and export of the chemical equipment manufacturing industry have been strongly driven, the industry’s operating efficiency has shown encouraging growth, which is currently increasing. Still running at a high level. According to analysis, this time again the price of iron ore will not cause too much interference to downstream industries such as machinery and equipment manufacturing.
Iron ore import prices rose by 19% this year
According to the Xinhua News Agency, the day before the long-awaited 2006 iron ore negotiations have settled. On June 20th, Chinese iron and steel enterprises had reached an agreement with the world's three largest iron ore giants, Vale, BHP Billiton and Rio Tinto. The prices of fine ore and lump ore were up 19% from the previous year. It is understood that Chinese iron and steel companies will directly pay RMB 6 billion to RMB 7 billion for this price increase and will spread to downstream industries such as building materials, home appliances, automobiles, and machinery and equipment.