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Australia cut interest rates to iron ore price of iron and steel enterprises is expected to reduce c
来源:The 2015-2-4 global metal net

Australia cut interest rates by 25 basis points to 2.25% on Tuesday, refresh record historically low interest rates, and suggests the future likely to cut interest rates further. The futures market, the domestic iron ore futures yesterday rose 1.06% to 478 yuan, rebar futures fell 0.88% to 2474 yuan. Analysts said that Australia cut interest rates or will lead to import iron ore prices, domestic steel enterprises could therefore burden.

It is understood that Australia cut interest rates will directly lead to the Australian dollar devaluation. JingChuan citic futures deputy general manager, said the Australian dollar devaluation will further increase the Australian iron ore export competitiveness, China imported iron ore prices will further decline.

Relevant data show that long-term imports a large number of iron ore market in China. In 2014, China's imports of iron ore 933 million tons, up 13.8% from a year earlier. Cisa has, according to data released iron ore in China's far further increased to 78.5%, iron ore prices overall downward trend.

The futures market, although yesterday has iron ore 1505 rose 1.06% to 478 yuan, but some analysts point out that the futures price does not reflect the market situation in time, and iron ore futures prices remain weak for a long time.

JingChuan argues that the cost is low, the resources of high quality international miners continue to increase, will cause the imported ore prices continue to fall, and poor domestic resources, low cost of small and medium-sized miners have no price advantage, operating pressure will be increased accordingly. JingChuan thinks, with imports of ore resources, market competition will reconfigure market "that in itself is the evolution process of the market."

Great Wall futures, commodities analyst at black mohler er 3rd, agreed that the upstream mines and mineral trade business face threats such as exit the market.

Imported iron ore prices will enlarge domestic iron ore market price of the overall decline, and the production cost of domestic iron and steel enterprises will also declined. Mohler er 3rd, points out that the upstream of the ore price decline will lead to profits to the industrial chain in the middle and lower reaches of the transfer, the benefit from the cost reduction, steel mills profit will recover."

In fact, as iron ore prices long-term downtrend, the domestic steel mills profit has started to improve. Cisa, according to the latest figures 1 ~ 11 months of last year, 88 members of the steel enterprise accumulative total profit of 22.4 billion yuan, up 51.57% from a year earlier, the sales profit is 0.74%, from 2013, the year increased by 0.12%.