"Imported iron ore agent system", that is, iron ore import by the agent and the mining enterprise to sign an iron ore agency contract, stipulate the responsibilities, rights and obligations of both parties, and implement according to the contract. The agency fee is determined by both parties in consultation with the international and domestic trade rules. China has imported iron ore agent qualifications, including 112 traders and steel producers. The agency fee stipulated by China Steel Association is 3% to 5% of the contract amount. "Imported iron ore agency system is difficult to attract enough attention in the industry. This system was launched by China Steel Association, and China Minmetals Chemicals Import and Export Chamber of Commerce, which represents the interests of iron ore traders, does not want to implement agency system. The agency system is difficult to implement because it is not a document at the national level, and the company has the right not to accept it," said a steel industry authority. The reason why Sinosteel is eager to implement the import iron ore agency system is the high annual iron ore purchase cost in China. According to the China Iron and Steel Association, China imported 334 million tons of iron ore in the first half of this year. Due to the sharp increase in import prices, foreign exchange expenditures exceeded US$1,61,726 million. According to the average exchange rate of RMB against the US dollar in the first half of the year, the cost of the steel industry was increased by 104.11 billion yuan. Importers are full of resistance, the industry is not optimistic about the agency system Asia Energy Development Co., Ltd. Assistant General Manager Ding Chunyu told reporters that the new imported iron ore agent system is very repetitive compared to the original, there is no major change in the substance . The price fluctuation of iron ore belongs to the market economy and should not be interfered too much, otherwise the enterprise cannot survive. The reason why traders are unwilling to implement the import iron ore agency system is mainly because their own interests are not guaranteed. The China Iron and Steel Association has repeatedly stated in public that traders who import iron ore from steel mills can charge up to 5% of the agency fees to steel mills, but they are not allowed to “sell†imported iron ore. Manager Li said that the current iron ore price fluctuations are relatively large, charging a 5% agency fee, basically no money to earn, the risk of price fluctuations must be borne by themselves. This new imported iron ore agency system is unacceptable to importers and does not take into account the actual situation of the importer. Sun Ming, an analyst at Lange Iron and Steel Iron Ore, said that under the temptation of “falling down†iron ore, it was not easy for the industry to self-discipline before, and all enterprises in the industry had certain resistance to the agency system. In order to improve the shocking power, Zhu Jimin, president of China Iron and Steel Association, said that for enterprises and illegal activities that do not meet the requirements, after verification, the agent will take the one-month or one-quarter import qualification to the agent, until the import qualification is cancelled; The agent is listed as an untrustworthy enterprise. If the circumstances are serious, it is not allowed to import iron ore business for its agent. But the industry is still not optimistic about this new deal. Haitong Securities analysts believe that the implementation of iron ore import agency system must solve many system problems: whether there are more than 100 traders with ore import qualifications to cancel, how many agents are allocated by each trader, how to charge fees, agency fees can Whether to meet the ore importers who are used to profiteering, how to arrange the agency adjustment, how to negotiate the price of countries that do not use quarterly pricing; if the imported ore and the domestic ore price are on the same track, how to distribute the ore demand, will there be a bias? The way of state-owned enterprises, how to price imported iron ore when selling to steel enterprises, who is the income, how to distribute the place of delivery, how to deal with the existing COA shipping agreement, how to deal with the existing ore import agreement of steel enterprises; Especially during the global financial crisis, how to treat the ore orders won by private steel enterprises, private steel enterprises are obeying the steel coordination order representing the state-owned steel enterprises. In fact, China’s import of iron ore agency system has always been in a “push and not do†situation. As early as 2005, Sinosteel Concord Minmetals Chamber of Commerce proposed the “Qualification Standards and Application Procedures for Iron Ore Import Enterprises (Draft)â€, which reduced the number of more than 500 import enterprises in the market to 118. In the following two years, due to the increasingly serious phenomenon of speculation, the state has re-examined the iron ore import order, from 118 to 112, and has not completely curbed the phenomenon of imported iron ore speculation. At the end of 2008, the China Iron and Steel Association had proposed that it would implement an iron ore agency system, prohibiting arbitrary price increases and reselling ore, and reselling to enterprises that do not have import qualifications can only collect agency fees. However, due to the difficulty of balancing the interests of all parties, the iron ore agency system was once in a state of ground. China Steel Association dilemma: production companies do not buy Linyi, a steel company insiders told reporters that the China Steel Association's "outside the first security" approach can not allow imported iron ore prices to return to the rational path, the importer is not The "culprit" that disrupts the market order. This policy of China Steel Association can only be used by enterprises under the association, and it will not work for more enterprises. The above-mentioned authoritative person also bluntly said: "The things that the China Steel Association said have problems in the execution below." "In the final analysis, this agency system belongs to the behavior of industry associations, not the government, so it is difficult to implement. If you really want to implement the agency system, It must be issued at the national level to be effective, and an association cannot replace the role of the government." Manager Li said. At the same time, for the importer, neither the China Steel Association nor the Minmetals Chamber of Commerce has the right to cancel the import qualification of the trader, because the import qualification of the trader is ultimately reviewed by the Ministry of Commerce. "The government has not written a letter to rectify the market," said He Rongliang, a steel analyst. The insiders of the Linyi Iron and Steel Company said that this kind of agency system is also unfair to the steel production enterprises. After the implementation of the agency system, it is good for coastal enterprises, and only bad for enterprises far from the port. "Because 5% of agency fees are not fixed, the farther away, the higher the agency fee." "There is no doubt that in addition to importers, steel manufacturers do not welcome this agency system." The insiders of Linyi Iron and Steel said. Since the documents issued by the industry associations are not afraid, the importers are "deaf to the new system." "If you listen to this, you really can't make money." Manager Li said. According to Haitong Securities, the profit cake brought by the price difference alone can be as high as 40 billion yuan in some years, and the proportion of profits in the whole industry in the past 8 years is about 18% (according to the price difference, multiplied by the total imports of Australia and Brazil). The amount, after deducting the estimated tax, can basically be derived from the additional income caused by the mine price gap). Similarly, small and medium-sized steel mills are not willing to let raw materials rely entirely on others. The two ends are blocked, and the iron ore import agency system is naturally difficult to implement. Some experts believe that in order to fundamentally solve the current chaos in the iron ore market, it is not at all whether to implement an agency system, but to establish a pricing mechanism acceptable to both iron ore suppliers and demanders. What the domestic steel industry needs to do is to actively participate in and even lead the formation of new iron ore pricing mechanisms, rather than the nostalgia and attempt to recover from the long-standing era of non-existence.
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