Spiga

Steel flesh towards be tweaked

By Zou Frbiz

Baosteel Group Chairman Xu Lejiang in the Boao Forum for Asia, said that since the economic urgent position, China's iron alloy commerce makes the functional contradictions have been completely echoed, it is now China's iron alloy commerce structure adjustment. He bluntly, there are many of the smaller comes to of China's enterprises the position of surplus output capability, but furthermore many of in turn around output capability of contamination, if not eradicated, the whole commerce would not have good development, and on the top comes to of the enterprise is a error deceptive signals.

Xu Le Jiang pointed out that the Chinese steel industry's large production capacity, but the export-oriented is 57 million tons, 15 million tons of imports, automobiles, household electrical appliances, shipbuilding and indirect exports 40 million tons; from the present situation, the global financial crisis to the China Iron and Steel Industry structural adjustment period, the healthy development of the industry depends on whether the restructuring to complete its task.

He advised that through the economic urgent position, product charges should contemplate the shortage of provide and demand connection between upstream and downstream manufacturers should furthermore set up a wholesome and sustainable development.

The iron ore pricing mechanism, he pointed out that China's iron ore has been rising for five serial years approaching 500%, because a wide quantity of iron ore per year global approaching 800 million tons of iron ore trade. With the iron ore from the southern hemisphere, the Western Hemisphere towards the Northern Hemisphere, as soon as everybody, ought possess transportation, there is the transport of the financial campaign of the market. He branded the prices of leading products should be replaced towards the true nature of the commodities, reflecting the shortage, reflecting the correlation between resource and require, of sustainable industry, and wished that this year's iron ore price deals should be based onto this principle.

He furthermore mentions to the economic markets has directed to speculative cost bubble in products, future product charges come back to a reasonable need. In his outlook, as a outcome of people's greed, the market finances could have explained many of awful things, this is not resolved. Metal futures could have discovered the regulation of worth, to boost persons to find out new assets and new and innovative, but conjecture in economic markets undermined the market order.

In his look, the financial crisis pain the actual economy has not yet ended, and already as soon as the replace towards clearer, the most stung is the user. As for the modern launch of China's iron futures, within his look, the iron and iron products futures towards a novel mechanism, whether a scarcity of supervision and the industry of their freedom, they shall go astray.

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