On January 19, 2012, China Review News published an article titled “Another Heavy Blow Hits China’s Steel Enterprises.” The international iron ore producers have been raising iron ore prices rapidly since 2009. According to the article, as the New Year started, iron ore producers set off a new wave of price increases, which cannot be explained by the principle of supply and demand or by macroeconomic conditions.
The article concluded, “China has been the number one steel producer in the world. We should not have lost our authority in the market. The problem is that our steel enterprises should not only concentrate on making money from downstream companies, the other Chinese companies, through increasing steel prices. We must think more about how to reduce the profits that the upstream enterprises, the foreign iron ore producers, are making.”
Source: China Review News, January 19, 2012