Steel prices are rising, and some blast furnaces are resuming work. Steel companies are worried about recovery, and small boats are saying they will flip over

       The price of iron ore has also closely followed the rebound in steel prices, with an increase exceeding that of steel prices. Xu Shishuai also stated that in recent years, although the prices of imported iron ore have been adjusted year by year, except for a significant decline in 2015, the decline in ore prices in other years has been relatively small, resulting in a serious imbalance between ore prices and steel prices. And many investment institutions are unanimously optimistic about the value preservation ability of iron ore. "In the process of synchronous recovery with steel, the magnitude of iron ore is greater than that of steel every time

The rapid rise in iron ore prices will inevitably devour the profit space brought about by the rise in steel prices. The reason for this phenomenon is the concentration of international iron ore import sources and the increase in dependence on overseas ores.

From the perspective of iron ore import destinations, in recent years, China's import proportion from Australia and Brazil has been increasing year by year, and the number of iron ore import sources in China has also been decreasing. In 2013, China imported iron ore from 68 countries, and in the first two months of 2016, the number of iron ore import countries has decreased to 31. The domestic market is still increasing its dependence on overseas ores. In 2015, China's dependence on foreign iron ore increased by 64 percentage points compared to 2010.

And for many steel companies, their bargaining power on iron ore is very weak. "Because the concentration of China's steel industry is very low, we have no say in the price of iron ore.

However, the sustainability of this price correction is also difficult to say. Wang Liqun stated that from the demand side of steel, the national economic growth is still in a moderate state and there are still downward risks. The global economic growth rate is slowing down, demand is weakening, and the contradiction of overcapacity is prominent. Therefore, the global steel industry has entered a stage of deep adjustment and development. The characteristics of this stage are a decrease in volume, low prices, and the actual industry of enterprises is facing many great difficulties.