For a period of time, the price of alloy steel pipe has dropped considerably. Analysis of the main factors of price fall is not due to the so-called oversupply of the market, but lies deep in the world's mining giants of the foresight: trying to contain competitors by price war to maintain its monopoly position and pricing power. In this situation, China should seize the opportunity to make good use of overseas low-cost resources to speed up the construction of national economic short-board areas; the establishment of large-scale resource reserves to build price negotiations "deterrent"; continue to adhere to "Andactively carry out mergers and acquisitions of mineral resources; these three aspects as China's iron ore resources strategic approach to deal with.

This year, domestic and international iron ore prices have experienced a more substantial decline. According to customs statistics, in May 2014, the national average price of imported iron ore 110.2 US dollars per ton, down 17% over last year. By its drag, domestic iron ore prices fell deep, market monitoring data show that at the end of 6 domestic iron ore prices fell more than 2 percent earlier this year.

Analysis of iron ore prices fell the main factors, there are views to be attributed to weak demand, the release of excessive production capacity of steel pipe, port inventory is too large. The oversupply of the market is, of course, an important factor in causing the price to fall, but it does not explain why the price of iron ore fell so sharply. From the demand point of view, the global iron ore remains high growth. This is not only the recovery of iron and steel production in developed countries, the Indian mine own use increased significantly, but also in today's world's largest steel producer-China's iron ore imports strong growth. According to customs statistics, in 2013 the national iron ore imports of 819.41 million tons, up 10.2% over the previous year; the first 5 months of total imports of iron ore jumped to 382.66 million tons, up 19% over last year. If there is no major accidents, iron ore imports in 2014 is expected to reach 900 million tons, up 10% over the previous year. As China's iron ore imports account for a large proportion of world iron ore trade, as long as China's iron ore imports to maintain a high level, the world's iron ore consumption will not be bad.

This shows that sacrificing immediate gains, playing a price war to clean up competitors, deter other channels to enter the field of mine production capacity expansion investment, strengthen its global iron ore production monopoly and international market pricing power, in line with the world's mining giants in the long run Interests, and the world's mining giants have a price war almost all favorable conditions. This is why the world's mining giants confidence, insist on price war the most importantreason, but also the international market, iron ore prices continued to fall sharply, the world's mining giants do not shot to maintain the most deep-seated reasons. According to this forecast, the future period of time the international market price of iron ore rebound rate will not be great, is likely to continue to run weak, until some of the high cost of ore can not support the collapse of some capacity to withdraw from the market so far. The author believes that the steel market is difficult to pick up, the main factor is the weak downstream demand. Although the macro side recently introduced a series of micro-stimulus policy, the intensity of investment around the building is not small, but it needs to be reflected in the demand on time, so the terminal demand is difficult to have heavy volume short-term performance of the micro-stimulus policy sustenance, Can be a temporary hope thirsty.