The National Development and Reform Commission’s official website issued the “Statement of the National Development and Reform Commission on the Indefinite Suspension of All Activities under the China-Australia Strategic Economic Dialogue Mechanism” on May 6. The full text is as follows:
Statement of the National Development and Reform Commission on the indefinite suspension of all activities under the China-Australia Strategic Economic Dialogue Mechanism
Recently, based on the Cold War mentality and ideological prejudice, some people in the Australian Federal Government have launched a series of changes that disrupted and reset normal exchanges and cooperation. According to the current attitude of the Australian Federal Government towards China-Australia cooperation, the National Development and Reform Commission has decided to suspend indefinitely all activities under the China-Australia Strategic Economic Dialogue mechanism jointly led by the National Development and Reform Commission and relevant departments of the Australian Federal Government from now on.
On May 6, the main iron ore futures contract broke 1,185 yuan/ton, an increase of 6.90%, and hit a new contract record high. Energy consulting firm Wood Mackenzie believes that although iron ore prices have risen by 14% last month, they remain optimistic about iron ore prices. With the global economic recovery after the epidemic, the expectation of a surge in steel consumption may continue to bring support, iron ore prices may rise in the short term, and are expected to rise above US$200/ton.
A related person from a listed steel company with a market value of more than 40 billion yuan, Zhang Lei, told the reporter of China Economic Weekly that the harm caused by the crazy price increase model of iron ore cannot be underestimated. First, the pressure of high ore prices is transmitted to steel mills, which will have a serious impact. The profit of the downstream steel manufacturing industry and the increase in steel prices may lead to rising domestic inflationary pressures; second, high ore prices are not conducive to the stability of the domestic industrial chain and supply chain, and erode the achievements of the supply-side reform of the steel industry; third, high ore prices waste a lot of waste Foreign exchange reserve resources may affect the stability of the renminbi.
"High ore prices have a great impact on the manufacturing industry." Taking province A as an example, Zhang Lei calculated an account for reporters: the output of steel in province A in 2020 is about 27 million tons, and the average price of iron ore is US$108. /Ton, the price is 15 US dollars/ton higher than in 2019. Because of the increase in iron ore prices, the profit loss of the steel industry in Province A reached US$350 million, equivalent to approximately RMB 2.275 billion.
"China Economic Weekly" combed and found that in 2020, Shandong Iron and Steel, Nanjing Iron and Steel, Chongqing Iron and Steel's import iron ore expenditures have increased by 20% year-on-year in 2019. Among them, Hangzhou Iron and Steel Co., Ltd. only imports iron ore in 2020. Expenses increased by 30% year-on-year.
