How should the iron ore industry survive the financial crisis?

Judging from the current market, the impact of mining on the financial market can lead this sector to a certain extent. Canadian-listed mining companies have raised C$3.1 billion so far this year, accounting for 25 percent of the total capital raised by TSX and the TSX Venture Exchange (TSXV), compared with 18 percent in the same period last year, and overall overall funding is down about 54 percent, according to data from the Toronto** Exchange (TSX).

Last year, technology companies led the industry with $13.8 billion in funding, followed by mining with $10 billion and financial services with $6.9 billion. The Toronto Exchange (TSX), which hopes to add critical minerals to its portfolio, will help make up for some of the shortfall in funding this year.

In 2022, Calgary-based Chilean Lithium and Toronto-based Northern Graphite were the first to raise C$51 million through a private placement.

Anastasiapoulos said at least six or more mining companies are expected to list on TSX this year. Investment bankers also expect the trend of large miners injecting capital into small and medium-sized mining companies will continue after BHP Billiton and Rio Tinto announced investments in small and medium-sized mining companies.

1. Give full play to the role of the Iron and Steel Association and coordinate with domestic enterprises.

In order to "speak with one voice" during the negotiation, the Iron and Steel Association should come forward to coordinate the domestic enterprises to "unanimously go abroad", determine the acceptable increase and fall degree and approximate import volume, and then the enterprise representatives come forward to negotiate with international iron ore exporters.

2. Strengthen the management of iron ore imports.

Strictly rectify the chaotic import order. At present, there are more than 500 enterprises in China that are qualified to import iron ore, among which there are many non-productive enterprises specializing in iron and steel. In the future, the import qualifications of non-production enterprises should be resolutely cancelled, and the import volume of iron and steel enterprises should also be strictly controlled according to their actual production capacity.

3. Integrate the steel industry.

At present, the status quo of China's iron and steel enterprises is a large number, small scale and poor competitiveness. There are more than 1,000 steel producers in China, most of which have an annual production capacity of less than 500,000 tonnes. Baosteel, which ranks first, also produces only 20 million tons a year, less than half that of Nippon Steel.

In order to improve the competitiveness of China's iron and steel enterprises and increase the voice of Chinese enterprises in iron ore negotiations, we should reintegrate the steel industry and form 5-10 world-class large-scale iron and steel enterprise groups.

4. Take the road of "circular economy".

In order to make China's economic development more sustainable, China must unswervingly follow the path of "circular economy". As an important part of the national economy, the steel industry should be even more so. Therefore, we must accelerate the structural adjustment and growth mode transformation of the iron and steel industry, and strive to achieve the transformation from resource consumption to conservation, from quantity expansion to quality and efficiency.

We should vigorously support large enterprise groups with high competitiveness, and resolutely ban small steel mills with low efficiency and high consumption.

5. The renminbi should appreciate moderately at the appropriate time.

China has a pegged exchange rate policy to the US dollar. In recent years, with the continuous development of China's economy and the depreciation of the US dollar, the value of the RMB has been significantly undervalued. The international iron ore is priced in US dollars, and its impact on Japanese companies is far less than that on Chinese companies.

This is also one of the important reasons why Japanese companies dare to raise the international level of iron ore. In order to reduce the negative impact of international iron ore price hikes on China's steel industry, we can consider a modest appreciation of the RMB at the right time.

China's level is very poor, and it basically loses money.

According to reports, the recent trend of the upstream market is strong, and the iron ore market is gradually rising, but the "internal" environment of iron ore is still not optimistic, and the amount continues to increase, and the low operating rate of blast furnaces in the downstream steel market has tightened the demand of steel mills, which has caused a very unfavorable situation for iron ore.

From the perspective of mine operating rate, the domestic mine operating rate was adjusted in a narrow range compared with last week. Recently, iron ore has risen, mainly from the support of the downstream steel market, but the domestic mines are affected by environmental protection and the winter environment, and the overall start of operation is not ideal, and the domestic mining market is in a tight state of resources in many places.

Judging from the weekly shipments of imported ore, Brazil's iron ore shipments were 10,000 tons, a decrease of 10,000 tons week-on-week. Australia's iron ore shipments in the previous week were 10,000 tons, an increase of 10,000 tons week-on-week, and an increase of 10,000 tons week-on-week. The total amount of iron ore arrivals in the six northern ports was 10,000 tons, a decrease of 10,000 tons from the previous month.

Analysts said that the heating season production limit policy will continue until March next year, the current profit per ton of steel production is at a high level in the year, steel mills will maintain the normal production of the rest of the blast furnace in the short term, in recent months, the port inventory has maintained a growth trend, the imbalance between supply and demand has been significantly intensified, causing a very obvious suppression of iron ore.