BUSINESS Steel association sets up iron ore committee to push for resources stability

BUSINESS

Steel association sets up iron ore committee to push for resources stability

Global Times

22:21, August 01, 2022

iron ore Photo:VCG

Photo:VCG

The China Iron and Steel Association (CISA) plans to set up a committee to strengthen research on iron ore, the official website of the CISA said on Sunday, one week after the launch of a state-owned mineral resources group.

The moves by the government showed that the nation attaches great importance to standardizing the iron ore market, increase China's pricing power for iron ore and reduce external dependence on overseas ore in a bid to ensure resources security, experts said.

The CISA said that the establishment of the iron ore working committee is an important measure to help promote high-quality development of the steel industry.

As a branch of the CISA, the working committee will be a professional organization with independent management and self-discipline in iron ore-related research and development work. The committee will be initially composed of large iron and steel enterprises and the China Mineral Resources Group, according to CISA.

The launch of the committee, together with the China Mineral Resources Group, is expected to enhance integration of domestic mineral resources and import of overseas iron ore, a strategic resource that is vital to the economic security of the country, Hu Qimu, chief research fellow at the Sinosteel Economic Research Institute, told the Global Times on Monday.

For example, the committee may coordinate financial resources of enterprises, government agencies and banks, so that Chinese enterprises will emerge in the international resources market with stronger competitiveness and improved pricing power, Hu said.

The launch of the iron ore working committee comes amid a swing of moves by the government to guarantee the supply of important mineral resources and the safety of industry and supply chains.

On July 25, the China Mineral Resources Group was launched, marking the 98th centrally-owned giant enterprises managed by the State-owned Assets Supervision and Administration Commission of the State Council.

With registered capital of 20 billion yuan ($2.97 billion), the giant company will engage in the exploration of mineral resources, ore mining and import and export of minerals, as well as supply chain management services, investment activities and asset management services, according to Chinese business data platform Tianyancha.

All these efforts would make iron ore circulation more standard and enhance China's pricing power for iron ore with collective purchases, reducing overseas volatility producing negative impacts on China's domestic market.

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