How to further reduce the transportation cost of iron ore in iron and steel industry

How to further reduce the transportation cost of iron ore in the steel industry, as far as the current situation is concerned, should be the following operations:

1. Cooperate with local miners to develop.

Miners jointly develop or independently develop, buy machinery and equipment, recruit local workers, pave roads and build communities. The initial investment is relatively large, which is suitable for large enterprises, but in the long run, it will greatly reduce the cost of ore. For example, Shougang's investment in Peru is this model.

2. Cooperate to buy ore.

Because large-scale ore trading is monopolized by large state-owned enterprises, small and medium-sized steel enterprises can only buy second-hand ore from state-owned enterprises, resulting in a certain increase in costs. Therefore, there are small and medium-sized steel enterprises to organize groups to improve the right to speak in ore trading and buy groups. This model is widespread in domestic private enterprises.

3. Establish your own transport fleet.

In order to reduce the cost of large steel enterprises, transport fleets often have long-term contracts, generally 20-30 years. On the one hand, it is relatively stable, which ensures that the ore can be transported and provided on schedule, on the other hand, it reduces the cost. However, in order to reduce costs, some steel enterprises have set up their own transport fleets. This model is Shagang Team in Shagang, China.

4. Invest and build factories in coastal rivers.

It is a development trend to invest and build factories in coastal rivers The advantage of this model is that it greatly reduces the transportation cost, saves the land transportation of iron ore after it arrives at the factory, and the finished products produced are also easy to export. Such as Angang Yingkou plate and Baosteel.

5. Others

If you bring your own ore, you can guarantee enough confidence and get enough concessions in bargaining, such as Panzhihua Iron and Steel Company. If we are looking for new ore, under the situation of high price of Australian ore, large state-owned enterprises have transformed into Brazilian ore, which has increased the transportation cost, but reduced the total transportation cost of ore and balanced the price increase trend of Australian ore.

Satisfied, please adopt!