In late June to raise domestic oil prices, but also makes the automotive industry sensitive nerve again tightening. In July 4, and Baoshan Iron and Steel announced that its Australian BHP Billiton reached the 2008 annual iron ore bargaining agreement, the new agreement the highest prices compared with last year rose 96.5 percent. The rising oil prices and rising iron ore prices will be passed on the cost of production, leading to the rise of steel prices under the dual pressure is the use of promotions to pull the market, with prices still rising costs to make up for the loss of profits » Automobile manufacturers have been standing at a crossroads.

Steel enterprises but to accept the largest gain

July 4, the high temperature in most parts of the domestic state. The Baoshan Iron and Steel Group issued a news presents many automobile enterprises brought some Han Yi, the sources said, Baosteel and the three major global iron ore production, one of the BHP Billiton has 2008 annual Newman ore powder, Yang Di powder ore and ore benchmark price Newman block an agreement. As a result, BHP Billiton's Newman ore powder, and Yang Di powder ore mine in Newman block on the basis of 2007 rose 79.88 percent, 79.88 percent and 96.5 percent.

This projection, or with the June 23 Baoshan Iron and Steel Company and Rio Tinto reached the price or "exactly the same."

In February this year, Baosteel has been the first to reach an agreement with CVRD, Baosteel accept the card powder 71%, 65% of the southern or powder.

At this point, after nearly eight months of the year 2008 as long as the global iron ore price negotiations for the "dust has settled."

Heard in the negotiations finally reach a consensus, "my steel" information agency researchers Wang Jianhua the "first response" is: "Tan Beng outcome is better than good." Baoshan Iron and Steel Group insiders said, "for the negotiations The time has been limited, and finally the emergence of a mutually acceptable result, the market and the industry should be understanding. "

Pressure was difficult to rate-rising costs

According to the observation of market institutions, "Baosteel - Rio Tinto" average 85 percent of the mine following the introduction of price increase, China's domestic spot price of iron ore, steel prices and prices of basic international seaborne iron ore are in a slight correction, and the market does not appear The expected "Chonggao" phenomenon.

However, it is premature optimism. As the automobile market this year come as early as the low season, from April, the automobile market is entering the traditional off-season sales, while domestic car's inner feel the cold more than in previous years.

"Last week oil prices, is the low season was a blow to the automobile market." Vehicle southeast of Hunan Ling Xiao Zhi Wei Department of the automobile market, rising oil prices off-season automobile market has obviously become the largest negative. He said that while private car owners each month oil prices rising costs generally less than 100 yuan, but the consumer is a psychological blow. And the huge iron ore price hikes, no doubt the car level in terms of worse.

The results of this incident, the Chinese auto industry, equivalent to a serious blow. At present, the car is still more than 70 percent of a steel product. March this year, some of the domestic automobile manufacturers have revealed that the conduction of iron ore rose 65 percent to end the pressure on car costs a result, the reduction of about 3 percent to 5 percent of overall profit, and now 96.5 percent rise in pressure conduction-to-end The results can be imagined, this means that the profits of manufacturers were further reduced.

The first increase in the cost of self-digestion

"It is hard to say the estimated price increases, but significantly increased the cost pressures, we will not price hikes, but we do not resolutely prices!" July 4, Geely Automotive News Centre public relations manager Zhang Xiao East in a telephone character of the tone is very Helplessness.

"Control, and then control, and technical improvement." On how to reduce the burden of price hikes, Zhang Xiao Dong admitted.

At present, the number of domestic automobile manufacturers related to the iron ore price hikes for the impact, have said the plan yet, but price increases, more energy will be placed on the increased costs will be self-digestion.

"The current oil prices, the rising price of iron ore produced by the impact, not directly reflected in the price on the car." Co-national passenger car market information to the Secretary-General Rao said that "factors affecting the prices of many cars, automobile manufacturers General Not the cost of rising fuel prices or adjust easily to increase car prices, car prices rose or fell, mainly depends on consumer demand. "