Abstract:
In order to inquire into the influence mechanism of financial capital in the international trading market and dissect the primary cause of the huge profits earned by the four major miners (Vale, Rio Tinto, BHP and FMG), this paper has probed analytically into the dominant position of the four-major-miners, the cross-shareholdings of financial institutions, and so on.To make a summary, during the production phase, the four major miners have monopolized the yields of international market and harvested monopoly profits through their predominant storage volume, superior taste, low exploration cost, and etcetera; during the stage of pricing commodities, they have manipulated the international price of iron ore and reaped a huge amount of profit through cross-shareholding with financial institutions and the forming a community of share interest.The internationalization of China’s iron ore will not only help lead the capital circulation and settlement of related iron ore industries, but also improve hedging effectiveness.