Economics analysis of price forming mechanism of iron ore imports and inspirations for the iron and steel industry

In view of the general price rise and dependency on imported iron ore in recent years,this paper analyzes the price mechanism of imported iron ore through the construction of imperfect competition model on the basis of empirical study.This paper concludes that the Chinese steel industry has lost discourse right in price setting because of the boundaries and divergent interests between large enterprise groups and small enterprise groups and the lack of unified decision.This paper puts forward the proposals from both the macro and micro aspects:that we should launch standard futures contracts for iron ore,that we should optimize the structure and industrial concentration of the steel industry,and that we should improve the utilization efficiency of mineral resources through using new technologies.