SMM Network: Shen Bin, director of the China Iron and Steel Association, said at the second (enlarged) meeting of the sixth session of the China Iron and Steel Association on the 31st that since the beginning of this year, affected by the COVID-19 epidemic, international raw material prices have fallen sharply, except for imported iron ore prices, which have been maintained at more than 100 US dollars per ton after rising continuously in May and June. "Steel prices are low, iron ore prices are high, and the two go against each other. the long-term operation of the iron and steel industry with small profits or even losses has become a dilemma and normal that we have to face, which has seriously affected the long-term sustainable development of the iron and steel industry." Shen Bin said the above situation is related to the tight supply of iron ore and to the increasingly financialized iron ore price index which increasingly deviates from the supply and demand fundamentals of the spot market. "Major economic crises often give birth to important adjustments to market rules and mechanisms," Shen Bin said. the epidemic has had a huge impact on the world economy, highlighting the importance and necessity of upstream and downstream cooperation and global co-governance.
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