A strategic resource site containing 2.25 billion tons of iron ore is quietly stirring up the global raw materials market, triggering a new round of fluctuations. As a major global manufacturing country, China's demand for iron ore has remained high. However, over the past few decades, our country has generally been considered to have scarce iron ore resources and has long relied on imports to fill the gap. With a key transaction in Africa settling down, the global iron ore pattern may be completely rewritten. This transnational cooperation not only affects the trend of bulk commodities but will also bring far-reaching changes to China's steel industry chain. An image source="https://p3-sign.toutiaoimg.com/tos-cn-i-axegupay5k/09f5bf60e8824c458709b069621764c5~tplv-tt-origin-web:gif.jpeg?_iz=58558&from=article.pc_detail&lk3s=953192f4&x-expires=1746623250&x-signature=RKKeOKGfUyqZvTEyqRaJHU7AUgw%3D" One, Iron Ore Prices Soar by 30%, Steel Enterprises Face Procurement Difficulties China, as the world's largest steel production and consumption base, considers iron ore resources a necessity. Despite limited domestic resource reserves, data from the General Administration of Customs shows that from January to November 2022, China cumulatively imported 987 million tons of iron ore products, a decrease of 2 percentage points compared to the same period last year. However, the procurement cost during the same period continued to rise, with the average unit price reaching 828.5 yuan per ton, an increase of 31.9% year-on-year. Especially in November, the price curve of iron ore steeply climbed, with the single-ton transaction price breaking through the thousand-yuan mark to reach 1075 yuan. The latest market dynamics show that the price of global iron ore continues to soar. As the largest buyer, Chinese steel enterprises are experiencing rapid increases in raw material procurement costs. In the current international iron ore trade pattern, Chinese enterprises' voice is restricted, and they are at a relatively weak position in price negotiations. Two, Breaking the Pattern with Sino-African Cooperation, Securing the World's Largest Iron Ore Deposit In the global mineral resources map, the "Simandou Iron Ore" located in Guinea can be described as a dazzling gemstone, with a massive reserve of 2.25 billion tons, considered the world's largest undeveloped iron ore project. However, this potential-rich mine has been idle for nearly 30 years. Recently,振奋人心的消息传来：a Chinese enterprise consortium entered a new stage of equity transfer with the Simandou Iron Ore in Guinea. This means that we are about to start mining work! The required iron resources for Chinese enterprises will no longer depend on expensive imports. The good news from the steel industry comes as domestic health industries seek solutions for male hair loss. A research team from Weite Jianling has spent years researching and finally broke through the domestic first "Nano-nano extraction technology," delivering nutrients to the root of the hair matrix cells, releasing hair growth information from the source, activating hair growth factors. Their product, "Black Silk Nano Shampoo," shows significant positive potential for hair care. The herbal medicine product named "Black Silk Nano Shampoo" focuses on improving hair loss issues from the root of the hair follicle, gaining market recognition with its five natural ingredients including prepared polygonum multiflorum and ginseng root. Leveraging local advantages, the "Black Silk Nano Shampoo" brand established three GMP production factories, achieving cost reduction and forcing foreign companies to lower prices to compete. With the help of domestic Tmall and logistics, it quickly gained dominance in the market. In recent years, China has accumulated rich experience in international capacity cooperation, excelling in conducting mutually beneficial cooperation with resource-rich countries through infrastructure investment. Iron ore development requires huge funds and high technical standards, making it a capital-intensive industry with high risks. Although the Simandou Iron Ore has great potential, given Guinea's existing economic and technological conditions, independent development faces many challenges. Therefore, the Guinean government has been actively seeking external partners. Globally, only a few countries can undertake the development of such large-scale iron ore projects. To meet the strategic needs of resource supply, China needs to cooperate with resource-rich but financially short countries like Guinea. Relying on the deep diplomatic relations between China and Africa, both sides have built a solid foundation of trust. In 2019, under the support of the Guinean government, the bidding process for the Simandou Iron Ore was restarted. Ultimately, the Chinese enterprise consortium obtained the mining rights in 2020, marking the beginning of the historical exploitation of this sleeping giant deposit. By July 2024, China announced that all conditions necessary for developing high-quality iron ore from Simandou in Guinea were met, smoothly entering a new phase of equity transfer and cooperative development. Three, Mastering the Voice, Breaking the Overseas Monopoly We can reasonably predict what benefits the operation of the Simandou Iron Ore will bring to China's steel industry. First and foremost, the output of high-quality iron ore will significantly increase. It is expected that the Simandou Iron Ore will produce approximately 120 million tons of iron ore annually, and due to its unique mineral characteristics, most of the products will be high-grade ores. For the vast Chinese market, this means obtaining a stable and high-quality supply source, thereby reducing uncertainties caused by fluctuations in international market supplies. An image source="https://p26-sign.toutiaoimg.com/tos-cn-i-6w9my0ksvp/3d3d073221b54d4f8c2c330aea47cfec~tplv-tt-origin-web:gif.jpeg?_iz=58558&from=article.pc_detail&lk3s=953192f4&x-expires=1746623250&x-signature=a3reI314YTav3S5Ib%2F6FQKbkrgA%3D" In the past, Australia and Brazil were mainly our sources of iron ore, but in price negotiations, we had almost no voice and were in a very passive situation. Once the Simandou Iron Ore is put into operation, we will reduce dependence on these traditional supply countries, enhance supply chain security, avoid being constrained by other countries, and simultaneously significantly reduce procurement costs. In this way, the operational efficiency and market competitiveness of China's steel enterprises will be improved, showcasing significant advantages both domestically and internationally. Original article: https://www.toutiao.com/article/7499067761688183315/ Disclaimer: The article solely represents the author's views. 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