Australia has both coal and iron ore, why not develop the steel industry and export these minerals directly? - Shandong Jiugang Tisco Steel Co., Ltd.

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Australiahasbothcoalandironore,whynotdevelopthesteelindustryandexportthesemineralsdirectly?-ShandongJiugangTiscoSteelCo.,Ltd.

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Australia has both coal and iron ore, why not develop the steel industry and export these minerals directly?

Australia has both coal and iron ore, why not develop the steel industry and export these minerals directly?

Australia’s coal reserves and production are in the forefront of the world, and the coal quality is relatively good; the iron ore reserves ranks fourth in the world, and the quality is very high; the bauxite reserves account for more than one-third of the world’s. The question is why does Australia choose to export these mineral resources directly instead of developing the steel and aluminum industries?

 

who buys?
The answer seems flat because China is the only country in the world that uses the largest steel in the world. 56.5% of the world’s steel use

What if China doesn’t buy finished steel? Then embargo iron ore so that China has no steel to use. Then why can’t China buy iron ore from other countries? Can Australia stop it? So there is a question. If the world’s largest steel market can produce 56.5% of the world’s steel, who will Australia buy steel for? Go? There is a problem of product marketization. What is dug out of the soil is a product. It is not a commodity. Only when it is purchased will it become a commodity and generate value. That’s why steel companies buy iron ore. The steel produced by the steel company must be purchased by someone to create value as a commodity.

At this time, the question arises, who will buy how much steel? The Chinese? The Chinese can produce their own steel, they don’t need your steel.

And Australia is not cheap iron ore, coal is convenient? In this way, its steel cost must be low. In order to protect their own steel industry, countries must levy anti-dumping duties on steel originating in Australia, so that Australian steel will not cost much in the Chinese market. will prevail.
Australia has spent tens of billions of dollars to build steel factories and supporting factories. If they can’t create enough value, won’t they close at a loss?

Instead of going through such a big fuss, it’s better to buy iron ore directly to China. Only in this way can the pursuit of the greatest interests be guaranteed. This is the biggest tragedy of a country with a small population and resources, such as Saudi Arabia, which has the most expensive oil in the world. Have you seen Saudi Arabia to develop the petrochemical industry? For example, Refined C5 Petroleum Resin, have you seen Saudi Arabia export, gasoline, plastic base, diesel and other petroleum deep-processed products?  Why not, because they have a small population and a small market. It simply does not have the market scale required for deep processing of resources. So they can only do resource export.

you still don’t understand?

60% of Chinese sesame comes from North Africa. Do you think that North African countries rely on the export of sesame paste and sesame oil as the main material?

No, because these products are eaten by the Chinese people. Once they are processed, China, as the only country that will buy them on a large scale, will inevitably lower the price, making these companies unprofitable and then being sold by similar Chinese companies. beaten acquisition.

No matter how cheap American soybeans are, Americans will not be foolish enough to export soy products, because only the total Chinese market in the world can eat these products. Americans dare to touch this industry, how miserable they will die. The reason why the price of meat products in the United States will rise is because China’s pork prices remained high in the first half of 2021, which drove all meat products to rise. The Americans saw it right and directly exported the meat products in the United States to China to make money. As a result, in the face of the new crown, the U.S. commercial system was under-operated, and the distribution in the market was not timely, resulting in regional shortages, and the local farms also took time to release sex animals. A combination of several factors will inevitably increase the price of American meat products.

Why is this happening?

Because China is the only country in the past 100 years that has survived the slaughter of the 16-nation Allied Forces, and the last mustache has disappeared. If China’s national strength is weak, Australia can develop its own steel industry and bring it to China to sell it. China dares to protest, directly presses the door with a warship, puts a gun on the forehead of the Chinese, and uses a dagger to cut off the throat of Chinese teenagers. You can only buy their steel.

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