This year, the Chinese Communist Party has escalated its so-called sanctions against Australia, ranging from beef, barley, lobster, wine, sugar, wool, copper ore and even coal, which have been countered by Australia.
Australia is the world’s largest exporter of iron ore, while China is the largest importer of iron ore, with 67% of its iron ore coming from Australia, according to comprehensive reports. Because Australia controls the pricing power of iron ore worldwide, it has not moved while the Chinese Communist Party has escalated its so-called sanctions against Australia, and iron ore prices have begun to rise sharply, recently by 30 percent per month and 100 percent for the year.
The iron ore exported from Australia is the best quality iron ore in the world and it is reported that Baosteel can only use Australian iron ore for its production lines. The current price exceeds US$160 per ton, but the cost is only US$20, which means a net profit margin of 800% per ton. Australia exports 700 million tons to China every year, accounting for 67% of China’s total imports, and the net profit from China alone is more than US$270 million.
This year, the price of iron ore has increased by 100%, and the Chinese Communist Party is losing an additional $135 million per day on iron ore alone.
In contrast, the Chinese Communist Party’s high-profile sanctions against Australian wine, Hong Kong’s Apple Daily columnist He Jiangbing commented, “I calculated that BHP Billiton and Rio Tinto make a net profit of $250 million a day from China, while the boycott of Australia ($168.4 million worth of wine imports to China in 2018), that is, the total imports of wine from the boycott is less than what Ertuo makes a day much, what kind of intelligence is this?”
The Chinese Communist Party restricted the import and unloading of Australian coal, resulting in a tight supply of coal, which greatly exacerbated the already serious power shortage in China, causing a large number of enterprises in Zhejiang and Hunan to suffer from power outages, power cuts and order suspensions, and the losses caused by the chain reaction are difficult to estimate.
Comments from netizens.
“The face and rule of the party is much more important in the eyes of the CCP than money and national interests and the interests of the people. Anyway, as with the big coin scattering, everything generous is for the common people, and they can continue to cut the leeks when they run out of money.”
“China is using struggle thinking to take over the world. If you can’t win the struggle with Australia, then how can you order the small neighboring countries? The loss of nationals is nothing, the key is to come up with means that will chill the opponent. This battle is imperative, and the sanctions against Australia will only get tougher and crazier!”
“The pricing power of iron ore has never been in the hands of the Communist Party of China, from the previous long-agreement prices trade prices to the current Platts index, the three giants of iron ore are followed by international capital, but also Japanese and Korean steel companies. China’s huge demand is the biggest weakness and can only be priced by the seller.”
“Just started to limit electricity, will soon be limited to iron and steel. Powerful country inside the five-eyed alliance singled out Australia to start, to the world to perform what is called lifting a stone to smash their own feet.”
“Brainless things to do more! As long as safety, environmental protection, in line with the requirements of employment, some ports in the north dismissed a large number of contract workers, a ship of more than 2 hundred meters, only arrange a road, a few workers grinding, hundreds of ships waiting outside the port.”
Recent Comments