"In the international trade of iron ore, China's steel industry has the basis and conditions for the passive recipients of prices to change to price makers, and can do more to promote the internationalization of the renminbi."

After 70 years of development, the new China steel industry has achieved remarkable results from scratch, from weak to strong. Iron and steel people's strong steel sentiment to the country is very moving, and I pay high tribute to the steel industry.

The theme of the symposium was "New Era, New Steel, New Journey". At present, China's crude steel production accounts for more than 50% of the world's total output, and is also the world's largest steel exporter. The development of the steel industry has entered a new era and embarked on a new journey.

China is the world's largest importer of steel production, consumption, exports and iron ore. In addition to the complete industrial chain futures market, the steel industry has the conditions to become an important player in price setting in commodities such as iron ore, rather than passive now. recipient.

According to the data of the General Administration of Customs, in 2018, China’s steel imports amounted to US$16.4 billion, exports amounted to US$60.6 billion, iron ore imports amounted to US$75.5 billion, and the three totaled US$152.5 billion, plus ferroalloys and other The import and export of related products and the import and export trade of the steel industry are huge. Especially in iron ore, China imported 1.064 billion tons of iron ore in 2018, and its dependence on foreign countries exceeded 80%. Corresponding to such considerable purchasing power and scale of international trade, it should be our strong bargaining and pricing power.

As an important part of the capital market, the futures market can provide a pricing benchmark and risk management platform for the world. International commodities generally adopt the futures price formed by the centralized trading of the exchange as the international trade pricing benchmark. Over the years, relying on China's huge iron ore imports and its position and influence in the global trade pattern, we have been committed to the construction of international iron ore futures pricing centers. It is expected to form a renminbi-denominated, globally representative iron ore futures price through the futures market to serve global steel trade and production.

It is necessary to generate global trade-recognized iron ore futures prices in China, and promote the transformation of China's steel industry from price passive recipients to price-based participants, making transaction prices more internationally representative, and requiring more industrial enterprises to directly or Intermittently participate in the futures market, so that futures prices better reflect the global iron ore market supply and demand information, reflecting the Chinese buyer's power and spreading the buyer's voice.

If the price of bulk commodities denominated in renminbi and globally representative is formed internationally, in the international trade of commodities such as iron ore and steel, it can be priced according to the "futures price + premium discount" international commodity. The model settles and pays for trade so that the yuan can be taken out. As far as the steel industry is concerned, its international trade scale is estimated to reach RMB 1 trillion, which can significantly increase the proportion of RMB settlement and payment in international trade, and is conducive to promoting the internationalization of the RMB.