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From the nature of monopoly, why is the price of iron ore easy to rise and difficult to fall

With the recent rapid rise in iron ore prices, mining giant Rio Tinto has a new way to play: to export China's Pilbara mixed ore (hereinafter referred to as PB powder),

On the basis of Platts index pricing, add tens of cents to $1 per ton as a long-term agreement price. As the world's largest importer of iron ore, accounting for 70% of the world's annual imports, in the face of the giants frequently changing the rules of the game, there seems to be no more than protest.

Iron ore price (left: Yuan/ton, right: US $/ ton), Choice

Our country iron ore output and imports (tons), Choice

Iron ore port inventory (tons), Choice

It is typical to provide different buyers with the same grade and the same quality of products with the same production cost, but to implement different selling prices or charging standards among buyers

Price discrimination. Price discrimination is widespread in many industries, many of which are legal, such as telecommunications, e-commerce and airlines, which often offer the same goods or services to different consumers at different prices. Price discrimination is a kind of

Monopoly pricing strategy is a kind of pricing strategy in which enterprises with monopoly status obtain super profits through differential prices. Methods of price discrimination usually include offering coupons (to identify consumers), double charging and bundling. The enterprise that can practice price discrimination already has a certain monopoly position.

The discriminatory pricing of steel mills in China, Japan and South Korea, such as Rio Tinto, is a naked squeeze on the profits of steel mills and their downstream enterprises. At present, BHP Billiton, Rio Tinto and Vale of Brazil account for more than 70% of the world's iron ore supply, and the oligopoly pattern is clear.

Compared with general competitive industries, what is the essential difference between monopoly industries?

The essence of monopoly is to artificially reduce supply, raise market prices, and obtain super profits.