The global iron ore price is according to the price for the contract which is agreed by the international three major iron ore miners and major steel producers. China is the largest iron ore demand country, but the demand for iron ore in the international price remains in the vulnerable. This paper concludes some beneficial strategies for buyer to become allied through analyzing the Nush Equilibrium and educes how to change the international iron ore market from unilateral monopoly .This paper is divided into five chapters; first part is introduction and literature review. In chapter 3, the national level and micro-level iron market structure is analyzed by the reserves, production, trade structure and consumption. In chapter 4, we study the long-term contract prices of iron ore and what in the spot market price to analyze the buyer of iron ore of oligopoly characteristics. Chapter 5 is this paper’s conclusion and suggestion.
Through analysis we find several conclusions as follows: First, The control of the market by the three global iron ore giants is still significantly stronger than steel, the structure of the international iron ore trade is unbalanced; Second, The relationship between supply and demand change of international iron ore market is no significant change, unilateral monopoly is still very serious; Third, China is the largest iron ore demand country, but steel in a week line in the international pricing, do not have pricing power.
