Recently, Mr. Li Fanrong, the deputy general manager of our group, led our group's mineral project team to Tangshan Shouzhu Group for investigation and research. The potential bamboo group is located in Tangshan, the economic center city of Hebei Province. It was incorporated on May 19, 2016 and has grown and developed in the group. In the year, we always provide customers with good products and technical support, and sound after-sales service. The company mainly deals with iron ore mining; iron ore, iron concentrate, mineral products, mining machinery equipment and accessories, good products and professional Sales and technical team.

Our group's mineral project team analyzed and predicted the supply and demand situation of iron ore in the three aspects of the supply and demand of raw materials for the steel industry, China's situation and future development trends.

In 2016, the global production of pig iron (including direct reduced iron) was 1.22 billion tons, and the consumption of iron ore (TFe 62%) was about 1.93 billion tons, a slight decrease of 0.4% year-on-year; global iron ore production increased slightly, at 2.05 billion tons. Around the world, Australia and Brazil account for 62% of global iron ore production. In 2016, China's pig iron production was 700 million tons, requiring 1.107 billion tons of iron ore, a slight increase of 0.7% year-on-year; China's iron ore supply was “external increase and decrease”, and port inventory increment reached the highest level in the past five years, and external dependence The degree further climbed to 86.3%.

In 2018, the Chinese government plans to cancel one-third of the iron ore mining licenses, mainly small, polluting mines, which will further compress domestic iron ore supply. China's iron ore production is often highly price sensitive, domestic iron ore. The decline in stone production may be lower than expected. Supported by the expected decline in domestic iron ore production, China's iron ore imports are expected to remain stable. The iron ore industry business report is expected to reach 1.05 billion tons in 2019. Iron and steel enterprises as the ultimate consumers of iron ore, their production The situation dominates the actual demand for iron ore.

China's iron ore cannot be completely self-sufficient. Therefore, China is the world's largest importer of iron ore, and its external dependence has increased year by year. Although China's demand changes have a greater impact on iron ore prices, China does not have the main resources of iron ore, an important strategic material, nor its international pricing power. Domestic mining companies are numerous and scattered. Without scale and cost advantages, it is difficult to form a competitive edge with the world's major mining giants.

It is particularly important to develop a large-scale mining company in this situation and to cooperate with a powerful mining company. Through this inspection, our group has an in-depth understanding of Tangshan Xiangzhu Group, a mature and powerful mining group. Our group highly agrees with its corporate philosophy and hopes that the cooperation projects between the two parties will be successful at an early date.