China's steel industry has long faced a structural imbalance in the iron ore supply chain, where upstream international miners thrive while downstream domestic steelmakers struggle to survive. This unequal and unreasonable distribution of profits across the chain has hindered the healthy and sustainable development of the sector. In recent years, growing calls for rule reform and value realignment have prompted a deep adjustment in the iron ore market landscape, with a fairer, more transparent, and sustainable new order gradually taking shape.

First, China's massive market scale acts as a stabilizing force against global supply volatility. As the world's largest iron ore consumer, China's relatively steady production pace and efficient logistics have effectively mitigated the impact of uncertainties on iron ore supply. This market absorption capacity and buffer mechanism provide clear guidance for international miners, enabling them to commit to long-term, large-scale investments in upstream resource exploration and development. In essence, the stability and vastness of the Chinese market underpin the sustained growth of global iron ore capacity.

Second, a diversified resource supply system is being built. In recent years, the pace of global iron ore development investment has accelerated, with major projects in regions like West Africa gradually coming online. This has smoothed the supply curve, optimized resource allocation and supply patterns, enhanced market resilience, and fostered more fair and sufficient competition. Such efforts to expand sources help lower operating costs and risk premiums across the entire supply chain, ultimately benefiting all steel enterprises.

Third, there is growing consensus on addressing the structural profit imbalance between upstream and downstream entities. From an objective perspective, building a healthy industry ecosystem requires moving beyond zero-sum games. Instead, improving cooperation models is key to promoting reasonable profit distribution across all links in the value chain, achieving mutual benefits. Specifically in the iron ore sector, only when downstream steelmakers enjoy fair market positions, equal bargaining power, and reasonable operating returns can they sustain stable and long-term demand for iron ore, thereby allowing upstream miners to secure enduring and consistent profits.

Finally, a more objective and transparent iron ore pricing mechanism is gradually emerging. For a long time, the pricing of the dollar index has largely relied on transactions from a few international miners in the dollar market. China, however, possesses the world's largest port spot market, whose transaction prices can more objectively and accurately reflect supply and demand realities. Developing a renminbi-denominated iron ore price index system provides an important price reference beyond the dollar index, enhancing price formation's representativeness and transparency. Promoting the use of renminbi price indices in international trade helps curb speculative capital activities, allowing prices to better reflect shifts in supply and demand, and represents a significant improvement to the global iron ore pricing framework.