The demand and price of the iron ore which China imported is increasing sharply in recent years. However, China doesn’t have a strong influence in the pricing of iron ore international trade. This situation not only threatened the security of resource supplying but also brought great financial loss to China. This paper first predicts the trend of the iron ore demand through studying the trade amount of export and import countries. Second, it analyses the export countries and defines the international iron ore market as a typical seller-monopoly market. Then, it analyses the social welfare of oligarch monopoly market by using the microeconomics theories and find there exist dead weight loss. Then it 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 to bilateral monopoly through exploring the process of the balance of the buyer and the seller’s market power in the international trade market. Finally, on the basis of analysis, it puts forward some measures to improve the ability in international iron ore pricing, including that the buyer should become allied, should strengthen information service, should launch investment on aboard and to build a multi-supplying system.
【key words】 Iron ore; International trade; Price ; Pricing mechanism
