In recent years, under the guidance of “Six Development Concepts”, Ansteel Mining Industry Company focuses on establishing resource advantages in Ansteel, makes resource industry be larger, takes the implementation of strategic cost management as an important safeguard for realizing strategic target and fully establishes the competitive advantage with low cost. The cost for purchasing materials takes up a great share in the production cost of mine enterprise. In Ansteel Mining Industry Company，the cost for purchasing materials accounts for more than 35% in the whole costs every year. Facing so many adverse factors in recent years, such as the sharply increasing price of raw materials and fuel as well as the changing production conditions of stope, the Company tackles the problems with innovative thinking, sticks to the guidance of enriching and perfecting price management and control system, focuses on the main line for improving the enterprise core competitiveness and the ability to withstand market risks, attaches importance to the real-time monitoring material purchasing price and the management and control the price in rich and innovative ways, establishes purchasing material price index information system on the basis of establishment of purchasing material price index system, carries out index research and analysis in regular intervals so as to provide the basis for the enterprise to make a reasonable judgment for the purchasing pricing and purchasing price change and provide valuable information for the enterprise to make the business policy. “Xue Muqiao Price Research Award” is the highest award of domestic price research established by China Price Association. Its purpose is to publicize Xue Muqiao’s spirit of combining theory with practice, to form a precise, pragmatic and enterprising academic atmosphere in the price research so as to promote the price research to serve for deepening price reform, improving price management level and perfecting socialism market price system and sharply reduce the purchasing cost. In 2013, the purchasing cost of Company reduced by 73.6542 million yuan. At present, the full cost of the iron concentrate in the Company has reduced from 637 yuan per ton in 2008 to 560 yuan per ton this year.

    The establishment of purchasing material price index system in Ansteel Mining Industry Company is a great innovation of price management field among industrial enterprises. The system formed a new analysis mode of purchasing price with special characteristics. It can not only reflect the price change more intuitive, but also show and analyze the general price change that other price analysis ways cannot, which can help the enterprise reduce material purchasing cost continuously and efficiently, ensure scientific pricing for purchasing materials and fill the price monitoring gap among industrial enterprises in China. Therefore, the system has great significance for domestic metallurgical mine enterprise in breaking internal management bottleneck, improving core competitiveness, establishing and participating in the new advantages of iron ore in international market competition and realizing sustainable development.