Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / Metals Tools: Save | Print | E-mail | Most Read | Comment
Iron ore imports likely up by 15%
Adjust font size:

China, which produces one-third of the world's steel, will see 15 percent growth in iron ore imports this year, an industry group said.


"This year the country is expected to have imported 375 million tons of iron ore, an increase of 49 million tons from 2006," Luo Bingsheng, vice-chairman of the China Iron & Steel Association (CISA), said yesterday.


Rapid development of the domestic steel industry has resulted in booming demand for iron ore. The country imported 349.03 million tons of iron ore from January to November this year, up 17.3 percent from the same period of 2006.


It is the biggest buyer of iron ore on the global market, accounting for nearly half of total trade.


Domestic iron ore production will also see double-digit annual growth. This year the figure is expected to reach 700 million tons, Luo said.


But the nation's steel industry has an increasing dependency on imported iron ore, he said.


"Domestic steel companies should do more to ensure a steady iron ore supply in the long term."


"They should take an active part in developing overseas mining assets," said Luo.


As for iron ore prices in 2008, Luo said it was inevitable to see an increase. For the first 11 months, the average iron ore price was $84.25 per ton, an increase of 32.36 percent, the CISA said.


The rising price is mainly due to soaring marine transport costs, Luo said.


"But the recent rise in marine transport costs is unusual and unreasonable," he said.


Some iron ore producers are also manipulating the market, causing unreasonable price increases, he said.


From July to October, the price has risen at a faster pace.


In November, the average price was $112.78 per ton, a record high, the CISA said.


Rising prices have put pressure on domestic steel companies, squeezing profit margins.


Earlier media reports said the steel industry is lobbying the central government to establish a national iron ore reserve to secure supplies of the raw material.


Speculation on the soaring price of iron ore intensified as Melbourne-based BHP Billiton Ltd, the world's second-largest mining resource giant, raised a billion-dollar bid to take over London-based Rio Tinto.


If the deal goes through, the combined company would take nearly 40 percent of the global iron ore export market.


Analysts said it could drive up prices further, as the two companies would have greater bargaining power after the merger.


The two mining giants together account for just under two-fifths of China's imports of the commodity.


(China Daily December 21, 2007)


Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- Baosteel 'quite likely' to bid for Rio Tinto
- Iron ore contract price negotiations 'may start soon'
- BHP gives guarantee on prices
- Iron ore importers encouraged to pool shipping charges
Most Viewed >>
-China set to hit the brakes on rising yuan
-Power to resume shortly in worst-hit area by snow
-Online operators are on top of the game
-Macao's gaming market expands further
-Insurance firms set to stump up billions

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号