Shanghai Securities News citing Mr Tian Zhiping deputy general manager of the steel group while speaking at the sideline of the Far East Steel Conference said that, Hebei Iron & Steel Group has trimmed output by 10% due to low market.

As the second largest steelmaker in China and the fourth-biggest in the world in terms of output in 2008, Hebei Iron & Steel Group plans to import 36 million tonnes of iron ore this year all under long term contracts.

Mr Tian also revealed that the group has reached a purchase agreement with Australian mining company Aurox Resources to buy 3 million tonnes of ore per year. The steel group has yet to make any progress in buying some stakes in the mining company. The ore projects of Aurox are slated to start operation by this year end with annual output reaching 6 million tonnes.

(Sourced from Shanghai Securities News)