According to Mr Luo Bingsheng deputy Chairman of China Iron and Steel Association, imported iron ore accounted for 60% of the China total iron ore consumption in 2010 dropping 10% from the 70% in 2009, indicating the reliance on imported iron ore have decreased. This is the first time the reliance appeared decline.

Data revealed that until October this year, the imported iron ore amount have showed continues decline trend for over 7 months, the iron ore imports in January to October dropped 2.2%YoY. Such change can be linked with the surging imported iron ore prices and the adoption of quarterly pricing methods by the three major suppliers, Vale, BHP and Rio Tinto.

The domestic iron ore output have increased in recent year, the domestic iron ore output reached 870.94 million tonnes in January to October 2010 an increase of 24.4%YoY. Besides, Chinese enterprises have been investing overseas mineral assets in order to lower the reliance on the imported iron ore.

As per report, China holds estimated 192 million tonnes of iron ore interest abroad accounting for 30.5% of the total iron ore imports. Some of these iron ore mines are in operation and some are in the middle of construction.

(Sourced from MySteel.net)
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