According to the General Administration of Customs, Chinese import of iron ore during April 2009 crossed 57 million tonnes defying all market conditions and showing a rising reliance on imports and undermining efforts by steelmakers to force mining companies to cut prices.

In million tonnes

March - 52.08 million tonnes
February - 46.74 million tonnes
January - 43.2 million tonnes
Far from reflecting rising demand, analysts said that the surge of iron ore imports could be the result of cost-competitive global miners taking market share from high cost Chinese miners. But this trend could lead to its own undoing as rising freight costs make imports less attractive, while record ore stocks sitting at Chinese ports suggest traders' rush to restock hasn't been matched by robust growth in steel output.

Deutsche Bank analysts said "We find this trend is perplexing given Chinese steel exports fell 60% in March. Similarly the domestic market does not show any sign of a turnaround and China may have an oversupply of more than 100 million tonnes of crude steel this year."

Mr Roger Downey Credit Suisse analyst said "The question now is how sustainable this is. We expect the displacement of domestic ores to decelerate, given that seaborne suppliers will be less keen to lower prices further. China's iron ore inventory at ports jumped to a record 74.7 million tonnes in April, and on top of that, research firm World Steel Dynamics estimates there is a further 20 million tonnes of iron ore stocks at steel mills.”