Firstenergy Corp. (FE)

[mhlld]

China raises iron ore imports from small supplying countries as India ore proportion fell
Published: 26 Jan 2010 22:54:08 PST

Jan. 27 MetalBiz--Although Australia and Brazil ore is still China's main iron ore sources, as the demand is increasing and China has intention to seek for many channels of import modes, China increase the iron ore imports from other countries. According to analysis of 2009 data, the proportion of iron ore from South Africa, Ukraine, Russia and Canada accounting for China's iron ore imports increase.

In 2009, China's iron ore demand created a fresh highest, it is difficult for China to kill off the price difference with Rio Tinto, BHP Billiton and Vale. Though China is largest iron ore importer, facing three big iron ore giants holding 70% of global iron ore, China is passive in the iron ore price negotiation. Hence, many specialists suggest that China should expand the more channels to import, turning to other countries except for Brazil and Australia.

As a matter of fact, from 2009 data, the proportion of iron ore imports from Australia and Brazil accounting for the total imports is same as 2008, but small iron ore supplying countries play the more role in satisfying China's iron ore demand. Iron ore imports from South Africa takes up 5.44% from 2008's 3.27%. In 2008 and 2009 years, South Africa was China's fourth-largest iron ore supplying country.

On the other hand, the proportion of India iron ore obviously decreased. Its proportion slipped to 17.1% from 20.5% in 2008.

Insiders stated that with the continuous increase of the future demand, the proportion of China's iron ore imports from small supplying countries will consecutively go up. But the absolute iron ore quantity of these countries is still small, it is difficult for them to contend against three big miners, so the current seller market is hard to change.

http://news.alibaba.com/article/detail/metalworking/100239701-1-china-raises-iron-ore-imports.html