BEIJING (Commodity Online): China imported 630 million tones of iron ore in 2009, up 41.6 per cent year-on-year, and the iron ore import dependency ratio has increased from 44 per cent in 2002 to 69 per cent.

Following this revelation, several international investment banks have predicted that iron ore prices will rise by 30 per cent to 50 per cent in 2010, and Rio Tinto and BHP Billiton have threatened to turn their backs on China and reach agreements with Japan as far as iron ore deals are concerned.

Last year, China Iron and Steel Association stated at the beginning of negotiations that Australia and Brazil should cut ore prices by 45 per cent and 40 per cent respectively. The China Iron and Steel Association maintained its tough stance as the market situation is favorable to China.

Baosteel Group Corporation is currently the representative of domestic enterprises to negotiate with foreign companies. Regarding the surge in dependency, industry experts hold that there is a mutual-dependence between relevant foreign countries and China which has now become the world’s biggest iron and steel producing country and the world’s top iron ore importing country.

Statistics show that the ore import from Rio Tinto and BHP Billiton accounts for at least 60 per cent of their total output and the ore import from CVRD also accounts for 40 percent of its total output.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook