In a statement made on September 29, China Iron and Steel Association (CISA) secretary general Shan Shanghua predicted that supply would exceed demand in the global iron ore market in 2010.
According to Mr. Shan, since the global financial crisis has not yet run its course, global steel production is likely to see a slow recovery, resulting in oversupply of iron ore next year.
Furthermore, Mr. Shan remarked that China would be seeking to match the long-term contracts for iron ore with the calendar year, switching from the April-to-March fiscal year, thereby bringing the long-term contracts more into harmony with the accounting system of the Chinese mills.
In the meantime, the CISA has in recent days announced a reduction of 10 in the number of qualified iron ore importers and also that it is boosting its system for the registration and recording of iron ore imports.