Import iron ore prices in China rise 105 percent in June

Thursday, 05 August 2010 17:35:15 (GMT+2)

In the first half of the current year, the average import price of iron ore in China was $111.5/mt, up 46.42 percent year on year. In June, the average import price was $139.85/mt, marking a significant increase of 105.27 percent on year-on-year basis.

Regarding the increasing iron ore prices, Deng Qilin, chairman of the China Iron and Steel Association (CISA), has commented that the three global mining giants (Rio Tinto, BHP Billiton and Vale) have transformed trade in the international iron ore market.

Mr. Deng said that, while the international iron ore market has not seen any great changes in either supply and demand, the surges in iron ore prices have been entirely due to the monopoly of enterprises which owned 70 percent of global iron ore resources.

The CISA official stated that, in the context of the oversupply of steel products in the Chinese market, the prices of steel products have observed continuous declines. He said that the increases in raw material costs, especially in iron ore prices, combined with the decreases in finished steel prices have squeezed the profit margins of domestic steel companies.

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