CCCMC: International iron ore price may drop in 2006
According to the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC), international iron ore prices may begin declining in 2006 due to expanding global ore productivity. It is estimated that global iron ore production would have increased by 55 million tons year on year by the end of 2005. CCCMC officials visited India during the latter part of September to meet with their Indian counterparts. During their meetings, it was understood that global iron ore and steel prices would drop in 2006 in the international and Chinese markets as iron ore productivity continues to expand. Therefore, Indian miners hope to sign long-term supply contracts with China steel enterprises to secure their own interests. CCCMC indicated that while the price of iron ore reached its historical peak in 2005, the market has since become oversupplied and a price drop is therefore inevitable in 2006. China has been the largest iron ore importer in the world, with 2004s import quantity totaling 208 million tons and accounting for one third of global seaborne trade volume. In the first nine months of this year, Chinas iron ore import has reached 200 million tons, up 31.7 percent year on year. The estimated quantity for the whole year is predicted to be 240 million tons, a more than 15 percent increase compared to 2004.