China's iron ore imports up 27% in Q1

According to the data from China Iron & Steel Association (CISA), China's iron ore imports increased 27.2 percent year on year to 80.91 million metric tons in the first quarter of 2006. A rough calculation shows that the full year iron ore imports of the country may reach 320 million metric tons, which is 23 percent higher than the 260 million metric tons of last year. China's iron ore imports had increased 25 percent in 2005. The prices of Indian ore with 63.5 percent iron ore content are currently around $70/mt CFR level while Indian origin pellets are in $85-90/mt CFR range. However, Chinese traders are unwilling to buy large quantities of ore from the spot market until the long-term iron ore prices for 2006 are set.