Chinese iron ore imports from Iran may decline due to sanctions

China's iron ore imports from Iran may decline from March this year as Iranian iron ore exports may be disrupted by international sanctions, traders have stated as reported by the China-based Hexun Weibo news agency. On Monday, February 6, the US tightened sanctions against Iran due to concerns over Iran's nuclear program, ordering tough new penalties to give US banks further powers to freeze assets linked to the Iranian government and close loopholes Iran is alleged to have used to move money despite earlier restrictions imposed by the US and Europe.
 
In 2011, Iran exported 17 million mt of iron ore to China, ranking fifth among China's biggest iron ore suppliers. However, some traders expect China's imports to drop in the coming months given that sanctions may affect delivery and payment.
 
China's iron ore imports in 2011 totaled 686 million mt, with 2.4 percent coming from Iran.