Chinese steelmakers to save from raw imports

Chinese steelmakers to save from raw imports

The recent 2 percent appreciation of yuan against US dollar will cut the imported raw material –especially iron ore – costs of Chinese steelmakers by RMB 3 billion ($369.9 million) in 2005 according to Xi Xiangdong, deputy secretary-general of China Iron and Steel Association. According to Xi Xiangdong, China will import 240 million tons of iron ore this year and the appreciation will help the steel industry to save RMB 2.5 billion ($308.3 million) with the current CIF iron ore prices. The country's iron ore imports in the first half of the year increased 33.4 percent year on year to 131 million tons. China may save another RMB 500 million ($61.7 million) from scrap and coking coal imports. On the other side, CISA's vice chairman Luo Bingsheng said the average cost of steel production in China would rise by around 15 percent per ton this year. Currently, the average CIF price of iron ore in China stands at around $60 per ton.