China's imports of iron ore in October fell almost 30 percent to 45.47 million tonnes, down from a record the previous month but still high enough to raise further concerns about oversupply in the country's steel sector.
Steel product exports stood at 2.71 million tonnes over October, up nearly 10 percent compared with September and another positive sign of a recovery taking root in China's crucial foreign markets, but overcapacity concerns remain.
China imported 64.55 million tonnes of iron ore in September, a surprising record after steel mills cranked up output to 1.69 million tonnes per day. Imports over the first 10 months reached 514.81 million tonnes, up 37 percent compared to the same period of last year, with China's steel mills maintaining record output levels despite a collapse in export markets.
Sustained demand from China has already pushed spot Indian benchmark prices up to more than $100 per tonne for the first time since mid-August.
Despite widespread concerns that China's mills are producing too much steel, analysts said that demand has held out so far, driven by record automobile sales and stimulus-driven investment in infrastructure.
Daily crude steel output stood at 1.67 million tonnes in October, according to figures released on Wednesday by the National Bureau of Statistics, only slightly lower than the record set in August and September.
At a press briefing last week, the China Iron and Steel Association repeated its concerns about domestic overcapacity, but also conceded that growing demand meant benchmark iron ore prices were likely to rise in 2010.
It said the domestic Chinese market would have to absorb an additional 47 million tonnes of crude steel supply as a result of falling global demand.
Source: Alibaba News Channel
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