China imported 58.08 million tonnes of iron ore in July, the highest monthly volume on record and up 31.8 percent from the same period last year, the country's customs authority said on Tuesday.
Steel product exports reached 1.81 million tonnes, 25 percent higher than June but down 67.3 percent compared with July last year.
In June, iron ore imports were 55.3 million tonnes and exports of steel products were at 1.43 million tonnes. Analysts said Chinese steel demand was making a solid recovery, and an increase in domestic ore output has not been enough to meet the needs of the market.
"Total demand has increased and China has got to import to fill the incremental demand growth," said Henry Liu of Macquarie Bank in Shanghai.
But despite signs that overseas markets are also improving, the China Iron and Steel Association still insists imports are far higher than necessary.
Irrational expansion plans by small local mills and speculative behaviour by traders had boosted the import volume to unrealistic levels and pushed spot ore prices beyond what the market can bear, CISA Secretary-General Shan Shanghua said at an association meeting in Beijing last month.
CISA has attempted to cajole traders and small mills into cutting iron ore imports, in a bid to bolster its position during protracted contract price talks with foreign miners Rio Tinto, BHP Billiton and Vale.
CISA figures show trading companies were responsible for 44 percent of all iron ore imports in the first half of 2009, up from 30 percent last year.
CISA is urging the government to revoke import licences in order to better control the volumes of overseas iron ore coming into the country.
Source: Reuters
No comments:
Post a Comment