Saturday, October 18, 2008

Iron ore arrivals in China continue to rise unexpectedly last month

China's iron ore imports failed the expectations for a substantial decline in September, due largely to traders and steel makers betting on possible mounting demand after the Beijing Olympics.

According to latest customs data, China bought from abroad 39.2 million tonnes of iron ores last month, up 1.8 million tonnes on the August figure. The arrivals were valued at 5.79 billion U.S. dollars, up 18.2 million dollars from the previous month.

The import volume went against expectations and failed to be inline with real demand at home over the past weeks, Xu Xiangchun, a steel industry analyst, said on Saturday.

Since the beginning of September, major Chinese steel manufacturers have announced to slash production upon falling steel prices on the domestic market.

Xu predicted that the less demand would be reflected in import figures for October and November.

Between January and September, China imported 346.11 million tonnes of iron ores, up 22 percent over the same period of last year. The arrivals were valued at 48.9 billion dollars, up 116 percent.


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