Center

CVRD pours US$4m into Zhuhai plant

By Gong Zhengzheng (China Daily)
Updated: 2006-10-24 13:38

The nation imported 161 million tons of iron ore in the first half of this year, surging 23 per cent year-on-year, according to industry data.

The China Iron & Steel Association predicted earlier this year that the country's 2006 iron ore imports would exceed 300 million tons, up from 275 million tons last year.

In the first half of this year, CVRD and the other two global iron ore suppliers Australia's BHP Billiton and Rio Tinto raised iron ore prices by 19 per cent. The move followed a price surge of 71.5 per cent last year.

Skyrocketing iron ore prices have put great pressure on steel mills in China, the world's No 1 steel-producing country.

Profits of China's top 83 steel companies plunged 30.4 per cent to 35.3 billion yuan (US$4.5 billion) in the first half of this year, due partly to iron ore price increases.

Talks on iron ore prices for 2007 will start next month between Chinese steelmakers and international suppliers, according to industry sources.