China's iron ore imports fell to their lowest level in the last six months in
June, according to the China General Administration for Customs
(CGAC).
The total amount of iron ore imported last month was 26.9 million
tons, down 6.37 percent on June last year, and 2.61 percent on the previous
month.
The total volume of iron ore imported this year will reach 367
million tons, said Luo Bingsheng, deputy chief of the China Iron and Steel
Association (CISA), at a recent industry meeting in Beijing. This figure still
surpasses the earlier forecast of 355 million tons by CISA.
The average
price of imported iron ore in June was 84.03 U.S. dollars per ton according to
CIF, up 42.9 percent on the same period last year. The average price of that
from January to June soared by 21.7 percent.
Last December, China's
largest steelmaker Baosteel reached an agreement with Brazil's Companhia Vale do
Rio Doce (CVRD), the world's largest iron ore supplier, on a 9.5-percent price
rise. It also agreed on the same price increase with two other iron ore giants,
BHP Billiton and Rio Tinto.
Members present at the Beijing meeting said
the hike of the iron ore CIF price was mainly triggered by the rocketing ocean
freight rates due to the shortage of international shipping capabilities. The
world's three iron ore giants and some financial institutions manipulating the
Forward Freight Agreement (FFA) was another reason for the price
hike.
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