Platts quoted MR Zou Jian chairman of the China Metallurgical Mines as saying that China’s iron ore demand in 2009 is estimated to drop by 60 million tonnes YoY.

Mr Zou while speaking at the 7th Far East Steel Conference held in Beijing on April 28-29 informed that “China’s domestic crude iron ore output in 2009 is estimated to reach 860-880 million tonnes up by 20-40 million tonnes YoY.”

Mr Zou noted that “China’s iron ore imports in 2009, however, are estimated to shrink to around 350 million tonnes down by around 21% YoY.”

This is despite the fact that China imported 131.53 million tonnes of iron ore in the first quarter of 2009 up 20.86 million tonnes or 18.85% YoY.

Mr Zou also refuted some reports that around 60-70% of local Chinese iron ore mines have opted to suspend their production due to serious slips in profits, noting that investments in the iron ore sector have grown by 50% since the second half of 2008. In the first quarter of 2009, China mined 166.72 million tonnes of crude ore up by 4.21 million tonne or 2.6% YoY.

China produced 122.38 million tonnes of hot metal in the first quarter of 2009, up 4.3% YoY. This annualizes at 489.52 million tonnes for 2009 up from 470.6 million tonne in 2008. As such, China’s iron ore (63-65% Fe) demand in 2009 may reach 783 million tonnes.

sourced : Platts

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