China's decrease in demand for iron ore forces leading foreign producers to back down on prices

08:49, October 15, 2010      

Email | Print | Subscribe | Comments | Forum 

China's downward demand for overseas iron ore is likely to be the major reason for the world's three leading iron ore miners, Rio Tinto, BHP Billiton Group and Vale SA, making their first price reduction in 2010 (10 percent), disclosed Chinese steel enterprises Wednesday.

According to the data from China's General Administration of Customs, in the first three quarters of the year, China cut its import volume by 460 million tons, a decrease of 2.5 percent compared with the same period of last year.

Reason for such reduction lies on the country's steel market, which operates now in slower speed, and governmental policies on energy saving and emission reduction, said an industry analyst.

In addition, to shake off its huge dependence on the ever costlier foreign steel, Chinese enterprises have increased their iron ore self-sufficiency, which weighs heavily on demand. To cite an example, Wuhan Iron and Steel claims that in five years, it will be self-sufficient in iron ore production.

However, the three-giant-monopolized industry is unlikely to be affected by the price slit.

Source: Global Times


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion