In 2015, iron ore imports accounted for 84 percent of Chinese consumption, exceeding 80 percent for the first time, Wang Liqun, Vice President of the China Iron & Steel Association disclosed on April 14, 2016. He said that the ratio went up to 86.7 percent in the first two months of 2016.

Hit by the falling price of iron ore in the international market in these two years, China's domestic iron ore mines have reported loss or decreased output.

China's domestic iron ore output fell 7.7 percent to about 1.4 billion ton in 2015, registering the biggest year-on-year drop in recent years, according to data released by the China Iron &Steel Association.

Data from the Association also shows that China imported 953 million tons of iron ore in 2015, up 2.2 percent from the previous year. Moreover, China's import of iron ore increased by 6.4 percent to reach 156 million tons during the first two months of 2016. 

An analyst told thepaper.cn that the limited domestic output of iron ore is far from meeting China's robust demand. With lower grade ore and higher production cost, China's mining companies cannot compete against their foreign counterparts. The cost of iron ore of several foreign mining giants ranges from 30 to 40 dollars a ton. However, the price of domestic iron ore fluctuates between 50 to 60 dollars a ton, according to Xu Xiangchun, Chief Information Officer of Mysteel.com.