China's iron ore imports tumble Helen Yuan, Shanghai September 11, 2010
CHINA'S iron ore imports plunged 13 per cent last month - in the biggest decline in seven months - as steel production slowed and India reduced exports.
Imports fell to 44.6 million tonnes, from 51.3 million tonnes in July, according to figures provided by China's General Administration of Customs. Purchases dropped 10 per cent from 49.7 million tonnes a year earlier, data showed.
Steel prices in China fell as much as 17 per cent between April and July as the government curbed property speculation, slowing demand for steel in construction.
About 40 per cent of steel makers in the country made plants idle or put them on maintenance, the China Iron & Steel Association said.
''Demand fell and forced buyers to hold off purchases,'' said Zhang Yong, an analyst with researcher Mysteel.com. ''There were also disruptions from India in July-August.''
The southern Indian state of Karnataka, the country's second-largest producer of the ore, banned exports from July 26. India's ore exports for July fell 27.6 per cent, to 4.74 million tonnes, from a year earlier, said the Federation of Indian Mineral Industries. The country also raised freight charges and taxes on the exports.
Steel production in China, the biggest maker, is also falling as the government closes obsolete plants and reduces power supply to reach energy-efficiency targets.
