China, which produces one-third of the world's steel, will see 15 percent growth in iron ore imports this year, an industry group said.
"This year the country is expected to have imported 375 million tons of iron ore, an increase of 49 million tons from 2006," said Luo Bingsheng, yesterday, the vice-chair of the China Iron & Steel Association (CISA),
Rapid development of the domestic steel industry has resulted in booming demand for iron ore. The country imported 349.03 million tons of iron ore from January to November this year, up 17.3 percent from the same period of 2006.
It is the biggest buyer of iron ore on the global market, accounting for nearly half of total trade.
Domestic iron ore production will also see double-digit annual growth. This year the figure is expected to reach 700 million tons, but the nation's steel industry has an increasing dependency on imported iron ore.
"Domestic steel companies should do more to ensure a steady iron ore supply in the long term. They should take an active part in developing overseas mining assets," said Luo.
Luo said it was inevitable to see an increase for iron ore prices in 2008. For the first 11 months, the average iron ore price was $84.25 per ton, an increase of 32.36 percent, according to the CISA
Luo said the rising price is mainly due to soaring marine transport costs.
In November, the average price was $112.78 per ton, a record high, the CISA said.
Rising prices have put pressure on domestic steel companies, squeezing profit margins.
Earlier media reports said the steel industry is lobbying the central government to establish a national iron ore reserve to secure supplies of the raw material.
Speculation on the soaring price of iron ore intensified as Melbourne-based BHP Billiton Ltd, the world's second-largest mining resource giant, raised a billion-dollar bid to take over London-based Rio Tinto.
If the deal goes through, the combined company would take nearly 40 percent of the global iron ore export market.
Analysts said it could drive up prices further, as the two companies would have greater bargaining power after the merger.
Questions:
1. How much of the world’s steel does China produce?
2. China the biggest buyer of iron ore on the global market, accounts for how much of the world trade in this product?
3. What do experts believe is the main cause for the recent rise in iron ore prices?
4. To counteract sudden changes in the prices of ore prices what is the Chinese steel industry lobbying the central government to establish?
Answers:
1.One-third.
2.Nearly half.
3.Soaring marine transport costs.
4.A national iron ore reserve to secure supplies.
（英语点津 Celene 编辑）
About the broadcaster:
Brendan is an Australian who has been involved in education and writing for over a decade. He has published most recently for the Tiger Airways Inflight magazine, The Bangkok Post, The Taipei Times and Japan's Hiroshima Outside Magazine. He holds a Masters Degree in Community Development and Management and has resided in China for over 3 years.
