China iron ore import may decline 14% in 2012 : CMA

BEIJING (Scrap Monster): Import of iron ore by China, the world’s largest iron ore buyers, is expected to fall by 14% in 2012 because of the increased local production, said Chinese Mining Association (CMA).

According to CMA, China acquires 60% of the iron ore, controlled by Australia and Brazil.

China imported 686 million tons of iron ore in 2011, 11% up from 2010; almost half of this amount contributed by Australia.

However, the import this year would stay between 590 million to 650 million tons.

Meanwhile, the local production would increase to 1,400~1,550 million tons in 2012 from 1,330 million tons in 2011.

Obviously, the decrease of China’s import can weaken the prices of iron ore which already dropped by 19% in 2011 due to slow demand of steel.