Vale sees China 2012 iron ore imports at 625 million tonnes

June 5, 2008

June 5th (Steel Guru) – According to Mr Michael Zhu managing director of Vale China, China is expected to import 625 million tonnes of iron ore in 2012 up from a forecast 430 million tonnes in 2008.

Mr Zhu said ‘China’s apparent consumption of finished steel in 2008 is likely to rise 12% to 442 million tonnes. This is compared to an expected global growth rate of 6.8%. Crude steel production alone in China is seen rising to 540 million tonnes in 2008 as compared to 489 million tonnes in 2007.

He added that Vale would invest USD 59 billion over the next five years compared with the 20.1 billion invested in between 2003 to 2007 in order to keep up with global iron ore demand especially from China.

Mr Zhu said “We will focus on organic growth and massive project development in iron ore, coal, nickel, bauxite and alumina.”

Vale recently agreed to a 65% annual contract price hike for iron ore shipped to China, but China’s major Australian-based suppliers have yet to settle.

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