China will be keeping a close eye on international iron ore
price talks scheduled for this year, and hopes that prices will be
fixed fairly to achieve a win-win result for producers and
consumers, an official with the Chinese Ministry of Commerce said
on Thursday.
"China will monitor the progress of iron ore price talks, and
take legal measures if necessary to protect the interests of the
country and Chinese companies," the official said.
Iron ore prices will influence the growth of the national
economy and China's steel industry, which is currently faced with
soaring production costs and declining profits. Another jump in
prices will put an even larger strain on the industry.?
China is against any monopolistic move in international
trade.
According to statistics from the ministry, worldwide iron ore
reserves are 140 billion tons. If 1.3 billion tons are mined each
year, these reserves could last about another hundred years.
Supply and demand are currently in balance, said the ministry.
In 2005, a total of 1.25 billion tons of iron ore was used to
produce 780 million tons of pig iron. Global iron ore output was
over 1.3 billion tons.
China, the largest steel producer in the world, has seen its
iron ore imports rocket as its economy maintains nearly
double-digit growth.
In 2005, China imported 43 percent of the world's total iron ore
export or 275 million tons.
The ministry said China's surging iron ore trade not only brings
profits to mining companies, but also benefits the economic growth
of iron ore exporting countries and regions.
But some international companies, riding on their monopoly
position in international trade, made unreasonably high profits by
squeezing out other players.
The ministry said this violated the principles of fair trade and
went against the healthy development of the global iron ore
trade.
The National Development and
Reform Commission (NDRC) is also highly concerned with the
outcome of future iron ore price talks.
According to its development policy, the NDRC will control steel
output in 2006 by phasing out low-efficiency steel factories.
The move is expected to cut China's iron ore demand by 60
millions tons.
(Xinhua News Agency March 17, 2006)