Industry confused with surging iron ore imports

June 30 MetalBiz-China, the world's largest iron importer, may face an iron ore surplus this year after imports exceeded demand, said official from China Iron&Steel Association (CISA).

"The risk of over-importing is building," said Luo Bingsheng, vice chairman of CISA, added that the global surplus may be 200mln-300mln tons this year.

Accoring to latest statistics of Customs, China imported 53mln tons of iron ore in May, down from the 57mln tons in April.

China's steel producers are still in talks with iron ore suppliers and they are implementing a "new plan" for the discussions, which should be completed by the end of June, Luo said.

But the surging imports weaken China's position in the iron ore talk and affect the recovery of China's steel industry. Insiders also said the increasing steel import would blind people's prediction on China's future economy growth.

The country's major ports unloaded 24% more of the imported steelmaking ingredient in April from a year ago, a record for a second month. Ships dropped 53.5mln tons of iron ore at major ports, the Ministry of Transport said May 6, which was higher than the March record of 51mln tons. Stockpiles at the nation's major ports reached 62mln tons in April, said the Ministry.

Imports for that month jumped 33% to 57mln tons from a year earlier, China's Customs said May 12.

Almost 40% of China's 72 biggest steel mills resulted in losses in April, the Ministry of Industry and Information Technology (MIIT) said May 22 that combined loss of steelmakers totaled 5.2bln yuan in the first four months, which forced the MIIT recently to ask the country's smelters to cut steel output.