Iron ore imports show 10pc rise as Beijing plans steel output cut

Despite falling domestic production, the mainland's iron ore imports are up 10 per cent year on year, according to a leading ship broker.

Warren Brook, managing director of Simpson, Spence & Young Shipbrokers, said even though the mainland sourced inferior quality iron ore domestically, it preferred to import better quality iron ore to manufacture steel.

This comes as mainland steel output in January dropped to 10.03 million tonnes from 11.23 million tonnes in December, the China Daily Business Weekly reported, quoting State Administration of Metallurgical Industry sources.

The mainland plans to cut steel output by 10 per cent this year to reduce the surplus and also help raise prices and profits in the sector.

Mr Brook said there was strong demand for steam coal, mainly from South Korea and Japan.

Beijing's World Trade Organisation entry may also raise demand for grain, although it may not happen immediately, Mr Brook said.