China Iron & Steel Association (CISA) forecasted that China's crude steel output in 2007 would reach 480 million tons, up 14 percent compared with the previous year.

 

Luo Bingsheng, executive vice chairman of the CISA, said China's crude steel output in the first nine months stood at 363 million tons, up 17.61 percent, and pig iron output increased by 15.68 percent to 346 million tons.

 

Driven by increasing international steel prices, China's steel export amounted to 49.5 million tons in the same period, up 73.2 percent, of which crude steel accounted for more than 40 percent of the total.

 

Meanwhile, international shipping prices for iron ore have increased significantly, such as spot-contract commission for delivery from Brazil to China which has rocketed to 88.3 US dollars per ton.

 

Comparing with the commission on long-term contracts which is usually below 20 dollars, such an increase is "unusual and unreasonable", CISA said.

 

Luo encouraged steel and shipping companies to establish long-term cooperation and build more ships to enhance iron ore shipping capability.

 

China's iron ore transporting volume takes up 46 percent of the world's total, far exceeding its shipping capability, which has only 30 bulk carriers for now, or four percent of the world's total, Luo said.

 

CISA predicted that China's steel export would decline in the fourth quarter over the previous year.

 

(Xinhua News Agency November 1, 2007)