According to Nanjing Customs, Jiangsu Province imported 20.96 million tonnes of iron ore during the first eight months of this year up by 8.3% YoY. In the meanwhile import price gained 90.7% from a year earlier to USD 159.9 per tonne.

    Baosteel, China's representative in annual ore price negotiation, accepted a 65% hike proposed by Brazil's Vale, and then agreed with Australia's BHP and Rio Tinto on price rises of 79.88%, 79.88% and 96.5% respectively for PB Fine Ore, Yandi Fine Ore and PB Lump Ore. This has directly pushed up iron ore import price.

    Besides, India has raised iron ore export tariff to 15% after two hikes in this year, following several similar moves in 2007. As Indian iron ore dominates spot ore market, the export tariff rises also bid up spot price.

    Officials cautioned that domestic ports had witnessed severe congestions due to massive imports, increasing domestic outputs and shrinking downstream demand in previous period. Total stocks have surpassed 60 million tonnes for five months straight and the figure hit record high of 74.46 million tonnes in August end.