Chinese iron ore imports exceed real demand in 2009

The China Iron and Steel Association is taking a firm stance this time, largely due to having lost too much ground in previous years' talks. The disadvantage in price talks is at odds with China's position as world's largest iron ore importer. The disorder in China's iron ore imports is to blame for China's failure in world iron ore price negotiations.

Mountains of iron ore are stored at Qingdao Port, pushing inventory at the port to 11 million tonnes, its upper-limit. However, ships carrying more iron ore imports are still waiting to unload.

Worker, Qingdao Port, said, "In normal circumstances, ships will be unloaded as soon as they comes. But now they have to wait for a long time."

The over-capacity of iron ore storage is widely seen in major Chinese ports, including Tianjin, Rizhao, and Caofeidian. Total inventory exceeds 100 million tonnes, far above the normal level of 30 million. The China Iron and Steel Association says Chinese iron ore imports rose 36 percent to 469 million tonnes in the first nine months from a year earlier, far exceeding the real demand.

Luo Bingsheng, Vice Chairman of China Iron and Steel Association, said, "The excess import of iron ore is largely due to the disorder of imports. It has led to overstock of iron ore in China. Current inventory has exceeded real demand. It also pushed up shipping fees of iron ore. "