China, the world’s biggest buyer of iron ore, increased purchases of the material by 42 percent to a record last year as steelmakers ramped up production to meet demand from carmakers and builders.
Imports of iron ore rose to 628 million metric tons from 443.6 million tons in 2008, the customs bureau said on its Web site today. Imports were 62.2 million tons in December, it said.
China’s $586 billion stimulus spending has boosted steel demand from automakers, home-appliance manufacturers and builders. The spending helped the steelmaking industry return to profit in May after seven straight months of losses because of the global economic crisis.
December imports were 22 percent higher than the 51.1 million tons bought in November, and 80 percent higher than a year ago, according to Bloomberg data. The December figures were the second highest after September’s 64.6 million tons.
China’s steel output may exceed 600 million tons in 2010, after reaching a record 570 million tons in 2009, the China Securities Journal reported Dec. 17, citing Ma Guoqiang, general manager of Baoshan Iron & Steel Co., the listed unit of the nation’s largest steelmaker.
The cash price of 62 percent iron ore delivered to China jumped to $130.1 a ton on Jan. 7, according to The Steel Index, boosting expectations for a gain in benchmark contracts. The spot price has posted six weekly gains, rising 31 percent.
China’s steel-product exports fell 59 percent to 24.6 million tons last year from 59.3 million tons, customs said. Imports of the products rose 14 percent to 17.6 million tons.
In December, steel-product exports were 3.34 million tons, customs said. That compares with 2.85 million tons a month ago and 3.17 million tons a year earlier, according to Bloomberg data.