China’s iron ore imports have sustained consistently above 50mt per month since March 2009, except October because of the national holiday period. In total, China imported c.628mt iron ore in 2009, 41% higher than 2008 total import.

With Chinese consumption remaining elevated, tightness is likely to continue.

Over the past 2 years, prices of Shandong (Zibo and Laiwu) iron ore fines 64-66%Fe have commanded a 100% premium over Australia Pilbara FOB in average, due to factors such as freight, inland transport and taxes.