China's iron ore imports fell to their lowest level in the last six months in June, according to the China General Administration for Customs (CGAC).

Labourers walk near the land filling area at the new Caofeidian iron ore port on the northeastern coast of China's Hebei province January 23, 2007.China's iron ore imports fell to their lowest level in the last six months in June, according to the China General Administration for Customs (CGAC). [Reuters]

 
The total amount of iron ore imported last month was 26.9 million tons, down 6.37 percent on June last year, and 2.61 percent on the previous month.

The total volume of iron ore imported this year will reach 367 million tons, said Luo Bingsheng, deputy chief of the China Iron and Steel Association (CISA), at a recent industry meeting in Beijing. This figure still surpasses the earlier forecast of 355 million tons by CISA.

The average price of imported iron ore in June was 84.03 U.S. dollars per ton according to CIF, up 42.9 percent on the same period last year. The average price of that from January to June soared by 21.7 percent.

Last December, China's largest steelmaker Baosteel reached an agreement with Brazil's Companhia Vale do Rio Doce (CVRD), the world's largest iron ore supplier, on a 9.5-percent price rise. It also agreed on the same price increase with two other iron ore giants, BHP Billiton and Rio Tinto.

Members present at the Beijing meeting said the hike of the iron ore CIF price was mainly triggered by the rocketing ocean freight rates due to the shortage of international shipping capabilities. The world's three iron ore giants and some financial institutions manipulating the Forward Freight Agreement (FFA) was another reason for the price hike.

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