According to the reported released by Luo Bingsheng, an official from CISA, the global iron ore demand has been suppressed by the current stagnant world economy. Beside, in January to July of this year the giant iron ore suppliers have overestimated China's iron ore demand owing to the rising domestic iron ore production, which has jumped by 21.9% as compared to previous year and superseded a great deal of imported iron ore. Concretely, in the given period China's imported iron ore shortfall is only up 2.62% vs last year to 9.97 million t but the iron ore imports have surged by 7.81% year-on-year.
In January to July of this year, China's iron ore imports have raised by 7.81% year over year to 388.6343 million t with the average price of $162.76, surging by 37.79% year over year. In this context, in the period in question China's has paid extra $21.101 billion (137.195 billion yuan) compared to previous year, which is 2.1 times bigger than the overall profits of 65.208 billion yuan from China's main steelmakers.