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Chinese firms have experience constructing railway and port infrastructure at low cost, and despite the recent slowdown in Chinas manufacturing sector, China remains the worlds largest consumer of iron ore.
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Endowed with ample mineral resources that have yielded some of the most productive mines in the world, Chinas mining sector continues to exert substantial influence on both the domestic and global markets.
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China consumers more industrial metals and minerals than the rest of the world combined and the country imports more than twothirds of the world's seaborne iron ore. The import price of the steelmaking raw material declined 3% on Tuesday to $66.45 a tonne according to Metal Bulletin data.
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Iron ore production kept pace with steel production in the early 1990s but was soon outpaced by imported iron ore and other metals in the early 2000s. Steel production, an estimated 140 million tons in 2000 increased to 419 million tons in 2006.
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Mining Corporation of Shougang Group Co., mainly has two iron ore production mines, namely Shuichang and Xingshan with the annual production capacity of 11 million tons and 3.2 million tons respectively, and two ore dressing plants, namely Dashihe and Shuichang with an annual processing capacity of 27 million tons.
The value of iron ore rallied the most on record Monday night after steel prices in China jumped on the belief Beijing's progrowth policies would boost sluggish demand.
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Big miners have expanded their production and shipments while Chinas crackdown on illegal furnaces that use scrap for production in the first half spurred demand for seaborne iron ore. Appetite for imported iron ore from Chinese steel mills remains strong, Hellenic Shipping News quoted an analyst with CRU in Beijing , Saturday.
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MANILA/BEIJING Prices of commodities from iron ore to rubber tumbled in China on Tuesday, with investor sentiment shaken by an intensifying trade war between Beijing and Washington that could hurt the world's No. 2 economy.
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