Around 20 Chinese miners have submitted a petition to Ministry of Commerce China, to call for an anti-dumping investigation on low-cost iron ore imports from Australia and Brazil.
The Metallurgical Miners Association of China has submitted a petition against huge volume of low-cost imports, which has impacted Chinese domestic mining industry.
The world’s major miners namely Vale, Rio Tinto and BHP Billiton continue to grow their capacity annually and produce low-cost output, which is required to be absorbed by the massive Chinese market. As a result, the low-cost iron ore is dumping in the Chinese market, leading to kick out high-cost domestic miners.
China, the world’s largest iron ore producer and consumer has produced about 594 MnT iron ore in H1 2016, down by 5% against 627 MnT in H1 2015. But, growing supplies from Australia & Brazil and low-quality ore mined locally have increased reliance on import of steel makers’ majority.
Supplies from Australia and Brazil increase sharply
China imports more than 65% of total iron ore from Australia. In H1 2016, Australia exported about 307.3 MnT iron ore to China, up by 16 MnT as compared to 291 MnT in H1 2015.
On similar lines, import from Brazil remained at 101.7 MnT iron ore in H1 2016; about 21.3 MnT more than 83.3 MnT in H1 2015.
In order to protect the domestic mining industry, Chinese iron ore miners are taking initiatives to restrict the inflow of low-cost imported material within the country and to enhance the use of domestic raw material available within the country.
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