Brazil's CVRD says China imports could cause ore shortage

Continued growth in Chinese iron ore imports could lead to a shortage in the market this year, a top official with Brazilian miner Companhia Vale do Rio Doce said Thursday.

Through April this year, China had imported 133.6 million metric tons (147.3 million tons) of the key steelmaking raw material, which projects to an annual rate of 400 million metric tons (440.9 million tons) in 2007, CVRD finance chief Fabio Barbosa said during a presentation for financial-market analysts.

"If China continues at this pace, it will lead to a strong shortage in the iron ore market this year," Barbosa said. "We don't have the conditions to put an additional 20 million (metric) tons into the market."

CVRD previously forecast Chinese imports of 380 million metric tons (418.8 million tons) for the year. CVRD expects to ship 100 million metric tons (110.2 million tons) to China this year.

"The market is tighter than we previously expected. There is no signal whatsoever of a slowdown in demand," Barbosa said.

International Herald Tribune - The Associated Pres, published: May 31, 2007