HANGZHOU, China China is
expected to import as much as 800 million tonnes of iron ore in
2013, up at least 4 percent from this year, due to higher steel
output and constrained domestic iron ore supply.
"Production of rebar, wire rod
and pipe are expected to maintain a high growth rate next year,
while output of steel products used in railway, such as medium
and heavy plate, are expected to grow," Chen Kexin, chief
analyst at Distribution Productivity Promotion Center of China
Commerce, a research institute that monitors product prices for
Chinas Ministry of Commerce, told AMM sister
publication Steel First.
The country produced 602.2
million tonnes of crude steel in the first 10 months of 2012,
up 2.1 percent from the same period last year, according to
Chinas National Bureau of Statistics. Crude steel output
is forecast to grow 3 percent this year, Chen said, and could
top 4 percent in 2013 to reach 750 million tonnes.
"If the government doesnt
release incentives to boost production, Chinas iron ore
output is likely to stand at 400 million tonnes of concentrate
in 2013, little changed from that in 2012," one source
Such incentives could include
proposed tax cuts.
Cutting miners tax burden
is "a must," Xie Sanming, an official at the Operation
Monitoring and Coordination Bureau of the Ministry of Industry
and Information Technology (MIIT), said.
Iron ore, the price of which is
driven by demand and logistics costs, isnt a strategic
resource for China, Xie said, even though the country has
abundant reserves that could well support accelerated
development boosted by tax incentives.
"Beijing raised value-added
taxes on domestic mines in 2009 from 13 percent to 17 percent,
and changed the resources tax from 60 percent of the base tax
to 80 percent of the base tax," Xie said.
China Iron and Steel Association deputy secretary-general
Wang Xiaoqi said MIIT is studying possible tax cuts of 10 to 15
A version of this article was first
published by AMM sister publication Steel