Ann: Srong DSO results from northern end of McPhe, page-14

re: Ann: Srong DSO results from northern end ... China's iron ore appetite recovers
August 11, 2010

IRON ore imports by China rose for the first time in four months in July, indicating steel makers are restocking after depleting inventories.

Imports gained 8.5 per cent to 51.2 million tonnes in July, from 47.2 million tonnes in June, according to data provided by the General Administration of Customs. But imports fell 12 per cent from 58.1 million tonnes a year earlier.

Chinese steel prices have risen for three consecutive weeks after falling 17 per cent from an 18-month high on April 15, indicating demand for the metal is picking up. The Chinese government is closing old steel plants to curb pollution and has clamped down on the property market to prevent speculation.

''Steel makers are buying again, bolstering prices,'' said Hu Kai, chief iron ore analyst with researcher UC361.com.

''Demand growth will probably be limited as the government closes plants and also because the outlook for the property market is still unclear.''

BLOOMBERG