CHINA is increasing iron ore imports from countries outside the major producing regions of Australia and Brazil to diversify supply away from the players that dominate the sector.
The economic powerhouse has reported that iron ore imports from countries other than Australia, Brazil, India and South Africa had increased by up to 4 per cent in the first half of this year, compared with the same period last year.
Global giants BHP Billiton, Rio Tinto and Brazil's Vale control about two-thirds of the world's seaborne iron ore trade.
With supply contracts now settled on market-clearing prices, as opposed to long-term benchmark agreements, Chinese steel mills are starting to feel the pinch of the rising price of the sought-after commodity.
The China Iron & Steel Association has widely flagged that it has an ambitious plan to source 50 per cent of the steelmaking ingredient from Chinese-invested overseas resources, up from 10 per cent now, in the next five to 10 years.
