China Iron Ore Imports Could Cause Shortage

China has increased its voracious appetite for iron ore so far this year, increas-ing imports at a pace that could lead to shortages later in 2007 if maintained, the CFO of Brazilian miner Companhia Vale do Rio Doce, or CVRD, said.

“China continues to import iron ore and other metals at an accelerated rate,” CVRD financial chief Fabio Barbosa said. Barbosa made the comments during a presentation to Sao Paulo’s Association of Analysts and Capital Markets Investment Professionals, or Apimec-SP.

For the year to date through April, China imported 133.6 million metric tons of the key steelmaking raw material, which projects to an annual rate of 400 million tons in 2007, Barbosa said.

CVRD expects to ship 100 million tons to China this year, up from 77.873 million tons in 2006.