Ukraine exported 6.5 million metric tons of iron ore to China in January-June, more than twice the amount exported a year earlier, the Ukrainian government said Thursday without giving a comparative figure.

The share of iron ore exports to China of the total for the period increased to 62% from 25% a year earlier.

One of the reasons for the increase in exports to China is that traditional consumers of Ukrainian iron ore in Central and Eastern Europe have reduced steel production because of the economic slump while Chinese steel makers are increasing output.

The dispute between Chinese steel makers and Rio Tinto PLC (RTP) and BHP Billiton Ltd. (BHP), with long-term iron ore prices yet to be agreed, has resulted in Ukrainian producers being able to sell more iron ore to Chinese buyers on the spot market.

Shipping costs have fallen significantly, which makes China more accessible to Ukrainian iron ore producers.

-By Grigori Gerenstein, contributing to Dow Jones Newswires; gerenstein@hotmail.com