Ukraine Jan-Jun Iron Ore Exports To China Double On Year
July 30 2009 - 7:50AM
Dow Jones News
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