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In 2006, China produced 588 million tons of iron ore, with an annual growth of 38%. Iron ore market. Over the last 40 years, iron ore prices have been decided in closeddoor negotiations between the small handful of miners and steelmakers which dominate both spot and contract markets.

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in an effort to make its own iron ore mining more efficient, china, which buys more than two thirds of the worlds iron ore, is drafting a plan to create six to eight domestic iron ore miners by 2025, each with an annual capacity of more than 30 m.

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One steel mill in Shandong said steel production would increase as more new capacity ramps up, lifting demand for iron ore. No one surveyed said iron ore imports would fall in 2020. Some 62% of participants expected iron ore prices to average 7080/mt CFR China, while 32% saw prices higher at 8090/mt. No one saw prices averaging beyond 90/mt.

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