China increased purchases of the materials by 42 percent to a record last year as the country's steelmakers ramped up production to meet demand from automobile and construction sector.
China's imports of iron ore rose to 628 million metric tons from 443.6 million tons in 2008, the custom bureau said. While imports were 62.2 million tons in December, added custom bureau. China's $586 billion stimulus spending has boosted steel demand from automakers, home-appliance manufacturers and builders. The spending helped the steelmaking industry return to profit in May after seven straight months of losses because of the global economic crisis.
December imports were 22 percent higher than the 51.1 million tons bought in November, and 80 percent higher than a year ago, according to a report. The December figures were the second highest after September's 64.6 million tons.
China's steel output may exceed 600 million tons in 2010, after reaching a record 570 million tons in 2009, the China Securities Journal reported Dec. 17, citing Ma Guoqiang, general manager of Baoshan Iron & Steel Co., the listed unit of the nation's largest steelmaker.
The cash price of 62 percent iron ore delivered to China jumped to $130.1 a ton on Jan. 7, according to The Steel Index, boosting expectations for a gain in benchmark contracts. The spot price has posted six weekly gains, rising 31 percent.
China's steel-product exports fell 59 percent to 24.6 million tons last year from 59.3 million tons, customs said. Imports of the products rose 14 percent to 17.6 million tons.
In December, steel-product exports were 3.34 million tons, customs said. That compares with 2.85 million tons a month ago and 3.17 million tons a year earlier, according to the report.

Chinese steel major Hebei Iron & Steel Group Co Ltd expects that it produces 38.96 million tons of hot metal, 40.27 million tons of steel and 35.64 million tons of steel products, increasing by 23.25 percent, 16.46 percent and 18.28 percent year on year respectively.
Crude steel production continues taking lead in the domestic enterprises. Its economic benefit keeps the advanced level, under the condition of nationwide steel industrial profit decreasing by nearly 54 percent YoY, it is predicted that its sales revenue still reaches CNY 177 billion gaining the profit-tax for CNY 7 billion.
In 2010, Hebei Iron views the deep integration, cautious administration and science innovation as the main work, to realize the science development. The main targets of 2010 are the production for the full 2010 year reaching above 40mln tons, the profit for the whole year hitting more than CNY 3 billion.

Chinese steel major Baosteel has increased benchmark flat rolled steel prices for February delivery by 5 percent.
A research report said that with January rises now sticking well, we expect to see further price increases announced in China as well as Europe and the United States.
It added that Chinese steel demand is profound, and rising raw material costs are driving an inflationary spiral in the region as steelmakers and their customers clamour for material. A February price rise of 5 percent suggests cold rolled coil prices could rise to about CNY 5800 per ton, the highest since October 2008 while hot-rolled coil prices could rise to about CNY 4560 the highest since September 2009.

According to the latest statistics from Customs, China exported steel of 3.34mln tons in December of 2009, up 490,000 tons from November, up 5.36% from a year earlier. The accumulative export was 24.60mln tons in Jan.-Dec. of 2009, down 58.5%.
China imported steel of 1.48mln tons in December, grew 190,000 tons compared with that in November, up 59.14% from the same period of last year. The imports were 17.63mln tons in Jan.-Dec. of 2009 totally, up 14.3% year on year.
The exported steel billet was 10,000 tons and import was 90,000 tons in December, slipped 210,000 tons from November.
China exported coke of 70,000 tons in December, down 68.18% year on year. The total export was 540,000 tons in Jan.-Dec. of 2009, decreased 95.5%.
The imported iron ore amounted to 62.16mln tons in December, increased 11.09mln tons from November or 80.02%. The import totaled 627.78mln tons in Jan.-Dec., up 41.6% accumulatively.

Rio Tinto Group, the world's third- largest mining company, said fourth-quarter iron ore output rose 49 percent after Chinese steel mills bought record volumes. Production was 47.2 million metric tons in the three months ended Dec. 31, from 31.8 million tons a year earlier, London- based Rio said. China, the world's biggest buyer of iron ore, increased purchases by 42 percent to a record last year, driving cash prices to the highest in more than a year. Steel and ore prices are rebounding as the global economy emerges from recession. This was another very strong quarter for iron ore production, driven by continuing high demand from China, Chief Executive Officer Tom Albanese said in the statement. The company is seeing recovery across most of our key commodities, although we continue to be cautious on the state of the global economy going into 2010 as stimulus packages start to wind down.
Rio and BHP Billiton Ltd. agreed to the terms of an iron ore joint venture that will save them at least $10 billion a year. The plan, announced in June, is to combine mines, rail, ports and workforces in Western Australia's Pilbara region. The venture is expected be completed in the second half of this year. Surging iron ore prices may reignite tensions between China and producers including Rio, whose head of its iron ore business in China, Stern Hu, were formally arrested in August during stalemated contract talks. Since then, China's strained relations with some foreign companies has intensified, with U.S. Steel Corp. bringing a dumping case and Google Inc. threatening to pull out of the world's third-largest economy. Iron ore imports by China, the largest buyer, surged 22 percent in December to the second-highest on record, strengthening the ability of BHP, Rio Tinto and Vale SA to ask for higher prices. China's $586 billion stimulus spending has boosted steel demand from automakers, builders and appliance manufacturers. Iron ore production was a record 47.5 million tons in the September quarter. UBS AG had forecast output of 46.7 million tons for the December quarter and 216 million tons for the full- year. Rio forecast in October total annual production would be between 210 million tons and 215 million tons in 2009.
It reported full-year ore output of more than 217 million tons. Iron ore was the company's second-biggest earning unit in 2008, accounting for 30 percent, behind the aluminum unit. Aluminum output in the fourth-quarter declined 3 percent from a year ago. Mined copper output advanced 36 percent. Rio will benefit from a 40 to 50 percent surge in prices for 2010 iron-ore contracts, Nomura Holdings Inc. said January 11. Iron-ore suppliers hold annual talks with steelmakers to fix benchmark contract prices for the 12 months from April 1, the start of the Japanese financial year.