JOHANNESBURG, Apr. 16 -- Chinese imports of iron ore by sea may rise 47 percent this year compared with 2008 levels as steel production increases and domestic output of the raw material falls, Johannesburg-based Kumba Iron Ore Ltd. said.
"There is strong demand in China, Japan and Korea," Chief Executive Officer Chris Griffith said today at the Sishen mine in South Africa. That may counter weaker demand in the "next couple of quarters" in Europe, where consumers have built up stockpiles on expectations of rising iron ore prices, he said.
Production of ore in China, the world's largest buyer of the steelmaking ingredient, may drop 5 percent this year from 2008, according to Kumba. Rio Tinto Group, the second-largest iron-ore exporter, said it's boosting output of the material to take advantage of higher prices and increased Chinese demand, today forecasting an 8 percent gain in 2010 production.
Kumba, Africa's largest iron ore producer, plans exports of about 47 million metric tons a year by 2013 and production of 70 million tons by 2019, from about 42 million tons in 2009, the company said in a presentation posted on parent company Anglo American Plc's Web site. Unit costs may increase 15 percent in 2010 as wages and fuel prices rise, Griffith said.
Kumba rose 4.10 rand, or 1.1 percent, to 380 rand by the close of Johannesburg trading, valuing the company at 122.2 billion rand ($16.7 billion).
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