Capesize owners head for the bank.

(From Lloyds List)

Byline: Iron ore projections equal dollar signs, writes Sam Chambers

CAPESIZE owners are rubbing their already dollar- strewn palms with glee at the latest iron ore import projections for China this year.

Already the world's leading importer of the raw material for the past two years, with 208.9 m tons taken last year alone, Cosco's usually reliable Research and Development Centre is predicting the mainland will import 23% more iron ore this year, hitting 246m tons.

Further statistics from Cosco show that for the three main dry bulk cargoes iron ore, coal and grain shipments to and from China accounted for more than 50% of the global growth in the past three years.

Figures from leading capesize broker Arrow Asia show the remarkable surge in sourcing of iron ore from China in the past two years.

While domestic iron ore production, which is close to peaking, grew 22.5% from 2003 to 2004 to hit a record 310m tons, China's imports of the raw material soared an astonishing 40.4% from 2003, when it surpassed Japan to become the leading ore importer in the world.