[Ferro-Alloys.Com]The “big three” iron ore producers continued to increase production in the third quarter despite declining demand and prices. In its third-quarter review, Vale stated, “The fall in iron ore prices has been misidentified as an outcome of demand weakness from China. As a matter of fact, Chinese imports did rise by 8.7% in the first nine months of 2012 when compared to the same period of last year.”Vale attributed lower iron ore prices to demand weakness outside of China resulting in a reallocation of supply from other countries to Asia and to “the negative global economic outlook, including pessimism about China’s economic performance.” China’s size and growth has been a magnet for high-cost, marginal iron ore producers, Vale said. In 2000, China imported iron ore from 16 countries and Australia, Brazil, India and South Africa accounted for 95% of total imports. In 2011, China imported iron ore from 56 countries and non-traditional supply sources accounted for 22% of China’s imports.

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