World crude steel production increased by almost 9 % to 1.2-billion tons so global iron ore production grew by 12% in 2006 to 1.5-billion metric tons, according to the United Nations Conference on Trade and Development (UNCTAD) in its annual iron-ore market review. Australia was the largest exporter in 2006 while China was the world's largest importer, accounting for 43% of global iron-ore consumption. The high pace of growth has continued in the first months of 2007, UNCTAD says.

In fact, China has increased its voracious appetite for iron ore so far this year, increasing imports at a pace that could lead to shortages later in 2007 if maintained, according to the CFO of Brazilian miner CVRD.

"China continues to import iron ore and other metals at an accelerated rate," CVRD's financial chief Fabio Barbosa comments during a presentation to Sao Paulo's Association of Analysts and Capital Markets Investment Professionals.

Through April, China imported 133.6 million metric tons of the key steelmaking raw material, which projects to an annual rate of 400 million metric tons in 2007, Barbosa says, noting that CVRD expects to ship 100 million metric tons to China this year, up from 77.873 million metric tons in 2006.