Imports next year will grow by 30 million tons, or 9.2 per cent, he said.

Luo and other industry officials predicted earlier that a balance between the global iron ore supply and demand could be expected thanks to swelling production in China and abroad.

Domestic iron ore production is forecast to surge by 28.8 per cent to 644 million tons this year. In 2007, it will grow by 10 per cent, the association predicted.

Both Luo and Chen yesterday said Baosteel's deals with CVRD, BHP Billiton and Rio Tinto was a positive step for the industry in China.

"We are satisfied with Baosteel's performance in the negotiations this year," Luo said. "The price increase (of 9.5 per cent) is acceptable as Chinese steel makers enjoy good profits."

The nation's top 82 steel companies reported 81.1 billion yuan (US$10.4 billion) in combined profits in the first 11 months of this year, climbing 7.64 per cent from a year ago.

He also predicted crude steel production in China would reach 420 million tons this year, up 18 per cent.

2007 production is expected to rise by a slower pace of 10 per cent to 462 million tons, according to Luo.

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