The world’s fourth-largest iron-ore producer, Kumba Iron Ore (KIO), recorded a 9,3-million-ton increase in its export sales last year.

Presenting the company’s results for the year to the end of December 2009, CEO Chris Griffith reported that this increase was spread over the year, with the firstand second halves of 2009 each recording export sales of 17,1-million tons.

Griffith said that much of the increase in KIO’s exports was attributable to a surge in Chinese demand.

“Excluding China, world crude steel demand contracted by 20%, while crude steel production in China continued to grow strongly, increasing by 14%,” he said.

Decreased demand from ArcelorMittal South Africa and from Europe and Japan was negated by the increase in exports to China. “During 2009, the company signed contracts with 30 new customers and increased its exports to the country by an unprecedented 130%,” reported Griffith.

Although this is good news for the company, it runs the risk of concentrating its focus on one country. Indications are that 2010 will see a marked recovery in eco-nomies around the world, build- ing a solid foundation for a commodities revival, which will be driven primarily by emerging markets, such as China, India and Brazil. This is set to change though, as Griffith alluded to visible signs of renewed demand from Japan, Europe and ArcelorMittal South Africa.

Griffith said that he expected export sales to normalise this year, with domestic intake picking up.

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