According to a Customs official, the sharp fluctuations in China’s monthly iron ore imports may be a result of speculative activities.

According to the latest Customs statistics, October’s iron ore imports dropped almost 30 percent on month to 45.47 million metric tons (tonnes), but the iron ore imports increased nearly 30 percent month on month in September.

The import fluctuations are connected with price changes. The iron ore import price dropped to 73.7 US dollars per tonne in June, the year’s lowest, which led to an increase in the iron ore imports. After that prices kept rising to 88.6 dollars per tonne in October, while imports diminished.

The official said that enterprises may hoard iron ores for speculative purposes, which would push up the steel industry’s costs and possibly cast negative influence over China’s annual iron ore negotiations with the world’s iron ore suppliers.

The China Iron and Steel Association will soon publish supplements for the self-regulation convention of China’s iron ore imports, including setting stricter standards for iron ore import licenses, which were first issued in February.