China iron ore production down in Dec

China's output of iron ore fell to about 120 million tonnes in December, down four percent from November, as freezing weather in the country's north hindered mining and processing.

This comes as Chinese steel makers trying urgently to build up inventories, driving imports to a record level of 71 million tonnes in December. But full-year production by the world's top iron ore consumer jumped 14.5 percent from the previous year, to 1.31 billion tonnes in 2012.

Around 10 to 15 percent of domestic iron ore mines were estimated to have shut down, and they are expected to resume output after the lunar new year in mid-February. An aggressive restocking drive by Chinese steel mills lifted iron ore prices to 158.5 U.S dollars a tonne on January 8th, the highest since October 2011.

However, China has long sought to boost domestic production to cut down reliance on imports from the likes of Brazil's Vale, and Australian miners Rio Tinto and BHP Billiton.