China issues warning over rising milk powder imports

Imports of milk powder have been rising in China and the Ministry of Commerce warned importers against signing new contracts in the wake of renewed milk safety concerns.

Cases of milk powder being tainted with melamine - a chemical used in plastics and fertilisers - surfaced twice in December 2009.

Chinese imports of milk powder could rise to 40,000 tonnes in January, from 31,000 tonnes in December, the ministry stated. It also warned importers to guard against possible losses due to oversupply.

December's imports included 5,000 tonnes of infant formula, while January's imports were expected to include 3,000 tonnes of formula, it said. The ministry occasionally issues early warning reports to help avoid price crashes.