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Iron ore import rules tightened

By Gong Zhengzheng (China Daily)
Updated: 2006-12-29 08:56

The rise followed a 19 per cent increase this year and a 71.5 per cent hike last year.

The three suppliers, which control over 70 per cent of the global iron ore trade, have been elevating prices in recent years partly due to Chinese importers' rampant purchasing at high prices. "We expect the new regulation will put iron ore imports in order," Luo said.

He said the new policy will add strict resource-saving and environment requirements for domestic steel mills aiming to qualify for iron ore imports.

Both Luo and Chen Haoran, chairman of the chamber of commerce, encouraged small steel mills unable to qualify for iron ore imports to find eligible companies as their "agents" in an effort to secure a stable supply.

However, according to the new policy, importers will be forbidden to sell iron ore to steel makers that have not followed the government's orders to eliminate their outdated production capacity.

Luo said companies trying to qualify for iron ore imports should join the steel association or the commerce chamber and abide by their "co-ordination and self-discipline measures."

Luo estimated China's iron ore imports will amount to 325 million tons this year, up 18.2 per cent from last year. The imports will account for almost half of the global iron ore trade.
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