Luo Bingsheng, vice president of the China Iron and Steel Association (CISA) has stated that China may reduce the number of qualified iron ore importers, which could have the effect of improving the bargaining power of the domestic steel industry with regard to this commodity.
Mr. Luo Bingsheng stated that the CISA will seek to further adjust iron ore import qualifications and is now seeking advice from the related companies. The new qualification standards will concern environmental protection and energy savings, as well as sufficient capital
Mr. Luo said Chinese demand for iron ore is declining, and this will greatly influence the supply-demand situation in the international iron ore market. He observed that the situation as regards supply shortages is changing.
In addition, Mr. Luo also indicated that the CISA and the China Chamber of Commerce of Metals Minerals& Chemicals Importers & Exporters have established an investigation office which will track imported iron ore to prevent imported iron ore from going to companies with backward capacities.