China limits the number of iron ore importers

China limits the number of iron ore importers

China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC) held an Administrative Committee Conference in Beijing yesterday (May 11). The Committee disclosed that the qualification inspection carried out for the iron ore importing companies was completed. As a result of the inspections, the number of iron ore importing companies has been reduced 76%, from 500 to 118. The reduction has been performed to better regulate the iron ore imports. 70 of the qualified companies have more than 1 million tons of annual production and the remaining 48 companies are traders. The committee stated that the imports of the 118 companies accounted for almost 90% of the nations total iron ore imports. The unqualified companies are expected to consolidate with their qualified counterparts. As there were many companies competing with each other, the price of Indian iron ore bought from the spot market was higher than the Australian iron ore sold with fixed price. With less companies acting in the spot market, the price of Indian iron ore is expected to fall below the Australian ore. The committee also announced their decision on determining C&F works, FOB prices and sea freight periodically basing on a standard 63.5% Fe content. The committee further stated that the Chinese iron ore importers would be encouraged to make long-term contracts with Indian iron ore producers.