Chinese traders with iron ore importing licenses are no longer allowed to import low grade iron ore of iron content lower than 60 percent, market sources say.
SteelOrbis has learned that the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC) has already informed traders on the issue. In addition, it is heard that steel producers and agents for steelmakers are not included in the ban and that imports of Brazilian and Australian iron ore are also not affected. Limonite is not covered by the measure either.
The measure in question may have a great effect on China's iron ore imports from India. It is reported that imports of low grade Indian iron ore account for 80 percent of all iron ore exports from India to China. The greatest impact is likely to be on the Indian western coast city Goa, where 70 percent of iron ore exports shipped from the port mainly goes to China.
As SteelOrbis previously reported, the China Iron and Steel Association (CISA) recently called on the country's steel companies and traders with iron ore import licenses to stop buying the resource in the coming two months from iron ore giants Brazil-based Vale, Australia's BHP Billiton and Anglo-Australian miner Rio Tinto, in an attempt to protest against the iron ore price hikes demanded by the producers.