China to apply license system for iron ore imports

China to apply license system for iron ore imports

In an effort to prevent surging imports of iron ore, the Chinese government is reportedly toying with the ideas of implementing a license system on iron ore imports and capping prices of the raw material. Chinese sources report that the government would apply an import license system to iron ore cargoes arriving in China as of May 1, 2005. Moreover, the government might cap iron ore import prices; however, no official announcement on the issue has been made yet. Putting a price ceiling into effect would be a bit problematic, sources suggest. It is likely that the iron ore import license system will adversely affect Indian iron ore exporters the most.