China to introduce import license system for iron ore

China to introduce import license system for iron ore

The move follows a previous measure by the Chinese government to implement an import license system on scrap and coke on January 1, 2005. Analysts predict that the license system will have a minimal impact on the largest Chinese steel mills and iron ore suppliers; on the other hand, traders, which will have difficulty in acquiring a license, will be negatively affected by the new system. The new system is expected to help alleviate the congestion at Chinese ports as well as bringing an order to the imports with the aim of avoiding material overstock.