Chinese importers vs. India's iron ore export duty

SteelOrbis Shanghai On March 6, China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) held a meeting with more than 100 domestic iron ore importers in order to discuss measures to be taken in response to India's export duty on iron ore which came into effect on March 1, 2007. At the meeting the Chinese iron ore importers reached agreement on the following points: 1. Rejection of the pretext of force majeure from the Indian side in support of their price increase. 2. Insistence on the execution of the contracts inked before March 1 based on the original price. 3. Refusal to accept very high offers after March 1. 4. The relevant authorities, the CCCMC, and the importers are to do their best to work towards some reasonable plan as regards the option of the imposition of an export duty and the means of its imposition. Sources report that some importers proposed to suspend Indian ore imports. However, due to the still brisk demand for imported iron ore, without Indian imports there would be a big gap between supply and demand. In fact, since India announced the imposition of its export duty, Chinese iron ore prices have been on a continuous rise, especially as regards supplies at the ports. Some traders have even stopped sales. Some other importers suggested the joint sharing by buyer and seller of the additional cost, adding that they would be able to afford $5/mt at the most.