CISA to release list of qualified iron ore importers by end of January

SteelOrbis Shanghai January 22 saw the holding of the 2007 Iron Ore Import Conference in Kunming, in the southwestern province of Yunnan. The meeting concluded the work on the iron ore price negotiations for 2007, discussed the qualification criteria for iron ore importers in 2007, and in particular researched the issue of the freight costs of iron ore imports. The 2007 Iron Ore Import Conference also commended Baosteel's role in deciding the iron ore price for the 2007 fiscal year. The attendees discussed the Qualification Criteria for 2007 Ore Importers document released on December 28 2006, according to which the actual quantity of iron ore imports in 2005 and 2006 are to be regarded as an important basis for obtaining qualification for 2007. Meanwhile, the CISA also indicated that the list of iron ore importers that have qualified for 2007 will be published by the end of January. The new qualification criteria are not very dissimilar to those for 2006. One the main differences is that the required level of registered capital has been raised from RMB 10 million ($1.29 milyon) to RMB 20 million ($2.57 milyon). Indeed, it seems that the issues of environmental protection and energy consumption will play a more significant role this time in the determination of the iron ore importers to be included on the list. Since freight charges greatly affect the actual cost of imported ore, the representatives of the mills suggested carrying out annual negotiations linked to the iron ore price talks. However, the CISA rejected this, declaring that it would be too difficult to implement.