Import iron ore with less than 60% iron is prohibited

Previously, in order to rectify the current iron ore import market in China, the Sinosteel Joint Minmetals Chamber of Commerce recently held three joint industry self-regulatory documents on the “Regulations for Ordinary Iron Ore Market Order”. “Qualification Standards and Application Procedures for Iron Ore Import Enterprises in 2010”, “Implementation Rules for Imported Iron Ore Agents”, and “Regulations for the Periodic Reporting and Registration of Imported Iron Ore Contracts and Registration of Flow Directions”. The document sets out clear requirements for the qualification, scale, operation and pricing of iron ore import companies.

The China Iron and Steel Association has banned its members from importing iron ore with iron content below 60%. The ban covers traders but does not include steel mills and their licensed agency companies. This move is part of the industry's reorganization.

The specific contents include: Regarding the certification standards for iron ore import qualifications, importers importing less than 1 million tons of iron ore in 2009 will be disqualified from importing iron ore; secondly, iron ore imports will be strictly enforced. An agency system ensures that iron ore flows to large and medium-sized iron and steel enterprises that comply with industrial policies. Traders cannot conduct secondary trades. Enterprises that violate the self-discipline convention will be disqualified. Third, the association will also establish an iron ore flow audit. In the system, the customs will not import or record for the import of some inferior quality minerals.

At present, China is qualified to import iron ore including 42 traders and 70 steel mills.