China, the world's biggest iron ore consumer and
importer, yesterday raised the threshold for domestic steel makers and trading
companies to qualify for imports of the main raw material used to make steel for
a second time since 2005.
Now, iron ore importers will need registered capital of at least 20 million
yuan (US$2.56 million), double what is currently needed, according to a joint
statement from the China Iron & Steel Association and the China Chamber of
Commerce of Metals, Minerals & Chemicals Importers & Exporters.
Firms will also be required to have imported at least 700,000 tons of iron
ore last year, up from the previous criteria of 300,000 tons.
There are 118 iron ore importers in China, including 70 steel mills and 48
trading companies.
This number will lessen as the new policy goes into effect in February, said
Luo Bingsheng, vice-chairman of the China Iron & Steel Association.
Luo declined to reveal how many importers the association thinks will
survive.
In May of last year, China cut the number of iron ore importers from 523 to
the current level by creating stricter industry regulations.
Workers load a truck
with iron ore imported from Brazil at the Zhanjiang Port in South China's
Guangdong Province. [China Daily]
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The latest policy came after
China's top steel group, Baosteel, representing more than 100 steel mills in China,
last week agreed with CVRD from Brazil and Australia's BHP Billiton and Rio
Tinto - the world's three biggest iron ore suppliers - on a 9.5 per cent rise in
prices for 2007.
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