Thursday, March 25, 2010

China To Probe Stored Iron Ore Quality

A number of Chinese government agencies, including the Ministries of Commerce, Industry and Information Technology, and Transport, are to investigate claims that some of the iron ore in storage at major Chinese ports has been adulterated.

The China Iron and Steel Association (CISA) and the Chamber of Commerce of Metals, Minerals & Chemical Importers & Exporters will also join the investigation, which has been triggered by claims that some of the iron ore has been adulterated.

CISA has been calling for iron ore imports to be regulated to stabilise prices and to eliminate the difference between long-term and spot prices.

Xi Xiangchun, chief analyst of Mysteel, said Chinese steel mills should seek compensation if the investigation finds the stored iron ore is of low quality. Mysteel forecasts that China will increase steel supplies by 8.6% this year to 621.5 million tons.

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