China to Fully Implement Iron Ore Import Agent System

Chinese steel companies and industry associations have reached a consensus on the full implementation of an iron ore import agent system, said Luo Bingsheng, vice president of the China Iron and Steel Association (CISA), on March 17, 2011.

He said that CISA had submitted a report to the State Council on the adverse effects of soaring iron ore import prices on the domestic steel industry, and the Ministry of Commerce was ordered to solve this problem.

Under the agent system, enterprises with iron ore import qualifications charge a fixed commission fee for reselling imported iron ore to domestic steel producers and are not allowed to deliberately mark up prices.

Luo said at the 2011 Metallurgical Conference on March 17 that member steel producers have reached a consensus on the complete implementation of the agent system. The China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters also sent representatives to the conference.

All attendees have agreed on promoting the agent system and controlling iron ore stocks at ports. The system is expected to unify domestic iron ore prices, prevent speculation and regulate iron ore imports.