China is giving just 118 steel mills and firms permits to import iron ore in a bid to quell speculation in the fastest-growing major economy and home to the world's largest steel industry, officials said on Monday. China has taken a series of measures to cool its red-hot steel industry, including cutting export tax rebates on steel products from 13 to 11 percent, effective from the beginning of May. From May 1, the number of importers has been cut from over 500 to 118 under the new licensing system, officials with the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters said.
They comprise 70 steel mills with annual production capacity of 1.0 million tonnes, including Baoshan Iron and Steel Co Ltd and Wuhan Iron and Steel Co Ltd, and 48 trading companies.
Chinese customs would require all iron-ore cargoes arriving in China after May 1 to be imported by the licensed companies, which can also serve as agents for unlicensed buyers, one chamber official said.
The move came after the world's leading top miners, including Companhia Vale do Rio Doce and Anglo-Australian giants BHP Billiton Ltd/Plc and Rio Tinto Ltd/Plc, won a 71.5 percent price rise for 2005 term contracts fuelled by strong Chinese demand.
The official People's Daily said on Monday fixed asset investment in the steel industry in the first three months of the year fell 1.4 percent from the year-earlier period to 33.217 billion yuan ($4.01 billion).
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