Update: Iron Ore Buyers Start Halting Imports

Several major Chinese iron ore traders are suspending imports of iron ore from iron ore giants Vale (NYSE:VALE), Rio Tinto (NYSE:RTP, LON:RIO) and BHP Billiton (NYSE:BHP), National Business Daily reported April 7. The report did not name the iron ore importers involved. The decisions to stop taking delivery of ore imports are in accordance with a request by the China Iron and Steel Association (CISA) last week to weaken "the major iron ore suppliers' monopoly" on the market, according to the report.

A report by China Daily on April 6 said that the CISA's proposed boycott of iron ore imports had failed to win favor among steel mills.

There are 112 Chinese companies importing iron ore, of which 70 are steel mills, according to the same National Business Daily report. Around 10 ore importers will be struck from the list of qualified importers, after importing less than 100 million tons of ore last year, as per statements earlier this month by CISA and China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC).