CCCMC sends notice to ore traders for ore stock clearance
May 28, 2008
May 28 (Steel Guru) – According to China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters China’s largest trading association, has issued a notice on May 27th 2008 to its members trading houses that the authority would clamp down on speculative ore imports hoarding and activities disrupting market order.
The ore imports stock at Chinese seaports has broken over 60 million tonnes since late April and continues to set new record onwards, exerting profound impact on the normal operation at the ports. The notice has requested the member enterprises to actively clear ore stock to ease port congestion and restore market balance.
The iron ore traders are also urged to keep ore imports in pace with the order from mills and prevent excessive ore imports. They are required to check upon their ore stock and dispatch the inventory stored at ports to the end users as soon as possible to mitigate the severe port congestion.
In addition, CCCMC also states on behalf of all Chinese traders importing iron ore that Rio Tinto should cherish the long term cooperative relationship with Chinese buyers and work in good faith for the long term ore contracts.
Market analysts said that the ore stock clearance efforts have also paid off. The traders are forced to cut sales price since major ports are to hike warehousing charge for ore stock from June 1st 2008.