March 15, 2006	Wednesday	Safar 14, 1427

SHANGHAI, March 14: China said Tuesday it will impose unspecified restrictions on iron ore imports, citing the need to create a level playing field in the sector’s international trade.

Restrictions on prices and quantities of imported ore would ensure a more “healthy” development of its ore-dependent industries, the Ministry of Commerce said on its website.

No further details on the price and import caps were provided.

China is currently involved in negotiations with Australia’s Rio Tinto, BHP Billiton and Brazil’s Companhia Vale do Rio Doc, the world’s three largest iron ore exporters.

The ministry’s release partially confirmed reports last week that said China had moved to imposed a ceiling on iron ore prices in a bid to hold down charges during annual contract talks.

Chinese iron and steel companies have made it clear that they want prices reduced rather than increased after they were forced to accept a 71.5 per cent price hike from suppliers last year.

In a report to clients last week Goldman Sachs said the potential price caps seem directed primarily at China’s big three suppliers of iron ore — Australia, India and Brazil, which together accounted for 86 per cent of total Chinese imports in 2005.

It estimates China’s booming economy will account for 45 per cent of global imports of iron ore in 2006.—AFP