International Trade Foreign Trade by Country
The General Administration of Quality, Supervision, Inspection and Quarantine (AQSIQ), China's quality watchdog, has found after an inspection that 36.13 % (more than 1/3rd) of the iron ore deliveries in the first 4 months of the year from India to Jiangsu province were substandard.
According to the AQSIQ, out of 2289 shipments, 827 shipments (valued $2.2 billion) either had lower FE content than stipulated in contracts or contained too many impurities. As a result, the local buyers were finding it increasingly difficult to guarantee the quality of imported iron ore due to shortages and the lack of stable supply sources. The reason behind the import of substandard iron ore is the profit motives of some traders who are illegally colluding with certain illegal inspection organisations to produce manipulative shipment inspection reports which do not accord with the facts.
Apart from urging the local iron ore importers to pay more attention to contracts and to the reputation and size of their trading partners, the AQSIQ said that the local inspection departments will crack down on illegal behavior.
During January- April 2011, China imported 26.5 million tonnes of iron ore from India, down more than 20% compared with the same period in 2010 because of an export ban in the major ore producing state of Karnataka.
India is the world's third-largest iron ore supplier and exports almost all of it to China, amounting to a trade worth around $1.5 billion per month.