Now, iron ore importers will need registered capital of at least 20 million yuan (US$2.56 million), double what is currently needed, according to a joint statement from the China Iron & Steel Association and the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters.

Related readings:  China to allow fewer companies to import iron ore  Baosteel, CVRD fix iron ore price for 2007  Imported iron ore prices to remain stable  China's iron ore imports slow down

Firms will also be required to have imported at least 700,000 tons of iron ore last year, up from the previous criteria of 300,000 tons.

There are 118 iron ore importers in China, including 70 steel mills and 48 trading companies.

This number will lessen as the new policy goes into effect in February, said Luo Bingsheng, vice-chairman of the China Iron & Steel Association.

Luo declined to reveal how many importers the association thinks will survive.

In May of last year, China cut the number of iron ore importers from 523 to the current level by creating stricter industry regulations.

Workers load a truck with iron ore imported from Brazil at the Zhanjiang Port in South China's Guangdong Province. [China Daily]

The latest policy came after China's top steel group, Baosteel, representing more than 100 steel mills in China, last week agreed with CVRD from Brazil and Australia's BHP Billiton and Rio Tinto - the world's three biggest iron ore suppliers - on a 9.5 per cent rise in prices for 2007.

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