Global Times reported that almost all of the iron ore imported from Mexico were found to be of low quality at the port in Hebei Province in the H1 of 2013.

As per report, the office of Hebei entry exit inspection and quarantine bureau has inspected 405 batches of iron ore worth USD 2.79 billion in the H1 of the year, which accounts for 6.28% of the country's total imports. However, 178 batches were found to be substandard accounting for 43.95% of the total.

According to the bureau, the port's iron ore imports are mainly from 24 key exporting countries including Australia, Brazil and India. All of its imports from Mexico are not qualified and 90% of the iron ore imported from Brazil have been tested to contain too much water which posts danger to port's environment and shipping safety.

As of 2009, the nation's quality watchdog said that only about 51% of the imported iron ore were qualified while the China Iron and Steel Association has said that the imported iron ore quality is getting worse and worse.

Insiders said that the high priced but low quality iron ore will drive costs higher and squeeze margins of steel companies. Latest figures from the General Administration of Customs showed that China imported 457 million tonnes of iron ore in the first 7 months of this year up 8% YoY.