Iron ore stocks in Chinese ports continue to rise last week

Wednesday, 20 Jul 2011 |Xinhua

Xinhua quoted according to the China Iron Ore Price Index released recently that inventories of iron ore at 25 of China major sea ports rose to 95.38 million tonnes in the week ending on July 18.

According to the index stocks of imported iron ore last week were 450,000 tonnes higher than one week earlier or up 0.47%WoW. The index is compiled by the Xinhua News Agency to track iron ore inventories and imports on Chinese spot markets.

Prices of imported iron ore continued to rise last week. The index for 63.5% purity iron ore imports increased by 3 points to reach 182 points, while the index for 58% purity iron ore imports climbed by 2 points to hit 150 points.

Xinhua analysts said the country steel companies have purchased fewer raw materials recently as sales of steel products are traditionally slack in July. This resulted in a rise in iron ore stockpiles at major sea ports last week.

Analysts said India growing demand for iron ore will lead to reduced shipments from the country to China pushing up the price of the key ingredient in the world second largest economy.

Xinhua analysts said prices of imported iron ore are likely to maintain their upward momentum in the short term. However, the momentum will abate before long as iron ore stocks have continued to rise.