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Iron ore stockpiles rise in China's ports

(Xinhua) Updated: 2012-10-09 13:55

BEIJING - Iron ore stockpiles rose at 25 major Chinese ports during the week ending on Oct 8, according to Xinhua's latest iron ore price report released on Tuesday.

Inventories of imported iron ore at the ports stood at 101.64 million metric tons, up by 360,000 metric tons week-on-week.

The price index for 63.5-percent-grade iron ore imports fell two points to hit 109 points during the period, while the index for 58-percent-grade imports also retreated two points to stand at 90 points, according to the report.

The country's steel companies have been burdened with overcapacity and economic pressures since the start of the year, making them reluctant to replenish raw materials and leading to increasing stockpiles at ports.

However, Xinhua analysts said confidence among steel producers will pick up and steel prices will likely rebound slightly in the short-term, as the country approved a series of infrastructure projects last month that will probably create huge demand for building materials including steel and cement.

Along with increases in domestic steel prices, import prices of iron ore are also expected to rise slightly in the short-term, Xinhua analysts said in the report.

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