Imported iron ore stockpile drops in China

Stockpiles of iron ore at 25 major Chinese ports dropped slightly in the past two weeks due to weak domestic demand, according to a report released Tuesday by the Xinhua News Agency. Inventories of imported iron ore at those ports stood at 70.53 million tonnes from April 23 to May 7, down 0.4 percent from the previous week, the report said. The price index for 63.5-percent-grade iron ore imports dropped 9 points from the previous week to reach 129 points, while the index for 58-percent-grade iron ore dropped 8 points to 113 points. The report attributed the price drops to flagging domestic demands for imported iron ore products amid poor economic conditions at home and abroad. "But stockpiles of imported iron ore only saw a slight decline because importers are reluctant to sell at low prices. The supply and demand sides are still in a stalemate," the report said. It forecast that the imported iron ore market will continue to witness weak performances in the short term. China, the world's top iron ore consumer and buyer, imported 740 million tonnes of the raw material in 2012, up 8.4 percent year on year, data from the General Administration of Customs showed.