Imported iron ore stockpiles decline in China

Stockpiles of iron ore at 25 major Chinese ports declined last week as market demand began to pick up, according to a Tuesday report from Xinhua News Agency.

Inventories of imported iron ore stood at 72.83 million tonnes from July 30 to Aug. 5, down 2.25 million tonnes, or 2.9 percent, week on week, according to the report.

The price index for 63.5-percent-grade iron ore imports dropped 2 points from the previous week to 131. The index for 58-percent-grade iron ore shed 2 points to 115.

The report said iron ore prices will not continue to drop in the long term, because steel factories still have large demand for raw materials.

A rebound in imported iron ore prices is likely to occur in September, the traditional peak season for consumption, the report said.