Imported Iron Ore Backlog Continues to Rise at China's Ports

BEIJING, Nov. 9 (Xinhua) -- Stockpiles at 25 major ports in China rose 0.69 percent week-on-week to 98.43 million tonnes in the week ending Nov. 7, according to Xinhua's latest iron ore price report.

The price index for 63.5-percent-grade iron ore imports rebounded 2.3 percent to 131 points in the week, after tumbling 13.5 percent the previous week.

The index for 58-percent-grade imports bounced 2.97 percent to 104 in the week. It lost 7.3 percent in the previous week.

A wait-and-see approach was prevalent among Chinese steel manufacturers and iron ore traders, whose purchasing prices were much higher than the current price on the spot market, Xinhua analysts said in the latest iron ore report.

Imported iron ore prices dropped nearly 30 percent in China in October, hitting the lowest level this year amid weaker demand due to the government's tightening measures.

Seeking new pricing models, the China Iron and Steel Association (CISA) is now in talks with major international iron ore suppliers Rio Tinto, BHP and Vale.

Before Chinese steelmakers reach new agreements with the mining giants on pricing, trading of iron ore will remain weak because it is unlikely for them to significantly increase their buying, said the report.

Current inventory levels can last for one to two months for Chinese steelmakers, it added.