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China iron ore stocks up slightly, prices weaken - 24 Aug 09

SHANGHAI, Aug 21 - Imported iron ore inventories at major Chinese ports climbed slightly in the week ended Friday, data from industry consultancy Mysteel showed, despite spot prices weakening in China due to few trades this week.

Overall, iron ore stockpiles rose 240,000 tonnes to 71.72 million tonnes this week, of which Brazilian ore stocks climbed 180,000 tonnes to 20.95 million tonnes, up more than 20 percent since early July, Mysteel said.

Australian iron ore stocks added 90,000 tonnes to 23.85 million tonnes this week, but having fallen more than 8 percent since early July following the detention of Rio's sales staff in China and Australian miners being absent in the spot market.

China has been importing more iron ore from Brazil and India rather than Australia since early July, as traders said business was clouded by China's official arrest of four Rio Tinto <RIO.AX><RIO.L> employees.

Rio is selling most of its iron ore at fixed or provisional benchmark prices, halting most of the spot market sales that made up half its first-half output, its CEO Tom Albanese said on Thursday. [ID:nSP489107]

"Inflows are slowing as the outlook for iron ore and steel prices is very unclear now, despite us not seeing any signs of slowdown in demand," said a Shanghai-based trader, who declined to be named as he was not authorised to speak to the media.

Benchmark Indian iron ore prices in China, the world's biggest steel maker, have been easing from $115 a tonne, an almost one-year peak hit on Aug. 10. Prices retreated to around $100 on Friday, the lowest price since late July.

Last week, ores with 63.5 percent iron content were quoted at $110-$112 a tonne C&F.

"I have heard of one deal done at $96 to China. I am quoting $98 today. I feel by Monday someone should come," a dealer in a large east India based miner-cum-exporter said on Friday.

 

Aug 24, 2009 11:53
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