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        Iron ore stockpile rises on weak demand

        Xinhua | Updated: 2013-05-29 10:44

        BEIJING - The stockpile of iron ore at Chinese ports has continued to rise, suggesting dropping demand for the material amid a weak economy, official data showed on Tuesday.

        Inventories of iron ore at 25 major Chinese ports stood at 74.15 million tons from May 21 to May 27, an increase of 1.66 million tons, or 2.33 percent, from the previous week, according to a report released by Xinhua News Agency.

        The price index for 63.5-percent-grade iron ore imports dropped 1 point from the previous week to reach 123 points, while the index for 58-percent-grade iron ore dropped 2 points to 107 points.

        The report attributed the price drops to flagging domestic demand for imported iron ore products amid poor economic conditions at home and abroad.

        It forecast that prices of iron ore are expected to drop this year, as steel products are much oversupplied and steel prices are likely to continue falling.

        China, the world's top iron ore consumer and buyer, imported 740 million tons of the raw material in 2012, up 8.4 percent year on year, data from the General Administration of Customs showed.

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