Imported iron ore stockpile rises for third week

BEIJING - Stockpiles of iron ore at 25 major Chinese ports have risen for a third week, showing steel companies are reluctant to buy more of the mineral from importers, a new report showed on Tuesday.

Inventories of imported iron ore at the ports stood at 75.28 million tons from June 25 to July 1, up by 0.13 percent from the previous week, according to a report by Xinhua News Agency.

The price index for 63.5-percent-grade iron ore imports rose 2 points from the previous week to 115 points. The index for 58-percent-grade iron ore remained flat at 104 points.

"Steel companies remained cautious in buying imported iron ore and were indifferent about slight changes in iron ore prices," the report said.

As iron ore stockpiles have risen for three consecutive weeks, a relatively high inventory level limited the price rebound last week, it said.

The report forecast that demands for iron ore will see slower growth in the future, as steel companies suffer from poor profitability due to low steel prices at present.

"Although there might be fluctuations, prices of iron ore imports will see a falling trend in the longer term," the report said.

Data from the China Iron and Steel Association showed that large and medium-sized steel companies saw their profits plunge 89.38 percent year on year in May.

On a month-on-month basis, profits declined by 2.57 percent in May, dropping for a fifth consecutive month.