Iron ore stocks at China's major ports fell 2 percent to 74.06 million tonnes in the week to Friday, Chinica Shipbrokers Ltd said, as mills pulled stocks into
their warehouses due to solid steel prices spurring production.
Chinese spot steel prices edged up last week in a third consecutive weekly gain, as traders rebuilt stocks after prices fell to a five-month low in April and industrial production showed firm growth.
"Profits in medium- and small-sized mills are good so they built up more inventories at warehouses for more production," said a trader based in the northern province of Hebei, home to hundreds of private, small-sized blast furnaces.
Iron stocks at China's two largest iron ore ports, based in the eastern province of Shandong, have been close to their maximum capacity, with stocks down by 100,000 tonnes in Qingdao but up 300,000 tonnes in Rizhao.
Source: Reuters
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