Imported iron ore stocks fall in China

Inventories of China's iron ore at 25 major ports dipped 0.12 percent week-on-week to 93.07 million metric tons in the week ending Oct. 17, according to the Xinhua-China Iron Ore Price Index released on Tuesday. Last week's supplies of imported iron ore were 110,000 metric tons lower than that of the previous week, according to the index. The price index for 63.5-percent-purity and 58-percent-purity iron ore imports both dropped 10 points to 167 points and 138 points, respectively. The downward trend in China's iron ore price will continue due to sluggish demand from steel manufacturers and the global economic downturn, according to Xinhua analysts. The weakening domestic demand from industries such as construction, automobiles and railway construction will continue to weigh on imported iron ore prices, as a wait-and-see approach has become common among downstream companies, according to the analysts. Iron ore producer giant Vale of Brazil recently said it would scale down its contracting prices of iron ore with Chinese steel companies in the fourth quarter.