Bloomberg reported that iron ore inventories in China,the biggest user of the steelmaking ingredient,dropped to the lowest levels in 2 years as higher demand pushed up prices.
According to weekly data from researcher Beijing Antaike Information Development Co,Stockpiles held at China's major ports dropped 3.3%to 71.32 million metric tonne as of December 21st,the lowest since September 10th 2010.The inventories,owned mostly by mills and traders,have dropped for 8 straight weeks.Weekly inventories dropped to 73.81 million tonne as of December 21st.
According to customs data compiled,iron ore prices traded near a 5 month high as China's factory output and retail sales have accelerated for the last three months,signaling an economic recovery is accelerating.Ore imports reached 65.78 million tonne in November,the second highest level after a record 68.97 million tonne in January 2011.
According to data compiled by The Steel Index Ltd,ore with 62%iron content delivered to the Chinese port of Tianjin was unchanged at USD 135.40 a dry tonne,after reaching USD 135.50 on December 19th,the most expensive since July 10th.
