Reportedly, iron ore stockpiles at Chinese ports keep rising on dropping iron ore demand by unfavorable economic conditions.
Inventories of imported iron ore at 25 major Chinese ports totaled 72.49 million tons from May 14-20, increased by 0.81% from the previous week.
Figures showed that iron ore prices dropped to the lowest level this year. The price index for 63.5% grade iron ore imports fell by 6 points to 124 points while the index for 58% grade iron ore slipped 5 points to 109 points from the previous week.
With China's gloomy economic situation and no further sign of stimulus policies to be issued, steel companies may have to reduce production that will further weigh on iron ore prices.