Iron ore stockpiles hit record high

Stockpiles of iron ore at China’s ports may have touched a record high of 120 million tons this week, The Wall Street Journal reported. Higher stockpiles are an indication of weak demand from steelmakers, which could indicate that China’s property sector is cooling rapidly. However, some analysts argue that while downstream demand has declined, consumption may not be in a free-fall. “The ore stock level has been fairly steady this year, and although there has been some output reduction among smaller steel mills, there have not been large-scale production cuts,” said Zhang Jiabin, research director for Umetal.com, a Beijing-based steel consulting firm. Chinese regulators have urged banks to tighten credit to steel producers in recent weeks. Reports suggest that stockpiles for other commodities, such as coal and agricultural products, have also been growing in China as demand flags.