Iron ore inventories drop as steel mills replenish holdings

Iron ore inventories at ports in China, the largest importer of the steel-making raw material, fell to their lowest level in almost 11 months on Tuesday, as mills replenished holdings after prices fell and local output slowed during the winter.

The stockpiles dropped 0.9 percent to 100.6 million tons by Jan 2, shrinking for a sixth week, according to data from Shanghai Steelhome Information Technology Co.

That is the lowest level since February last year, and the sixth weekly decrease is the longest run of declines since April 2013. The inventories are 12 percent lower after peaking at 113.7 million tons in July.