Port storage fees for iron ore will double next month

Rumor about price rise for long-term iron ore contracts had led to massive inflow of iron ore from Brazil and Australia and overstocking in Chinese ports, making the imports far exceed the actual domestic needs.

As reported, Chinese ports will at least double the charge for iron ore stockpile since Jun. 1, aiming to set new regulation governing the iron ore market. Analysts said that this measure is good for easing the serious port overstocking situation, and consequently tame in the rising fees for iron ore import and shipping.

Controlling the overstocking in ports is definitely necessary, while ending the iron ore negotiation with Australia is of higher importance to stop speculation on the iron ore market, said analysts.