* Iron ore gains capped by high stocks at China's ports
* China's port stocks near 13-year peak at 130 mln T
By Manolo Serapio Jr
MANILA, March 13 Shanghai rebar steel futures
surged nearly 6 percent on Monday, supported by a pickup in
seasonal demand in top consumer China that also lifted Chinese
iron ore from a one-month low.
Bloated stockpiles of iron ore at China's ports - holding
near their highest in at least 13 years - capped price gains in
the steelmaking raw material.
The most-active rebar on the Shanghai Futures Exchange
closed up 5.9 percent at 3,604 yuan ($522) a tonne. The
construction steel product dropped almost 3 percent last week.
"Seasonal steel demand is still continuing to recover after
the cold weather," said a Shanghai-based trader.
Steel consumption in China typically bounces back along with
construction activity during spring. Traders expect this year's
demand to get a further boost from Beijing's plans to increase
On the Dalian Commodity Exchange, the most-traded iron ore
rose 4.3 percent to end at 684.50 yuan per tonne,
after earlier touching 638.50 yuan, its weakest since Feb. 10.
Imported iron ore stocks at major Chinese ports stood at 130
million tonnes on Friday, down 50,000 tonnes from the previous
week, when they were at their highest since at least 2004, the
year SteelHome consultancy began tracking this data.
"Given China's iron ore inventory has reached a high level,
the import demand in (the) future may start to fall," OCBC Bank
wrote in a note.
Many traders say, however, that the bulk of the port stocks
are lower grade iron ore, and most Chinese steel mills prefer to
use higher grade material to boost their productivity, keeping
demand intact for top-quality cargoes from Australia and Brazil.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
was little changed at $86.72 a tonne on Friday, according to
Metal Bulletin. The spot benchmark dropped 5 percent last week,
its largest such loss since November.
($1 = 6.9061 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Tom Hogue and