Iron ore stockpiles at 25 major ports in China continued to climb in the week ending July 16, as an economic slowdown discouraged steel factories from expanding production, according to the latest iron ore price report by Xinhua New Agency released on July 17.

Squeezed by rising costs and declining prices, Chinese steel makers had either reduced their production or lowered prices to tide them through the current economic slowdown, leading to the lowest amount of purchases of iron ore, Xinhua analysts said in the latest report.

The sluggish demand on the downstream of the steel sector will create downward pressure for imported iron ore prices and pull the prices in the short term.