It is reported that China's Iron and Steel Association has urged its members to control iron ore imports as port stocks have surged to a record high, undermining Chinese steel mills' position in price talks with Australian miners.

CISA in a statement said that steel mills should control the pace and volume of iron ore imports while the mills should store iron ore at ports to meet 45 days of usage. It said in the statement that importers who bring in large volumes of ore in order to speculate on the market for higher sales prices could lose their iron ore import licenses.

CISA said China imported 153.49 million tonnes of iron ore in the first four months up by 15.2% YoY from a year earlier and far exceeding an 8.3 % increase in pig iron output. It said "The overflows of the iron ore imports in the first four months gave a false impression of a jump in Chinese iron ore demand."

The National Development and Reform Commission said the massive inflows of iron ore had caused overstocking and severe congestion in ports in northern China including Qingdao, Rizhao, Tianjin and Lianyungang.