[Ferro-Alloys.com]Iron ore shipments from Australia’s Port Hedland, the world’s biggest bulk terminal, climbed to a record last month as China’s purchases rose to an all time high.

Exports totaled 27.9 million tonnes compared with 26 million tonnes in April. Shipments to China climbed to 23.3 million tonnes in May from 19.3 million tonnes a month earlier.

Morgan Stanley said that iron ore dropped into a bear market last month, retreating from a 16 month high in February on concern that slowing growth in China would curb demand in the largest buyer. The decline offered an excellent buying opportunity as Chinese mills will need to restock. The price rallied 4.2% the biggest gain since October.

Clarkson Capital Markets said that “Low iron ore prices could support import volumes. With the weaker market sentiment in the Chinese steel industry, the spot price for imported iron ore could drop to a level that would stimulate inventory restocking.”

According to the Steel Index Limited, iron ore with 62% content delivered to the Chinese port of Tianjin gained to USD 116.60 per dry tonne. Prices dropped 18% in May, touching USD 110.40 on May 31, the lowest level since October.

BHP Billiton Limited and Fortescue Metals Group Limited are among companies that ship ore through the port, which is about 1,660 kilometers northeast by road from Perth, capital of West Australia. Australia is the world’s largest iron ore shipper.