Iron ore shipments from Australia's Port Hedland, one of the world's largest export terminals, rose to 21.4 million tons in December from 19.8 million tons in November, data released by the port authority showed.

Shipments to China, the port's biggest destination increased to 16.6 million tons from 14.7 million tons in November, according to the data.

The modest rise suggested a period of destocking of inventories by Chinese steel mills early in the fourth quarter of 2011 had concluded, according to ore traders.

BHP Billiton is the port's biggest user, followed by Fortescue Metals Group Ltd. Both companies ship the bulk of their ore to China.

Iron ore prices in China, the world's biggest market, inched up on Friday as customers sought to replenish stockpiles, but the traditional absence of big purchases ahead of the lunar new year holiday later this month could push shipments from the port down in January. (Reuters)