UPDATE 2-China main ports receive 56.5 mln T iron ore in July

* July iron ore imports 2nd highest monthly total on record

* Analysts say real demand, not speculation, pushing imports (Adds background, analyst quotes)

BEIJING Aug 4 (Reuters) - China's iron ore imports edged up in July to the second highest on record, according to the transport ministry, showing that the country's appetite for the steel-making raw material is undiminished despite bulging stocks and rising prices.

Strong imports in recent months have strengthened the hand of global miners, who are still locked in protracted talks with China's steel industry, the world's biggest, over 2009 term prices.

Imports at China's main ports in July rose by 35 percent compared with July 2008 to 56.5 million tonnes, a report on the Ministry of Transport website said on Tuesday, a rise of 2.2 percent from official numbers for last month.

"Crude steel production is strong and Chinese steel mills really need iron ore, and with profits still quite high, the mills are motivated to produce more steel at the moment," said Henry Liu, an analyst with Macquarie Bank in Shanghai.

Spot iron ore prices have surged to around $100, up by a quarter in three months, suggesting a genuine upsurge in real demand, Liu said.

The Ministry of Transport figures, which tend to appear a week before official customs data, are normally a good indicator of the official number.

Iron ore stockpiles at major Chinese ports rose 2 percent last week to reach 70.93 million tonnes, according to industry consultancy Mysteel, but increased inventories are a reflection of rising demand, Liu said.

"China needs more imported iron ore at this moment and they need to prepare for more buying. If you are buying imported iron ore, the supply chain is much longer."

Imports over the first six months of 2009 stood at 297 million tonnes, up 29.3 percent compared with last year, and the China Iron and Steel Association (CISA) has accused small mills and trading firms of "disregarding market signals".

Last week, CISA vice-chairman Luo Bingsheng said excess iron ore imports had undermined the association's position during negotiations with global miners on long-term benchmark prices.

CISA, which has led China's negotiations with Australia's Rio Tinto (RIO.AX)(RIO.L) and BHP Billiton (BHP.AX)(BLT.L) and Brazil's Vale (VALE5.SA) this year, is urging the government to revoke the vast bulk of the country's iron ore import licences. (Reporting by David Stanway, Editing by Michael Urquhart)