* Anglo American will close Brazil ops for 3 months due to leak
* Iron ore stockpiles at China ports at record high
* No China trading on Thursday and Friday for public holiday
By Josephine Mason and Tom Daly
BEIJING, April 4 (Reuters) - Chinese iron ore futures dropped for a second session in a row on Wednesday as worries about rising stockpiles and falling demand from steel mills countered news of a major outage in Brazil, one of the world's top producers.
The most-active iron ore for September delivery on the Dalian Commodity Exchange DCIOU8 was down 2 percent at 448.50 yuan ($71) a tonne by midday break.
Anglo American Plc AAL.L said on Tuesday it would halt output and transportation of iron ore for three months from its Minas Rio mine in Brazil as it inspected a leak on a pipeline. Xiaobo, an analyst at Sinosteel Futures in Beijing, said the outage was not having an effect on the Chinese market.
"Iron are fundamentals are still weak," he said. "Import volume is high and iron ore stocks in steel mills continue to rise."
Stocks of the steelmaking raw material at China's ports reached a record high of 161.68 million tonnes on Friday, up 9 percent this year, according to weekly data compiled by SteelHome consultancy. SH-TOT-IRONINV
There will be no trading on Thursday and Friday due to a two-day public holiday in China.
The most-traded October rebar on the Shanghai Futures Exchange SRBV8 rose 0.3 percent to 3,367 yuan per tonne.
Inventories of rebar, used in construction, among Chinese traders fell for a second straight week, ending last week at 9.1 million tonnes, after hitting their highest in five years in March at nearly 10 million tonnes, according to SteelHome data . SH-TOT-RBARINV
Traders expect Chinese steel demand to pick up steam from this month along with construction activity.
($1 = 6.2908 Chinese yuan)