* Port Hedland May iron ore shipments to China slip 3 pct
* Total shipments rise as Japan, S. Korea boost imports (Adds more figures, prices, inventory data)
SYDNEY, June 7 (Reuters) - Iron ore shipments to China from Australia's Port Hedland, used by BHP Billiton (LON:BLT) BHP.AX and Fortescue Metals Group FMG.AX , slipped to 31.7 million tonnes in May from 32.6 million tonnes in April, port data showed on Tuesday.
Total shipments from the Indian Ocean port, however, climbed to 39.4 million tonnes in May against 37.7 million tonnes in April, reflecting a rise in exports to Japan and South Korea, according to the Pilbara Ports Authority.
China remains the primary driver of global iron ore demand, accounting for more than 70 percent of global seaborne imports in 2015.
The drop in Chinese shipments comes as iron ore inventories at Chinese ports receded for the first time in three weeks, suggesting some steel mills in China could be preparing to re-build stocks soon, which could be reflected in the June figures.
Stocks of imported iron ore at major ports stood at 100.25 million tonnes on June 3, down 400,000 tonnes from the prior week when it reached the most since December 2014, according to data tracked by industry consultancy SteelHome. SH-TOT-IRONINV
The decline in inventories provided a modest lift in the spot price. Iron ore for immediate delivery to China's Tianjin port .IO62-CNI=SI stood at $50.60 a tonne, up 2.2 percent up on Friday's price. Iron ore fell 24 percent in May, the most since October 2011.
Citigroup (NYSE:C) has upgraded its iron ore price estimates for this year and next, saying demand from China may be boosted by government efforts to stimulate the economy. ore shipments to Japan in May climbed to 2.6 million tonnes from 857,000 tonnes in April, while South Korea's shipments rose to 3.8 million tonnes from 2.7 million tonnes over the same period, port figures showed.