Inventories of iron ore at 25 of China's major sea ports dropped 1.6% to 97.99 million metric tons in the week ending on Dec. 19 from the previous week, according to the Xinhua-China Iron Ore Price Index that was released on Tuesday.
Last week's imported iron ore stock was 1.61 million metric tons less than that of one week earlier, according to the index, which is compiled by the Xinhua News Agency to track iron ore inventories and imports in Chinese spot markets.
Meanwhile, the price index for 63.5%-purity iron ore imports fell 4.1 percent to hit 139 points, while that for 58%-purity iron ore imports decreased by 1.7% week-on-week to rest at 117 points.
Analysts said the declining prices of iron ore are a result of a sluggish steel market amid falling investment in the nation's railway projects and increased housing inventory in the property sector.
They predicted a further downward trend for the iron ore prices in the coming week as steel companies are becoming cautious in purchases amid expectations that downstream businesses will cut demand for steel.