The price of iron ore on the domestic market has dropped since the middle of September and is expected to continue to do so over the next few months, according to data provider ppi.cn.
The price slump is primarily attributable to two factors. The first is the slowdown in the real estate and machinery sectors. The second is the expansion in production of global iron ore producers, with supply predicted to surpass demand by 2014.
China's port stockpile of iron ore reached 95.26 million tons by the end of August, hitting a record high, said an analyst.