Due to slow demand for steel, China's steel makers have been selling iron ores back into the market.
Some traders estimated that over the past two weeks, Chinese mills have resold up to 3 million tons of iron ores back into the spot market.
These ores are bought under long-term contracts from miners. Mills save storage cost by selling the ores and they can buy cheaper ores due to be delivered in 2 to 3 weeks.
With the influx of iron ores back to the spot market, price has been driven down to the lowest level for the year.
Since the beginning of the year, prices of iron ore has fallen by almost 13%.