China Economic Times reported that 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.

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.

An analyst said China port stockpile of iron ore reached 95.26 million tons by the end of August hitting a record high.

(Sourced from China Economic Times)