Weak demand of steel products continued to weigh down on iron ore prices in China, forcing dealers to stockpile inventories, the China Iron and Steel Association (CISA) said Tuesday.
The China Iron Ore Price Index fell 8.81 percent from August to reach 282.24 points at the end of September, with imported iron ore recording deeper price declines, according to CISA.
In September, price of imported iron ore slumped 10.2 percent month on month while domestic iron ore lost 3.15 percent.
"For the iron ore market, it's unlikely the oversupply situation will improve in near future," CISA said in a report on its website.
As a result of weak demand, China's iron ore inventories at ports amounted to 110.69 million tonnes at the end of September, up 53 percent from a year ago.
The inventory level has been above 100 million tonnes for eight months in a row, according to CISA.
In September alone, China imported 84.69 million tonnes of iron ore, bringing the total imports in the first nine months to 700 million tonnes, up 16.5 percent year on year, customs data showed.
From January to September, China's steel exports jumped 39.3 percent from a year ago to 65.43 million tonnes.
CISA members posted a combined profit of 4.6 billion yuan (750 million U.S. dollars) in August, with an aggregate profit margin of merely 1.52 percent for the first eight months, according to the CISA data.