Iron ore inventories at Chinese ports have exceeded 60 mln tons for 5 months in a row so far this year, possibly leading to market price decline.

    Analysts predict October may see a turning point for the price of iron ore as domestic steel mills reduce production, following the price of coke that has already begun to fall.

    The price of iron ore still remains at a high level with low trading volume and delivery speed, said Liu Zhimei, vice secretary general of China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters.

    Yang Siming, general manager of Nanjing Iron &Steel Union Co., Ltd, predicted that the output reduction of steel in September may impose great impact on the spot market of iron ore in October.

    The reduction of ocean freight and the output surge of iron ore are believed to be the main reasons for the iron ore price to drop in near future. Most domestic traders currently take a wait-and-see attitude.

    Ye Jinhua, director with Development and Research Center of China Geological Survey, disclosed that China's total output of iron ore is expected to reach 800 mln tons in 2008. Meanwhile, the Ministry of Land and Resources of China is making greater efforts on the exploration of iron ore. It estimates nationwide unproven iron ore resources at 100 bln tons and the figure may rise to 150 bln tons if the depth reaches 1,500 meters.