Reuters reported that iron ore futures in China slid to a fresh low as a supply glut smothered a market faced with slower steel demand, pushing spot iron ore prices to their lowest since September 2012.

Iron ore for September delivery on the Dalian Commodity Exchange hit a session low of CNY 659 per tonne including taxes, its lowest since the bourse launched the contract in October last year.

According to The Steel Index Ltd, ore with 62% iron content delivered to the port of Tianjin declined 0.7% to USD 90.90 a dry tonne the lowest level since September 2012.

The Shanghai trader said that "I don't think USD 90 would be a strong support level for the moment, I'm looking at closer to low USD 80s.”

The most active rebar for October delivery on the Shanghai Futures Exchange fell to as low as CNY 3,015 per tonne, its weakest since the exchange introduced rebar futures in March 2009.