THE iron ore price has slumped to its lowest level in more than two months and dropped below the $US92 a tonne threshold as investors fret about the strength of the Chinese economy.

Benchmark iron ore for immediate delivery to the port of Tianjin in China is currently trading at $US91.90 a tonne, down from its $US92.30 in the previous session.

At the current price point, iron ore is at its lowest level since June 18, when it traded at $US90.30.

Earlier in June, the iron ore price dropped to as low as $US89 a tonne, but despite a minor rebound since then year-to-date falls are still over 30 per cent.

Yesterday, the HSBC flash China manufacturing purchasing managers’ index was at 50.3 in August, down from 51.7 in July, a three-month low.

HSBC chief China economist Hongbin Qu said the data suggested the country’s economic recovery was still continuing but its momentum had slowed again.

“Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued path,” he said.