SINGAPORE: The iron ore industry is in for some challenging times as demand for steel in large economies like China face a slow down.

This is according to experts at the annual Iron Ore Summit held in Singapore on Monday.

The event was attended by more than 350 industry practitioners including those from India, Hong Kong, Japan and Australia.

Experts said a slowdown in Asia's property sector may also lead to lower demand for iron ore and this will depress prices as well.

Imports of iron ore -- an ingredient for steel -- has slowed down in China as the country pumps up its own production and curbs its dependence on overseas supplies.

The government's monetary tightening due to high inflation has weakened demand in the real estate market.

It caused a slowdown in construction of new properties, which further pushed iron ore prices down.

Despite the headwinds, world's third-largest iron ore exporter India is confident it will see a rebound in iron ore exports to China.

So far, exports from the Karnataka region have faced government restrictions, high export duties and increased railway freights, but industry officials are upbeat about the prospects.

Federation of Indian Mineral Industries president Siddharth Rungta said: "The exports from Karnataka, I am very sure, is going to pick up and it is going to be the proverbial phoenix rise in the exports of iron ore".

Exports from Karnataka -- which accounts for 35 to 40 per cent of India's iron ore exports -- are expected to fall from 117 million tonnes in 2010 to 95 million tonnes in 2012.

Industry officials are hoping this will eventually pick up, forecasting iron ore exports to contribute 4.5 billion dollars in 2010 to 2011 to 9 billion dollars in 2013 to 2014.

Analysts said construction and infrastructure for railway, transportation and water conservation will remain key drivers for steel consumption in China.

Singapore also hopes to take a bigger bite in the metals and minerals pie.

Second Minister for Trade and Industry S Iswaran said: "Singapore is strategically located near both top producers and consumers of commodities, including iron ore.

"As such, we have been able to capitalise on our location to develop a dynamic and robust trading industry here.

"I am encouraged to note that our efforts have been yielding very positive results. BHP Billiton and Rio Tinto, two of the world's largest iron ore miners, have based their global iron ore marketing operations in Singapore. Vale also has seen a growing presence here.

"Looking ahead, Singapore will continue to grow and develop its metals and minerals sector.

"The Singapore government will maintain a sound, stable, predictable regulatory environment for business.

"We will continue with a free-market orientation in our regulatory approach, regulating in accordance to best practices and complying with international standards of governance".

Over-the-counter clearing of iron ore swaps by the SGX Asia Clear have grown to 34 million tonnes since the service was launched in 2009.