Iron ore prices are likely to fluctuate near current levels in the coming months, according to the latest reports from the China Iron and Steel Association (CISA). Despite a drawdown in iron ore port stocks at the very end of the year, the market remains fundamentally oversupplied and downstream steel demand remains weak, CISA explains.

Iron ore price fell sharply through last year, with average imported ore prices at $95.98/t, down $40.75/t from the previous year, according to CISA. Average Chinese domestic iron ore prices were also down Yuan 157.69/t to Yuan 764.58/t ($125/t), it adds.

Iron ore prices rallied slightly at the end of the year as a period of restocking resulted in a fall in iron ore port stocks. The Kallanish index for 62% Fe Australian fines ended the year at $71.91/dry metric tonne cfr Qingdao, up from a low of $66.59/dmt just a week earlier.

China’s iron ore port stocks ended the year at 100.59 million t, down 6% from the end of November 2014, CISA notes. However, they remained above the 100mt barrier and were up 12% from the end of 2013.