Chinese iron ore import prices sank slightly further on Tuesday as the outlook darkens for the coming weeks. Chinese import volumes recovered to near record highs and are expected to increase further, adding to pressure on prices.

The Kallanish index for 62% Fe Australian fines fell by $0.91 to reach $52.01/dry metric ton cfr Qingdao. 170,000 tonnes of PB fines traded on globalORE at a $1/t premium to the Platts 62% Iodex for October delivery.

China imported 86.12 million tonnes of iron ore in September, up 2% year-on-year and 16% from August. Record export volumes from Australian ports at the end of September suggest that October’s import figure could be even higher. Over January-September, China’s iron ore imports remain roughly flat at 699.05 million tonnes.

Iron ore traders will be wary of Chinese production levels, which remain inflated. A fall in output, and therefore iron ore demand, would likely trigger the net round of decline in iron ore pricing. Higher than expected steel exports in September have ensured Chinese steel output at high levels, but export volumes are still expected to decline towards the end of the year.