Iron ore price slides sharply

The iron ore price has fallen sharply as Chinese stockpiling and decisions pertaining to iron ore mining in India's Supreme Court stoke fears of another price collapse.

Benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US112.50 a tonne, a marked decrease on the $US116.50 price in the previous session.

India's top court has ruled that iron ore mining can resume in the mineral-rich state of Goa but capped annual output, ending a ban imposed to stop environmental damage.

The Goa decision follows a similar decision in India's biggest producing state, Karnataka, which will be capped at 30 million tonnes a year, slightly more than the 20 million tonnes per year cap placed on Goa.

The Australian reports a rise in stockpiles at Chinese ports to near record levels also weighed on the iron ore price.