Iron ore keeps sinking as port stockpiles remain at high levels

Singapore

IRON ore is in full-scale retreat, with futures in China plunging to end limit-down on investor concern about the outlook for demand in the world's top user, fresh signs of burgeoning supply from Australia and the hostile backdrop of a broad-based sell-off in base metals.

"Iron ore's centre of gravity is constantly moving lower," said Zhao Chaoyue, an analyst at China Merchants Futures Co.

"Concerns about the glut have always been there. Port stockpiles are maintaining near a record and there's a consensus that supply will go on expanding, especially in the second half."

The raw material sank in…