Dalian iron ore futures have slumped to a two-month low, extending losses to an eighth session, amid worries of weak demand as China's top steel-producing province of Hebei prepares to tighten emission requirements.
The most-traded iron ore contract on the Dalian Commodity Exchange, for January 2020 delivery, dropped as much as 5.6 per cent to 609.50 yuan ($US86.31) per tonne - the lowest since June 11 - and was down 5.3 per cent at 611 yuan as of 1150 AEST.
The contract had closed down 3.8 per cent on Friday, logging the biggest weekly drop in more than 16 months.
China's Hebei province, which surrounds the capital Beijing, has summoned the leaders of three cities after they failed to "meet public expectations" on controlling air pollution.
The province is set to impose tougher emission requirements on its industrial firms this year, according to the local environmental protection agency.
"All eyes will be on factory data out of China for any further signs of weakness amid the ongoing trade conflict with the US," ANZ Research said in a note.
China's statistics bureau will release its July output data on Wednesday.