China's demand for iron ore is not about to decline drastically despite a lift in stockpiled inventory and a fall in prices, ratings agency Fitch says.

In a statement, Fitch said the fundamentals underpinning China's demand for key commodities from Australia remain unchanged, even though a two-year high in inventory cast negative sentiment on Australian exporters.

"We believe a combination of seasonal and one-off factors have clouded market conditions, and Chinese demand for Australian commodities is not about to decline drastically," Fitch said in a statement.

Benchmark iron ore for immediate delivery to the port of Tianjin in China came in at $US110.50 a tonne today, a slight lift from yesterday's $US109.60.

Last week the iron ore price charted its largest one-day price fall in more than four years on persistent fears over China's economy.

Source: www.businessspectator.com.au