Spot iron ore prices were heading for their biggest monthly fall since May last year as a glut kept the steelmaking commodity at its weakest since 2009.

Iron ore futures in China and Singapore extended recent losses on Friday with investors waiting for stronger signals that would point to a pick-up in Chinese steel demand.

“Some investors switched to long positions in the past two days as they expected investment in infrastructure projects could pick up this year, but the gains could not be sustained,” said Li Yajing, a Guangzhou-based analyst at Guangyong Futures.

China plans to spend a further 800 billion yuan ($128 billion) on building railway tracks this year after exceeding its 2014 investment target, local media reported on Thursday.

Steel demand in China’s northern regions slows down during winter along with construction activity and some analysts warn the weakness could persist throughout the year as the economy slows further.

China plans to cut its growth target to around 7 percent in 2015, its lowest goal in 11 years, sources said.

Benchmark 62 percent grade iron ore for immediate delivery to China .IO62-CNI=SI fell 0.6 percent to $62.30 a tonne on Thursday, its lowest since May 2009, according to data compiled by The Steel Index.

Iron ore has lost 12.5 percent so far in January, stretching a 47 percent drop in all of 2014.

The most-active iron ore contract for May delivery on the Dalian Commodity Exchange was down 0.2 percent at 473 yuan a tonne by the midday break. It was heading for a third weekly loss in a row.

The March iron ore contract on the Singapore Exchange fell 1.2 percent to $61.80 a tonne.

Source: Reuters (Additional reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)