* Iron ore futures down as much as 3.9%

* Steel rebar, HRC prices drop

* China steel body says port congestion to ease

BEIJING, Aug 12 (Reuters) - Dalian iron ore futures slumped in early trade on Wednesday after the China Iron and Steel Association said iron ore discharging difficulties and port congestion issues were expected to ease later this month.

The most active iron ore futures contract on the Dalian Commodity Exchange, for January delivery, fell as much as 3.9% to 808 yuan ($116.16) per tonne. It was down 3.4% to 812 yuan by 0215 GMT.

Steel prices on the Shanghai Futures Exchange also declined as new bank lending in China fell more than expected in July from the previous month.

The most traded steel rebar contract slipped 1.1% to 3,787 yuan a tonne and hot-rolled coils, used in cars and home appliances, were down 0.7% to 3,880 yuan a tonne.

FUNDAMENTALS

* Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62 rose by $1 to $118.5 per tonne on Tuesday from the previous trading day.

* Other steelmaking ingredients fell, with Dalian coking coal dipping 0.3% to 1,199 yuan a tonne and coke dropping 2.1% to 1,987 yuan per tonne.

* Stainless steel futures, for October delivery, inched 0.9% lower to 14,010 yuan a tonne.

* Chinese electric carmaker Nio Inc plans to increase capacity, it said on Tuesday after reporting that quarterly revenue more than doubled, beating forecasts.