Falls overnight were again based on oversupply worries, with recent production expansion from the likes of iron ore heavyweights Rio Tinto, BHP Billiton, Fortescue Metals Group and Vale coming as weakness in the Chinese housing market ensures demand is kept in check.
Benchmark iron ore for immediate delivery to the port of Tianjin in China is currently trading at $US87. 30 a tonne, down one per cent from its $US88. 20 closing mark in the previous session.
The price of iron ore is crucial to the profitability of the mining giants, particularly Rio Tinto, but their low costs relative to the rest of the industry allow for a less painful absorption of the price falls than their rivals.
The extent of the recent falls is now starting to have a serious impact on the share prices of the sector heavyweights, with Rio Tinto's UK-listed stock sinking 4 per cent overnight and BHP's UK-listed shares yielding almost 3 per cent.
Read more here: Business Spectator