Shares in iron ore producer Fortescue Metals Group have fallen sharply after the price for iron ore dropped to a new five and a half year low.
Fortescue shares were 13 cents, or 6.1 per cent, lower at $2.00 at 1151 AEDT on Tuesday - around their lowest level since early 2009.
"The iron ore price is at another five and a half year low," IG market strategist Evan Lucas said.
"There is no let-up for the price pressures on iron ore, and there's no let-up, therefore, for the pressure on prices that Fortescue gets."
The price for iron ore delivered to Qingdao in China tumbled 4.3 per cent to $US63.54 per metric ton overnight.
Mr Lucas said there were big concerns ahead of Fortescue's next company earnings report that the company would achieve a "really horrible" average price for its ore.
Mr Lucas said there were also concerns about Fortescue's high level of debt.
The price of iron ore has been beaten down because of slowing demand for steel in China as the economy there grows at a slower pace.
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