Iron ore prices fell to a fresh 10-year low today, amid concerns falling demand from its biggest consumer would add to a global glut in the steelmaking raw material.
It came after industry consultancy Custeel said more steel mills in China's Shanxi province have halted production due to shrinking demand and shortage of cash.
Spot iron ore prices fell to a fresh 10-year low below $40 a tonne, and are set for their steepest weekly decline in five months. This means its fallen 7.4 percent for the week, the steepest slide since declining almost eight per cent in early July.
Falling iron oil prices reverberated through the FTSE's mining sector, which was down 138.04 points, or 1.79 per cent, at 7,581.33 points this afternoon.
Shares in Anglo American was down 3.21 per cent to 374.45p per share, while Antofagasta and Rio Tinto both shed around two percent to 491.20p per share and 2,071.50p per share respectively.
Iron ore, a steelmaking raw material, has fallen around 30 per cent this year, putting it on course for a third straight annual decline.