Asian markets experienced mixed fortunes on Tuesday following declines in the US and as slumping iron ore prices continued to hurt mining companies.
In Australia, the S&P/ASX 200 closed down 0.95% at 5,226.40.
Analysts said iron ore prices were continuing to move towards the decade low reached earlier this year.
The commodity is Australia’s biggest export and was trading at $44.20 a tonne in China on Monday.
Independent economist and commodities specialist Andy Xie has predicted that iron ore prices will fall below $40 a tonne before the end of the year.
He said prices could even sink as low as $30 for much of next year as demand from China continues to decline.
Three of the biggest iron ore producers recorded falls in their Sydney-listed shares. BHP Billiton closed down 1.8%, Rio Tinto fell 1.5%, while Fortescue Metals was the biggest loser, sinking 3.2%.
