The iron ore spot price has posted its biggest one-day fall in around 13 months on speculation Chinese demand will ease.
The price for industry standard iron ore in China fell 5 per cent overnight to $US145 a tonne, after briefly hitting highs near $US160 a tonne last week.
The spot price for iron ore has surged 68 per cent from a September low of $US87 US dollars a tonne, as China restored its stockpiles.
However, there is concern among investors that as China's weather warms and domestic production ramps up, demand for iron ore imports may ease.
China is also nearing its biggest annual holiday - the Chinese New Year.
Analysts are anticipating the spot price of iron ore will average out at $US120 a tonne this year.
