The iron ore price has dropped for the fourth time in four trading sessions, losing 2.7% overnight to take the spot price to US$61.09 a tonne and more falls are very likely.

Since April 21, the price has dropped 13.3%.

But despite the falls, iron ore miners’ share price are mostly up…

  • Fortescue Metals Group Limited (ASX: FMG) shares are up 5.9% at $3.24
  • BHP Billiton Limited (ASX: BHP) share price is up 4% at $20.46
  • Rio Tinto Limited’s (ASX: RIO) share price is up 3% at $49.92
  • Atlas Iron Limited (ASX: AGO) is up 4.4% at 2.4 cents
  • Gindalbie Metals Ltd (ASX: GBG) is up 4.8% at 2.2 cents
  • Mineral Resources Limited (ASX: MIN) is up 1.4% to $7.13

Just Mount Gibson Iron Limited (ASX: MGX) has seen it share price sink – down 4.6% to 21 cents.

Fortescue and Atlas’s share prices are likely being supported thanks to recent good news from both miners – Fortescue paying down more debt, and Atlas finalising a finance package to keep itself afloat.

But they may not see their share prices rise for much longer – particularly if the iron ore price continues to sink – which many observers suggest is the most likely case. Recent action by Chinese officials to clamp down on speculative trading in iron ore futures only adds to the likelihood of further falls ahead.

Indeed, Chinese iron ore futures were down again overnight by 1.9%, suggesting iron ore is headed for its fifth consecutive session of falls tonight.

Foolish takeaway

Nobody predicted iron ore prices would hit US$70 a tonne, or anywhere near that this year, and while it was brief, it also shows that no one can predict commodities prices out into the future – making it rather difficult to value mining companies.

The Motley Fool's Top Fully Franked Dividend Share For 2016

Forget BHP and Rio. This "dirt cheap" company. is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016.

Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.