The worst performer on the S&P/ASX 200 Index on Wednesday in late morning trade is the Fortescue Metals Group Limited (ASX: FMG) share price.
At the time of writing the iron ore producer's shares are down 6.5% to $7.58.
This is an improvement on earlier in the day when Fortescue's shares dropped 7.5% to $7.49.
Why is the Fortescue share price sinking lower?
Investors appear to have been hitting the sell button in a panic this morning after iron ore prices came under pressure.
It isn't just Fortescue that has been sold off. The BHP Group Ltd (ASX: BHP) share price is down almost 2.5% and the Rio Tinto Limited (ASX: RIO) share price has dropped 4.5% lower.
According to Metal Bulletin, iron ore prices fell for the second successive day on Tuesday. The price of the benchmark 62% fines dropped a further 0.7% to US$94.78 a tonne overnight. This added to the 1.1% decline that benchmark fines recorded on Monday.
Unfortunately for Fortescue, the price of the low grade iron ore that it produces fell even more. Following on from Monday's 1.1% decline, the price of 58% fines dropped a further 1.9% to US$77.24 a tonne.
What else has happened?
In addition to iron ore price weakness, investors may be responding negatively to news that a Brazilian court has given mining giant Vale permission to resume operations at its Brucutu mine.
According to Reuters, the company expects to resume operations within 72 hours at the mine, which is its largest in Minas Gerais state.
Production at Brucutu was suspended in early February after a tailings dam burst in late January in the town of Brumadinho.
With Brucutu resuming production imminently, investors may believe that iron ore prices are unlikely to climb notably higher from here and have taken profit after some stellar gains were made by the iron ore miners.
