Commonwealth Bank (CBA) director of mining and energy commodities research Vivek Dhar said the drop came as a result of COVID-19 lockdowns in China and what they could mean for demand of Australian ore.
"Markets are worried that Beijing in particular maybe exposed to more severe lockdowns, like what we've seen in Shanghai," he said.
Mr Dhar expected the next few months would see "demand weakness" from Chinese steel mills, which would likely drive the price lower.
