The Australian share market is down at noon, with a sharp fall in iron ore prices dragging on the big miners.
Iron ore, which had shown some resilience over recent weeks, dropped 3.5 per cent overnight to below $US60 a tonne, IG market strategist Evan Lucas said.
“So, the entire materials sector is down,” Mr Lucas said.
Shortly after noon, global miner BHP Billiton had given up 89.5 cents, or 3.02 per cent, to $28.735, Rio Tinto had fallen $1.42, or 2.47 per cent, to $56.03, while iron ore pure play Fortescue Metals had tumbled 16.5 cents, or 7.43 per cent, to $2.055.
On Wednesday, Fortescue chief executive Nev Power rejected claims the company’s call for a parliamentary inquiry into the iron ore sector goes against free market principles.
Mr Power said with just four companies – Rio Tinto, BHP, Vale and Fortescue – responsible for most of the world’s seaborne supply, the iron ore market was even more concentrated than the oil market, which is dominated by the OPEC cartel.
BHP offshoot South32 was also down, dropping 5.5 cents, or 2.3 per cent, to $2.275 after double-digit gains on Tuesday.
The banks were also weighing on the broader market, with ANZ losing 13 cents, or 0.4 per cent, to $31.87, while the Commonwealth Bank shed 29 cents, or 0.35 per cent, to $82.56, NAB lost 12 cents, 0.35 per cent, to $33.55 and Westpac gave back five cents, or 0.15 per cent, to $32.23.
Mr Lucas said any falls by the banks were felt through the broader indexes.
“They have technically corrected and look like falling still further,” he said.
KEY FACTS
* At 1212 AEST on Wednesday, the benchmark S&P/ASX200 index was down 12.2 points, or 0.21 per cent, at 5,603.3 points.
* The broader All Ordinaries index was down 12.2 points, or 0.21 per cent, at 5,607.2 points.
* The March share price index futures contract was 12 points lower at 5,602 points, with 21,874 contracts traded.
* National turnover was 1.03 billion securities worth $2.7 billion.
