Fortescue Ltd (ASX:FMG) saw its stock price plummet by 5.11% during intraday trading on Wednesday, as Australian iron ore producers faced significant pressure amid a continued decline in iron ore futures. The drop in Fortescue's share price outpaced the initial 3.2% fall reported earlier in the day, indicating a worsening sentiment towards iron ore stocks.

The sharp decline can be attributed to a seasonal slowdown in demand for iron ore, coupled with indications that Chinese steel mills are curbing their output. These factors have led to a notable decrease in iron ore futures, which sank 1.5% to $92.65 a tonne. The reduced demand from China, the world's largest consumer of iron ore, is having a substantial impact on the Australian mining sector.

Fortescue's steep drop of 5.11% appears to be part of a broader trend affecting iron ore producers. For comparison, Mineral Resources (ASX:MIN) shares plunged over 6%, while mining giant BHP Group (ASX:BHP) saw a more modest decline of 1.3%. The varying degrees of impact suggest that investors may be particularly concerned about Fortescue's exposure to the iron ore market fluctuations.