Fortescue Ltd (FMG.AU), one of Australia's largest iron ore producers, saw its shares plummet 5.11% during intraday trading on Wednesday. The significant drop comes amid a broader decline in the iron ore sector, with other major players also experiencing notable losses.

The sharp decline in Fortescue's stock price can be attributed to several factors affecting the iron ore market. Iron ore futures continued their downward trend, sinking 1.5% to $92.65 a tonne. This decline is largely driven by a seasonal slowdown in demand, particularly from China, the world's largest consumer of iron ore. Adding to the pressure, there are indications that Chinese steel mills are curbing their output, further dampening demand prospects for iron ore.

The impact of these market conditions was felt across the Australian iron ore sector, with Mineral Resources seeing a more severe drop of over 6%, while mining giant BHP Group also experienced a decline, albeit a more modest 1.3%. As the iron ore market continues to face headwinds, investors will be closely monitoring any signs of demand recovery or policy changes that could affect the sector's outlook.