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The iron ore spot price has tanked again.

After a brutal day of trading in iron ore futures where trade was halted after reaching the maximum loss allowed by Chinese regulators, the spot price for benchmark 62% fines fixed 5% lower at $US65.20, according to Metal Bulletin.

“The iron ore market subsided today giving way to mounting pressure,” Metal Bulletin analysts said. “In fact the MBIOI-62 declined $3.48/tonne to $65.20/tonne after having remained largely stable since the start of the week. Meanwhile similar declines were witnessed across all grade boundaries as prevailing downside risks continue to largely dictate the market’s

It’s another massive leg down for Australia’s biggest export, and follows an Asian trading session where there was clear rising anxiety about the Chinese economy. Prices for Chinese government bonds fell, with yields for the 10-year benchmark bond rising to their highest level since 2015.

Australia’s federal budget is highly sensitive to moves in the iron ore price, as the commodity remains the nation’s biggest export.

Federal treasurer Scott Morrison delivers the next budget on Tuesday.

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