Iron ore has plunged to a fresh six-year low as oversupply and a slowdown in China's property sector continue to weigh on sentiment.

The price of iron ore, for immediate delivery at the port of Qingdao in China, dropped 4 per cent on Friday, the biggest drop since late January, to $US53.14 per tonne, according to Metal Bulletin – the lowest level since the daily pricing index began in 2009.

Since its 2014 high of $US135.27 per tonne, the price of the steel making ingredient has dropped more than 60 per cent. Since its record high of $US191.70 per tonne it was fallen more than 70 per cent.

China new home prices has fallen for six straight months, weighing on China's massive property sector, despite interest rates cuts from the People's Bank of China.

In February, new home prices fell in 66 or the 70 cities measures, while sales also declined.

Property accounts for 24 per cent of steel use China, so any downturn in property, hurts steel, which rolls on down to iron ore.

Rebar (steel reinforced bar) futures have fallen for five straight weeks, last week sliding 1.3 per cent.

With iron ore at a fresh six-year low, the price has dropped below Fortescue Metals' breakeven price of $US57 per tonne, according to UBS research.

Australia's iron ore miners have dramatically reduced their costs as the prices has plunged.

BHP Billiton and Rio Tinto still remain in the black with breakeven prices of $US35 per tonne and $US33 per tonne, but most other Australian miners, at current levels, have costs above the currenct iron ore price.

Grange Resources, like Fortescue, has a breakeven price of $US57 per tonne. BC Iron has a breakeven of $US61 per tonne, while Atlas Iron's $US64 per tonne and Mount Gibson is $US54 per tonne.