The price of iron ore has resumed its losing run, giving back almost half of its gains from the prior session.

At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US61.30 a tonne, down 0.7 per cent on its prior close of $US61.70 a tonne.

Yesterday's 2 per cent gain was the commodity's only positive session through the last 10 as oversupply fears threaten to push iron ore below $US60 a tonne for the first time in a month.

The commodity has rebounded sharply from its April low of $US46.70 but has met resistance at the $US65 a tonne level and appears stuck in a $US55 to $US65 range in the near-term.

Investors are currently eyeing falling port stockpiles in China and soft steel demand, with a supply overhang expected to be significant in the next 12-24 months as Vale, Rio Tinto and BHP Billiton ramp up production and Gina Rinehart's mammoth Roy Hill project comes online.