The price of iron ore is at a six year low, and still sliding.

Benchmark iron ore for immediate delivery in China has been trading at $US58.00 a tonne this week.

It is the lowest level since the market was in the midst of the global financial crisis.

But the price continues to fall, marking an 11 per cent drop over the last 11 days of trade.

Investors are ditching iron stocks at a rapid pace, leading analysts to suggest the downward spiral has not reached its nadir.

Decreasing demand from China combined with a global surplus of iron ore has been blamed for the price crash.

Analysts at Perth-based Patersons Securities have told Fairfax Media that the diminishing price could see miners to scale back or close mines completely.

“We have been dealing with this iron ore price for the best part of six months so it would be starting to hurt them,” Patersons’ head of research Rob Brierley said.

“The next stage would be starting to look at rationalising production and scaling it back. I would expect that to be the next phase; high-cost mines shuttering and lower-cost mines being worked harder.

“All of them are letting people go and doing everything from a cost perspective but sooner or later you squeeze that lemon until there is no juice left.

“I don't see the iron ore price getting any better,” he said.

In its latest annual report, Rio Tinto said it expects the oversupply to continue for the rest of the decade, and lead to the market exit of high-cost producers.

These low prices have already rendered many junior producers unprofitable, leading BC Iron, Atlas Iron and Mount Gibson to drop from the ASX200 last week.