Shares of industrial metals, especially steel, are plunging after iron ore suffered its worst one-day loss in almost a year. The spot price for the benchmark 62% fines iron ore plunged almost 9% to $68.04 a ton, according to Metal Bulletin. Iron ore fines refer to high quality fine ore powders. The decline is the most precipitous one-day fall for iron ore since May of last year.

WEAK CHINA DEMAND: According to a recent Financial Times article, citing Australia's Department of Industry Innovation and Science, iron ore prices are falling because of the expansion of low cost supply and tepid demand in China. According to Business Insider's Australian division, the selloff in iron ore may also be attributed to growing levels of Chinese port inventories that have spiked up in recent months. China, which accounts for nearly half of global metal demand, is seen slowing due to a weak property market and slowing infrastructure spending.

TRUMP DOUBTS: The new president's recent budget proposal hints at cuts to the Department of Transportation's spending and Amtrak subsidy plans. According to a recent New York Times article, Art Guzzetti, VP for policy at the American Public Transportation Association, a Washington-based advocacy group, said: "We'd been so encouraged by all the talk of investing in infrastructure, but the budget has been discouraging." Adding to the sense of disappointment for the "Trump Trade" was the failure of his replacement plan for the much criticized Obama Care. A weaker than expected jobs report out this past Friday also added to the skepticism that seems to be turning back the post election optimism.

PRICE ACTION: Shares of most companies related to the industrial metals group are all sharply down, with U.S. Steel (X) down 9.3%, Nucor (NUE) falling 3.65%, and AK Steel (AKS) down 6.2%. Aluminum names are also falling, with Alcoa down 3.3%, and Century Aluminum (CENX) plunging 7.8%. Shares of metal miners are also under pressure, with Cliffs Natural (CLF) dropping 7.5%, Vale (VALE) and Rio Tinto (RIO) each off almost 5%. Copper miner Freeport-McMoRan (FCX) is also down 4.85% in midday trading.