Steven Deare
(Australian Associated Press)

Australia’s share market closed lower after one of its biggest sectors, materials, was widely sold after a drop in the price of iron ore.

The S&P/ASX200 benchmark index closed lower by 57.1 points, or 0.84 per cent, to 6714.1 on Wednesday.

The All Ordinaries closed lower by 53.2 points, or 0.76 per cent, at 6947.2.

The materials sector dropped by 2.51 per cent after iron ore prices in China fell.

The energy sector fell almost three per cent as oil prices slid, while another heavyweight sector, financials, slumped by 1.25 per cent.

The Australian dollar was buying 76.79 US cents at 1621 AEDT, higher from 76.66 US cents at Tuesday’s close.