The Australian department of Industry estimated the iron ore prices will drop by 33% in 2015 to around US$63/ton and may lower than USD 60/ton. Market analysts point out the decreasing price is because slow demand for iron ore in China. The export volume of iron ore from Australia to China has resulted in oversupply.
Australia exported iron ore (fe contains 62%) for total quantity about 718 million tons in 2014 and will hit a high record about 766 million tons in 2015. However, China total imported the iron ore around 938 million tons in 2014, but will be expected only about 973 million tons in 2015.
Australian Rio Tinto and BHP Billiton keep expansion of iron ore output, triggering the price down by 49% in 2014. If the production continues to increase and the market demand keeps stagnant, the iron ore prices could be expected to drop below USS60/ton.