Iron Ore production
weakest commodities in 2014 and the trend is likely to continue .
“ Key consumers - Chinese steel mills - still don ’ t seem convinced higher prices are warranted , while high iron ore port stocks and rising seaborne supply remains on offer ,” Fabo said .
Analysts believe the precious metal will continue to fall in coming years , reaching its lowest point in 2017 at $ 70 a ton .
According to IBISWorld Research : “ The industry is expected to grow at a slower rate over the next five years through to 2019-20 ”, adding that “ iron ore prices ( in US dollars ) are expected to decline slightly over the five years through 2019-20 [ with ] this decline expected to stem partly from higher production and output from Australian mines over the next five years .”
Many believe the drop in iron ore prices is caused by the rapid increase in supply combined with moderating growth in China ’ s steel production . Prices have declined nearly 40 percent from $ 130 a ton in
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