Global iron ore prices peaked at 188 dollars per tonne in January 2011, followed by a long slide. The price fell 47% in 2014 and a further 29% so far this year, currently hovering at around 55 dollars per tonne. In volume terms, however, the global seaborne market continues to grow as the supply has proved unresponsive to falling prices. The process has further strengthened the oligopoly formed by low-cost producers from Australia and Brazil. Currently nearly 60% of the 1.3-billion-tonne market is controlled by just three companies.
The decline in iron ore could reduce Australia's revenue by 25 billion Australian dollars (18 billion dollars) over the next four years.
Closure of steel production facilities resulting from the conflict in Ukraine may lead to increased iron ore exports from the country.
Despite fears of reintegration of Iranian production into the global market, heavy export taxes will curtail the country's shipments.
