The Australian government's Department of Industry, Innovation and Science remains firm in its forecast that the price of iron ore in 2019 will average less than $ 50 per tonne.
The department's report predicts that iron ore will be $ 55 per tonne in the second half of this year, and up to $ 49 per tonne in 2018 and $ 47 per tonne in 2019.
However, the price of iron ore belied the forecast for the second half of 2017 and increased to $ 73.70 per tonne at the end of July as the volatile year continued for the commodity.
According to the department's three-month report, it valued iron ore at $ 65 per tonne per tonne, and it was projected to average $ 64 per tonne in 2017.
The department slightly updated its iron ore price outlook in its latest report and now predicts a decline to USD 50 per tonne in 2018 and USD 49 per tonne in 2019.
“Rising low-cost supplies from Australia and Brazil and softening demand from China are expected to weigh on the price of iron ore,” the report explained.
In recent weeks, the price of iron ore has lost ground, while it fell overnight to $ 61.48 per ton.
Iron ore prices remain below $ 50 per ton
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