Australia government slashes iron ore price forecast

The Department of Industry and Science has slashed its iron ore forecast by 20%.

Average iron ore price in 2016 is now seen at $44.26/tonne, which is a minor downward revision from the previous forecast of $45/tonne in April. The department now sees average price of $44.80 in 2017. This contradicts Treasury’s $55 a tonne forecast.

The forecast comes a day after Standard & Poor’s warned on Australia’s credit rating.