Iron ore in price drop

A FALL in the iron ore price to below $ US60 a tonne has hit the share prices of Australia’s miners. The fall to its lowest level in five weeks came after Australia’s Department of Industry and Science sharply cut its price forecast for 2015 from $ US60.40 a tonne to $ US54.40. Many analysts believe it could tumble well below $ US50. “China’s steel production is forecast to contract in 2015 and 2016 as the seaborne supply of iron ore increases,” the department said. The Steel Index reported that iron ore closed at $ US59.30 yesterday, down 1.98 per cent from $ US60.50.