Australia forecasts iron ore value to be 60 dollars per tonne

Author: Paul Ploumis
15 Dec 2014 Last updated at 04:34:01 GMT
CANBERRA (Scrap Monster): According to the data of the month November, released by the government, the price of steel making raw material, lowered to 68.49 dollars  per tonne, over the whole year. The Treasurer of the  country, Joe Hockey, told the reporters that, the 92 dollars worth projection in the budget of the country is caused due to the decline in the price of iron ore, for the whole year.

In Sydney, Hockey stated that, the country will affirm the price of iron ore to reach about 60 dollars in the near future. He further added that, the decline in the price of iron ore has had a bad impact on the budget of the country. Moreover, the budget has been suffering due to the 20 percent decline in the price of wheat, and the 15 percent decline in the price of thermal coal.

According to Mathias Cormann, the Finance Minister of the country, the iron ore export covers about 20 percent of the country’s export income. The value of iron ore might fall below 60 dollars per tonne by the midterm of next year, because, the giant miners are planning on to increase their production, and further digging up the supply glut,when the demand for the commodity is slowing down.