Australia Will Need to Wean Itself Off Iron Ore Export Reliance
- Government predicts material’s price decline to be entrenched
- Demand from largest customer China falls in blow to Budget
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Australia will have to get used to being less reliant on iron ore, with government forecasts showing price declines for the steel-making material will trigger a steep plunge in its resources export revenue within two years.
Prices of iron ore, which have halved since May as demand from China plunges, are set to average below $100 a ton next year, the Department of Industry, Science, Energy and Resources said in its latest quarterly report released Thursday. The price is currently trading at around $112 a ton.