The price of iron ore is in a free fall, with some analysts predicting the price could fall to lows of $US40 a tonne.
Iron ore for immediate delivery to the port of Tianjin in China is trading at $US51 a tonne, down 3.6 per cent from yesterday’s close of $US52.90 a tonne.
The commodity has now lost more than 28 per cent since the start of the year, and more than 60 per cent since the start of 2014.
To put the price dive into perspective, at the start of March, iron ore was trading at $US60 a tonne.
The fast retreat of the commodity is showing no signs of slowing, with predictions the worse is yet to come.
A new report out by Deutsche Bank warned iron ore could drop below $US40 a tonne.
Meanwhile Westpac senior economist Justin Smirk predicted the price of iron ore will reach $US47 a tonne.
At a low of $US50 a tonne, only major miners BHP Billiton and Rio Tinto are still making money. According to SMH, the pair have a breakeven price of $US35 per tonne and $US33 per tonne respectively.
But FMG’s breakeven price is said to be $US57 per tonne, while junior miners are faring even worse.
BC Iron has a breakeven of $US61 per tonne, while Atlas Iron's is $US64 per tonne.