The price of iron ore has slumped to a six-week low, hitting $US57.40 a tonne, according to The Steel Index.
This is a 7.1 per cent drop from last month’s height of $US61.80, The Australian reports.
Analysts have been expecting a decline from the $US60 a tonne mark, highlighting that the boost was due to China’s planned infrastructure investment.
It has been falling toward the estimated $US55 a tonne suggested in the May budget.
However, it still remains higher than its $US40 mark at the end of last year.
The increased iron ore shipments from Port Hedland have indicated a strong supply, reinforcing predictions of lowered prices until the end of the year, according to Bloomberg.
Figures from the Pilbara Ports Authority showed exports at a total of 42.9 million metric tons in August compared to 38.7 million in July. Shipments to China also increased to 35.4 million tons compared to 32.5 million the month before.
Analysts are forecasting an increase of low-cost supply, which will affect iron ore prices.