Iron ore price keeps falling

The price of iron ore has retreated for the fifth day in a row.

After falling to just below $US70 a tonne last week, the commodity finished the last offshore session at $US67.90 a tonne.

In December iron ore fell to five-year lows of $US65.70, and some analysts predict it won’t be long before this level is reached again.

Former Morgan Stanley strategist Gerard Minack told Fairfax Media he expects the price of iron ore to drop to half of its current price.

“In the boom all the other commodities went up six- or sevenfold, while iron ore went up 15 times,” Minack said.

“So, sure, it’s halved already, but it has further to go.”

Some iron miners are cutting jobs and closing operations to deal with the price drop – which is 40 per cent lower than this time last year.

CitiGroup expects the iron ore price will average $60 a tonne in 2015 and 2016.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.