While the falling iron ore price is expected to steal around $1.5 billion from the WA Government's budget, analysts say the industry will soon make a comeback.
In an investor note last week JPMorgan said the iron ore price would be on the rise in September due to recovering Chinese demand and declining stockpiles.
JPMorgan said a fall in Chinese steel production was also expected to benefit seaborne traders as the Asian powerhouse looked to buy product from cheaper overseas producers.
But while the market is expected to recover iron ore prices have been sliding since earlier this year, and last week hit their lowest level since 2009.
PerthNow reports because the Australian dollar is expected to stay unusually high, UBS predicts the fall will cost WA $1.5 billion in lost revenue.
Iron ore prices over the last 12 months:
Graph: Business Insider/ Bloomberg