The price of iron ore has taken another hit and is trading at a new six-year low.
Iron ore for immediate deliver the port of Qingdao in China is trading at $US53.14 a tonne, the lowest level since 2009.
The price of iron ore has now fallen more than 60 per cent since the start of 2014, with analysts stating a bounce is not expected until next year.
The price slump comes as Morgan Stanley predicts seaborne supply will exceed demand by 55 million tonnes this year.
Last week FMG founder and chairman Andrew Forrest called on major producers BHP Billiton and Rio Tinto to cap production in order to usher in a price increase.
Forrest was quickly criticised for his comments by Treasure Jo Hockey as well as the Australian Competition and Consumer Commission which linked his suggestion to cartel-like activity.
Rio Tinto’s CEO Sam Walsh also weighed-in, labelling Forrest’s plan as a "harebrained scheme".
"I have no idea what was going through Andrew's mind at the time he raised the issue,” Walsh said.
“We absolutely do not support it. We believe in fair and open trade.”
Walsh said mining was a cyclical industry and that Chinese customers also took umbrage with Forrest’s comments.
As the lowest-cost producers in the world, Rio and BHP have been accused of pushing iron ore into an oversupplied market in order to deliberately keep the price of the commodity down.
Last week Western Australian Premier Colin Barnett said the strategy being employed by the pair was the “one of the dumbest corporate plays” he has ever seen.
"The two big ones in Western Australia and the Brazilians have been putting too much iron ore into the market and they've precipitated a continuing downward trend in iron ore prices,” Barnett said.
But both major miners vehemently deny they are working in concert to keep prices low.
"There have been a number of comments about whether Rio colludes with others. Well, let me assure you, we absolutely do not," Walsh said.