The average price of iron ore next year is set to fall below $US100 a tonne, according to the government's commodities forecaster.
The Bureau of Resources and Energy Economics estimates an average price of $US97 a tonne in the 2015 calendar year, some 7.6 per cent lower than this year's expected average of US$105 a tonne.
The iron ore price has fallen around one-third so far this year on expectations that demand won't be strong enough to absorb new supply.
Overnight, the commodity was trading at $US93.30 a tonne, and has edged up from lows earlier this month of $US89 a tonne as fears of oversupply in China weigh.
In addition, Australia's earnings from resources and energy exports will rise at a markedly slower rate next fiscal year as weaker commodity prices offset a sharp increase in shipments to Asian buyers.
BREE said it expected earnings to rise 2.6 per cent to $201 billion in the 12 months to June 2015.
That compares to an estimated 11 per cent rise to $196bn in the year ending June 30.
Falling commodity prices have prompted many mining companies to shelve or scale back new investments.
Still, exports of raw materials like iron ore, used in steelmaking, are forecast to increase as mining operations planned when prices were high finally enter production.
The bureau estimates iron ore shipments, much of which are destined for Chinese steel mills, will increase 13 per cent over the next year.
Shipments of uranium are expected to rise 19 per cent, while exports of liquefied natural gas are forecast to increase nearly 14 per cent.
source: The Australian
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