|Australia Struggles with Iron Ore Prices Crashing|
|by Tom McGregor||Mon, Apr 13, 2015, 02:42 AM|
Australia had enjoyed economic boom times with a global surge in commodity prices. Nevertheless, iron ore prices are collapsing.
The BBC News reports that, "Australia expects the plunging price of iron ore - its biggest export - to reduce revenue forecasts by A$25bn (£13bn; $19bn) over the next four years, Treasurer Joe Hockey has said. He (AFR) that his May budget would be based on the anticipated price of iron ore falling further, to $35 a tonne."
Hockey is quoted as saying that, "There seems to be no floor, we are contemplating as low as $35 a tonne."
According to the BBC, "Iron ore is currently trading at $47 a tonne - down from $120 a tonne in 2013. The drop has been blamed partly on falling demand in China. The estimated price of $35 a tonne is even lower than the conservative forecast from December's budget update, which assumed prices would fall to $60 a tonne."
Australia may likely endure an economic recession in the next few years ahead.
To read the entire article from the BBC News, link here: