Since this year, global iron ore prices had risen by 73% due to supply shortages. Australia official data predicted that the iron ore price will plummet by 50% by 2021.

The largest iron ore exporter in the world, Vale S.A., had suspended 93 million tons of production in January after a dam collapse in Brazil. Influenced by the storm, iron ore giants such as Rio Tinto and BHP Billiton in Western Australia had also cut their production. These factors led to a sharp rise in iron ore prices, reaching a five-year peak since January 2014.

However, supply tensions had begun to ease. On June 22nd, Vale's Brucutu iron ore mine resumed production. Iron ore exports from Brazil and Australia also began to grow. In terms of demand, Chinese iron and steel production had reached a high point and demand had begun to decline.

For demand declining and supply returning to normal levels, the Australian government estimated that the iron ore prices would reach an average of US$80/ton this year but would fall to an average of US$57/ton by 2021.