"A commodity analyst predicts iron ore prices will almost halve over the next two years.
Alan Heap, Managing Director of Citi Investment Research has told a global conference in Perth the iron ore market is entering a long period of over-supply, which will push prices down.
Contracts between Australian iron ore producers and major buyers are up for renewal in coming months.
Mr Heap says the price drop will be caused by a combination of a fall in iron ore demand and an increase in production.
He says companies will need to work out ways to curtail production, as prices fall by 30 per cent this year and 20 per cent in 2010."
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