Australia has downgraded its iron ore forecasts citing concerns over weakness in the China’s steel market.

The government has slashed its 2015 forecast by 10 per cent, now expecting iron ore prices of $US54.40 a metric tonne.

Next year’s forecast is also reduced, to $US52.10.

Australia’s resources export earnings are estimated to have fallen by 11 per cent in the year through June, but a weaker Australian dollar may help lift earnings in the year ahead.

Source: SkyNews