Government says drop in Chinese demand could spell very bad news for the industry. : The Australian government has painted a bleak picture of the iron ore mining industry's prospects in 2018, on account of lower demand from China. In its latest assessment of the global iron ore market, considered a major revenue earner for Australia, the country's government said Monday (8 January) that it expects iron ore prices to average $51.50 per tonne this year; down 20% from 2017. It attributed the slump in prices to rising global oversupply and a lower appetite from its leading importer – China.