Australia has cut its iron ore price forecast for 2016, even as the key steel-making ingredient rallies.
The Department of Industry, Innovation and Science cut its forecast to $44.2 a metric ton from $45 a ton, in its quarterly resources report.
The forecast comes amid a rally in iron ore prices this year, with prices jumping well almost 30 percent year-to-date.
Still, although spot iron ore price averaged $48 a ton in the first half of 2016, this was a 13 percent decline from a year ago, the department noted.
"Despite the large movements in prices, the market fundamentals are broadly unchanged - demand growth is slow and the market remains well-supplied," the report said.