According to The Australian, in his last quarterly report for commodity markets the world Bank expects iron ore prices are expected to decline this year to 46% due to the increase in raw materials production in Australia and Brazil.
Metal prices are forecast to decline by 17% in 2015 in connection with the increase in new production capacity and slowing demand growth in China, the report said.
The largest decline is expected for iron ore, which will be reduced by 46% due to significant increase in supply from Australia and Brazil. Tin prices will fall by 30%.
The Bank said that the metals market is regulated by the closure of costly operations and reduce investment.
Risks of metals price include slower demand in China and the stricter environmental regulations, says the Bank.
Steel production will decrease in China, although it is possible its a small increase.
Overall, the world Bank predicts reduction of prices on all major commodities in 2015, mainly because of excess supply.