Iron ore prices have slumped to below 46 euros a metric ton, and with the price forecast to dip below 36 euros the commodity looks to be stuck in the bargain basement for some while to come.

It follows on the back of last year’s price collapse, and is mainly due to overproduction and various factors meaning producers are not cutting supply to bolster the price.

Global consumption will also fall this year for the first time since 2009. Mining shares fell on the news, but they continue to increase output, with supply exceeding demand by 55 million tons this year.

By 2018 analysts say this imbalance could be more like 184 million tons, especially if weak demand in China, which consumes two-thirds of the world’s seaborne iron ore, persists.