From David Bassanese:
If you think the current rout in iron ore prices is bad enough, I have some potentially troubling news for you: by long-run historical standards, prices still appear relatively high.
The implicit assumption from both the Federal Government and commodity analysts in recent years was that “this time is different”. Almost everyone conceded that commodity prices would fall from their stratospheric heights at some stage, but most thought strong underlying demand from China would keep prices much higher than their previous historical average.