Australia's iron ore exports reach record high

Australia's iron ore exports reached an all time high in the month of June, as miners in the largest shipper increased low-cost output, hurting the outlook for prices as steel production slows in China.

The Pilbara Ports Authority (PPA) which operates Port Headland, the world's largest iron ore port in Western Australia, on Friday said iron ore exports in the month of June hit a record 38.3 million tonnes, a 14 percent increase from June 2014.

The PPA said this is an overall export increase of 21 percent in the past year.

Accusations that major miners flooding the market, driving down prices have been renewed as the spot price for the commodities immediate delivery dove to 55.80 U.S. dollars per tonne overnight.

On Wednesday, Australia's Department of Industry and Science sharply cut its price forecast for 2015 from 60.40 U.S. dollars per tonne to 54.40 U.S. dollars per tonne.

However, many analysts believe it could tumble well below 50 U. S. dollars.

Rio Tinto chief executive Sam Walsh shrugged off the pessimistic iron ore forecasts, saying it was important for the mining giant to see its 10-year expansion come to fruition, at a dinner in London overnight.

"The world, as it continues to urbanize and industrialize, is going to need what we supply," Walsh said.

Despite accusations that Rio Tinto and other global miners have been flooding the market and driving down the price of iron ore, Walsh said the current downturn was not unique.

"There's always a tendency when you are looking down a trough to be negative about it, to look at all of the pessimism. But you can look at it and say it's sowing the seeds for the next recovery, " Walsh said.

Australian iron ore miner Atlas Iron has confirmed all three of its Pilbara iron ore mines are running, less then three months after suspending all mining and trading in shares when the iron ore price plunged in April.

Atlas Iron chief executive David Flanagan told reporters on Thursday that Atlas's dramatically improved cost base of 50 U.S. dollars per tonne breakeven price would underpin strong cash flow generation and a more sustainable business.

"With Mount Webber mining operations now back underway, Atlas is on track to grow production over the remainder of 2015 with significantly improved margins compared to operations pre- suspension, thanks in large part to the support of our key contractors and suppliers," Flanagan said.

It was estimated Atlas Iron's cost base price was 60 U.S. dollars per tonne when operations were suspended in April. Endi