Heraldsun reported that there is growing evidence of a looming glut in Australia's biggest export product, iron ore. And the price of iron ore will plunge to AUD 80 per tonne by 2015, piling intense pressure on companies such as Fortescue Metals Group.

Analysts at the investment bank have forecast a glut in iron ore as producers from Rio Tinto to Brazil's Vale increase production. Supply of iron ore is expected to hit record levels just as growth in China drops to the slowest pace in a generation.

Goldman Sachs said that the surplus will reach 82 million tonnes next year the most since 2008 and the glut will keep growing through to 2017. But the 82 million tonne surplus anticipated by Goldman compares with projections of 27 million tonnes by Deutsche Bank and 8.8 million tonnes by Morgan Stanley.