Bloomberg reported that iron ore will drop to USD 75 per tonne in the H2 of next year as rising low cost supplies from Australia and Brazil worsen a global glut and the slowdown in China’s property market curbs demand growth.

CLSA Limited said that the commodity used to make steel will average USD 80 per tonne in 2015, down from an earlier full year estimate of USD 85 and USD 75 per tonne in 2016 and 2017, down from estimates of USD 80 for both years.

By quarter, prices were seen at USD 90 in January to March next year, USD 80 in the Q2 and USD 75 for the final two three month periods.

Iron ore lost 35% this year as producers including Rio Tinto Group expanded low cost supplies, pushing the market into a glut. New-home prices in China, which buys about 67% of seaborne ore, fell in July in almost all cities that the government tracks, boosting concern that economic growth is faltering.

Singapore based Roper, who’s covered the market since 2001 said that “The oversupply situation is only going to worsen over the next few years. The property-market slowdown in China looks increasingly serious for steel demand next year.”