RECORD low iron ore prices do not make the Esperance port's upcoming iron ore facility redundant, according to Yilgarn Iron Producers Association chief executive David Utting.

Mr Utting said slumping iron ore prices actually made Esperance port a more financially attractive outcome.

"Ironically, with iron ore prices down at record lows, Esperance port is more viable than Geraldton and Kwinana," he said.

"Geraldton and Kwinana cannot take cape sized vessels so you can save $10 per tonne on shipping through Esperance.

"I do believe the Yilgarn Esperance Solution (YES) is still viable, but there's no doubt that it will be more difficult."

In May this year, YES was named as the preferred proponent to design, build and operate the new Multi User Iron Ore Facility (MUIOF) at the Esperance port.

The facility would cater for the export needs of iron ore mining companies in the Yilgarn region of WA, intending to nearly double the port's iron ore handling capacity from the current 11.5 million tonnes a year to more than 20 million tonnes a year.

The MUIOF is still undergoing contractual negotiations with construction not yet underway.

Mr Utting expressed frustration at the slump in iron ore prices and said they could be attributed to noncompetitive behaviour.

"The low iron ore price is hurting us and the reason they're low is because BHP and Rio Tinto are overproducing and flooding the market," he said.

"They don't seem to mind shooting themselves in the foot by flooding the market, but while they do so they are holding a gun to smaller and higher cost producers' heads."

Mr Utting said in this circumstance, greater regulation of the market was needed.

"I believe it's a noncompetitive practice, designed to drive competitors out of business and essentially leave the Australian market in the hands of a cartel," he said.

"I believe it's a matter regulators should be looking at."

The deepest port in southern Australia, iron ore has been exported out of Esperance since 1995.

Esperance Ports Sea and Land was unavailable for comment.