Australian Financial Review reported that the world's biggest miner BHP Billiton says iron ore prices are unlikely to rise above USD 100 per tonne again as the commodity trades at five year lows amid a supply glut and weak Chinese demand.

Iron ore prices have slumped some 40% this year as output from resources giants such as BHP, Rio Tinto and Brazilian mining powerhouse Vale increases, hurting higher cost producers.

Mr Jimmy Wilson the miner's iron ore chief said that "I've learnt never to say never and I think that there's always short term variations. But, you know, I think that if you use basic economics and look at inducement pricing certainly, you know, USD 100 feels high going forward. It's hard to see the sort of significant bump that we've seen come from China happen again."

The comments came as BHP marked the Anglo Australian firm's shipment of its one billionth tonne of iron ore to China. BHP shipped its first iron ore from Port Hedland in Western Australia to China in 1973.

Mr Alan Chirgwin, BHP's general manager for iron ore marketing, said that the company expected China's growth in consumption of steel in which iron ore is a crucial component to slow to 0.5% to 1.5% next year.