The World Bank forecasts that all main commodity price indices will decline in 2015, owing to abundant supplies and, in the case of industrial commodities, weak demand. The outlook is particularly pessimistic for metals prices, which are now projected to decline more as a result of capacity increases and slowing Chinese demand. The largest decline is expected for iron-ore, where a 46% slump is anticipated, owing to new low-cost mining capacity coming on line, mainly in Australia. BHP Billiton reported a 13% increase in iron-ore production to a record 254-million tons for the year to June 30, while South Africa’s leading iron-ore producer Kumba Iron Ore has indicted that it is targeting a break-even cash iron-ore price of $45/t.