Iron ore prices hit new five-year highs of nearly $US130 a tonne this week, and they could rise further in the wake of shortages caused by the dam disaster in Brazil and production outages from cyclones here.
However, Australia's top resources analysts are predicting that the good times are unlikely to last, with the near doubling in prices so far this year tempting higher cost producers like China, Indonesia and Malaysia to come back into the market.
They also warn that the headwinds from the trade war between the US and China are also weighing on the Chinese manufacturing industry.
The latest deadly dam disaster in Brazil in January left more than 240 people dead.
The tragedy saw several mines belonging to the world's biggest iron ore producer, Vale, closed down as Brazilian authorities launched multiple investigations.