Metal scrap metal price dropped 3% on Tuesday, with prices at the same time falling by a third for scrap metal.
The price of scrap metal fell by 4.2% to $8.47 a tonne, according to the Australian Bureau of Statistics (ABS).
This is an annual rate of inflation, which is the price of metal scrap for a given period of time.
The ABS data shows the metal scrap market has been declining for the last year, which indicates a further tightening of supply and a tightening of demand.
ABS said it was expecting the metal market to contract for 2018.
Metal scrap prices are forecast to decline further in 2019.
Prices for all commodities fell on Tuesday.
Crude oil prices fell to $44.88 per barrel, down 1.1% on Wednesday from a previous close of $45.12.
Wholesale energy prices dropped 3.2%, down 2.6% on Monday from a close of £51.30 a barrel.
Energy prices are the price for the energy to be produced by the production of a particular amount of energy.
Gasoline prices dropped 2.9%, down 1% on a weekly basis from a price of £4.99 a litre on Tuesday and to £3.95 a litres on Wednesday.
Electricity and natural gas prices fell by 0.5%, down 3.6%.
Liquids fell by 6.3%, down 5.4% on average over the past 12 months.
The mining industry is likely to be hit hardest by the fall in the metal price.
Australian mining company Cairns Energy, which owns the Murray-Darling Basin, has warned that the drop in metal prices will reduce mining output by around 1% a year.
This could be a negative effect for mining companies like Cairn Energy because they need the cash to buy back shares in the industry.
“The drop in mining and related industries is expected to have a material impact on the value of the copper and iron ore industry in the Murray basin, and on the overall health of the Australian economy,” Cairnos chief executive officer Nick McAllister said.
While the mining industry may struggle, the coal mining industry could benefit, as coal prices have been increasing for several years.
Coal prices have fallen by 4% this year.