Steelmaker Arrium is looking at ways to further cut costs after suffering a slump in iron ore sales.
Arrium shipped 2.13 million tonnes of iron ore in the December quarter, down 35 per cent from a year earlier.
The average price received for its iron ore also fell by about $US11 a tonne from the September quarter to $US37, and by $US27 compared to the final three months of 2014.
Arrium's total export sales were 4.21mt in the half year to December 31 and the company expects full year sales to be about 9.0mt.
In its quarterly update on Thursday, Arrium said it had substantially reduced capital expenditure, but signalled more spending cuts could be on the cards.
"In response to the recent significant decline in iron ore prices, Arrium is working on options to further reduce costs and cash expenditures, including reviewing the business mine plan," it said.
Arrium, formerly known as OneSteel, has been hit hard by the plunge in iron ore and steel prices in the past year.
It delivered a full year loss of $1.9 billion for 2014/15 after being forced to take asset impairments and restructuring costs.
The company announced last October that it was looking to make $100 million in cost cuts at its steelworks in Whyalla, South Australia.
It has since cut about 250 jobs there.
Shares in Arrium were steady at 4.6 cents at 1235 AEDT. The stock was worth more than $6 in 2008.
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