Prime Minister Tony Abbott has backed an inquiry into possible "predatory" behaviour by iron ore miners, which is impacting on the Australian economy.
Iron ore is Australia's single biggest export earner.
Prices have halved since the last budget from $US90 ($A110.95) a tonne to $US48 ($A59.18) a tonne in the budget delivered on Tuesday, devastating the bottom line.
The Senate this week rejected a bid by independent senator Nick Xenophon for an inquiry, but there is growing support for a joint parliamentary committee to look at the issue.
"I think we do need an inquiry," Mr Abbott said.
"We do need to know the facts of what's going on here."
Mr Abbott said the impact on the economy made it all the more important to ensure there was no "predatory behaviour".
Australia's number three iron ore producer Andrew Forrest, founder of Fortescue Metals, has launched the Our Iron Ore campaign against multinational companies which he says are "choosing to oversupply the iron ore market in the medium term".
Treasurer Joe Hockey on Friday lamented that iron ore prices were not at $180 a tonne.
"It has a big impact on our budget bottom line," he said, adding that in the last 18 months he's had to write down $90 billion in revenue.
Brendan Pearson, chief executive of the Minerals Council, cautiously welcomed an inquiry but believed the iron ore market was operating in line with market principles.
"While the inquiry is arguably not the most effective use of parliamentary resources, it will shine a critical light on a number of false claims," Mr Pearson said in a statement.
He said it would also expose the folly of calls from Mr Forrest for the Australian government to remove his competitors' "licence to operate", to re-regulate commodity markets and to establish illegal cartel arrangements.
Australian Consumer and Competition Commission chairman Rod Sims last month said it seemed "misguided" to suggest BHP and Rio Tinto were engineering a fall in prices.
The export of Australian iron ore was valued at $74.8 billion in 2013/14.
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