Fortescue Metals Group, Australia's third largest iron ore company, said on Wednesday that the iron ore price had bottomed out at 115 U.S. dollars a tone and that demand from Chinese steel mills is expected to be strong.

Fortescue said it received an average iron ore sales price in the September quarter of 160 U.S. dollars a tone, but noticed prices have fallen recently.

"We've seen the iron ore price now turn on the Platts Index back to 131 U.S. dollars a tone today and that shows the iron ore price has bottomed out at 115 U.S. dollars a tone and climbed back up," Fortescue Chief Executive Nev Power told reporters after the company's annual general meeting in Perth on Wednesday.

"So going forward, we would expect to see continued strong demand out of China and continued strong iron ore prices," he said.