World prices for iron ore will fall to $ 140

It is expected to reduce the price of iron ore raw materials associated with the weekend week in China, reports Australia & New Zealand Banking Group Ltd.

The price may fall to $ 140 per ton of iron ore by the end of the first quarter of 2013, says the director of marketing research of the group Mr. Mark Mark Pervan.

As of January 30, 2013, the price of iron ore with a 62% iron content in the port of Tianjin was at $ 148.8 per ton. Meanwhile, today ore prices have risen a little ( +2.1%) and amounted to $ 152.50 per ton according to The Steel Index Ltd.

Iron ore prices are high today, writes Mr. Pervan. However, the record demand from Chinese metallurgy, caused by hopes for restoring the economy, began to noticeably weaken by the end of January.

The financial market for the second largest world economy will be closed within a week since February 11, 2013 in connection with the celebration of the New Year in the Chinese lunar calendar.

“Trade activity is already beginning to contract,” Mr. Pervan writes, “in addition, Chinese metallurgists, trying to reduce costs, try to buy more inexpensive domestic raw materials. However, a positive trend in the iron ore market will remain in the second quarter, after confirming data on the growth of China’s economy.”