Iron ore in three months will cost $ 70 per ton - Analytic's opinion

Iron ore, selling today at a 16-month maximum, will fall at a price of more than 50% to the lowest level from 2009, said the market analyst from Sydney Tom Price. After China increases its own production of iron ore raw materials, the world prices for it will double - up to $ 70 per ton, he says.

In recent months, a significant increase in demand and ore prices in recent months will push the Chinese leadership to resume production at previously stopped mines and develop new deposits, increase the extraction of iron ore raw materials in China by 100 million tons per year.

“We expect a greater price correction in the third quarter of this year. We observe too much an increase in the price of iron ore. As of February 20, iron ore raw materials with a 62%iron content in the Chinese port of Tianjin costs $ 158, $ 90, which is the highest rate since October 2010, ”says Tom Price.

“Ruda prices can fly up a little more in the short term,” Price emphasizes, “this will be associated with the consequences of a hurricane and the season of tropical cyclones in Australia, which lasts until the end of March, but then the fall will be released.”

Meanwhile, the forecasts of Mr. Price for today are the most pessimistic. Westpac analysts in Deutsche Bank, although they share the point of view of volume, they think that the lower limit for ore will be the price of $ 110/ton.