According to Marcelo Aguiar, the senior analyst of Goldman Sachs indicated that iron ore prices will stay at high levels in 2013 because of strong demand and shortage in China.
He added that the average spot prices of iron ore to China will remain at US$170/ton CFR in the short term and it will decrease slightly to US$165/ton CFR in 2012~2013.
Moreover, once the additional 40 million~85 million tons of iron ore production capacity is put into operation in Brazil and Australia, the average spot prices of iron ore will drop further to US$125/ton, Mr. Aguiar said.
( Source: www.yieh.com )