MarketWatch quoted analysts said emerging market demand for steel and iron ore will be the main drivers in the coming years with China the most important.

Mr Jim Lennon Macquarie analyst speaking at a Steel Business Briefing seminar said for iron ore global demand growth is important but it's really down to China.

Mr Lennon forecasts China demand for iron ore to reaccelerate in 2011 with the price between USD 150 a metric ton and USD 200 per tonne in the next two years.

Analyst Mr Paul Gray from Goldman Sachs and Partners Australia Pty Ltd said "Without China we're in trouble the world steel production ex-China is still languishing."

Mr Gray forecasts steel production growth to average 4% over the long term. He said iron ore prices will rise in 2011 but he expects the market to be in oversupply by 2014 due to new output from areas like West Africa.

He added that "The seaborne iron ore market has grown an average of 15 million tons a year and we expect doubling of that rate over the next five years."

However, Mr Mark Berrisford-Smith HSBC economist warned that while China got its economic growth right so far that doesn't rule out the risk that it may falter.

(Sourced from MarketWatch)