According to research and investing company Goldman Sachs & Partners Australia Pty Ltd, prices of iron ore, the key ingredient in steel will average USD 150 per tonne from 2012 to 2015.

From an earlier USD 140 per tonne estimate, Goldman Sachs & Partners Australia Pty Ltd raised its forecast based on expectations that Brazil output of the raw commodity will slide lower than expected in 2012.

Goldman Sachs & Partners Australia Pty Ltd said the substantial delays in the implementation of new projects as well as expansions on existing facilities in Brazil will lead the country exports of iron ore to fall by 150 million tonnes to 447 million tonnes in 2012.

According to The Steel Index iron ore for delivery dropped 1.8% to USD 134.80 a tonne recently. Goldman Sachs & Partners Australia Pty Ltd also raised its 2013 forecast of iron ore prices by 38% to USD 165 a tonne, 50% to USD 150 a tonne by 2014 and 60% to USD 120 a tonne by 2015.

The research and investing company said shortage of iron ore will remain in 2012 and 2013 before it adjusts to a modest notional surplus the following year.

(Sourced from community.nasdaq.com)