Goldman Sachs & Partners Australia Pty raised its forecasts for iron ore prices from 2012 to 2015 on concern supplies from Brazil, the world’s second-biggest exporter, will be lower than expected.

Mr Malcolm Southwood a Melbourne based analyst for Goldman Sachs in a report said that the price of ore delivered to China from Australia, the biggest shipper of the steelmaking raw material, will average AUD 150 a metric tonne next year, up from a forecast of AUD 140 a tonne.

It also raised its 2013 forecast by 38% to AUD 165 a tonne, its 2014 estimate 50% to AUD 150 a tonne and its 2015 prediction 60% to AUD 120 a tonne.

Goldman cited “substantial delays” to new projects and expansions in Brazil, resulting in its estimate for exports in 2015 from the country being slashed by 150 million tonnes to 447 million tonnes. The export market is likely to remain in deficit in 2012 and 2013 before switching to a “modest notional surplus” the following year.

(Sourced from Bloomberg)