MarketWatch quoted a leading analyst as saying that global iron ore prices will remain high through 2013 as the market will remain in deficit due to continuing high Chinese demand.

Mr Marcelo Aguiar Brazil based analyst with Goldman Sachs said at a Brazilian Mining Institute mining congress that prices will average USD 170 per tonne delivered to China falling slightly to USD 165 a ton in 2012 to 2013.

He said that prices should then fall to an average USD 125 a tonne in 2014 after around 40 million tonnes to 85 million tonnes of new iron ore annual output capacity is brought into production mainly by Brazilian and Australian miners.

Mr Aguiar said Global demand for the steelmaking ingredient will grow by around 67 million tonnes to 89 million tonnes annually between 2011 and 2012.

(Sourced from www.marketwatch.com)