Global commodities investment fund BlackRock Inc said iron ore prices are unlikely to rise much more after tripling in the past year adding that a recent rally in mining company stocks is not overdone.

According to Mr Evy Hambro MD of BlackRock, the price of iron ore, used in making steel, has jumped to USD 170 to USD 190 per tonne from a recent low of USD 60, mainly pushed up by demand from China but that should be the peak.

He said that "Iron ore prices are unlikely to go much higher. It has come back to the 2008 peak.”

He added that "The iron ore market is in a very strong bull market right now. It is driven by Chinese demand. We also see higher capacity utilization in the US and European markets.”

Mr Hambro's view adds to a range of forecasts on the iron ore market, with some seeing a possible supply glut after a surge in new production and others forecasting no end in sight for rising prices.

Traders in China said last week that iron ore could reach USD 200 per tonne because of strong demand, while a Reuters technical analyst sees the possibility of USD 210 in the next three months.

(Sourced from Thomson Reuters)