'No surge in sight for international iron ore prices'
Analysts at an industry conference see the commodity heading lower or remaining at present levels, despite recent bounce
International iron ore prices will at best be steady and likely move lower next year despite a sharp rebound in the past two months, according to industry executives and analysts.
"I believe next year's prices will be lower, as to what degree, it will depend on how bad next year's global economy will be," China Metallurgical Industry Planning and Research Institute president Li Xinchuang told an iron ore panel discussion of the China Mining Congress.
Li said that if the trade protectionist measures by Western developed nations against mainland exporters were sustained, they could worsen the global economic slowdown next year.
Growth on the mainland, the world's biggest consumer of steel and iron ore, would be sustained by pro-growth policies of the new leadership, which would be installed in March, he added.
China imports about 60 per cent of its iron ore needs.
John Johnson, chief executive of London-based metals sector market researcher and consultancy CRU, is more optimistic. Given global and China's iron ore demand growth has slowed in recent years, he expects supply to play a bigger role in determining prices.