Marcelo Aguiar, senior analyst at US-based multinational investment banking and securities firm Goldman Sachs, has stated that iron ore prices will remain at high levels in 2013 due to high demand and short supply in China, as reported by international media sources.
Average spot prices of iron ore to China will stand at $170/mt CFR in the short term and will decrease slightly to $165/mt CFR in 2012-13, Mr. Aguiar stated. After an additional 40-85 million mt of iron ore capacity in Brazil and Australia is commissioned, the average iron ore spot price will fall to $125/mt CFR in 2014, he added.