Wood Mackenzie, China's commodity analysis agency, announced on July 20 that Chinese construction spending won't show a slowdown until 2020. In addition, the iron ore demand won't drop greatly by 2015.
Wood Mackenzie also noted that the strong growth in demand boosts the iron ore production last year, but China needs to import 1000 billion mt iron ores due to the domestic high cost and the lower quality of domestic iron ore.
Accordingly, it is anticipated that the spot prices of iron ore will remain the range of $150/mt by 2015.