As China continues to urbanize, iron ore demand will remain robust, with prices staying in the $130 to $140 a tonne range for the next couple of years, says the executive VP of CFH Capital.
Now may be the time to take another look at iron ore companies as an investment, with many making major gains over the last 3 months.
Iron ore has had a pretty good run this year, but the market is awaiting an onslaught of new product from Australia, Brazil and India, which is likely to push the price down.
The world's second-largest iron ore producer is ramping up production and lowering its costs, which could threaten smaller producers of the steelmaking commodity.
Iron ore consists of rocks and minerals from which iron can be extracted.
The Chinese steelmaking sector is improving, which has put upward pressure on iron ore prices.
The move is being seen as a further indication of the Chinese government's willingness to loosen its control over the iron ore trade.
INN Senior Editor Andrew Topf interviewed the president of Hebei Iron & Steel Group.
Costly iron ore projects are moving forward despite the metal's lagging price.
Swedish state-owned LKAB has enough confidence in the long-term prospects of iron ore to move 18,000 people to make way for a huge underground iron mine expansion.