Vale Has 2nd Best Quarter for Iron Ore

The average realized price for iron ore was $105.58 per metric ton, up from $99.21 per metric ton in the second quarter. The average sales price of pellets was $149.66 per metric ton, up $2.73 higher than the previous quarter.

Stronger Chinese steel demand and a combination of low iron ore and steel inventories have influenced iron ore prices over the past few months said Vale. China’s crude steel output expanded 8.6 percent in the first nine months of 2013 while imports of iron ore grew 8.8 percent in the same period on a year-over-year basis. Vale expects iron ore to be around $130 per metric tonne in the fourth quarter.

TSI says ore forecasts vary

Reforms to be discussed by Chinese leaders next week are likely to support new economic growth in China said The Steel Index in its monthly outlook. According to TSI, iron ore price forecasts have varied depending on predictions of future ore supply. The forecasted surge in ore supply may be overblown according to HSBC which predicts supply growth of 3.7 percent in 2013, 5.5 percent in 2014 and 6.6 percent in 2015. Iron ore prices are, in general, expected to stay over $115 for the next two years. Australia’s Bureau of Resources & Energy Economics (BREE) in Australia revised its forecast for average spot iron ore prices in 2013 to US$125/tonne CFR China.