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Predictions iron ore price to remain steady despite increased production

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Publish time: 9th January, 2014      Source: ChinaCCM
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 resource analyst says despite significant increases expected in production from the state's iron ore miners, prices for the commodity should remain firm.

James Wilson from Morgans says up to 60 million tonnes of new iron ore is expected to come onto the market from West Australian miners this year.

The extra supply can lead to a reduction in price for the steel-making ingredient.

But, Mr Wilson says problems in major iron ore producing nations, and an increase in Chinese steel production, should see China take up that additional iron ore from WA.

"It looks like the steel production will keep up with demand for iron ore as well," he said.

"So it's still looking quite positive, however these things can change, as we have seen before and we keep a very close eye on the Chinese steel market."