Iron ore likely to drop as prices near 16-month highs

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Publish time: 22nd February, 2013      Source: ChinaCCM
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Iron ore prices are likely to fall in the next two months as they near their highest level since Octo ber 2011, discouraging buyers in China, according to Mark Pervan, Australia & New Zealand Banking Group Ltd's head of commodity research.

He said prices may decline $5-10 a ton to the "high $140s". "At about $155, we think there's slightly more downside risk." Iron ore has surged 81 percent from a three-year low in September to $157.20 a dry ton as China's growth accelerated and port inventories dropped to the lowest level in more than three years.