According to uncertain market situation and global economic downturn, RIO Tinto iron ore chief executive expects iron ore contract prices will fall this year.
Furthermore, some analysts think the market will go worse and forecast iron ore price will drop up to 50 percent although he totally disagreed with this comment. He thinks the forecast will be on 30 percent fall this year and 20 percent next year at most.
He adds ”nothing changes for the deal with Chinalco on negotiations of iron ore price and the only thing to do is waiting for the transaction finished now”. In the beginning of annual iron ore contract price negotiations, most analysts saw badly and forecasted tremendous price reduction because of a global slash in steel demand. Source:Yieh.com