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Africa may become dominant force in iron ore prices

It is reported that Africa's iron ore will develop rapidly and impact the international market and iron ore prices dramatically in the next seven years.

Experts forecasted that iron ore prices will fall back to US$80/ton from current US$150/ton. If the output of iron ore in Africa becomes mainstream products, iron ore prices may even fall to US$60/ton. China has actively developed the reserves in these areas and may become the dominant force in the iron ore pricing.

Meanwhile, western countries lack interest to develop Africa. Iron ore giant BHP said they are not optimistic about the so-called emerging African iron ore suppliers, as there's simply no ports and infrastructure in Africa, unable to compete with the Pilbara. African iron ore are far away from the coastline and really cost a lot of effort if for export. And political instability in Africa may also weaken the prospects for ore exports.

However, in fact, many analysts predict that iron ore prices will fall along a large number of iron ore flooding into the market by 2014.