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Iron ore prices may drop in 2012

It’s reported that the quotes of iron ore may drop in 2012 due to slow growth of steel production in Asia.

Australian Bureau of Economic Resource and Energy estimated that the the iron ore prices will drop to US$140/ton this year, down by 8.5% from USD$153/ton in a year earlier.

The institution also said that the increased export from Australia and Brazil is contrasts to the fact that China will not reach its predicted expansion on production.

China is forecasted to produce 731 million tons of steel this year, equals to 7% up by 2011.

On the other hand, Indian government’s ban on iron ore exports may help to stop the price decline. According to the institution, India will export 43 million tons of iron ore this year, decreasing by 32% from a year earlier.