Forbes reported on the factors affecting the price of iron ore.

As quoted in the market news:

In terms of supply yes, there are a lot of projects coming online. But the swing producers seem to be the Chinese ones and unless just every project comes online it’s unlikely that prices will go below $120 per tonne. Assuming demand holds up of course: and there the big determinant is the urbanisation of China. As long as that continues then steel demand will hold up and thus so will iron ore prices.

Click here to read the full Forbes report.