Spot market iron ore prices could rise as high as USD 200 a tonne by the end of the year before falling back. Mr Roger Downey CEO of Brazilian iron ore miner MMX Mineracao e Metalicos SA at an event organized in Rio de Janeiro by CRU Group said that prices will remain firm for the next two years as demand for the steelmaking ingredient stays strong and new projects may delay bringing new capacity into production. Mr Downey said that after hitting the USD 200 a tonne mark, iron ore spot prices may then fluctuate under the USD 200 a tonne mark for the next two years and tension in the market should continue for as much as five years. Mr Downey said that the rising cost of obtaining capital for new investments in iron ore capacity may lead to delays at many of the 180 new iron ore mine projects currently being developed worldwide. New supplies are going to come onto the market later rather than sooner. According to global price providers, spot iron ore prices have recently fluctuated in the USD 160 to USD 170 a tonne range.

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