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FORTESCUE Metals Group is tipping the iron ore price will sit between US$110 and US$130 a tonne over the next two years.

Fortescue, the world's third biggest iron ore miner, predicts the price would be highly unlikely to fall below US$100 a tonne in the near term - the next two to three years.

Speaking at a tour of Fortescue's Kings operations in the Pilbara, chief financial officer Stephen Pearce said the miner's modelling put the price at US$110 to US$130 in the near term.

The estimate is in line with some analysts' forecasts. UBS recently raised its rating on Fortescue to buy from neutral, on the current strength of iron ore prices.

"With the iron ore price expected to average above $US100 a tonne out to the end of 2015 and the success of Fortescue in obtaining pre-payments for sales and infrastructure access, we now see Fortescue degearing comfortably and the market likely to ascribe a higher multiple to its earnings," UBS analysts said.

However, Credit Suisse is forecasting that iron ore prices will fall to $US115 by the end of the year and slide to $US90 by the end of next year.

- See more at: http://www.theaustralian.com.au/business/mining-energy/fortescue-stays-bullish-on-iron-ore-prices/story-e6frg9df-1226773466311#sthash.CmbxcDho.dpuf