IO price looking stable for return of PLV."FORTESCUE Metals...

IO price looking stable for return of PLV.

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FORTESCUE Metals chief executive Nev Power predicts the iron price will hover between $139 and $140 per tonne in the short term because of low iron ore stocks.

Australia's third largest iron ore miner says the commodity will then trade between $120 to $130 a tonne for the foreseeable future, preventing a repeat of last year's scare when the iron ore price tanked.

"We will have some fluctuations and in the short term I see this sort of price level of $139, $140 a tonne continuing because there are very low iron ore stocks," Mr Power told ABC's Inside Business program on Sunday.

He said steel stocks in China were relatively high but they were not increasing significantly and iron ore stocks were quite low.

"While there is some potential for a correction in steel production, it would only be minor and supply/demand balance is there in iron ore so there aren't the same factors that would create any significant drop in the iron ore price," he said.

He expects China's steel mills to keep producing 2.1 million to 2.2 million tonnes of steel a day.


Read more: http://www.news.com.au/business/breaking-news/fortescue-predicts-140-iron-ore-price/story-e6frfkur-1226625313241#ixzz2RCL949yY