According to Mr He Peide analyst of UBS global raw materials, the commodity price in Q3 is bearish, but is likely to back on track in Q4, especially the price of iron ore.
Mr Peide said that "The iron ore price is going to double in the following years. Two reasons could be put down upon the bearish looking for price in Q3: First, US dollar will appreciate after the completion of QE2. Second, the economy issue of European debt hasn't been settled.”
But the US economy is likely to rebound from the weak situation in Q4, plus the soaring demand from China, the global commodity price will be buoyed. He is positively looking at the prospect of iron ore. Apart from the consumption of China, many other impetus have support the iron ore price, like the dominance from the three mining giants.
Moreover, India and Iran are considering levying higher export duty. Coupled with the increasing demand from India, the global iron ore price is likely to double in the following years.
(Sourced from Umetal)