Iron Will Continue Trading at between $120 and $200 per Ton in the Short-term Predicts Analyst at Global Partners Securities.

FOR IMMEDIATE RELEASE
New York, New York, United States of America (Free-Press-Release.com) December 4, 2011 -- But the market for the key ingredient for steel manufacture is expected to grow as Asia builds up its infrastructure and Western steelmakers stagnate, Alton Davison, Global Partners Securities a senior commodities analyst. "For the bulk of this 2011, the price was steadily in the neighborhood or $180," he said. "I don't believe that 2012 will see iron break $200 or dip below $120. I’d describe the outlook as guardedly positive."

Davison went on to address the global factors driving the price of iron ore, "In both the States and Europe, the market has more or less hit a ceiling. Western steel production is hovering around 17 percent lower than it was at prior to the ongoing economic problems. Until we see a near full recovery, production is unlikely to significantly increase, as the need for steel is inextricably linked with construction and public infrastructure.”

"So few western countries have adequate room for major growth. While we don’t see iron ore gaining a lot of ground in the west, it’s also hard to see it dropping terribly far, either," he said. "China, on the other hand, has ample room for growth, and we really see the eastern market propelling the growth of iron, and its principle by-product, steel, in the near future. This is what makes us optimistic, albeit cautiously so, about the future of the industry. After all, both production and consumption are still trending up. Make no mistake, iron ore is still part of our portfolio, and one of its advantages is that, even in the short-term, its downside is relatively minor.”

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