A senior in mining giant Rio Tinto said on Tuesday that the company expected that with the new supply into the market, the future iron ore prices will slow down, recovery is not expected annual pricing model.

President of international operations of Rio Tinto AlanDavies in MetalBulletin iron ore sidelines of the conference interview with Reuters, said the demand outlook is strong, but the corresponding supply. From the previous point of view, the current high price of iron ore, but with the new supply launched, we expect the medium term, prices will slow down. "

Mining advisory body RawMaterialsGroup (RMG), iron ore supply and demand may be reached within two years of balance, timing than previously forecast later in the suppression of new projects, political risk and logistics problems.

RMG expected long-term iron ore prices of about 100-120 U.S. dollars per ton, while the short-term volatility is likely to rise this week's iron ore offer for about $ 140 per tonne.

One of the founders of the agency's MagnusEricsson said China's economic growth will further slow down, but will continue to promote the demand for iron ore.

The chief executive of steelmaker Pohang Steel (POSCO) and CVRD, Rio Tinto competitors claim likely to return to the annual iron ore pricing system, Davies commented to respond, said he expects that this will not happen.

"I think it will not return to the past," he said, "If the iron ore to return to long-term pricing mechanism, I personally would be very unexpected, because our customers want to compare the short-term pricing mechanism, which is what we have achieved."

Davies said the Rio Tinto iron ore in Australia Pilbara and Guinea Simandou two major mining production costs are lower relative to other projects.

"We forecast the next seven to eight years, the manufacturer needs to yield 700 million tons of iron ore to meet the demand, in which the proportion of about 25-28%."


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