Miners see iron ore woes as temporary

The recent drop in iron ore demand is only temporary and the industry will soon return to full strength, say managers at Fortescue Metals Group, Centrex Metals, and Gindalbie Metals

In its annual report Centrex chairman David Klingberg said the company had projects that were expected to last over 20 years, and while there would be fluctuations in the market there was still underlying demand for iron ore.

"Over this period we would expect a number of cyclical swings in commodity prices, both up and down," he said.

"Over time, the demand for steel and iron ore will be largely determined by population increases and increasing urbanisation in developing countries."

"These trends provide sound fundamentals for long term iron ore pricing."

Fairfax Media reports Gindalbie chairman George Jones said the iron ore price was already on the rise.

"It will flatten out and in my opinion it will continue to improve and I honestly see a long-term iron ore price of around the $US120 mark," he said.

Jones was joined by FMG CEO Nev Power in predicting a rebound in the market as higher cost Chinese mines shut down.

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