Wood Mackenzie (the world's largest energy consultancy company) believes that supply and demand of iron ore will gradually balance in the next five years, and iron ore prices will gradually decline. In 2011, the price of 62% iron ore was approximately US$159/tonne (China C&F), which was approximately US$157/tonne in 2012 and US$155/tonne in 2013, and would be only US$140/ton by 2014. .

BHP Billiton of BHP Billiton Australia also believes that supply and demand of iron ore will tend to balance within the next 12 months, and supply will exceed demand in 2013-2014, so prices will decline. According to BHP Billiton's analysis, the main reason for the fluctuation of the iron ore market in the world is that China has slowed down its economic growth rate, and the demand for iron ore has not increased; however, China is the country with the largest demand for iron ore in the world. Although the import volume has decreased, it does not It will have a great impact on prices. It is expected that prices will remain at around US$120/ton, and the world mining industry will remain stable.

In the past two years, the prices of major raw materials for steel production have remained at a high level, which has greatly stimulated the scale of investment in iron ore mining projects. Brazil's Vale, BHP Billiton and Rio Tino have expanded their production. And new projects are particularly significant.

While the supply of iron ore in the world has grown relatively rapidly, the proportion of steel production companies has decreased. China is the world’s largest steel producer. In 2011, China’s steel stocks were too large, and sales prices fell sharply. Many steel companies shut down their furnaces and reduce their production scale. Wood Mackenzie analyst Patrick predicts that China’s average steel production will fall from double-digit growth in the past decade to 5% over the next five years. At the same time, countries such as Europe, Japan, Australia, and Canada also closed many steel mills and have not been able to resume normal production. Various factors will directly lead to a drop in iron ore prices.

Patrick believes that 70% of China’s iron ore depends on imports. By 2030, China’s total iron ore imports will account for 85-90% of total consumption. The decline in international iron ore prices partially compensates for the slump in Chinese steel sales. The loss caused. BHP Billiton predicts that in the next 7 years, the world's iron ore production will need to increase by 100 million tons per year to meet the needs of the Chinese market. Australian Resources and Energy Economics also believes that global demand for iron ore will increase by 3.5 billion tons in 2030. Based on the sharp increase in the demand of Chinese steel producers, the country’s exports will increase by more than 50% in 2016-2017. .

In addition, Wood Mackenzie coking coal analyst Jim Truman also predicted that as the main fuel for steel production, the price of coking coal will remain at US$200-215/tonne in the next few years. The reasons for the high coking coal prices are the floods in Australia and the large number of Chinese demand. However, with the gradual decline in the price of iron ore and the expansion of the production scale of coking coal companies, coking coal prices will gradually decline in the next few years. According to Jim Truman, the price will remain at around US$200/tonne (FOB).