[ferro-alloys.com] According to Fortescue Metals Group Limited,iron ore prices will remain strong as sustained economic growth in China, the biggest buyer, supports demand.

Mr Neville Power CEO of FMG said that “Prices will stay between USD 110 per tonne and USD 130 per tonne in the short to medium term.”

Mr Power said that “We see it continuing strong and growing at that 7 to 8 percent for the foreseeable future referring to the expansion of the Chinese economy. Growth of 7.5% is a very, very strong underlying growth number.”

The break even price at Australia’s third biggest exporter is in the low USD 70 per tonne.”

Data this month showed pickups in trade, manufacturing and industrial output that iron ore entered a bull market last month as China replenished stockpiles. While the country’s expansion slowed to 7.5% last quarter from 7.7% in the previous 3 months. China will reach the government’s 7.5% growth target this year and maintain that pace in 2014.