This is part og the Commonwealth bank mining analyst report....

This is part og the Commonwealth bank mining analyst report. Maybe high prices will have a delay factor.

Iron ore prices continued to drift lower as Chinese steel mills refrain from purchasing seaborne iron ore cargoes. Mills have been reluctant to buy seaborne iron ore given that Vale have not officially cancelled or amended long term iron ore supply contracts with them. Steel mills are also looking to draw down on their iron ore inventories and then port stocks, before looking to the seaborne market.

We still expect the benchmark iron ore price to spike to $100 a tonne on expectations that markets eventually price in around 70 million tonnes per annum of supply disruption in iron ore markets, equivalent about 4.5% of seaborne supply.

The response by steel mills though suggest that an iron ore price spike may be delayed to March.