Ships waiting to be loaded are seen near piles of iron ore and bucket-wheel reclaimers at the Fortescue loading dock located at Port Hedland, in the Pilbara region of Western Australia in this December 3, 2013 file photograph.
Ships waiting to be loaded are seen near piles of iron ore and bucket-wheel reclaimers at the Fortescue loading dock located at Port Hedland, in the Pilbara region of Western Australia in this December 3, 2013 file photograph. REUTERS/David Gray/Files Reuters

Based on the movement of iron ore prices in the global market, mining giant BHP Billiton (ASX: BHP) forecast that the price of this key-steelmaking ingredient would not breach $100 per tonne.

Twelve months ago, the price of the commodity was $135. Now, it has gone down to $70, affecting negatively the junior miners that produce iron ore at higher prices.

The bigger ones, though, could still profit because of the lower cost of production.

"I've learnt never to say never and there's always short-term variations, but I think that if you use basic economics ... certainly $100 seems high," The Age quotes BHP President of Iron Ore Jimmy Wilson.

He added, "It's hard to see that significant bump [in demand] that we've seen coming from China happen again."

Besides the lower price, BHP General Manager for Iron Ore Marketing Alan Chirgwin forecast slower consumption by China of steel in 2015, ranging to a growth of only 0.5 to 1.5 percent.

Here's what competitor Rio Tinto (ASX: RIO) has to say about iron ore prices.

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