Iron ore prices are likely to fall in the next two months as they near their highest level since October 2011, discouraging buyers in China, according to Mark Pervan, Australia & New Zealand Banking Group Ltd's head of commodity research.

He said prices may decline $5-10 a ton to the "high $140s". "At about $155, we think there's slightly more downside risk." Iron ore has surged 81 percent from a three-year low in September to $157.20 a dry ton as China's growth accelerated and port inventories dropped to the lowest level in more than three years.