Bloomberg reported that iron ore prices have bottomed and will recover toward the end of this year as Chinese steelmakers increase output, according to Hebei Iron & Steel Company.

Mr Tian Zejun president of Hebei’s international trading unit said that Benchmark China bound iron ore prices will climb as high as $140 a metric ton in the H2.

Data from The Steel Index showed that iron ore for delivery in the Chinese port of Tianjin has dropped 24% to USD 120.60 since reaching a 2013 peak in February.

Mr Tian said that “By the end of this year iron ore should be quite stabilized. After that, it should move to a higher price because Chinese steel production will continue to expand. Prices have gained in recent weeks as buyers sought to replenish inventories who oversees annual iron ore purchases of about 50 million metric tons for the Shijiazhuang, Hebei province based steelmaker. Still, any rally this year will be moderate because of ample supplies and limited increases in steel prices.”