Iron ore prices are likely to remain at the current level or move up in the coming months on the back of supply issues in the mining sector, coupled with global cues where also prices are trending up, say market participants.

They said despite the subdued steel demand, which had pulled down prices of iron ore in the last three quarters, iron ore prices will remain firm at the current level.

"Iron ore prices will remain firm in the coming months, mainly due to supply issues faced by the mining industry. Also, domestic prices are likely to take cue from the global prices which are also rising since the last two months," Federation of Indian Mineral Industries (Fimi) vice-president Basant Poddar told PTI today.

An Angel Broking report said global iron ore prices have increased since June, and are currently in the range of USD 130-140 per tonne.

On the domestic front, the brokerage firm noted that prices have dropped in the last three quarters due to subdued steel demand but noted that they will not drop further as steel prices have risen from this month.

"We do not expect iron ore prices to slide meaningfully from the current levels given that steel prices have risen from September," the brokerage report said.

Poddar of Fimi also said not only steel prices are rising but also delay in opening of mines in Karnataka and the complete mining ban in Goa would support higher prices.

According to another analyst with a brokerage firm, ore prices will also get support from the recovery seen in China, which will push up exports from the country.

Meanwhile, market watchers also pointed out that due to supply constraints, some steel firms in the Western region are importing the commodity.

"Some players in the Western region are importing due to lower prices compared to getting the ore transported from producing regions in a supply constrainted environment," Poddar said, adding unless supply issues are addressed, the country may import over 5 million tonnes in this fiscal.