According to the report, Goldman Sachs analysts raised their price expectations for iron ore, saying that Chinese unexpected increase in iron ore use was increasing supply shortages.

It was reported that the iron ore prices of the Singapore Exchange have continued to soar during the past few months due to a fatal dam breach in a mine in Vale.

As the largest supplier of iron ore, Vale’s capacity fell sharply after this disaster. Based on the consumption exceeded expectations of Chinese steel, and Vale's output was lower than expected, it would lead to good steel mill profit margins, to push up the premium.