UBS hikes iron ore price forecasts again

UBS has upgraded its iron ore price forecast for 2019 for the second time this year as a result of January's tailings dam disaster in Brazil, but mining analyst Glyn Lawcock expects Australia's major producers to remain disciplined and focus on cash returns to shareholders rather than expansion.

The bank raised its expectation for average prices this year by 12 per cent to $US83 a tonne after already raising the number from $US65 to $US74 immediately after iron ore miner Vale's tragic dam failure in Minas Gerais state on January 25 that killed hundreds and resulted in the resignation of chief executive Fabio Schvartsman.