UBS Wealth Management executive director of commodities and FX, Wayne Gordon, appeared on Bloomberg television today to provide an outlook on iron ore prices, saying he expects it to fall back down to $US80 per tonne towards the end of the year.

"Our view, at least at UBS, is that it probably peaked in the second quarter (of 2019) on a quarter on quarter basis. Generally because there were a lot of production disappointments to come through in the guidance from the big iron ore producers Rio Tinto, BHP, and Vale," Mr Gordon said.

"To be fair, steel production in China has been much stronger than what we had initially anticipated at the start of the year." UBS was expecting to see up to 1 per cent growth in steel production, but now sees up to 4 per cent growth.

"While (ore) production has been a little big waylaid in coming back to the market, Vale looks like its mobilising its production to start exporting more iron ore into the fourth quarter. The tightness in the iron ore market will start to be a little bit allayed and as we get into the fourth quarter we think prices will dip below $US100 back down towards $US80 per tonne."