High iron ore prices in recent months will remain high through the first quarter of 2021, supported by strong Chinese steel production, according to the latest Iron Ore & Steel Outlook from STANDARD & Poor's Global Platts.

Of the market participants in the S&P global Platts survey, 62 per cent expected China CFR prices to be above $120 a dry tonne in the first quarter of next year, while 26 per cent thought iron ore prices were between $110 and $120 a dry tonne.

More than a third of respondents believe demand for iron ore will rise in the first quarter.Forty-two per cent thought iron ore demand would be flat in the current quarter (October-December).Only 23 per cent thought iron ore demand would fall in the first quarter.

The benchmark price for 62 per cent Platts iron ore powder has risen 30 per cent since the start of November and hit a seven-year high of $160.70 a dry tonne on December 11.

About 52 percent of respondents believe infrastructure construction will be the main driver of steel consumption in the first quarter, while only 16 percent believe property construction will be the main driver.

For the first time since S&P released its Outlook in late 2019, a significant number of respondents (32 per cent) said manufacturing would play a greater role in steel demand in 2021.

The government has tried to rein in price rises by tightening mortgage lending.As a result, housing growth will slow in 2021.A strong recovery in manufacturing and a recovery in global supply chains in recent months have helped China's exports recover.

China's exports of finished steel are expected to grow next year as other steel markets recover.

The majority of respondents thought exports were between 60m and 80m tonnes, with only 12 per cent believing they were higher.China is expected to export about 54m tonnes of steel this year and 75m tonnes in 2019.

It is worth noting that the first quarter of each year includes the Chinese New Year holiday, with at least two weeks off.In addition, bad weather in the first quarter often affected iron ore operations in Australia and Brazil, leading to a drop in exports.

The survey was conducted between December 7 and 11 by 30 companies, including Chinese steel mills, domestic and international traders, and mining companies.