Iron price stays above $110 on growth in demand

Iron ore prices will remain strong as sustained economic growth in China, the biggest buyer, supports demand, according to Fortescue Metals Group Ltd.

Prices will stay between $110 a metric ton and $130 a ton in the short to medium term, chief executive officer Neville Power said in an interview on Bloomberg Television on Thursday.

The break-even price at Australia's third-biggest exporter is "in the low $70s per ton," he said. Iron ore entered a bull market last month as China replenished stockpiles.

While the country's expansion slowed to 7.5 percent in the second quarter from 7.7 percent in the first, more recent data show pickups in trade, manufacturing and industrial output.