Asian iron ore prices in 2013 are likely to fall $10-15/mt year on year, as demand for the steelmaking raw material slows due to ongoing overcapacity woes in China's steel industry, Wang Xiaoqi, Vice Chairman of the China Iron & Steel Association, said Thursday.

The benchmark Platts IODEX 62%-Fe CFR North China price averaged $130/dmt in 2012. It was last assessed at $139/dmt Wednesday, compared with $146.50/dmt at the start of this year, according to Platts data.

Speaking at an industry conference in Qingdao, China, Wang said that while iron ore prices are currently higher than average prices in 2012 -- due to low iron ore inventory levels at Chinese mills -- he said: "A quick decline in the price of iron ore will take place by the June-July period, when the price for steel is expected to soften due to a supply glut."

Chinese crude steel production stood at 192 million mt in the first quarter of this year, up 9.1% from a year ago, but steel demand only increased by 3% in the same period, said Wong.

He added that demand for iron ore was also expected to decline as Chinese steel mills may have to scale back on their crude steel output due to government measures to cut emissions and eliminate outdated production capacity.

A source at a Hebei-based steelmaker agreed that iron ore prices will likely fall around June-July, as that is the usual lull period for steel demand. Construction activity slows in some parts of China when the weather gets too hot.