The price of iron ore is predicted to drop this year as growth of China's steel production slows and the supply of raw materials from international mining giants increases, according to industry experts.

An estimate from UBS AG earlier this month said the average price of iron ore would decline from $120 per metric ton in 2013 to $110 per metric ton this year, an 8.33 percent year-on-year decrease.

Tom Price, a commodity analyst with UBS, said prices will fall due to global seasonal steel production declines, as well as larger iron ore exports from Australia.