Iron ore prices have surged 50 percent this year, prompting speculation that the market may be poised for a fall. Jason Schenker disagrees.
Schenker, president of Prestige Economics, reckons prices will be supported by a broad slowdown in investment at commodity companies and a pick-up in Chinese manufacturing activity.
"For almost a year and a half, Chinese manufacturing has been in recession. That's been huge for iron ore and I think we are going to see that begin to improve," he told CNBC's "Squawk Box".
China's privately-compiled Caixin manufacturing Purchasing Managers' Index showed manufacturing activity expanding in July, having contracted for 16 straight months before that.