Estimation of Iron Ore Price in reference to Major Economic Indices using Artificial Neural Network

Abstract

Iron ore is an essential commodity in human civilization where research its prediction method was limited to date. The Granger causality test and VECM proved that there is a bi-directional influence between the iron ore price and the oil, copper, and Australian coal prices. Linear Levenberg-Marquardt method predicted with highest accuracy of 5.92% difference between prediction and actual for 1 month ahead, 9.48% for 2 months ahead, and 11.21% for 3 months ahead respectively.