China's heavy discounting of lower grade iron ore is likely to increase further in January and February, according to Mineral Resources managing director Chris Ellison, who expects the disjoint to persist for the "foreseeable future".

In sharp contrast to assurances from Fortescue Metals Group that the wider delta between prices from higher and lower grade iron ore will correct, Mr Ellison said he believed the discounts would linger because the Chinese government was serious about enforcing tougher pollution control measures.