| Summary: | Iron is one of the most applicable metals in the world. The global price of iron ore is determined based on demand and supply. There are numerous parameters (e.g., price of steel, steel production, oil price, gold price, interest rate, inflation rate, iron production, and aluminum price) affecting the global iron ore price. Considering the high number of effective parameters and existence of complex relationship among them, artificial intelligence-based approaches can be employed to predict iron ore price. In this paper, a new intelligence system namely group method of data handling (GMDH) was developed and introduced to predict the price of iron ore. For comparison purposes, four other techniques i.e., autoregressive integrated moving average (ARIMA), support vector regression (SVR), artificial neural network (ANN), and classification and regression tree (CART) were developed for prediction of monthly iron ore price. Then, using testing datasets, the developed models were validated and their performance capacities were compared. The results showed that performance prediction of the GMDH model is significantly better than other predictive models based on four performance indices i.e., root mean square error, variance account for (VAF), mean absolute error, and mean absolute percentage error. Results of VAF (97.89%, 90.81%, 80.95%, 55.02%, and 23.87% for GMDH, SVR, ANN, CART, and ARIMA models, respectively) revealed that the GMDH technique is able to predict iron ore price with higher degree of accuracy compared to the other techniques.
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