NEW YORK, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Iron ore prices are forecast to drop by 20% y/y to $130 per tonne in 2022 thanks to rising supply, a new report published by IndexBox states. According to World Bank, the average annual price for iron ore was $162 per tonne, 48% more than in 2020.
IndexBox estimates based on the World Steel Association and USGS data indicate that global iron ore production increased by 5% y/y to 2.6B tonnes in 2021 due to steel demand recovered from the pandemic. U.S. iron ore output soared by 21% y/y to 46M tonnes, while production in Canada and India spiked by 13% y/y to 68M tonnes and 18% y/y to 240M tonnes, respectively. Iron ore mining in South Africa grew by 10% y/y to 61M tonnes. Iran, Kazakhstan, Mexico, Peru, Sweden, Turkey and Ukraine also recorded increases in iron ore output.
Global finished steel consumption surged by 4.5% y/y to 1.85B tonnes in 2021. This year, this figure is forecast to rise by 2.2% y/y to nearly 1.9B tonnes.
Global Iron Ore Exports
In 2020, global iron ore exports rose modestly to 1.6B tonnes, surging by 4.5% on the year before. In value terms, supplies skyrocketed from $118.3B to $142.3B.
Australia was the major exporter of iron ores and concentrates globally, with the volume of exports recording 869M tonnes, which was approx. 54% of total supplies in 2020. It was distantly followed by Brazil (335M tonnes), achieving a 21% share of total exports. South Africa (65M tonnes), Canada (55M tonnes), India (52M tonnes), Ukraine (46M tonnes), Sweden (27M tonnes) and Russia (26M tonnes) followed a long way behind the leaders.
In value terms, Australia ($80.2B) remains the largest iron ore supplier worldwide, comprising 56% of global exports. The second position in the ranking was occupied by Brazil ($25.8B), with an 18% share of the total value. It was followed by South Africa, with a 4.3% share.
In 2020, the annual growth rate in terms of value in Australia amounted to +20.7%. In the other countries, the average annual rates were Brazil (+13.7% per year) and South Africa (+5.8% per year).
Top Largest Iron Ore Importers Worldwide
China dominates iron ore imports, finishing at nearly 1.2B tonnes, approx. 75% of total supplies in 2020. Japan (99M tonnes) held a 6.4% share of total imports, putting it in second place, followed by South Korea (4.5%). The following importers - Germany (34M tonnes) and the Netherlands (24M tonnes) - recorded a 3.7% share of total volume.
In value terms, China ($118.9B) constitutes the largest market for imported iron ores and concentrates worldwide, comprising 75% of international purchases. The second position in the ranking was taken by Japan ($9.7B), with a 6.1% share of global imports. It was followed by South Korea, with a 4.4% share.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
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Companies Mentioned in the Report
Vale, Rio Tinto, BHP, Fortescue Metals Group, Anglo American, Astra Resources, Eurasian Natural Resources Corporation, Exxaro, Ferrexpo, Ferrous Resources, Glencore, Great Snaefell Mining Company, IRC Limited, Ingulets Iron Ore dressing Works, Kumba Iron Ore, LKAB, Maughold Head Mining Company, Mobarakeh Steel Company, Northland Resources, Severstal, Stoilensky GOK
Sources
World - Iron Ores and Concentrates - Market Analysis, Forecast, Size, Trends and Insights
Asia-Pacific - Iron Ores and Concentrates - Market Analysis, Forecast, Size, Trends and Insights
EU - Iron Ores and Concentrates - Market Analysis, Forecast, Size, Trends and Insights
Northern America - Iron Ores and Concentrates - Market Analysis, Forecast, Size, Trends and Insights
