Africa: Iron Ore Market 2024

Iron Ore Market Size in Africa

In 2021, after five years of growth, there was decline in the African iron ore market, when its value decreased by -4.3% to $X. In general, consumption, however, posted a measured expansion. As a result, consumption attained the peak level of $X. From 2014 to 2021, the growth of the market remained at a lower figure.

Iron Ore Production in Africa

In value terms, iron ore production shrank to $X in 2021 estimated in export price. Over the period under review, production saw a slight reduction. The pace of growth appeared the most rapid in 2013 with an increase of 403%. As a result, production attained the peak level of $X. From 2014 to 2021, production growth remained at a lower figure.

Iron Ore Exports

Exports in Africa

For the third year in a row, Africa recorded growth in overseas shipments of iron ores and concentrates, which increased by 5.9% to X tons in 2021. The total export volume increased at an average annual rate of +1.6% over the period from 2012 to 2021; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The most prominent rate of growth was recorded in 2013 when exports increased by 10%. The volume of export peaked at X tons in 2014; however, from 2015 to 2021, the exports failed to regain momentum.

In value terms, iron ore exports surged to $X in 2021. In general, exports showed tangible growth. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports by Country

In 2021, South Africa (X tons) represented the major exporter of iron ores and concentrates, making up 75% of total exports. It was distantly followed by Mauritania (X tons) and Liberia (X tons), together comprising a 22% share of total exports. Sierra Leone (X tons) took a relatively small share of total exports.

From 2012 to 2021, average annual rates of growth with regard to iron ore exports from South Africa stood at +1.4%. At the same time, Liberia (+14.3%) and Mauritania (+1.8%) displayed positive paces of growth. Moreover, Liberia emerged as the fastest-growing exporter exported in Africa, with a CAGR of +14.3% from 2012-2021. By contrast, Sierra Leone (-8.3%) illustrated a downward trend over the same period. Liberia (+5 p.p.) significantly strengthened its position in terms of the total exports, while Sierra Leone saw its share reduced by -3% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, South Africa ($X) remains the largest iron ore supplier in Africa, comprising 77% of total exports. The second position in the ranking was taken by Mauritania ($X), with a 14% share of total exports. It was followed by Liberia, with a 6.5% share.

From 2012 to 2021, the average annual growth rate of value in South Africa stood at +3.1%. In the other countries, the average annual rates were as follows: Mauritania (+3.2% per year) and Liberia (+15.4% per year).

Export Prices by Country

In 2021, the export price in Africa amounted to $X per ton, rising by 55% against the previous year. In general, the export price enjoyed a modest expansion. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

Average prices varied somewhat amongst the major exporting countries. In 2021, major exporting countries recorded the following prices: in South Africa ($X per ton) and Mauritania ($X per ton), while Sierra Leone ($X per ton) and Liberia ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by South Africa (+1.7%), while the other leaders experienced more modest paces of growth.

Iron Ore Imports

Imports in Africa

In 2021, the amount of iron ores and concentrates imported in Africa surged to X tons, increasing by 21% against the year before. In general, imports recorded a resilient increase. The most prominent rate of growth was recorded in 2017 with an increase of 127% against the previous year. The volume of import peaked in 2021 and is likely to see gradual growth in years to come.

In value terms, iron ore imports surged to $X in 2021. Overall, imports saw strong growth. The growth pace was the most rapid in 2017 when imports increased by 96% against the previous year. Over the period under review, imports hit record highs in 2021 and are expected to retain growth in the immediate term.

Imports by Country

Egypt was the main importing country with an import of about X tons, which accounted for 65% of total imports. Algeria (X tons) held a 25% share (based on physical terms) of total imports, which put it in second place, followed by Libya (8.6%).

From 2012 to 2021, average annual rates of growth with regard to iron ore imports into Egypt stood at +10.2%. At the same time, Algeria (+67.6%) displayed positive paces of growth. Moreover, Algeria emerged as the fastest-growing importer imported in Africa, with a CAGR of +67.6% from 2012-2021. By contrast, Libya (-1.6%) illustrated a downward trend over the same period. While the share of Algeria (+25 p.p.) and Egypt (+3.7 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Libya (-13.9 p.p.) displayed negative dynamics.

In value terms, Egypt ($X) constitutes the largest market for imported iron ores and concentrates in Africa, comprising 67% of total imports. The second position in the ranking was taken by Algeria ($X), with a 27% share of total imports.

From 2012 to 2021, the average annual growth rate of value in Egypt amounted to +5.6%. The remaining importing countries recorded the following average annual rates of imports growth: Algeria (+78.2% per year) and Libya (-1.8% per year).

Import Prices by Country

In 2021, the import price in Africa amounted to $X per ton, rising by 51% against the previous year. In general, the import price, however, recorded a pronounced decrease. Over the period under review, import prices reached the maximum at $X per ton in 2013; however, from 2014 to 2021, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Algeria ($X per ton), while Libya ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Algeria (+6.3%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform

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