Australia: Iron Ore Market 2024

Iron Ore Market Size in Australia

In 2021, the Australian iron ore market decreased by -17.2% to $X for the first time since 2014, thus ending a six-year rising trend. Overall, consumption, however, showed significant growth. Over the period under review, the market attained the peak level at $X in 2020, and then declined remarkably in the following year.

Iron Ore Production in Australia

In value terms, iron ore production shrank to $X in 2021 estimated in export price. Over the period under review, production, however, continues to indicate a prominent increase. The growth pace was the most rapid in 2019 when the production volume increased by 60%. Iron ore production peaked at $X in 2020, and then declined in the following year.

Iron Ore Exports

Exports from Australia

In 2021, approx. X tons of iron ores and concentrates were exported from Australia; remaining relatively unchanged against 2020 figures. The total export volume increased at an average annual rate of +5.8% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2014 with an increase of 24% against the previous year. Over the period under review, the exports hit record highs in 2021 and are likely to see steady growth in the immediate term.

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

Exports by Country

China (X tons) was the main destination for iron ore exports from Australia, with a 83% share of total exports. Moreover, iron ore exports to China exceeded the volume sent to the second major destination, Japan (X tons), more than tenfold. The third position in this ranking was taken by South Korea (X tons), with a 6.3% share.

From 2012 to 2021, the average annual growth rate of volume to China amounted to +7.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (-3.4% per year) and South Korea (+1.0% per year).

In value terms, China ($X) remains the key foreign market for iron ores and concentrates exports from Australia, comprising 82% of total exports. The second position in the ranking was held by Japan ($X), with a 7.5% share of total exports. It was followed by South Korea, with a 6.5% share.

From 2012 to 2021, the average annual rate of growth in terms of value to China amounted to +10.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (-0.9% per year) and South Korea (+3.1% per year).

Export Prices by Country

The average iron ore export price stood at $X per ton in 2021, rising by 45% against the previous year. In general, the export price posted a measured expansion. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

Average prices varied noticeably for the major external markets. In 2021, amid the top suppliers, the highest price was recorded for prices to Taiwan (Chinese) ($X per ton) and Japan ($X per ton), while the average price for exports to China ($X per ton) and South Korea ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Taiwan (Chinese) (+3.2%), while the prices for the other major destinations experienced more modest paces of growth.

Iron Ore Imports

Imports into Australia

In 2021, approx. X tons of iron ores and concentrates were imported into Australia; picking up by 3.2% on the previous year's figure. Over the period under review, imports, however, showed a noticeable downturn. The pace of growth appeared the most rapid in 2014 with an increase of 278% against the previous year. Over the period under review, imports reached the peak figure at X tons in 2012; however, from 2013 to 2021, imports remained at a lower figure.

In value terms, iron ore imports soared to $X in 2021. Overall, imports continue to indicate noticeable growth. The most prominent rate of growth was recorded in 2014 when imports increased by 419%. Imports peaked in 2021 and are expected to retain growth in years to come.

Imports by Country

In 2021, Mauritania (X tons) constituted the largest supplier of iron ore to Australia, accounting for a 67% share of total imports. Moreover, iron ore imports from Mauritania exceeded the figures recorded by the second-largest supplier, Indonesia (X tons), fivefold. The Philippines (X tons) ranked third in terms of total imports with a 13% share.

From 2012 to 2021, the average annual rate of growth in terms of volume from Mauritania stood at +5.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Indonesia (-9.7% per year) and the Philippines (-7.6% per year).

In value terms, Mauritania ($X) constituted the largest supplier of iron ores and concentrates to Australia, comprising 80% of total imports. The second position in the ranking was taken by the Philippines ($X), with a 10% share of total imports. It was followed by New Caledonia, with a 2.8% share.

From 2012 to 2021, the average annual growth rate of value from Mauritania amounted to +28.2%. The remaining supplying countries recorded the following average annual rates of imports growth: the Philippines (+1.3% per year) and New Caledonia (-21.6% per year).

Import Prices by Country

The average iron ore import price stood at $X per ton in 2021, increasing by 41% against the previous year. In general, the import price posted prominent growth. The pace of growth appeared the most rapid in 2017 an increase of 45% against the previous year. Over the period under review, average import prices hit record highs in 2021 and is expected to retain growth in years to come.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Brazil ($X per ton), while the price for Indonesia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+43.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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