Canada: Iron Ore Market 2024

Iron Ore Market Size in Canada

In 2021, after two years of decline, there was significant growth in the Canadian iron ore market, when its value increased by 8.7% to $X. In general, consumption, however, saw a deep reduction. Iron ore consumption peaked at $X in 2015; however, from 2016 to 2021, consumption remained at a lower figure.

Iron Ore Production in Canada

In value terms, iron ore production contracted slightly to $X in 2021 estimated in export price. Over the period under review, production saw a abrupt setback. The most prominent rate of growth was recorded in 2016 when the production volume increased by 7% against the previous year. Over the period under review, production reached the peak level at $X in 2013; however, from 2014 to 2021, production failed to regain momentum.

Iron Ore Exports

Exports from Canada

After five years of growth, shipments abroad of iron ores and concentrates decreased by -1.1% to X tons in 2021. Over the period under review, total exports indicated a prominent increase from 2012 to 2021: its volume increased at an average annual rate of +5.2% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +48.4% against 2015 indices. The most prominent rate of growth was recorded in 2016 when exports increased by 11% against the previous year. Over the period under review, the exports attained the peak figure at X tons in 2020, and then dropped slightly in the following year.

In value terms, iron ore exports skyrocketed to $X in 2021. In general, exports, however, enjoyed a prominent increase. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports by Country

China (X tons), Japan (X tons) and Germany (X tons) were the main destinations of iron ore exports from Canada, with a combined 49% share of total exports. These countries were followed by France, the Netherlands, South Korea, Spain, the UK, Belgium, the United States, Bahrain, Algeria and Taiwan (Chinese), which together accounted for a further 47%.

From 2012 to 2021, the biggest increases were recorded for Algeria (with a CAGR of +201.1%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, China ($X) remains the key foreign market for iron ores and concentrates exports from Canada, comprising 27% of total exports. The second position in the ranking was held by Japan ($X), with a 13% share of total exports. It was followed by the Netherlands, with an 11% share.

From 2012 to 2021, the average annual rate of growth in terms of value to China totaled +1.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+23.6% per year) and the Netherlands (+7.8% per year).

Export Prices by Country

The average iron ore export price stood at $X per ton in 2021, with an increase of 43% against the previous year. In general, export price indicated pronounced growth from 2012 to 2021: its price increased at an average annual rate of +2.3% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, iron ore export price increased by +110.1% against 2016 indices. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Algeria ($X per ton), while the average price for exports to Belgium ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Algeria (+22.6%), while the prices for the other major destinations experienced more modest paces of growth.

Iron Ore Imports

Imports into Canada

After two years of decline, purchases abroad of iron ores and concentrates increased by 13% to X tons in 2021. In general, imports recorded a noticeable increase. The growth pace was the most rapid in 2018 with an increase of 638%. As a result, imports attained the peak of X tons. From 2019 to 2021, the growth of imports remained at a somewhat lower figure.

In value terms, iron ore imports skyrocketed to $X in 2021. Overall, imports, however, saw a mild reduction. The pace of growth was the most pronounced in 2018 when imports increased by 35% against the previous year. Over the period under review, imports attained the peak figure at $X in 2014; however, from 2015 to 2021, imports failed to regain momentum.

Imports by Country

In 2021, the United States (X tons) was the main iron ore supplier to Canada, accounting for a approx. 98% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of volume from the United States totaled +2.4%.

In value terms, the United States ($X) constituted the largest supplier of iron ores and concentrates to Canada.

From 2012 to 2021, the average annual rate of growth in terms of value from the United States stood at -1.7%.

Import Prices by Country

In 2021, the average iron ore import price amounted to $X per ton, picking up by 14% against the previous year. In general, the import price, however, recorded a perceptible slump. The growth pace was the most rapid in 2015 an increase of 280% against the previous year. The import price peaked at $X per ton in 2016; however, from 2017 to 2021, import prices remained at a lower figure.

As there is only one major supplying country, the average price level is determined by prices for the United States.

From 2012 to 2021, the rate of growth in terms of prices for the United States amounted to -3.9% per year.

Source: IndexBox Platform

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