China: Iron Ore Market 2024

Iron Ore Market Size in China

The Chinese iron ore market skyrocketed to $X in 2021, increasing by 29% against the previous year. Over the period under review, the total consumption indicated moderate growth from 2012 to 2021: its value increased at an average annual rate of +3.2% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption increased by +100.1% against 2015 indices. As a result, consumption reached the peak level and is likely to continue growth in the immediate term.

Iron Ore Production in China

In value terms, iron ore production stood at $X in 2021 estimated in export price. In general, production, however, continues to indicate a precipitous decrease. The growth pace was the most rapid in 2019 with an increase of 17%. Iron ore production peaked at $X in 2012; however, from 2013 to 2021, production stood at a somewhat lower figure.

Iron Ore Exports

Exports from China

For the sixth year in a row, China recorded growth in overseas shipments of iron ores and concentrates, which increased by 49% to X tons in 2021. In general, exports showed a significant expansion. The most prominent rate of growth was recorded in 2017 when exports increased by 852% against the previous year. The exports peaked in 2021 and are likely to see steady growth in the near future.

In value terms, iron ore exports soared to $X in 2021. Overall, exports continue to indicate a significant increase. The pace of growth appeared the most rapid in 2017 with an increase of 641%. Over the period under review, the exports attained the peak figure in 2021 and are likely to continue growth in the immediate term.

Exports by Country

Japan (X tons) was the main destination for iron ore exports from China, accounting for a 62% share of total exports. Moreover, iron ore exports to Japan exceeded the volume sent to the second major destination, Taiwan (Chinese) (X tons), twofold. The third position in this ranking was held by South Korea (X tons), with a 9.5% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to Japan stood at +228.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: Taiwan (Chinese) (+306.8% per year) and South Korea (+62.8% per year).

In value terms, Japan ($X) remains the key foreign market for iron ores and concentrates exports from China, comprising 61% of total exports. The second position in the ranking was held by Taiwan (Chinese) ($X), with a 28% share of total exports. It was followed by South Korea, with a 9.2% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Japan amounted to +260.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Taiwan (Chinese) (+315.2% per year) and South Korea (+57.6% per year).

Export Prices by Country

In 2021, the average iron ore export price amounted to $X per ton, rising by 61% against the previous year. Overall, the export price, however, recorded a noticeable curtailment. Over the period under review, the average export prices attained the peak figure at $X per ton in 2012; however, from 2013 to 2021, the export prices remained at a lower figure.

Average prices varied somewhat for the major overseas 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 Indonesia ($X per ton) and South Korea ($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 Japan (+9.7%), while the prices for the other major destinations experienced mixed trend patterns.

Iron Ore Imports

Imports into China

After two years of growth, purchases abroad of iron ores and concentrates decreased by -3.8% to X tons in 2021. The total import volume increased at an average annual rate of +4.7% from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2016 when imports increased by 15% against the previous year. Imports peaked at X tons in 2020, and then reduced in the following year.

In value terms, iron ore imports soared to $X in 2021. Overall, imports, however, saw a buoyant increase. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

In 2021, Australia (X tons) constituted the largest iron ore supplier to China, accounting for a 62% share of total imports. Moreover, iron ore imports from Australia exceeded the figures recorded by the second-largest supplier, Brazil (X tons), threefold. South Africa (X tons) ranked third in terms of total imports with a 3.6% share.

From 2012 to 2021, the average annual growth rate of volume from Australia totaled +7.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Brazil (+4.2% per year) and South Africa (-0.1% per year).

In value terms, Australia ($X) constituted the largest supplier of iron ores and concentrates to China, comprising 61% of total imports. The second position in the ranking was taken by Brazil ($X), with a 21% share of total imports. It was followed by South Africa, with a 3.9% share.

From 2012 to 2021, the average annual rate of growth in terms of value from Australia stood at +10.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Brazil (+6.3% per year) and South Africa (+2.9% per year).

Import Prices by Country

The average iron ore import price stood at $X per ton in 2021, increasing by 54% against the previous year. Over the period under review, the import price enjoyed a tangible expansion. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Average prices varied somewhat amongst the major supplying countries. In 2021, amid the top importers, the highest price was recorded for prices from Peru ($X per ton) and Ukraine ($X per ton), while the price for India ($X per ton) and Australia ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Peru (+5.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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