Malaysia: Iron Ore Market 2024

Iron Ore Market Size in Malaysia

In 2021, the Malaysian iron ore market increased by 74% to $X for the first time since 2018, thus ending a two-year declining trend. Over the period under review, consumption, however, saw a noticeable decrease. Iron ore consumption peaked at $X in 2012; however, from 2013 to 2021, consumption stood at a somewhat lower figure.

Iron Ore Production in Malaysia

In value terms, iron ore production declined to $X in 2021 estimated in export price. Over the period under review, production recorded a sharp decrease. The pace of growth appeared the most rapid in 2020 when the production volume increased by 37% against the previous year. Iron ore production peaked at $X in 2013; however, from 2014 to 2021, production stood at a somewhat lower figure.

Iron Ore Exports

Exports from Malaysia

In 2021, iron ore exports from Malaysia rose remarkably to X tons, growing by 7% compared with the year before. In general, exports continue to indicate a prominent increase. The most prominent rate of growth was recorded in 2016 when exports increased by 68%. Over the period under review, the exports attained the peak figure at X tons in 2019; however, from 2020 to 2021, the exports remained at a lower figure.

In value terms, iron ore exports skyrocketed to $X in 2021. Overall, total exports indicated buoyant growth from 2012 to 2021: its value increased at an average annual rate of +5.5% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +145.0% against 2015 indices. The most prominent rate of growth was recorded in 2016 with an increase of 58% against the previous year. Over the period under review, the exports hit record highs in 2021 and are expected to retain growth in the immediate term.

Exports by Country

China (X tons) was the main destination for iron ore exports from Malaysia, with a 65% share of total exports. Moreover, iron ore exports to China exceeded the volume sent to the second major destination, Vietnam (X tons), twofold. Indonesia (X tons) ranked third in terms of total exports with a 6% share.

From 2012 to 2021, the average annual growth rate of volume to China totaled +6.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Vietnam (+79.7% per year) and Indonesia (+36.5% per year).

In value terms, China ($X) remains the key foreign market for iron ores and concentrates exports from Malaysia, comprising 64% of total exports. The second position in the ranking was held by Vietnam ($X), with a 27% share of total exports. It was followed by Indonesia, with a 6.2% share.

From 2012 to 2021, the average annual rate of growth in terms of value to China was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Vietnam (+78.3% per year) and Indonesia (+21.0% per year).

Export Prices by Country

In 2021, the average iron ore export price amounted to $X per ton, growing by 30% against the previous year. Over the period under review, the export price, however, saw a deep reduction. The export price peaked at $X per ton in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

Average prices varied noticeably for the major overseas markets. In 2021, amid the top suppliers, the countries with the highest prices were Vietnam ($X per ton) and Indonesia ($X per ton), while the average price for exports to China ($X per ton) and Japan ($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 (+4.7%), while the prices for the other major destinations experienced mixed trend patterns.

Iron Ore Imports

Imports into Malaysia

In 2021, iron ore imports into Malaysia soared to X tons, increasing by 36% on the year before. Over the period under review, imports showed a significant increase. The growth pace was the most rapid in 2015 with an increase of 176%. Over the period under review, imports reached the maximum at X tons in 2019; however, from 2020 to 2021, imports failed to regain momentum.

In value terms, iron ore imports skyrocketed to $X in 2021. In general, imports posted resilient growth. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports by Country

In 2021, Brazil (X tons) constituted the largest iron ore supplier to Malaysia, with a 86% share of total imports. Moreover, iron ore imports from Brazil exceeded the figures recorded by the second-largest supplier, Australia (X tons), more than tenfold.

From 2012 to 2021, the average annual rate of growth in terms of volume from Brazil amounted to +24.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (+32.6% per year) and India (+113.8% per year).

In value terms, Brazil ($X) constituted the largest supplier of iron ores and concentrates to Malaysia, comprising 66% of total imports. The second position in the ranking was held by Australia ($X), with a 16% share of total imports.

From 2012 to 2021, the average annual growth rate of value from Brazil amounted to +16.4%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (+39.0% per year) and India (+135.5% per year).

Import Prices by Country

In 2021, the average iron ore import price amounted to $X per ton, jumping by 23% against the previous year. In general, the import price, however, recorded a perceptible decrease. The most prominent rate of growth was recorded in 2020 when the average import price increased by 46%. The import price peaked at $X per ton in 2012; however, from 2013 to 2021, import prices remained at a lower figure.

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

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by India (+10.1%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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