MERCOSUR: Iron Ore Market 2024

Iron Ore Market Size in MERCOSUR

After two years of growth, the MERCOSUR iron ore market decreased by -9.6% to $X in 2021. Overall, consumption saw a drastic downturn. The level of consumption peaked at $X in 2012; however, from 2013 to 2021, consumption failed to regain momentum.

Iron Ore Production in MERCOSUR

In value terms, iron ore production declined modestly to $X in 2021 estimated in export price. Over the period under review, production, however, showed a abrupt decline. The most prominent rate of growth was recorded in 2020 with an increase of 5.3% against the previous year. Over the period under review, production hit record highs at $X in 2012; however, from 2013 to 2021, production stood at a somewhat lower figure.

Iron Ore Exports

Exports in MERCOSUR

In 2021, overseas shipments of iron ores and concentrates were finally on the rise to reach X tons for the first time since 2018, thus ending a two-year declining trend. The total export volume increased at an average annual rate of +1.0% 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 2016 when exports increased by 40% against the previous year. Over the period under review, the exports attained the maximum at X tons in 2018; however, from 2019 to 2021, the exports remained at a lower figure.

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

Exports by Country

Brazil prevails in exports structure, reaching X tons, which was near 92% of total exports in 2021. Chile (X tons) and Peru (X tons) followed a long way behind the leaders.

From 2012 to 2021, average annual rates of growth with regard to iron ore exports from Brazil stood at +1.0%. At the same time, Chile (+3.9%) and Peru (+2.9%) displayed positive paces of growth. Moreover, Chile emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +3.9% from 2012-2021. The shares of the largest exporters remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest iron ore supplier in MERCOSUR, comprising 90% of total exports. The second position in the ranking was taken by Chile ($X), with a 5.1% share of total exports.

In Brazil, iron ore exports increased at an average annual rate of +4.1% over the period from 2012-2021. The remaining exporting countries recorded the following average annual rates of exports growth: Chile (+7.3% per year) and Peru (+3.8% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2021, rising by 60% against the previous year. Overall, the export price recorded a noticeable 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 amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Chile ($X per ton), while Brazil ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Chile (+3.3%), while the other leaders experienced more modest paces of growth.

Iron Ore Imports

Imports in MERCOSUR

In 2021, purchases abroad of iron ores and concentrates was finally on the rise to reach X tons for the first time since 2018, thus ending a two-year declining trend. Total imports indicated a tangible expansion from 2012 to 2021: its volume increased at an average annual rate of +4.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, imports reached the peak and are likely to continue growth in the immediate term.

In value terms, iron ore imports soared to $X in 2021. Over the period under review, imports posted prominent growth. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

Argentina prevails in imports structure, reaching X tons, which was near 78% of total imports in 2021. Uruguay (X tons) took a 9.6% share (based on physical terms) of total imports, which put it in second place, followed by Chile (4.6%). The following importers - Brazil (X tons) and Venezuela (X tons) - each finished at a 7.7% share of total imports.

From 2012 to 2021, average annual rates of growth with regard to iron ore imports into Argentina stood at +2.8%. At the same time, Brazil (+121.3%), Chile (+72.9%) and Uruguay (+23.7%) displayed positive paces of growth. Moreover, Brazil emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +121.3% from 2012-2021. By contrast, Venezuela (-1.7%) illustrated a downward trend over the same period. While the share of Uruguay (+7.5 p.p.), Chile (+4.5 p.p.) and Brazil (+3.9 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Venezuela (-2.8 p.p.) and Argentina (-12.6 p.p.) displayed negative dynamics.

In value terms, Argentina ($X) constitutes the largest market for imported iron ores and concentrates in MERCOSUR, comprising 85% of total imports. The second position in the ranking was held by Brazil ($X), with a 5.5% share of total imports. It was followed by Chile, with a 5% share.

In Argentina, iron ore imports expanded at an average annual rate of +6.4% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Brazil (+96.2% per year) and Chile (+65.0% per year).

Import Prices by Country

The import price in MERCOSUR stood at $X per ton in 2021, rising by 63% against the previous year. Import price indicated a moderate expansion from 2012 to 2021: its price increased at an average annual rate of +2.4% 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 import price increased by +122.5% against 2016 indices. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was Brazil ($X per ton), while Uruguay ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Argentina (+3.4%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform