Philippines: Iron Ore Market 2024

Iron Ore Market Size in the Philippines

The Philippine iron ore market skyrocketed to $X in 2021, jumping by 82% against the previous year. Over the period under review, consumption showed a strong expansion. Over the period under review, the market hit record highs at $X in 2019; however, from 2020 to 2021, consumption stood at a somewhat lower figure.

Iron Ore Production in the Philippines

In value terms, iron ore production expanded sharply to $X in 2021 estimated in export price. In general, production recorded a sharp contraction. Iron ore production peaked at $X in 2012; however, from 2013 to 2021, production remained at a lower figure.

Iron Ore Exports

Exports from the Philippines

In 2021, shipments abroad of iron ores and concentrates decreased by -10% to X tons for the first time since 2018, thus ending a two-year rising trend. In general, exports, however, saw a moderate increase. The pace of growth was the most pronounced in 2020 when exports increased by 88%. As a result, the exports reached the peak of X tons, and then contracted in the following year.

In value terms, iron ore exports contracted sharply to $X in 2021. Over the period under review, exports, however, posted a pronounced expansion. The pace of growth was the most pronounced in 2020 with an increase of 249%. As a result, the exports attained the peak of $X, and then shrank rapidly in the following year.

Exports by Country

Japan (X tons) was the main destination for iron ore exports from the Philippines, accounting for a 66% share of total exports. Moreover, iron ore exports to Japan exceeded the volume sent to the second major destination, Australia (X tons), twofold.

From 2012 to 2021, the average annual growth rate of volume to Japan stood at +6.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+14.3% per year) and China (-25.7% per year).

In value terms, Japan ($X) remains the key foreign market for iron ores and concentrates exports from the Philippines, comprising 86% of total exports. The second position in the ranking was held by Australia ($X), with a 12% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value to Japan stood at +11.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+3.9% per year) and China (-24.5% per year).

Export Prices by Country

In 2021, the average iron ore export price amounted to $X per ton, declining by -53.2% against the previous year. In general, the export price, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 an increase of 85% against the previous year. As a result, the export price reached the peak level of $X per ton, and then contracted markedly in the following year.

There were significant differences in the average prices for the major external markets. In 2021, amid the top suppliers, the country with the highest price was China ($X per ton), while the average price for exports to Australia ($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 Japan (+4.9%), while the prices for the other major destinations experienced mixed trend patterns.

Iron Ore Imports

Imports into the Philippines

For the third year in a row, the Philippines recorded growth in overseas purchases of iron ores and concentrates, which increased by 9.5% to X tons in 2021. Overall, imports continue to indicate a significant increase. The pace of growth appeared the most rapid in 2015 when imports increased by 4,004% against the previous year. Imports peaked in 2021 and are likely to continue growth in years to come.

In value terms, iron ore imports skyrocketed to $X in 2021. Over the period under review, imports recorded significant growth. The growth pace was the most rapid in 2015 with an increase of 2,110% against the previous year. Imports peaked in 2021 and are likely to see steady growth in the near future.

Imports by Country

In 2021, Brazil (X tons) constituted the largest supplier of iron ore to the Philippines, with a 79% share of total imports. Moreover, iron ore imports from Brazil exceeded the figures recorded by the second-largest supplier, Australia (X tons), ninefold. Canada (X tons) ranked third in terms of total imports with a 5.1% share.

From 2012 to 2021, the average annual growth rate of volume from Brazil amounted to +25.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (+108.0% per year) and Canada (+70.8% per year).

In value terms, Brazil ($X) constituted the largest supplier of iron ores and concentrates to the Philippines, comprising 82% of total imports. The second position in the ranking was held by Australia ($X), with a 7.6% share of total imports. It was followed by Canada, with a 6.8% share.

From 2012 to 2021, the average annual rate of growth in terms of value from Brazil amounted to +27.2%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (+82.3% per year) and Canada (+65.0% per year).

Import Prices by Country

In 2021, the average iron ore import price amounted to $X per ton, surging by 48% against the previous year. Over the period under review, the import price continues to indicate a relatively flat trend pattern. 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 supplying countries. In 2021, amid the top importers, the country with the highest price was Canada ($X per ton), while the price for Indonesia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by India (+1.8%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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