Saudi Arabia: Iron Ore Market 2024

Iron Ore Market Size in Saudi Arabia

In 2021, the Saudi iron ore market increased by 4% to $X, rising for the second consecutive year after five years of decline. In general, consumption continues to indicate a significant curtailment. As a result, consumption attained the peak level of $X. From 2015 to 2021, the growth of the market remained at a lower figure.

Iron Ore Production in Saudi Arabia

In value terms, iron ore production dropped dramatically to $X in 2021 estimated in export price. Overall, production, however, recorded a dramatic slump. The most prominent rate of growth was recorded in 2016 with a decrease of -1.1%. Over the period under review, production hit record highs at $X in 2014; however, from 2015 to 2021, production stood at a somewhat lower figure.

Iron Ore Exports

Exports from Saudi Arabia

In 2021, overseas shipments of iron ores and concentrates increased by 12% to X tons, rising for the second consecutive year after two years of decline. Over the period under review, exports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 58% against the previous year. As a result, the exports attained the peak of X tons. From 2014 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, iron ore exports soared to $X in 2021. In general, exports recorded a measured expansion. The growth pace was the most rapid in 2013 with an increase of 84%. As a result, the exports reached the peak of $X. From 2014 to 2021, the growth of the exports failed to regain momentum.

Exports by Country

The UK (X tons) was the main destination for iron ore exports from Saudi Arabia, with a 66% share of total exports. Moreover, iron ore exports to the UK exceeded the volume sent to the second major destination, China (X tons), twofold.

From 2012 to 2021, the average annual rate of growth in terms of volume to the UK was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+2.1% per year) and Jordan (0.0% per year).

In value terms, the UK ($X) remains the key foreign market for iron ores and concentrates exports from Saudi Arabia, comprising 77% of total exports. The second position in the ranking was taken by China ($X), with a 21% share of total exports.

From 2012 to 2021, the average annual growth rate of value to the UK totaled +4.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (-2.5% per year) and Jordan (0.0% per year).

Export Prices by Country

The average iron ore export price stood at $X per ton in 2021, surging by 12% against the previous year. Over the period from 2012 to 2021, it increased at an average annual rate of +1.5%. The most prominent rate of growth was recorded in 2020 when the average export price increased by 18%. The export price peaked at $X per ton in 2013; however, from 2014 to 2021, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Jordan ($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 the UK (+4.7%), while the prices for the other major destinations experienced mixed trend patterns.

Iron Ore Imports

Imports into Saudi Arabia

Iron ore imports into Saudi Arabia fell sharply to X tons in 2019, reducing by -96.2% compared with the previous year. Over the period under review, imports saw a sharp descent. The pace of growth was the most pronounced in 2014 with an increase of 11%. As a result, imports reached the peak of X tons. From 2015 to 2019, the growth of imports remained at a lower figure.

In value terms, iron ore imports dropped markedly to $X in 2019. Overall, imports saw a dramatic descent. The pace of growth appeared the most rapid in 2017 with an increase of 56% against the previous year. Imports peaked at $X in 2012; however, from 2013 to 2019, imports remained at a lower figure.

Imports by Country

In 2019, Brazil (X tons) constituted the largest iron ore supplier to Saudi Arabia, with a 66% share of total imports. Moreover, iron ore imports from Brazil exceeded the figures recorded by the second-largest supplier, India (X tons), threefold.

From 2012 to 2019, the average annual growth rate of volume from Brazil totaled -28.7%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+142.2% per year) and Greece (+1.7% per year).

In value terms, Brazil ($X) constituted the largest supplier of iron ores and concentrates to Saudi Arabia, comprising 79% of total imports. The second position in the ranking was taken by Greece ($X), with a 13% share of total imports.

From 2012 to 2019, the average annual rate of growth in terms of value from Brazil totaled -33.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Greece (-0.3% per year) and India (+60.8% per year).

Import Prices by Country

The average iron ore import price stood at $X per ton in 2019, dropping by -17.5% against the previous year. In general, the import price continues to indicate a deep reduction. The most prominent rate of growth was recorded in 2017 when the average import price increased by 48%. Over the period under review, average import prices reached the maximum at $X per ton in 2012; however, from 2013 to 2019, import prices failed to regain momentum.

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

From 2012 to 2019, the most notable rate of growth in terms of prices was attained by Canada (+30.7%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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