South Africa: Iron Ore Market 2021

Iron Ore Market Size in South Africa

In 2019, the South African iron ore market increased by X% to $X, rising for the third year in a row after two years of decline. In general, consumption showed a noticeable increase. The pace of growth was the most pronounced in 2012 with an increase of X% y-o-y. Over the period under review, the market reached the maximum level at $X in 2014; however, from 2015 to 2019, consumption failed to regain the momentum.

Iron Ore Production in South Africa

In value terms, iron ore production soared to $X in 2019 estimated in export prices. Overall, production enjoyed buoyant growth. The pace of growth appeared the most rapid in 2010 with an increase of X% y-o-y. Over the period under review, production reached the peak level at $X in 2011; however, from 2012 to 2019, production failed to regain the momentum.

Iron Ore Exports

Exports from South Africa

Iron ore exports from South Africa rose notably to X tons in 2019, increasing by X% compared with the previous year. Over the period under review, total exports indicated a resilient increase from 2007 to 2019: its volume increased at an average annual rate of +X% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, exports increased by +X% against 2013 indices. The pace of growth appeared the most rapid in 2009 when exports increased by X% against the previous year. Exports peaked in 2019 and are expected to retain growth in years to come.

In value terms, iron ore exports soared to $X in 2019. Overall, exports showed a strong expansion. The pace of growth was the most pronounced in 2010 with an increase of X% year-to-year. Exports peaked at $X in 2011; however, from 2012 to 2019, exports failed to regain the momentum.

Exports by Country

China (X tons) was the main destination for iron ore exports from South Africa, with a X% share of total exports. Moreover, iron ore exports to China exceeded the volume sent to the second major destination, the Netherlands (X tons), eightfold. Mozambique (X tons) ranked third in terms of total exports with a X% share.

From 2007 to 2019, the average annual growth rate of volume to China amounted to +X%. Exports to the other major destinations recorded the following average annual rates of exports growth: the Netherlands (+X% per year) and Mozambique (+X% per year).

In value terms, China ($X) remains the key foreign market for iron ore exports from South Africa, comprising X% of total exports. The second position in the ranking was occupied by the Netherlands ($X), with a X% share of total exports. It was followed by South Korea, with a X% share.

From 2007 to 2019, the average annual growth rate of value to China stood at +X%. Exports to the other major destinations recorded the following average annual rates of exports growth: the Netherlands (+X% per year) and South Korea (+X% per year).

Export Prices by Country

The average iron ore export price stood at $X per ton in 2019, increasing by X% against the previous year. In general, the export price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2010 an increase of X% y-o-y. The export price peaked at $X per ton in 2011; however, from 2012 to 2019, export prices remained at a lower figure.

Average prices varied noticeably for the major overseas markets. In 2019, the countries with the highest prices were South Korea ($X per ton) and the Netherlands ($X per ton), while the average price for exports to the U.S. ($X per ton) and Mozambique ($X per ton) were amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was recorded for supplies to China, while the prices for the other major destinations experienced more modest paces of growth.

Iron Ore Imports

Imports into South Africa

In 2019, approx. X tons of iron ores were imported into South Africa; reducing by -X% compared with 2018. Overall, imports continue to indicate a pronounced shrinkage. The pace of growth was the most pronounced in 2017 with an increase of X% year-to-year. Imports peaked at X tons in 2012; however, from 2013 to 2019, imports remained at a lower figure.

In value terms, iron ore imports declined sharply to $X in 2019. In general, imports recorded a pronounced contraction. The pace of growth appeared the most rapid in 2012 when imports increased by X% against the previous year. As a result, imports attained the peak of $X. From 2013 to 2019, the growth imports remained at a lower figure.

Imports by Country

Brazil (X tons), Mexico (X tons) and India (X tons) were the main suppliers of iron ore imports to South Africa, with a combined X% share of total imports.

From 2007 to 2019, the biggest increases were in Mexico (+X% per year), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest iron ore suppliers to South Africa were Brazil ($X), Mexico ($X) and India ($X), with a combined X% share of total imports.

In terms of the main suppliers, Mexico (+X% per year) saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2019, the average iron ore import price amounted to $X per ton, dropping by -X% against the previous year. Over the period under review, the import price, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 an increase of X% y-o-y. Over the period under review, average import prices reached the peak figure at $X per ton in 2011; however, from 2012 to 2019, import prices failed to regain the momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2019, the country with the highest price was Canada ($X per ton), while the price for Australia ($X per ton) was amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was attained by Canada, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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