The Global Iron Ore Market is Projected to Reach 1,957.6 Million Metric Tons by 2022

Easing Demand for Steel Amidst Supply Glut & Anemic Global Economic Growth Tempers Current Outlook in the Iron Ore Market, According to New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry trends, growth drivers, market share, size and demand forecasts on the global Iron Ore market. The global Iron Ore market is forecast to stabilize over the long-term to reach a projected market size of 1,957.6 million metric tons by 2022, overcoming current challenges such as a shrinking commodities sector, an oversupplied steel market, soft demand in emerging markets battling anemic economic growth, and a collapsing mining industry.  

Iron (Fe), which comprises about 5% of the Earth's crust, is a natural and extremely useful metallic element. It is the most commonly used metal in the world, finding utility in various applications such as industrial, maritime, structural engineering, and automobiles. Though, iron-rich rocks are common in several countries across the globe, the constraint of commercial mining lies in the location of the ore in relation to the market, which indicates the cost associated with energy and the rail infrastructure required for making the ore to reach the market. Consumption of iron ore is directly related to steel demand as more than 98% of the output is used for the production of crude steel, and any fluctuation in steel sector, upward or downward or moderate, would cast a parallel impact on the iron ore sector. Closely tracking the tide in the steel sector, the global iron ore industry has been a witness to extreme intense activity over the last few years. Some of the prominent phases witnessed include unprecedented growth in demand in countries such as China and India in mid-2000s, steep decline following the economic downturn in 2008 and 2009, and record rally in prices during peak years of 2010 and 2011.

China, the largest producer, consumer and importer of iron ore in the world, has been the primary contributor to the growth of iron ore market over the years. Despite an increase in domestic mining output, China continues to remain the world’s leading importer of iron ore as is evident by the consistent growth in the share of iron ore imports as a proportion of iron ore consumption. However, with the current volatile trend in steel demand in the country, iron ore consumption is expected to slow down, resulting in decreased imports over the next few years. Growth in the global iron ore market is likely to remain sluggish in the near-term, mainly on the back of expected cutbacks in Chinese consumption, which accounts for more than 55% of total market. Despite the current challenges, long-term drivers of growth in emerging markets include continued industrialization and urbanization, investments in infrastructure, housing and energy sectors, and strong consumer demand for manufactured goods and automobiles, among others.

As stated by the new market research report on Iron Ore, China represents the largest market, worldwide. The Middle East ranks as the fastest growing market with a CAGR of 4% over the analysis period led by factors such as growing income levels, rising discretionary income and strong consumption of finished steel products such as mechanical machinery, metal goods and automobiles and increased public and private sector activity in infrastructure development particularly in Dubai in hotel and tourism sectors. 

Major players covered in the report include Anglo American Plc , ArcelorMittal S.A., BHP Billiton Group, Champion Iron Limited, Cliffs Natural Resources, Inc. , Ferrexpo plc, Fortescue Metals Group Ltd. , Hainan Mining Co., Ltd. , Hancock Prospecting Pty Ltd , Luossavaara-Kiirunavaara AB , Mechel OAO , Metalloinvest MC LLC , Minmetals HANXING Mines Ltd. , Rio Tinto Group, Shandong Jinshunda Group Co., Ltd. , United States Steel Corporation  and Vale S.A.

The research report titled “Iron Ore: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections in volume terms for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, Turkey, Ukraine and Rest of Europe), China, Asia-Pacific (India, South Korea, Taiwan and Rest of Asia-Pacific), Middle East, Latin America (Argentina, Brazil, Mexico and Rest of Latin America), and Africa.

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