Overview of steel and iron arket 01 overview of the global steel and iron maret production output trends the final data for 2017 by the world steel association demonstrates that the production output for q4 2017 has turned out to be stronger than expected, with annual global output up 5. This statistic depicts the average annual prices for iron ore from 2014 through 2018, with forecasted figures for 2018 to 2025. Steel prices are currently in free fall, reflecting iron ore and coal prices. China is by far the largest importer of seaborne iron ore and chinese pig iron production remains a key driver of iron ore pricing. The operating costs of the top four iron ore producers are among the lowest in the world, and the barriers to entry for suppliers to the market are high. Prices slid due to a steel demand drop and excess production. Overall, the iron ore market remains stable, after a volatile period extending from the gfc to the collapse of.
Importantly, china has started addressing issues of excess. As a necessary input for the production of primary steel, iron ore feeds the worlds largest metal market and the backbone of global infrastructure. Iron ore market 2019 to showing impressive growth by 2024. Press release iron ore market 2019 to showing impressive growth by 2024 industry trends, share, size, top key players analysis and forecast research. Macquarie says iron ore, coal prices to remain strong into 2018. A ten year strategic outlook for the global iron ore industry. Iron ore long term market outlook rigorous market analysis for longterm supply, demand and prices for iron ore through to 2035 long term forecast for the dr pellet premium and long term forecasts split by product segment sinter fines, lump ore, pellet pellet feed market segments are analysed individually. Metal bulletin research is analytical, datarich and dependable. Perspectives on the longterm outlook for iron ore ausimm.
Why is barclays optimistic on the iron ore price outlook. Market outlooks are tailored to individual commodities and offer historical and forecast prices, analysis of commodity market developments and a comprehensive historical and projected market data service. The marketinsightsreport has published a report titled global iron ore pellets market research report 2019 that is a detailed observation of several aspects, including the rate of growth, technological advances and different methodologies implemented by the primary current market players. Historically, iron ore reached an all time high of 200 in november of 2007. Stay ahead of the industry with iron ore outlook reports covering the shortterm and longterm forecast. Overview of steel and iron market 2018 moscow, 2018. This video outlines the key processes that our editorial team undertake when assessing the iron ore market, including the important role of platts marketonclose moc process. The market sees a better outcome with the big rally in mining stocks driven by a coordinated. In 2018, the average price for iron ore stood at 69. The global iron ore market outlook has been segmented based on product type, form, enduse industry, and region. Iron ore is the source of primary iron for the worlds iron and steel industries.
With so much uncertainty and volatility with respect to demand over the past few years, any signal that points towards sustainable growth in demand should help iron ore miners start to rethink their longerterm investment and production plans. Similar to our view on iron ore, our technical and market research, in addition to extensive customer liaison, indicate that the premia presently being attracted by high quality coking coals are predominantly a structural, as opposed to cyclical phenomenon, although there is certainly a transitory component to them that will fade with time. Iron ore pellets market insights and global outlook during. Global iron ore market outlook report steelinsights, llc. According to the report, the global iron ore pellets market was valued at around usd 25,220 million in 2017 and is expected to reach around usd. Iron ore 2016 midyear outlook bloomberg professional. Sep 24, 2019 the worldwide market for iron ore is expected to grow at a cagr of roughly 8. Spotlight on iron ore iron ore prices are not expected to increase significantly from current levels. The global iron ore market longterm outlook provides detailed supply and demand analysis and price forecasts for the iron ore market to 2040.
Output increased in the two most important producing countriesaustralia and. Although this move was clearly exaggerated by speculative. Growing progress of substructure and industrial development has fasttracked the demand for iron. Global iron ore longterm outlook q4 2019 december 2019 after a strong performance in 2019, we forecast a cyclical downturn from 2020, reaching its nadir in 2023. Gold and platinum group metals pgms continue to dominate the market capitalisation of the companies analysed, but experienced declines of 4% and 5% respectively. In 2015, the iron ore market shrank for the first time since 2009, after an increase in production of just 0. Iron ore prices shown for 20032012 are the asian basin price for hamersley fines sourced from the ame group iron ore outlook and were taken from various editions of this report. Iron ore highlights 6 ferroalloy highlights 8 zinc highlights 9 scrap highlights 10 iron metallics highlights 12 freight highlights economic indicators 14 mbr steel raw materials index 197. Mar 14, 2019 as a necessary input for the production of primary steel, iron ore feeds the worlds largest metal market and the backbone of global infrastructure. Jan 24, 2020 iron ore prices pretty much collapsed over the past few years, done in by oversupply and declining demand. The subdivision of fines product was responsible for the most significant stake of the market for the duration of recent past year. Global economic growth is the primary factor that drives its supply and demand.
What is the market outlook for the iron ore market. The iron ore market on the source of type of product shows the manufacture, profits, price, market stake and development percentage of respective category. The restrictions in wuhan province, where the virus was first recognized, have now been lifted and most of china is expected to return to normal activity by the end of this month, with a consequent rise in steel production. Overview of the steel and ron ore arket overview of the lobal steel and iron ore market production output trends eiu experts revised downwards the estimates of the 2017 global steel output from 5. The report is based on a collective analysis of data. Global iron ore longterm outlook q1 2018 report wood.
I can recommend them for highlevel market and price. Iron ore is a mineral substance which, when heated in the presence of a reductant, will yield metallic iron fe. Iron ore 2016 midyear outlook bloomberg professional services. With our iron ore industry analysis you will gain insight into industry developments and clarity to make decisions in a fastchanging environment.
Important information this publication is a free sample issue. It almost always consists of iron oxides, the primary forms of which are magnetite fe 3 o 4 and hematite fe 2 o 3. Iron is one of the maximum essential products utilized through the world. The market is divided into lumps, hbidri, pellets, and fines. The big question now is whether demand will return with enough strength to soak up the current overcapacity. The trilliondollarayear steel market accounts for 95 percent of all metal sold every year. Iron ore, represented by kumba iron ore, has seen an increase of r40 billion from 2017 to 2018, increasing the. Consequent to the above factors, the iron ore pellets premiums have increased sharply. Macquarie says iron ore, coal prices to remain strong into. For 2020, we continue to hold a fairly bearish outlook for iron ore prices. There is stable consumption growth in north america and emerging markets in asia. The unfortunate vale dam accident in brazil raised concerns over supply tightness, with vale forced to take around 90mtpa of capacity off the market.
Iron ore prices have recently been supported by confidence in the recovery of the chinese market. Similar to our view on iron ore, our technical and market research, in addition to extensive customer liaison, indicate that the premia presently being attracted by high quality coking coals are predominantly a structural, as opposed to cyclical phenomenon, although there is certainly a. What is the outlook for chinese iron ore demand over the next ten years. Jan 24, 2020 iron ore prices shown for 20032012 are the asian basin price for hamersley fines sourced from the ame group iron ore outlook and were taken from various editions of this report. Barclays is optimistic about the iron ore price outlook given the supply disruptions from australian miners as well as vales dam disaster. Sinter fines and lumps make up the bulk of the seaborne iron ore market, and are the products most frequently traded on a spot basis, so daily pricing is used for the key 62% fe, 58% fe and 65% fe fines, and lump premium references. Jan 15, 2018 chinas iron ore imports are expected to remain steady but this will not be enough to sustain the current iron ore price because export volumes from brazil and australia will continue to grow.
Steelmakers have therefore cut costs by switching to lower grade iron ore in an attempt to avoid high premiums on 65% fe fines and direct charge material. We expect that further brazilian capacity will be brought back to the market over the course of the year, whilst there is still plenty of uncertainty around the global economy, and. By form, the global iron ore market has been divided into fines, lumps, pellets, hbidri. Sep 29, 2019 the worlds top iron ore exporter cut its outlook for global steel demand, joining a growing chorus of warnings that trade tensions and slowing growth are hitting the sector hard. Sector outlook and iron ore price forecast iron ore contract prices are set to increase by 7. The worlds top iron ore exporter cut its outlook for global steel demand, joining a growing chorus of warnings that trade tensions and slowing growth are hitting the sector hard. Read on to find out what experts, ceos and market participants had to say about the 2020 manganese outlook. According to the may 2018 oecd economic outlook, world gdp growth is forecast to be around 4% in the coming years 3. Manganese was under pressure in 2019, with prices declining faster than many expected. On the demand side160 of iron ore, mainland steel mills have increased the use of higher grade iron ore to reduce production costs after the price of coking coal used to produce steel surged. Mining companies do not measure their success based solely on their share price. Average prices for iron ore worldwide 20142025 statista. Bhps economic and commodity outlook fy19 half year.
Global iron ore longterm outlook q2 2019 report wood mackenzie. World demand for iron ore is far from peaking, and the substantial price decline that has captivated commentators since early 2014 is not the result of widespread misreading by producers of the prospects for global market growth. Overview of the steel and iron ore market overview of the global iron and steel aret consumption trends eiu figures show that global steel consumption rose 4% to 1. Australia is the worlds largest iron ore exporter and 2nd largest producer accounting for around a third of global production 1 western australia holds just over 90% of australias identified iron ore resources and has a reputation for producing consistently high concentrations of around 60%. Iron ore market statistics global analysis, trends, growth.
The pace of chinas economic transition and the depth of environmental regulations have added uncertainty to the iron ore market and supply outlook. How will the pandemic affect the iron ore outlook for 2020. Iron ore market poised to provide stronger tonnemile demand growth, just as fleet supply slows, but heavily reliant upon chinese import substitution otherwise, demand outlook remains unexciting, as current market consensus grapples. Quality premiums have remained strong over much of the year, as healthy steel margins and chinas antipollution drive pushes buyers towards higher quality iron ore. Empower business decisions with trusted data and cuttingedge analysis into the iron ore market. The global iron ore market is estimated to develop at a cagr of 4% for the duration of the prediction. Another month, another five year high for iron ore. High steel margins are supporting the market now but the department sees this declining in the second half. We have revised downward our chinese crude steel forecast by a few percentage points for the second quarter of 2020 and, although this is only a slight change, it adds to the bearish outlook for iron ore. A ten year strategic outlook for the global iron ore industry lwhat will be the market outlook for the iron ore market. When economies are growing, the need for steel in construction increases which drives the price up. Global iron ore market outlook report steelinsights. Market capitalisation of the top 10 companies as at 30 june 2018 r billions 1 anglo american platinum.
China, 62% fe in usddmtu dry metric ton unit dmtu is the internationally agreedupon unit of measure for iron ore pricing. This paper was originally delivered as a keynote presentation as part of the iron ore 2015 conference, held in perth from 15 july. Our report showcases a detailed demand supply analysis of the major drivers that have changed the pellets industry outlook, which primarily include the chinese environmental policy implications on steel industry, ferrous scrap supply outlook, coking coal. Iron ore, represented by kumba iron ore, has seen an increase of r40 billion from 2017 to 2018, increasing the commoditys percentage of capitalisation from % to 20%. Commodity market report global iron ore shortterm outlook june 2019. Commodity market monthly international monetary fund. The rest of the commodities remained fairly stable. Apr 10, 2019 barclays upgrades iron ore price forecast. On the basis of product type, the global iron ore market report has been categorized into hematite, magnetite, limonite, siderite, others. The iron ore market is entering a cyclical downturn with the low point occurring in 2019 price forecast. Global iron ore longterm outlook q2 2019 report wood. Steel outlook dims as iron ore powerhouse flags growth woes. Overall, we expect to see less volatility in iron ore prices in 2016 compared to.
Most market outlooks publish a full report every three months with. Bhps economic and commodity outlook fy19 half year bhp. Nevertheless, economic growth is benefiting largely. The iron ore market may remain in substantial surplus beyond 2020, using a minus 1% base case scenario, which is built on chinese peak steel theory. Where are iron ore prices for pellets, fines and lump heading over the next ten years.
For example, the daily, weekly and monthly indices are listed because of the varied liquidity displayed by different parts of the market. August 31, 2018 i industry research iron ore industry. Iron ore fe is mined in around 50 countries worldwide and used to make steel buildings, cars, white goods etc. And, in order to satisfy our demand for steel products, 1.
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