Iron ore is the source of primary iron for the worlds iron and steel industries. Dec 10, 2019 data from the world steel association shows that global steel production increased 3. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Iron ore market 2019 to showing impressive growth by 2024. Mesabi trust is a commodity royalty stock that currently has a high forward dividend yield of around 12%. If policymakers do go all out, which seems a fair bet based on chinas. Dec 03, 2019 dec 03, 2019 market insight reports via comtex the iron ore pellets market recently published global market research study with more than 100 industry informative desk and figures spread. It almost always consists of iron oxides, the primary forms of which are magnetite fe 3 o 4 and hematite fe 2 o 3. Steel and iron ore outlook march 2016 the goldman sachs group, inc.
Based on our predictions, the iron ore prices should increase by around 50% compared to 2011. Assessment of the outlook for the industry and companies. Data from the world steel association shows that global steel production increased 3. Looking at what is keeping iron ore prices afloat, the financial times ft recently wrote that. Iron ore miner valuations recover with material prices. These are the timestamps used for platts iron ore assessments. To help facilitate price adjustment for differences between expected and delivered product specifications, pras have developed valueinuse viu indices for the key priceaffecting chemical components of iron ore iron, silica, alumina and phosphorus. It is therefore essential for the production of steel, which in turn is essential to maintain a strong industrial base.
Creating steel from lowgrade iron ore requires a long process of mining, crushing. August 31, 2018 i industry research iron ore industry. Iron ore and coking coal news, prices and analysis metal. Pdf projection of iron ore production researchgate. A global market outlook to 2021 for iron ore, scrap,drihbi and pig iron published 2015 enquires for this report should be addressed to. 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. Because of its high iron content, hematite ore must undergo only a simple crushing. Iron ore outlook bearish as steel demand seen weak on. After almost two decades of continuous growth, global exports look set to fall by up to 30 million tonnes this year.
Iron ore is a mineral substance which, when heated in the presence of a reductant, will yield metallic iron fe. India is amongst the top producers of iron ore globally, with total production growing to around 220 mn tonnes in fy19, growth of 9. 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. Bhp maintains iron ore output outlook despite shaken economy. For each year reported, estimates are given for the latent demand, or potential industry earnings p. Exports to uk and malaysia they grew as much as 3% and 118% respectively. Learn more about bloomberg indices broad market outlook. The chinese steel market and demand for bulk commodities. Outlook summary ajm conference, tony ottaviano, march 2011 slide 3 growth in china and india to sustain strong iron ore demand a significant ramp up of supply is expected in next 510 years. Overview of the steel and iron ore arket overview of the global iron and steel maret production trends according to preliminary data from the world steel association wsa, global production rose 4. Eiu experts revised downwards the estimates of the 2017 global steel output from 5. 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%. A ten year strategic outlook for the global iron ore industry part 1. These outcomes reflected the impact of stunted growth in international trade, a recession in.
China, 62% fe in usddmtu dry metric ton unit dmtu is the internationally agreedupon unit of measure for iron ore pricing. The 2020 outlook for iron ore remains hot, unlike almost. Data reported at or after these timestamps is not considered in the assessment process. This report summarises the performance of these two industries in fy19 and gives an outlook for fy20. A global market outlook to 2021 for iron ore, scrap, drihbi and pig iron the turning point for steel metallics. A ten year strategic outlook for the global iron ore industry l latest production and export data for 70 plus global mining companies l over 260 forthcoming projects are assessed and the latest updates provided l demand and supply analysis and forecasts for the three. Iron ore is a nonfungible commodity, and its quality varies. Global metals and mining outlook 2016 5 what did metals executives say. Iron ore processing for the blast furnace courtesy of the national steel pellet company the following describes operations at the national steel pellet company, an iron ore mining and processing facility located on the mesabi iron range of minnesota. Sep 24, 2019 iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel98% of the mined iron ore is used to make steel.
Historically, iron ore reached an all time high of 200 in november of 2007. Vale, lkab, metso, arya group, rio tinto, bhp billiton, bhp billiton, atlas iron, arrium simec, bc iron, clevelandcliffs and others. Top companies in the global iron ore pellets market. Iron ore pellets market insights and global outlook during. Key dollar driver returns to inflection point dollar meanreversion risks historically elevated.
The global iron ore market longterm outlook provides detailed supply and demand analysis and price forecasts for the iron ore market to 2040. These comparative benchmarks allow the reader to quickly gauge a country. Global iron ore longterm outlook q1 2018 report wood. Planned mining projects in four key geographies would double output by 2020, if completed, and add almost 900 mtpaof new capacity by 2018. A ten year strategic outlook for the global iron ore industry. This study covers the world outlook for iron ore mining across more than 190 countries. The seaborne market is forecast to be wellsupplied over the outlook period with lowcostproduction from brazil and australia. Growth in china and india to sustain strong iron ore demand. Recent developments and outlook in the iron ore market by virgilio gaggiato business intelligence manager, samarco iron ore europe bv the netherlands 20 march 20 this material has been reproduced in the language and form as it was provided. The current pricing data is only available to subscribers, please login to see the data or take a trial.
The big question now is whether demand will return with enough strength to. Steel outlook dims as iron ore powerhouse flags growth. Exports will maintain production high in the mediumlong term. Bloomberg commodity outlook february 2019 edition bloomberg commodity index bcom greatest risk for commodities is likely a highvelocity stockmarket plunge, which lowers the tide for most risk assets and supports gold and treasury bonds. Fears of oversupply are being held in check by an expectation that beijing will counter the viral outbreak with aggressive economic stimulus.
Bhp iron ore production for the third quarter increased 7% yearoveryear to 60. 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. The following iron ore specifications guide contains the primary specifications and methodologies for platts iron ore assessments throughout the world. Jan 15, 2018 the aussie dollar and the major mining stocks are rallying hard. How will the pandemic affect the iron ore outlook for 2020. Iron ore price today iron ore spot price chart live price. Overview of the steel and ron ore arket overview of the lobal steel and iron ore market. Steel outlook dims as iron ore powerhouse flags growth woes. Iron ore 2016 midyear outlook bloomberg professional services. 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. 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.
Investors should consider this report as only a single factor in. Spotlight on iron ore iron ore prices are not expected to increase significantly from current levels. The views expressed are those of the author and do not necessarily reflect the views of unctad. Recent developments and outlook in the iron ore market. Overview of the steel and iron ore market deloitte. Bhp late monday maintained its iron ore outlook production and outlook. Forecasts by the world steel association worldsteel, released in. However, as can be seen from figure 2, the usa and europe account for more than 40 per cent of global gdp. However, the outlook for 2020 is not as optimistic with the association estimating global steel demand to slow down to 1. Bhps economic and commodity outlook fy19 half year bhp. The outlook for iron ore is negative with steel demand seen weak due to the coronavirus, overshadowing recent supply tightness out of brazil, according to market sources contacted over the past few da. The projections for african iron ore are compared with the latest mediumterm import forecasts and suggest that the development of west and central african iron ore has the potential to create. Prices for iron ore and coking coal, the two key ingredients for steelmaking, are set to remain buoyant for the remainder of the year, macquarie bank predicted in a recent report.
Pdf on nov 1, 2018, jose murilo mourao and others published an outlook to iranian iron ore and ironmaking industries. Hematite ore is a directshipping ore with naturally high iron content. Iron ore pellets are the feed material for steel manufacturing companies and fed to the blast furnace and dri mills in the steelmaking process. The iron ore market is entering a cyclical downturn with the low point occurring in 2019 price forecast. 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.
Apr 10, 2019 barclays upgrades iron ore price forecast. Major companies focus on capacity expansions to bolster market share. The global iron ore market outlook has been segmented based on product type, form, enduse industry, and region. Iron ore market statistics global analysis, trends, growth. China is by far the largest importer of seaborne iron ore and chinese pig iron production remains a key driver of iron ore pricing. Chinese imports of iron ore declined to 1,065 mt in calendar 2018, 0. Domestic iron ore prices of high grade lumps were on an upward trend till oct19 and declined in subsequent. Iron ore pellets market 2019 size, status and industry. The rest of the commodities remained fairly stable. The broker expects chinas iron ore imports will strengthen from january, as mills typically restock ahead of the chinese new year. Fastmarkets mb price book contains over 950 global metal prices including steel prices and scrap prices.
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 pellets industry is witnessing a structural change in demand supply scenario led by shift in iron and steel industry towards higher quality raw material. Why is barclays optimistic on the iron ore price outlook. Iron ore prices could benefit as a cautious postcovid19 economic recovery begins in china, the worlds biggest consumer of the steelmaking ingredient. For 2020, we continue to hold a fairly bearish outlook for iron ore prices. The iron ore production in russia which is over 25,000 million metric tons is expected to propel the demand for iron ore in europe during the forecast period. This years 28% rally in iron ore prices, delays to several supply projects and a recovery in chinese demand have led to higher valuation. On april 8 a lockdown was lifted in wuhan, the chinese city at.
Commodity market report global iron ore longterm outlook q4 2017. Steel and iron ore outlook cicero machado april 2019. Although their growth rates are nowhere near as impressive as those of the emerging markets, relatively small increases, or declines in growth can have an impact on metal demand, especially consumer. Opec and nonopec deal exit strategy ing take with us oil production increasing strongly, we believeopec may have to delay their exit plan or risk a sharp price reversal in 2h18. Global iron ore longterm outlook q2 2019 report wood. Bhps economic and commodity outlook fy20 half year six months ago, at the time of our full year results for the 2019 financial year, an air of prudent caution permeated commodity markets. Get all information on the price of iron ore including news, charts and realtime quotes. 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. However, in the medium term, new additions to capacity will outstrip closures and cutbacks. Despite moderate iron ore demand forecasts, iron ore miners planning massive production surge, pressuring price outlook. 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%. China iron ore price wipes out 2020 losses on supply. Supplydemand fundamentals indicate that iron prices will be stable in the shortrun but.
Barclays is optimistic about the iron ore price outlook given the supply disruptions from australian miners as well as vales dam disaster. Perspectives on the longterm outlook for iron ore by j p barkas, managing director, metalytics this paper was originally delivered as a keynote presentation as part of the iron ore 2015 conference, held in perth from 15 july. Global iron ore longterm outlook q2 2019 report wood mackenzie. Whats the outlook for the iron ore market and the major. October 29, 2019 energy and metal commodity prices are expected to continue to fall in 2020, following sharp declines in 2019 of 15 and 5 percent, respectively, on a weaker outlook for global growth and consequently softer demand, the world bank said in its october commodity markets outlook. Iron ore1 data in thousand metric tons, usable ore, unless otherwise noted domestic production and use. June 06, 2019 i industry research iron ore and steel. 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. Perspectives on the longterm outlook for iron ore ausimm. Steel production and iron ore imports are expected to hold firm in 2019. 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. Australia overtook brazil as the worlds largest exporter of iron ore in 1996, and australian exports exceeded 750 mt in 2014, which was more than double those of brazil and accounted for 56 per cent of global seaborne trade.
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