Iron Ore Market Definition
The iron ore market consists of sales of iron ores and concentrates by entities (organizations, sole traders and partnerships) that mine iron ore. The industry includes establishments that develop mine sites, mine and beneficiate iron ore, and produce sinter iron ore, except iron ore produced in iron and steel mills. It also includes producing other iron ore agglomerates and other beneficiation operations such as crushing, grinding, and washing, drying, sintering, concentrating, calcining, and leaching.
Iron Ore Market Size
The global iron ore market reached a value of nearly $136,145.5 million in 2019, having increased at a compound annual growth rate (CAGR) of 4.8% since 2015. The market is expected to decline from $1,64,534.6 million in 2019 to $1,31,964.9 million in 2020 at a rate of –19.8%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is expected to slightly grow from $130,892.0 million in 2021 to $132,496.9 million in 2023 at a CAGR of 0.6% and decline to $129,444.0 million in 2030.
Growth in the historic period resulted from large iron ore reserves globally, strong economic growth in emerging markets and a low interest rate environment. Factors that negatively affected growth in the historic period were fatal accidents in mining and geo-political tensions.
Going forward, emerging markets growth, government policies, increasing construction activities, increase in production capacities, improved logistics infrastructure and increasing automobiles manufacturing are expected to drive the market. Skills shortages, environmental impacts of iron ore mining, reduction in free trade, rising interest rates, the coronavirus pandemic, fluctuating prices, uncertain demand for iron ore and overcapacity of steel which is underutilized are major factors that could hinder the growth of the iron ore market in the future.
Iron Ore Market Drivers
The key drivers of the iron ore market include:
Government Policies
Government policies that support the iron ore industry are expected to drive the iron ore market. Governments are providing subsidies and encouraging foreign direct investments (FDI) in the mining industry. The amount of government support includes support through governments public finance institutions such as bilateral development banks and export credit agencies investing in mining projects, fiscal support through budget allocations and tax exemptions, and investments through majority state-owned mining and utility companies. For instance, in 2019, the government of India approved the increase of iron ore leasing areas in Orissa from 10 square kilometers to 58 square kilometers, and encouraged the private auction of these ores by private companies such as TATA Steel operating in the iron ore market. These government policies will continue to support the growth of the iron ore market. i
Iron Ore Market Restraints
The key restraints on the iron ore market include:
Skills Shortages
The iron ore market will be restrained by skill shortages in the mining industry globally. Australia, for instance, is facing a critical shortage of mining engineers. According to the Australian Resources and Energy Group AMMA, more than 20,000 mining workers will be needed in Australia`s mining industry by 2024. Canada`s mining industry is expected to face a shortage of up to 127,000 workers. Skill shortages in the mining industry overall will act as a restraint on the iron ore market during the forecasted period. ii
Iron ore Market Trends
Major trends shaping the iron ore market include the following –
Robotics In Iron Ore Mining
The use of robots in the iron ore industry is improving the efficiency and productivity of iron ore mines, and also reduces operational costs. Robotics is significantly increasing mining capabilities by rolling out autonomous trucks and drills, thus reducing the need for human workforce. Robots are used in some critical mining activities such as drilling, blasting explosives in the mines, and guiding and driving off-highway haul trucks operating in mines. RioTinto has deployed driverless trucks and robotic rock drilling rigs to haul the ore 24 hours a day and reported a 15% reduction in operating costs. For instance, in four of Rio Tinto`s iron-ore mines, in Australia, the company has been using 73 driverless trucks to carry iron ore 24 hours a day. Employees track the operation of the vehicles from 750 miles away, at the centralized control center in Perth. iii
Opportunities And Recommendations In The Iron Ore Market
Opportunities – The global iron ore market is supported by a large consumer population in both developed countries and large urban populations in developing countries with high spending on goods manufactured from iron. North America and Europe are well-established and mature markets where there is a well-established system for metal ore mining including iron. Developing regions such as the Asia-Pacific, the Middle East and Africa, are fast-growing markets.
Recommendations - To take advantage of the opportunities, the business research company recommends the iron ore companies to use new technologies in iron ore for improving efficiency and productivity, use of predictive technology, take initiatives to use renewable energy, produce high-quality iron ore, offer competitive pricing, focus on keeping costs low, expand in emerging markets, conduct e-auctions, do B2B promotions, increase visibility through business websites and listing websites and focus on fast-growing end-use industries.
Iron ore Market Segmentation
The iron ore market covered in this report is segmented type of ore, end-users and by geography.
By Type Of Ore
The iron ore market covered in this report is segmented by type of ore into agglomerated iron ore and nonagglomerated iron ore and concentrates.
- • Agglomerated Iron Ores
- • Nonagglomerated Iron Ores And Concentrates
The nonagglomerated iron ores and concentrates was the largest segment of the iron ore market by type of ore, accounting for 74.0% of the total market in 2019.
By End-Users
The iron ore market can be segmented by end-users
- • Construction
- • Manufacturing
- • Others
The construction was the largest segment of the iron ore market by end-use, accounting for 37.6% of the total market in 2019.
By Geography-
The iron ore market is segmented into
- o North America
- o Western Europe
- Austria
- Belgium
- Denmark
- Finland
- France
- Germany
- Ireland
- Italy
- Netherlands
- Norway
- Portugal
- Spain
- Sweden
- Switzerland
- UK
- o Asia Pacific
- China
- Australia
- Hong Kong
- India
- Indonesia
- Japan
- Malaysia
- New Zealand
- Philippines
- Singapore
- South Korea
- Thailand
- Vietnam
- o Eastern Europe
- Russia
- Czech Republic
- Poland
- Romania
- o South America
- Brazil
- Argentina
- Chile
- Colombia
- Peru
- Venezuela
- o Middle East
- Saudi Arabia
- Israel
- Turkey
- UAE
- o Africa
- Egypt
- Nigeria
- South Africa
Asia-Pacific was the largest region in the global iron ore market, accounting for 82.2% of the total in 2019. It was followed by the Western Europe, Eastern Europe and then the other regions. Going forward, the fastest-growing regions in the iron ore market will be South America and Eastern Europe, where growth will be at CAGRs of 1.6% and 0.2% respectively.
Iron ore Market Competitive Landscape
Major Competitors are:
- • Vale S.A.
- • Rio Tinto
- • BHP
- • Fortescue Metals Group Ltd. (FMG)
- • Anglo American Plc
Other Competitors Include:
- • Ansteel Group
- • Cleveland Cliffs Inc.
- • Metinvest
- • National Mineral Development Corporation
- • Ferrexpo
- • Kudremukh Iron Ore Company
- • MSPL Limited
- • Vedanta Limited
- • ITOCHU Corporation
- • Marubeni Corporation
- • Minmetals Land Limited
- • China Baowu Steel Group Corporation
- • Zijin Mining Group Company Limited
- • Fortescue Metals Group Ltd
- • Luossavaara-Kiirunavaara Aktiebolag
- • Sydvaranger AS
- • Rana Gruber AS
- • Beowulf Mining plc
- • Metalloinvest MC LLC
- • Severstal Group
- • Evraz Group SA
- • NLMK Group
- • Mechel
- • EuroChem Group
- • Ferrexpo Plc
- • Black Iron
- • ArcelorMittal S.A.
- • Cleveland-Cliffs Inc.
- • United States Steel Corporation
- • Exiros
- • Samarco Mineração S.A
- • CNG Group
- • ITOCHU Corporation
- • CAP S.A.
- • Nilam Resources Inc.
- • Trafigura Group Pte. Ltd
- • CVG Ferrominera Orinoco
- • SABIC (Saudi Aramco)
- • Chadormalu Mining & Industrial Co.
- • Golgohar Mining & Industrial co.
- • KOC Holding AS
- • Iran Central Iron Ore Co. (ICIOC)
- • Kumba Iron Ore Limited
- • Sedibeng Iron Ore
- • Assmang
- • Evraz Highveld Steel and Vanadium Limited Richards Bay Minerals (RBM)
- • Richards Bay Minerals (RBM)
