As iron ore is a key ingredient used in steel production,
its trade is largely determined by developments in the
steel sector. According to data from the World Steel
Association, global apparent steel use and steel
production each increased by 1.2 per cent during
2012 (World Steel Association, 2013a, 2013b). China
continued to increase its production with its market
share rising from 45.4 per cent in 2011 to 46.3 per
cent in 2012. Against this background, iron-ore trade expanded by 5.4 per cent in 2012, taking the total
volumes to 1.11 billion tons. Major iron-ore exporters
were Australia, Brazil, Canada, India, South Africa and
Sweden. Together, Australia and Brazil account for
73.5 per cent of global exports. Australia, the largest
world exporter (44.5 per cent share), increased its
shipments by 12.8 per cent. Similarly, other exporters
such as Canada, South Africa and Sweden have
also increased their shipments, while in India, mining
bans and taxes on iron-ore exports have significantly
constrained the country’s export volumes (−52.8 per
cent). As a result, India’s market share declined and
a structural shift unfolded, whereby India has moved
from being a major exporter to a net importer and its
import demand is likely to increase over the next few
years. Australia has been increasing its market share,
while Brazil recorded a decline due to the mine- and
infrastructure-expansion projects being completed in
Australia and expansion projects in Brazil being delayed.
Output from South Africa and smaller suppliers such as
Liberia, Peru and Sierra Leone has also been growing.
As iron ore is a key ingredient used in steel production,
its trade is largely determined by developments in the
steel sector. According to data from the World Steel
Association, global apparent steel use and steel
production each increased by 1.2 per cent during
2012 (World Steel Association, 2013a, 2013b). China
continued to increase its production with its market
share rising from 45.4 per cent in 2011 to 46.3 per
cent in 2012. Against this background, iron-ore trade expanded by 5.4 per cent in 2012, taking the total
volumes to 1.11 billion tons. Major iron-ore exporters
were Australia, Brazil, Canada, India, South Africa and
Sweden. Together, Australia and Brazil account for
73.5 per cent of global exports. Australia, the largest
world exporter (44.5 per cent share), increased its
shipments by 12.8 per cent. Similarly, other exporters
such as Canada, South Africa and Sweden have
also increased their shipments, while in India, mining
bans and taxes on iron-ore exports have significantly
constrained the country’s export volumes (−52.8 per
cent). As a result, India’s market share declined and
a structural shift unfolded, whereby India has moved
from being a major exporter to a net importer and its
import demand is likely to increase over the next few
years. Australia has been increasing its market share,
while Brazil recorded a decline due to the mine- and
infrastructure-expansion projects being completed in
Australia and expansion projects in Brazil being delayed.
Output from South Africa and smaller suppliers such as
Liberia, Peru and Sierra Leone has also been growing.
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