Admin Will iron ore prices recover?
The price will drop to around US$50–70, which would still be more than double the production costs of Australia’s biggest miners. Unlikely as it seems when the market is plunging, it’s also possible that the shortages that propelled the iron ore price to records in the first half of this year may re-emerge next year.
Who buys most of Australia’s iron ore?
China
In financial year 2021, the value of iron ore exported from Australia to China amounted to around 126.8 billion Australian dollars. China was by far the leading export destination for Australian iron ore in terms of value in this time.
Who buys the most iron ore?
China accumulated a majority of the global iron ore imports in 2019, with over three-quarters of total global imports. Japan followed behind distantly with a 6.1 percent share of iron ore imports. On the other hand, Australia exports the largest share of global iron ore.
Why did iron ore prices drop?
The price of iron ore has dropped off a cliff since July, when China began to turn off the export tap from Australia. We look at what has happened in an export market which was last year worth a whopping $125 billion to the national economy, and if the price will continue slipping into 2022.
Has China stopped buying Australian iron ore?
This unexpected boom makes it almost impossible for China to stop buying Australia’s iron ore in the short term as it looks to continue its record steel output. The sharp rebound through the start of June has forced a rethink of just how effectively China can tamp down soaring prices.
How long will Australia’s iron ore last?
Australia’s iron ore resource base is capable of sustaining production for at least six decades, according to the Minerals Council of Australia (MCA).
How much of Australia’s iron ore goes to China?
China accounted for 82 per cent of Western Australia’s iron ore exports in 2016-17, followed by Japan (9 per cent), Korea (6 per cent) and Taiwan (2 per cent). China rose 5 per cent to 666 million tonnes.
What does China use Australian iron ore for?
steel mills
The Australian iron ore industry had been built to primarily supply Japanese steel mills, but when China arrived on the scene in the 1980s, it expanded quickly to meet the new, enormous demand. The Chinese economy became highly reliant on the process of turning iron ore into new buildings and infrastructure.