creamer media

The iron-ore mining industry, like other economic sectors, was pummelled by the 2008 worldwide economic downturn. However, thanks to stimulus packages introduced in 2009 resulted in the industry’s recovery in 2010 and 2011, with prices hitting highs of $193/t as steel output reached record levels. The price rally was shortlived as prices dropped sharply in 2012, hitting a three-year low of $86.70/t in September that year.

 

Prices have since recovered again, but several analysts forecast that the iron-ore sector will experience difficult period over the next 12 to 18 months, owing to excess supply and projected slower steel output in China. The long-term outlook for iron-ore remains positive, albeit cautious, with the world’s biggest iron-ore miners – Vale, Rio Tinto and BHP Billiton – expecting China to be the major demand driver for the mineral until the end of the 2020s, when India and other developing countries are expected to take lead as Chinese growth diminishes.

 

This report provides an overview of the global iron-ore market, with particular reference to pricing, supply and demand; a summary of the major global iron-ore producing companies and other significant producers; and an overview of South Africa’s iron-ore market and its major producers.

 

This report is a summary of information published in Engineering News and Mining Weekly, as well as information available in the public domain.

 

The report does not purport to provide analysis of market trends.

 

Published on: 26 April 2013.

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Table of contents

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List of abbreviations 1

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Key developments 2

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Global market 3–11

• Pricing 4
• Supply 5
• Iron-ore trade 6
  • Exports 6
  • Imports 7
• Demand 8
• Mergers, acquisitions and divestments 8

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Major global iron-ore producing companies 12–19

• Vale 12
  • Iron-ore investment 13
  • Logistics 13
• Rio Tinto 14
  • Iron-ore investment 15
  • Logistics 17
• BHP Billiton 18
  • Iron-ore investment 19
  • Logistics 19

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Other significant iron-ore producers 20–23

• Anglo American 20
• ArcelorMittal 21
• Fortescue 22

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South African iron-ore market 24–29

• Main South African iron-ore producing companies 24
  • Kumba Iron Ore 25
    • Iron-ore investment 26
    • Logistics 28
  • Assmang 28
    • Iron-ore investment 29
    • Logistics 29
  • Evraz Highveld Steel and Vanadium 29

Iron-ore outlook 30

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Main sources 31–35