São Paulo – Global production of iron ore reached 1.92 billion tonnes last year, growth of 4.7% over 2010. International trade of the product generated a turnover of 1.115 billion tonnes in 2011, growing for the 10th year running. The volumes were record, according to information disclosed on Tuesday (31) by the United Nations Conference on Trade and Development (Unctad).
Extraction, according to the UN, advanced in three production regions, except for Europe, including the countries of the former Soviet Union. Among the main suppliers, the production grew in Australia (12.7%), Brazil (5.1%) and China (2.1%), while in India it dropped 7.5%. Developing nations answered to 49.5% of exports in 2011.
The return to demand in the ironworks sector, after the international crisis in 2008, was almost completely motivated by China, according to the Unctad. Last year, the country imported 686.7 million tonnes, or over 60% of global imports. The volume was 11% greater than in 2010.
The organisation’s report shows that steel production worldwide also rose last year, but did not reach pre-crisis levels.
With regard to companies, the Brazilian Vale is still the world’s main producer, with 323 million tonnes in 2011. The company and the Australian Rio Tinto and BHP Billiton answered to 34.7% of world extraction. There was slight market change, as in 2010 their share was 35%.
Prices of iron ore, according to the Unctad, maintained a growing tendency last year. At the end of the year, however, there was a decline due to the lower growth of China and to the worsening of economic conditions in Europe. In the first half of 2012, prices remained constant. The UN agency points out that the values are high as against the historic average, but only offer marginal profitability for producers whose costs are high, as is the case with China itself.
Forecasts
The Unctad forecasts that global production of the ore should reach 2 billion tonnes this year and 2.08 billion next year. The agency evaluates that the market will offer “tight conditions” for several years, despite expecting slow price recovery starting in 2013, as offer adapts to demand. The value, however, is still above the historic average, with the lowest price per tonne of the product being sold to China at US$ 120.
A May 2012 forecast shows that the global production capacity should grow by 796 million tonnes by 2014. Of the projects forecasted, according to the study, 28% are in Oceania, 15% in Latin America, 14% in Africa, 20% in Europe, 10% in North America and 12% in Asia.
*Translated by Mark Ament
