September 19 2011, 4:23PM * IRON ORE TOP PRODUCING NATIONS:
- China is the world's top iron ore producer, followed by Australia and Brazil.
- China uses all of its domestically produced iron ore and is a net importer. - Australia was the world's largest exporter of iron ore in 2010, followed by Brazil.
- Australia has a freight advantage over Brazil, but the South American nation is reacting by expanding its fleet of ore carriers and export facilities.
* TOP TEN IRON ORE EXPORTING COMPANIES:
- Brazil's Vale is by far the biggest iron ore miner, accounting for about 30 per cent of the seaborne market. It is followed by Rio Tinto, BHP Billiton, Fortescue Metals Group, Swedish miner LKAB, Anglo American, India's NMDC, Gina Rinehart's Hancock Prospecting, the world's largest steel maker ArcelorMittal and Venezuela's CVG.
- These ten players account for 86 per cent of the iron ore market share.
* KEY AUSTRALIAN IRON ORE STATISTICS
- Nearly 93 per cent of Australia's identified iron ore resources are in Western Australia, including almost 80 per cent in the Hamersley Province of the Pilbara region.
- Iron ore and coal are Australia's top export earners.
- Australia's iron ore export earnings in 2010/11 jumped 56 per cent to $54 billion, compared to a 19 per cent increase for metallurgical coal to $29.1 billion and a 17 per cent rise for thermal coal to $14 billion.
- Australian iron ore exports have grown from about 140 million tonnes (Mt) in 2000 to more than 400Mt in 2011.
- Of the 450Mt produced in Australia in the 12 months to June this year, 408Mt was exported, with the remainder used by domestic steel mills. Domestic take-up is set to fall as the already small steel making space contracts.
* WHAT IS THE OUTLOOK FOR IRON ORE AND STEEL?
- The World Steel Association expects global steel demand will grow at six per cent per annum this year and next year to a new record of 1.44 billion tonnes, suggesting the short term outlook for iron ore prices is strong.
- However, iron ore prices could fall considerably by the middle of this decade as new supply comes on stream.
* PRICES:
- Iron ore prices have been relatively stable compared to other commodities this year.
- Spot iron ore prices are currently holding at elevated levels at about $US180 a tonne, nudging the near $US200/tonne record set earlier this year.
- Some analysts believe iron ore prices will fall in the next 12 months because recent unprecedented stockpiling by Chinese steel makers has reached a peak.
LCY Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
(20min delay)