Introduction
Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel. According to the US Geological Survey report released in 2019, the world’s iron ore reserves are estimated to be approximately 170 billion tonnes, with Brazil and Australia having the largest share of the reserves. China, the United States, Russia, India and Ukraine are other countries with large iron ore reserves.
The World Iron Ore Resources
Iron ore resources are found in all continents around the globe and make up a third of the Earth’s crust. In 2019, the largest iron ore reserves by country are in Brazil, Australia, Russia, China, India, and Ukraine. Brazils reserves are estimated to be approximately 80 billion tonnes, making it the largest in the world. Brazil accounts for approximately one-third of the worlds iron ore reserves, while Australia and Russia hold approximately 20 and 16 percent respectively. China, India, and Ukraine are other countries that hold a large share of the reserves in the world. In addition, other countries in Africa and Europe such as Republic of Congo and Sweden also have iron ore resources.
Production and Consumption of Iron Ore
China is the worlds leading producer of iron ore. In 2018, China produced about 58% of the worlds iron ore production, followed by Brazil and Australia. Together, the three countries account for 74% of the worlds iron ore production. In 2018, China also consumed the most iron ore, representing more than 50% of the global consumption.
Global Iron Ore Trade
The global iron ore market has experienced an increase in trade in recent years due to the increasing demand from China. In 2018, more than 1.5 billion tonnes of iron ore was traded worldwide. The majority of this trade was carried out by the major iron ore exporting countries, with Brazil, Australia and South Africa making up over two-thirds of the global exports. The major importers of iron ore were China, Japan, South Korea, India, and Germany.
Prices of Iron Ore
The price of iron ore has fluctuated in recent years due to changes in demand and supply. In February 2020, the price of iron ore reached a record high of $109.53 per dry metric tonne; however, the price has since declined to $55.75 due to oversupply and weak demand from China.
Conclusion
Iron ore is a key raw material used to make steel and other metals, and is essential for industrial development. Brazil, Australia and China have the largest reserves of iron ore, and are the leading producers and consumers. Furthermore, there has been an increase in global trade of iron ore in recent years, with China being the largest importer. Prices have been volatile in recent years, however, due to changes in the global supply and demand.
