Iron ore update – June 2023

Australia continues to be the leading global supplier of iron ore, despite spot prices moderating in the June quarter.

This has been driven by the slowdown in global economic growth and an easing in the rate of recovery of Chinese steel production, despite a strong start in early 2023.

According to the Australian government’s Resources and energy quarterly, Australia is still the largest iron ore producer in the world, with exports earning $132B in 2021-2022. China is the major importer of Australian iron ore, accounting for 52% , followed by India (8%) and the EU (6%).

According to the report, Australia’s export volumes are rising with further greenfield supply expected, however export earnings are forecast to decline from $123 billion in 2022-23 to $110 billion in 2023-24, and $93 billion in 2024-25 – driven by lower prices over the outlook period.

What will these lower iron ore export earnings mean for Australia’s resources sector? The celebrated Iron Ore Conference 2023, co-hosted by AusIMM and CSIRO, will address the current opportunities and challenges for iron ore miners across the value chain. The conference will bring together over 700+ geologists, engineers, metallurgists, academia, mining leaders and executives to Perth from 18—20 September 2023.

To continue reading about the recent performance of Australia’s iron ore and the predicted forecast of Australia’s leading resource, view pages 36—46 of the Resources and energy quarterly: June 2023 published by the Office of the Chief Economist on 3 July 2023.