Analysis of World Iron Ore Manufacturing Trends
According to Mining Journal, the world’s iron ore output in 2009 was about 1.59 billion tons, a decrease of 7.6% from 2008. After years of continuous growth, the world’s iron ore output declined for the first time in 2009. Calculated by finished ore, the world’s top ten iron ore producers are China, Brazil, Australia, India, Russia, Ukraine, the United States, South Africa, Canada and Sweden in order. The iron ore output of the ten major countries totals 1.6 billion tons, accounting for the world’s 93.0% of the total iron ore output, the world’s iron ore production is relatively concentrated. There are about 40 countries in the world that produce iron ore, of which 23 countries have iron ore production exceeding 1 million tons.
In 2008 and 2009, the world’s steel production fell, and the demand for iron ore also fell. However, the world iron ore output still reached 1.72 billion tons in 2008, an increase of 5.6% over 2007. This is the world’s iron ore. Production has increased for the seventh consecutive year. In the world iron ore output in 2008, the iron ore output of developing countries accounted for about 62% of the world’s iron ore output. China is the world’s largest iron ore producer, with an output of 366 million tons (comparable by grade) in 2008, accounting for approximately 21.2% of the world’s iron ore production, which is 1,600 more than the world’s second-largest iron ore producer Australia Million tons.
From 1999 to 2008, the world’s iron ore production increased by 95%, an increase of 840 million tons, of which 78% of the increase occurred in the last five years. Except for Australia and Sweden, iron ore production in developed countries fell by 6.6% during the same period, but iron ore production in Australia and Sweden increased by 130% and 26% respectively during the same period. During the same period, the iron ore output of the CIS countries increased by 37%. However, this increase has not yet reached its highest record of 250 million tons in the mid-88th generation. The output of iron ore in Western Europe is close to historical lows, and has been less than 30 million tons in recent years.
In 2008, the world’s top ten iron ore production companies had a total iron ore output of 846 million tons, accounting for 49.0% of the world’s iron ore production. The world’s iron ore production was concentrated in a few companies, especially the three major companies, Vale, Rio Tinto and BHP Billiton. In 2008, the iron ore output share of the three major companies, Vale, Rio Tinto, and BHP Billiton, fell to 34.2%. The reason was that the iron ore output of small-scale iron ore mines in India and China increased significantly from 2005 to 2007. Another reason is that the three major companies cut iron ore production in the second half of 2008.
In 2008, the ownership concentration of the world’s major iron ore production companies was declining for the world’s three largest iron ore production companies and the world’s top ten iron ore production companies. In the past, the world’s iron ore production The long-term trend of concentrated ownership of large companies seems to have ended, but it is still unclear whether this opposite trend will continue in the future. The main reason is that Vale and Rio Tinto limited production in 2008. Once the market demand Growth, the two companies will be able to increase iron ore production soon. In the next few years, the closure of many iron ore mines in China will likely lead to a substantial decline in China’s iron ore output. The above two factors will increase the share of the world’s three major iron ore producers to exceed the highest level in 2003-2005 in the next few years.
In fact, the world’s major companies control the concentration of iron ore production less than they control the market concentration, because many of the iron ore produced has not entered the market. In 2008, Vale Brazil accounted for 33% of the world’s seaborne iron ore market, and the three major companies accounted for 69%. The merger of Rio Tinto and BHP Billiton in 2009 has failed.
In recent years, with the rapid development of the world’s iron and steel industry, the demand for iron ore has continued to increase. Many new iron ore projects and expansion projects have been put into construction in major iron ore producing countries in the world. In 2008, the iron ore production capacity of new iron ore projects in the world was 90 million tons, and in 2007 it was 130 million tons. The new production capacity of world iron ore does not include small-scale local iron ore construction projects. These small-scale local iron ore construction projects are mainly distributed in China and India, with a few in Brazil. In 2008, some new iron ore projects in West Africa were also put into construction, and iron ore construction projects in the Arctic Circle in Canada are also underway.
Brazil’s Vale’s Carajás iron ore expansion project expanded by 10 million tons in 2009 and 30 million tons in 2011. At Serra Sul iron ore, 90 million tons will be expanded in 2013. These expansions need to be approved by the board of directors. The construction project of the 24 million tons of Apolo iron ore mine will be completed in 2013. These two iron ore expansion plans will invest nearly 16.6 billion U.S. dollars, plus other iron ore-related infrastructure investment will exceed 20 billion U.S. dollars. These expansion projects of Vale are all to increase iron ore production to compete with China’s small iron mines, and it may also directly invest in China to build factories to produce pellets to meet the needs of the Chinese market.
Rio Tinto’s current iron ore construction projects include the Hope Downs iron ore, Mesa A iron ore and Brockman 4 iron ore key development projects in Australia, and the Simandou iron ore development project in Guinea. Iron ore projects jointly developed by Bang Mining Company and Iron Ore Company of Canada (Rio Tinto accounted for 58.7%, Mitsubishi Company 26.2%, and Labrador Iron Ore Rights Fund 15.1%). Rio Tinto’s Corumba iron ore project in Brazil has been sold to Vale.
In 2008, BHP Billiton announced that it had approved a US$1 billion iron ore construction project in Western Australia. The completion of the iron ore construction project in 2011 will bring BHP Billiton’s iron ore reserves to 200 million tons. The actual production capacity of the iron ore development project will increase by 50 million tons per year. At present, 50% of the engineering construction has been completed. BHP Billiton’s long-term plan is to increase its iron ore production capacity to 300 million tons and the throughput capacity of the Port of Hedland to 350 million tons. In the fourth quarter of 2008, BHP Billiton completed the expansion of the RGP3 iron ore mine, increasing its production capacity by 20 million tons. The expansion of the RGP4 iron ore mine is also under construction. 95% of its construction has been completed. The iron ore production capacity will increase by 26 million tons, reaching 155 million tons in the first half of 2010.
Australia’s Forticiu Group Corporation had its iron ore production capacity reached 55 million tons within one year of its first export of iron ore in 2008. Australia has emerged as the third largest iron ore company after Rio Tinto and BHP Billiton. . Forticiu Group plans to expand its iron ore production capacity to 75 million tons/year, 95 million tons/year, and eventually 155 million tons/year.
In late 2008 and early 2009, Canadian iron ore development has slowed down because most new iron ore development projects are located in the Arctic area, and most iron ore projects have been postponed or suspended due to the current financial situation.
In South Africa, the Kumba iron ore company has been in trouble for the past few years. For example, the Senegalese government gave its Falémé iron ore project to ArcelorMittal. Kumba Iron Ore Company claims that its iron ore production capacity will reach 150 million tons by 2016, and its share of the world’s iron ore shipping market will reach 13%. The Kumba Iron Ore Company has entered West Africa to develop iron ore, and is already carrying out some new and expanded iron ore projects. Among them, the Sishen iron ore expansion project is nearly completed and will reach production in 2012. The iron ore project has a long-term annual production capacity of 3 million tons, which will reach 9 million tons in 2013.
Assmann is another large iron ore production company in South Africa. The construction of its Khumani iron ore project has been completed and will reach its annual production capacity of 16 million tons of iron ore in 2010.
In other parts of Africa, there are several large iron ore development projects in the early stage. These large iron ore development projects in the early stage will take several years to go into operation. Once they are put into operation, Africa will become an international market for iron ore. An important source of supply of ore. ArcelorMittal is already interested in iron ore development on the African continent. There are currently three iron ore development projects underway. They are the Falémé iron ore in Senegal, the El Agareb iron ore in Mauritania, and the Yekepa iron ore in Liberia. The Mbalam iron ore development project is controlled by Sundance Resources Ltd. of Australia. China United Investment Corporation will redevelop the Bong iron mine in Liberia. Rio Tinto’s Simandou iron ore development project in Guinea will produce 70 to 170 million tons of iron ore annually. However, in August 2008, Rio Tinto received a notice from the Ministry of Mining of Guinea, requiring Rio Tinto to give up its mining rights in the northern part of the Simandou iron ore development project, and to confirm its mining rights in the southern part of the Simandou iron ore development project. This notice raises an objection and is arguing about it.
In June 2008, African Minerals Ltd (African Minerals Ltd) in Sierra Leone Tonkolili (Tonkolili) iron ore proven magnetite reserves of 10 billion tons, has invested 100 million US dollars. The African Minerals Company claims that the mine may become the largest iron ore in Africa. In Tonkolili) iron cap, 1 billion tons of hematite has also been discovered. Tonkolili iron ore has an annual output of 30 million tons of iron ore, which can be mined for 60-100 years, which means investing billions of dollars in Sierra Leone, plus Sierra Leone’s third largest deep-water port, Africa Minerals Corporation It will become an important supplier of iron ore in European and Asian markets.
With the rapid development of China’s iron and steel industry, China’s steel output has continued to increase substantially in recent years, which has led to a continuous and substantial increase in the demand for iron ore, thereby effectively stimulating the construction of domestic iron ore mines in China. The enthusiasm of local and private enterprises to invest in iron ore development has been unprecedentedly increased, and a large number of iron ore mining and dressing projects have been completed or are under construction. The fixed asset investment in China’s ferrous metal mining and dressing industry was 42.723 billion yuan in 2007, 68 billion yuan in 2008, and 84.1 billion yuan in 2009, a year-on-year increase of 23.9.0%. Driven by the growth rate of steel investment, in recent years, due to the continuous increase in iron ore prices in domestic and foreign markets, the fixed asset investment in China’s ferrous metal mining and dressing industry has increased year after year, and domestic iron ore construction investment has become a new hot spot.
The world crude steel output in 2009 was 1,199.1 million tons, which was a decrease of 8.0% compared with the 1.3582 million tons in 2008. The world crude steel output has declined for two consecutive years after increasing for many years. The world’s major crude steel producing countries and regions are China, Japan, Russia, the United States, India, South Korea, Germany, Ukraine, Brazil, Turkey, Italy, Taiwan, Spain, Mexico, and France, etc. The total of 15 countries or regions The steel output is 1.069.7 million tons, accounting for 89.2% of the world’s crude steel output.
In 2009, the steel production of major steel producing countries including the European Union, North America, South America and the Commonwealth of Independent States countries almost all declined, but in Asia, China, India and the Middle East countries’ steel production increased significantly. Crude steel production in Asia reached 795.4 million tons in 2009, an increase of 3.5% over 2008. The share of Asian steel production in world steel production increased from 58% in 2008 to 65% in 2009.
In recent years, China’s iron and steel industry has developed rapidly. Crude steel output has increased from 101.24 million tons in 1996 to 567.84 million tons in 2009. China’s iron and steel industry has entered a stage of rapid development. China’s share of world steel output has increased from 13.5 in 1996. % Rapidly increased to 47.4% in 2008.