Australia expects its iron ore exports to hit a record high of AUD 136 billion ($104 billion) this financial year, supported by a global demand recovery after the long stagnation caused by Covid-19. This is according to the Resources and Energy Quarterly report released by the Department of Industry, Science, Energy and Resources.
Over the coming years, Australia’s iron ore exports are expected to earn around AUD 100 billion annually. But the expected earnings of AUD 136 billion this year should be a peak, Kallanish notes.
Australia also wants to retain its market share over Brazil, so will ensure its iron ore shipments rise from 900 million tonnes in 2020-2021 to 1.1 billion tonnes five years later. Prices are expected to keep above $100/tonne until late 2021, and finally reach $72/t by the end of 2026. In its previous report, authorities had expected prices to stay above $100/t only until the second half of this year.
The report also predicts global steel output could rise by 3% in 2021, and 2.8% in 2022.
China is advancing the development of overseas iron ore mines, such as in Guinea, and aims to reduce dependence on Australian iron ore. In 2019-2020, China purchased 87% of Australia’s iron ore exports.
By Kallanish Team
