Iron Ore price May 2023 and forecast (see chart below)
- USA:US$0.13/KG, -7.1% down
- Europe:US$0.14/KG, -6.7% down
- Africa:US$0.11/KG, unchanged
- China:US$0.13/KG, -7.1% down
- LATAM:US$0.12/KG, unchanged
- India:US$0.09/KG, -10% down
- Australia:US$0.12/KG, -7.7% down
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Iron Ore price index
This post is a summary of the Iron ore price developments. The price developments of Iron ore are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Iron ore price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.
The outlook for Iron ore prices, on the second tab, is generated from different inputs including:
- Very recent price developments of immediate cost drivers of Iron ore prices
- Recent price developments of underlying feedstocks which drive the price of Iron ore
- Market futures for both cost drives and feedstocks of Iron ore prices
- Adjustment of current supply/demand imbalances in the Iron ore market
- Longer term trends in likely demand conditions
Further information on the Iron Ore price index
What is Iron ore
Iron ore is a type of rock that contains substantial amounts of iron oxides, primarily hematite (Fe2O3) and magnetite (Fe3O4). It is the primary raw material used in the production of steel, which is a vital construction material and a key component of many products used in our daily lives.
Iron ore is typically found in the form of minerals within rocks and is extracted from the earth through mining. It is then processed to produce a concentrated form of the ore, which is used in the production of steel. The concentration process typically involves crushing and grinding the ore and separating the resulting material by size.
There are several types of iron ore, which are typically classified based on the minerals that they contain. The most common types of iron ore are hematite (Fe2O3) and magnetite (Fe3O4).
Hematite is a reddish-brown mineral that is composed of iron oxide. It is the most important source of iron ore, and it is typically found in the form of a mineral called hematite Fe2O3, which is an oxide of iron and oxygen. Hematite is typically found in sedimentary rocks and is often mined through open-pit mining methods.
Magnetite is a black, magnetic mineral that is composed of iron oxide. It is an important source of iron ore and is typically found in igneous and metamorphic rocks. Magnetite is typically mined through underground mining methods.
Other types of iron ore include goethite (FeO(OH)), limonite (FeO(OH).n(H2O)), and siderite (FeCO3). These minerals are less common sources of iron ore, but they may be found in some deposits.
Iron ore is an important resource, and its extraction and processing have significant environmental impacts. The extraction of iron ore can result in the release of greenhouse gases, and the mining and transportation of the ore can also have negative impacts on the environment.
How is Iron ore produced
Iron ore is produced through the mining of iron-containing rocks, which are then processed to produce a concentrated form of the ore. The concentration process typically involves crushing and grinding the ore and separating the resulting material by size.
Iron ore is typically found in the form of minerals within rocks, and it is extracted from the earth through mining. There are several types of mining methods that can be used to extract iron ore, including open-pit mining, underground mining, and surface mining.
Open-pit mining is a method in which iron ore is extracted from an open pit in the ground. This type of mining is typically used when the ore deposits are located close to the surface, and it involves the removal of large amounts of earth and rock to access the ore.
Underground mining is a method in which iron ore is extracted from underground tunnels or shafts. This type of mining is typically used when the ore deposits are located deep beneath the surface and requires the use of tunnels and shafts to access the ore.
Surface mining is a method in which iron ore is extracted from the surface of the earth. This type of mining is typically used when the ore deposits are located near the surface, and it involves the removal of the top layer of earth and rock to access the ore.
Once the iron ore is extracted, it is processed to produce a concentrated form of the ore, which is used in the production of steel. The concentration process typically involves crushing and grinding the ore and separating the resulting material by size. The resulting concentrated ore is then transported to a steel mill, where it is used in the production of steel.
What is iron ore used for
Steel is an alloy of iron and carbon, and it is used in a wide range of applications, including the construction of buildings, bridges, and infrastructure, as well as in the manufacture of cars, appliances, and other products. It is also used in the production of a variety of industrial products, such as machinery, equipment, and tools.
Iron ore is also used in the production of pig iron, which is an intermediate product used in the production of steel. Pig iron is produced by smelting iron ore with coke and limestone in a blast furnace, and it is used as a raw material in the production of steel.
In addition to its use in the production of steel and pig iron, iron ore is also used in the production of a variety of other products, including cement, asphalt, and fertilizers. It is also used as a feedstock in the production of certain chemicals and in the manufacturing of a variety of other products.
How big is the iron ore market
According to data from the World Steel Association, global steel demand has increased significantly in recent decades, and it is expected to continue to grow in the coming years. As a result, the demand for iron ore is also expected to remain strong.
In terms of market size, the global iron ore market is difficult to quantify due to the many variables that can affect the market, including changes in steel demand, changes in global economic conditions, and changes in commodity prices. However, it is clear that the iron ore market is a significant and important market that plays a vital role in the global economy.
According to https://oec.world/ :
Iron Ore are the world’s 13th most traded product.
In 2020, the top exporters of Iron Ore were Australia ($79.6B), Brazil ($26.5B), Canada ($5.73B), Ukraine ($4.27B), and South Africa ($4.06B).
In 2020, the top importers of Iron Ore were China ($99B), Japan ($8.24B), South Korea ($5.94B), Malaysia ($2.27B), and Singapore ($2.23B).
Further information
Data source: IMF
This data has been partly provided by the IMF and the World Bank. The only change is that it has been indexed for Jan 2019 (so Jan 2019 is set as the index 1.00). The data is provided subject to the terms and conditions as defined by the IMF
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Notes on the price-data
- We aim to update the data series on the 9th and 24th of each month (but we do not always make it for each chart)
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