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Global Iron Ore Supply
• Currently supply barely meets demand
• Continued very tight supply over the next few years
• ”Swing producers” in China operating at 120–140 USD/tonne
(62% Fe equivalent)
• Large expansion projects primarily in Australia, South America and Africa
of which the “Big three” (Vale, BHP Billiton and Rio Tinto) plus FMG account
for the lion’s share
• Great difficulties to meet project timelines due to environmental permitting
issues (Brazil), bottlenecks in logistics solutions (globally) and political
instability (West Africa)
• Exports from India to diminish due to high costs and increasing domestic
demand
Sources: Industry Sources (e.g. SBB, RMG, AME)
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