SEATTLE (Scrap Monster): The latest industry report published by Fitch Solutions predicts that global iron ore production growth is likely to accelerate in the forthcoming years. The report predicts slower growth in Australia, faster growth in Brazil and stabilized output from mainland China.
The global mine output growth is projected to average at 2.7% over the period from 2022 to 2026. This compares with negative growth of 1.3% over the previous five-year period. The anticipated production growth will lift the annual iron ore production by 361.7 million tonnes in 2026, compared with 2022 levels.
The supply growth will be primarily driven by Brazil and Australia, mainly driven by aggressive expansion plans by miner Vale. The report foresees major reinvestment boost additional production by various miners in Australia including BHP, Rio Tinto and Fortescue. The efforts to increase its self-sufficiency by reducing imports from Australia will boost iron ore production by Mainland China over the next three to four years. Also, Chinese firms are seen increasingly focused on overseas iron ore mines, such as Simandou project in Guinea, the Fitch report.
Fitch predicts Australian iron ore production to grow at an annual average of 0.4% over the forecast period.