What’s Happening to Iron Ore Production in 2022?

In late 2021, we saw strong headwinds for iron ore imports in 2022 as China continued to push ahead with cutting carbon emissions. Australia’s iron ore production was estimated to increase by 2% backed by projects that began operations last year, such as South Flank, West Angelas, Mesas B, C, and D and Western Turner Syncline Phase 2. However, continuing labour shortages alongside slowing demand from China, due to environmental vows and new Covid-related lockdown and restrictions during the first quarter of 2022 is scaring the global iron ore industry yet again.

Whilst it’s not all doom and gloom, the iron ore price is forecast to remain above $US100 per tonne into 2023, as Chinese demand slowly increases and supply remains stable.

Australian Ceramics Engineering Managing Director Paul Devine predicts the supply constraints will work to support the current iron ore pricing as major miners focus on value over volume.

Along with price strength, a few of the larger projects from FMG and BHP have the potential to support and encourage iron ore production growth over the remainder of 2022, boosting our weakened confidence in Australia’s highly profitable iron ore sector.

Looking ahead, and our iron ore mining industry is looking stronger by the day.