Australia iron ore supply summary
With 54% margins from iron ore and sustained year-on year production performance, Australia continues to be clear winners in 2022. Resilient Chinese steel demands and ongoing supply tightness due to adverse weather conditions, lower than anticipated Brazilian and Indian supplies, kept prices of iron ores high for regional supplier. Nonetheless, following the onset of COVID-19 in China at the end of 2022, high-cost operators, including Strike and CuFe begin exiting the market. Australian production henceforth was flat at 950 Mt. Other factors contributing to low production were slow tie-in of Rio Tinto’s Gudai-darri mine, delays on FMG Iron Bridge production start and the passing of the Aboriginal Heritage Act, contributing to onerous new project approvals process.