Editing Iron ore (section)

== Production and consumption ==
{{Main list|list of countries by iron ore production}}
[[File:Evolution minerai fer.svg|lang=en|thumb|Evolution of the extracted iron ore grade in [[Canada]], [[China]], [[Australia]], [[Brazil]], [[United States]], [[Sweden]], the [[Soviet Union|Soviet Union and Russia]], and the world. The recent drop in world ore grade is due to significant consumption of low-grade Chinese ores. American ore, on the other hand, is typically upgraded between 61% and 64% before being sold.<ref>Graphic from [http://s3.amazonaws.com/zanran_storage/nzsses.auckland.ac.nz/ContentPages/953681807.pdf#page=5 The "Limits to Growth" and 'Finite' Mineral Resources, p. 5, Gavin M. Mudd]</ref>]]

{| class="wikitable" style="float:right; clear:right; margin:0 0 .5em 1em;"
|+Usable iron ore production in million metric tons for 2015<ref name=usgs2017>{{cite web|url=https://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/mcs-2017-feore.pdf|title=Mineral Commodity Summaries 2017|author=Tuck, Christopher|publisher=U.S. Geological Survey|access-date=2017-08-21}}</ref>
|-
! Country || Production
|-
| [[Australia]] || {{convert|817000000|t|abbr=on}}
|-
| [[Brazil]] || {{convert|397000000|t|abbr=on}}
|-
| [[China]] || {{convert|375000000|t|abbr=on}}{{efn|The mine production estimates for China are estimated from the National Bureau of Statistics China's crude ore statistics, rather than usable ore as reported for the other countries.<ref name=usgsclarification>{{cite web|url=https://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/global_iron_ore_data.pdf|title=Global iron ore production data; Clarification of reporting from the USGS|author=Tuck, Christopher|publisher=U.S. Geological Survey|access-date=2017-08-21}}</ref>}}
|-
| [[India]] || {{convert|156000000|t|abbr=on}}
|-
| [[Russia]] || {{convert|101000000|t|abbr=on}}
|-
| [[South Africa]] || {{convert|73000000|t|abbr=on}}
|-
| [[Ukraine]] || {{convert|67000000|t|abbr=on}}
|-
| [[United States]] || {{convert|46000000|t|abbr=on}}
|-
| [[Canada]] || {{convert|46000000|t|abbr=on}}
|-
| [[Iran]] || {{convert|27000000|t|abbr=on}}
|-
| [[Sweden]] || {{convert|25000000|t|abbr=on}}
|-
| [[Kazakhstan]] || {{convert|21000000|t|abbr=on}}
|-
| Other countries || {{convert|132000000|t|abbr=on}}
|-
| Total world || {{convert|2280000000|t|abbr=on}}
|}

Iron ore represents 93% of metals mined worldwide in 2021.<ref>{{Cite web |date=2022-10-24 |title=Here's what the world mined in 2021 in one infographic  |url=https://www.weforum.org/stories/2022/10/all-the-metals-we-mined-in-2021-visualized/ |access-date=2024-12-31 |website=[[World Economic Forum]]}}</ref> Steel, of which iron is the key ingredient, represents almost 95% of all metal used per year.<ref name="Iron ore pricing">[http://www.ft.com/cms/s/0/b0580bf6-c220-11de-be3a-00144feab49a,s01=1.html Iron ore pricing emerges from stone age], ''Financial Times'', October 26, 2009  {{webarchive|url=https://web.archive.org/web/20110322231042/http://www.ft.com/cms/s/0/b0580bf6-c220-11de-be3a-00144feab49a%2Cs01%3D1.html |date=2011-03-22 }}</ref> {{clarify|text=It is used primarily in structures, ships, automobiles, and machinery.|reason=Does "it" refer to iron or steel?|date=December 2024}}

Iron-rich rocks are common worldwide, but ore-grade commercial [[mining]] operations are dominated by the countries listed in the table aside. The major constraint to economics for iron ore deposits is not necessarily the grade or size of the deposits, because it is not particularly hard to geologically prove enough tonnage of the rocks exist. The main constraint is the position of the iron ore relative to market, the cost of rail infrastructure to get it to market, and the energy cost required to do so.

Mining iron ore is a high-volume, low-margin business, as the value of iron is significantly lower than base metals.<ref name="Iron ore interactive">[http://www.ft.com/cms/s/0/3561ce38-b8e7-11de-98ee-00144feab49a.html Iron ore pricing war], ''Financial Times'', October 14, 2009</ref> It is highly capital intensive, and requires significant investment in infrastructure such as rail in order to transport the ore from the mine to a freight ship.<ref name="Iron ore interactive"/> For these reasons, iron ore production is concentrated in the hands of a few major players.

World production averages {{convert|2000000000|t|abbr=on}} of raw ore annually. The world's largest producer of iron ore is the Brazilian mining corporation [[Vale (company)|Vale]], followed by Australian companies [[Rio Tinto (corporation)|Rio Tinto]] and [[BHP]]. A further Australian supplier, [[Fortescue (company)|Fortescue]], has helped bring Australia's production to first in the world.

The seaborne trade in iron ore—that is, iron ore to be shipped to other countries—was {{convert|849,000,000|t|abbr=on}} in 2004.<ref name="Iron ore interactive"/> Australia and Brazil dominate the seaborne trade, with 72% of the market.<ref name="Iron ore interactive"/> BHP, Rio and Vale control 66% of this market between them.<ref name="Iron ore interactive"/>

In [[Australia]], iron ore is won from three main sources: pisolite "[[channel-iron deposits|channel iron deposit]]" ore derived by mechanical erosion of primary banded-iron formations and accumulated in alluvial channels such as at [[Pannawonica]]; and the dominant metasomatically altered [[banded iron formation]]-related ores such as at [[Newman, Western Australia|Newman]], the [[Chichester Range]], the [[Hamersley Range]] and [[Koolyanobbing]], [[Western Australia]]. Other types of ore are coming to the fore recently,{{When|date=June 2022}} such as oxidised ferruginous hardcaps, for instance [[laterite]] iron ore deposits near [[Lake Argyle]] in Western Australia.

The total recoverable reserves of iron ore in [[India]] are about {{convert|9602000000|t|abbr=on}} of [[hematite]] and {{convert|3408000000|t|abbr=on}} of [[magnetite]].<ref>{{cite book|url=https://books.google.com/books?id=XfUVyq4zt9IC&pg=PA101|title=Natural Resource Conservation and Environment Management|first1=Shabir Ahmad|last1=Qazi|first2=Navaid Shabir|last2=Qazi|date=1 January 2008|publisher=APH Publishing|access-date=12 November 2016|via=Google Books|isbn=9788131304044}}</ref> [[Chhattisgarh]], [[Madhya Pradesh]], [[Karnataka]], [[Jharkhand]], [[Odisha]], [[Goa]], [[Maharashtra]], [[Andhra Pradesh]], [[Kerala]], [[Rajasthan]], and [[Tamil Nadu]] are the principal Indian producers of iron ore. World consumption of iron ore grows 10% per year {{Citation needed|date=October 2009}} on average with the main consumers being China, Japan, Korea, the United States, and the European Union.

China is currently the largest consumer of iron ore, which translates to be the world's largest steel producing country. It is also the largest importer, buying 52% of the seaborne trade in iron ore in 2004.<ref name="Iron ore interactive"/> China is followed by Japan and Korea, which consume a significant amount of raw iron ore and [[metallurgical coal]]. In 2006, China produced {{convert|588000000|t|abbr=on}} of iron ore, with an annual growth of 38%.

===Iron ore market===
{{Anchor|Available iron ore resources}}
[[File:Iron ore prices.webp|thumb|Iron ore prices (monthly)
{{legend-line|#EE220C solid 3px|China import/inbound iron ore spot price<ref>{{cite web|url=https://www.indexmundi.com/commodities/?commodity=iron-ore&months=360 |title=Iron Ore - Monthly Price - Commodity Prices - Price Charts, Data, and News |publisher=IndexMundi |date= |accessdate=2022-08-05}}</ref>}}
{{legend-line|#61D836 solid 3px|Global iron ore price<ref>{{cite web|url=https://fred.stlouisfed.org/graph/?g=StR6 |title=Global price of Iron Ore &#124; FRED &#124; St. Louis Fed |publisher=Fred.stlouisfed.org |date= |accessdate=2022-08-05}}</ref>}}
]]
[[File:Iron Ore price.webp|thumb|Iron ore prices (daily)<br> 25 October 2010 - 4 August 2022]]
Over the last 40 years, iron ore prices have been decided in closed-door negotiations between the small handful of miners and [[Steelmaking|steelmakers]] which dominate both spot and contract markets. Until 2006, prices were determined in annual benchmark negotiations between the main iron ore producers ([[BHP]], [[Rio Tinto (corporation)|Rio Tinto]], and [[Vale (company)|Vale]]) and Japanese importers.<ref name=":02">{{Cite book |last=Massot |first=Pascale |title=China's Vulnerability Paradox: How the World's Largest Consumer Transformed Global Commodity Markets |date=2024 |publisher=[[Oxford University Press]] |isbn=978-0-19-777140-2 |location=New York, NY, United States of America |pages=}}</ref>{{Rp|page=31}} In 2006, Chinese company [[Baosteel]] began handling negotiations for the importer side.<ref name=":02" />{{Rp|page=31}} The Chinese government replaced Baosteel with China Iron and Steel Association as lead negotiator in 2009.<ref name=":02" />{{Rp|page=109}} Traditionally, the first deal reached between these the major producers and the major importers sets a benchmark to be followed by the rest of the industry.<ref name="Iron ore pricing"/>

[[Singapore Mercantile Exchange]] (SMX) has launched the world's first global iron ore futures contract, based on the [[Metal Bulletin]] Iron Ore Index (MBIOI) which uses daily price data from a broad spectrum of industry participants and independent Chinese steel consultancy and data provider Shanghai Steelhome's widespread contact base of steel producers and iron ore traders across China.<ref>{{cite web|url=http://www.nasdaq.com/article/smx-to-list-worlds-first-index-based-iron-ore-futures-cm38142|title=SMX to list world's first index based iron ore futures|date=29 September 2010|access-date=12 November 2016}}</ref> The futures contract has seen monthly volumes over {{convert|1500000|t|abbr=on}} after eight months of trading.<ref>{{cite web|url=http://www.smx.com.sg/MediaRoom/SMXNews/NewsDetail.aspx?type=top&id=137|title=ICE Futures Singapore - Futures Exchange|access-date=12 November 2016}}</ref>

This move follows a switch to index-based quarterly pricing by the world's three largest iron ore miners—[[Vale (company)|Vale]], [[Rio Tinto (corporation)|Rio Tinto]], and [[BHP]]—in early 2010, breaking a 40-year tradition of benchmark annual pricing.<ref>{{Cite web |url=http://www.mbironoreindex.com/Article/2679174/SMX-and-MB-to-launch-world39s-first-iron-ore-futures-contract.html |title=mbironoreindex |access-date=20 October 2010 |archive-date=25 February 2021 |archive-url=https://web.archive.org/web/20210225075947/https://www.mbironoreindex.com/Article/2679174/SMX-and-MB-to-launch-world39s-first-iron-ore-futures-contract.html |url-status=dead }}</ref>