China is demanding higher quality iron ore, noted the National Steel Company (CSN), Brazil’s largest steel industry. The reason?

Because recent regulatory changes have led Chinese steel producers to buy higher quality iron ore.

In particular, iron ore exported from Brazil has gained ground in international markets, particularly in China.

Brazilian iron ore is considered high quality and contains a low level of contaminants in its composition. 

According to Companhia Siderúrgica Nacional, iron ore is basically traded on the international market, especially in Europe and Asia. 

The prices charged in these markets are historically cyclical and subject to significant fluctuations in short periods of time, driven by several factors related to global demand, the strategies adopted by the main steel producers and the exchange rate.

Iron Ore

The Mexican Chamber of Mines (Camimex) reports that Australia and Brazil are the two countries with the largest amount of iron ore reserves in the world, with 27,000 and 15,000 million tons of iron content, respectively. 

In total, there are an estimated 85 billion tons of iron content in the world. 

According to the USGS, world iron ore production totaled 2.6 billion tons, thus maintaining the same figure reported in 2021. 

The largest producer is Australia with a 33.6 percent share. It is followed by Brazil and China. 

Behind, Mexico is in 17th position. 

Most of the iron production is used to manufacture steel, the demand for which increases or decreases in response to the iron and steel performance of world powers such as China or the United States.