DUBLIN, March 3, 2016 /PRNewswire/ --
The global iron ore market is predicted to grow at a CAGR of around 3% during the 2015-2019 period, according to an industry report available from Research and Markets. The report states that the high capital required for the iron ore industry is a major challenge to the growth of this market, as large investments are required for the infrastructure and machinery used to transport and manufacture this commodity. However, this forecast growth could be higher than predicted, as the price for iron ore rose by 20% this week.
Iron ore was priced at USD 38.30 in December, the commodity's lowest daily price since 2009. This trend was expected to continue throughout 2016 due to a weak demand and low-cost supply, but iron ore has defied expectations and registered a daily price of USD 52.50 a dry ton on Wednesday, as reported by Metal Bulletin Ltd. Iron ore's 20% price jump is believed to be the result of restocking by Chinese mills and shipment disruptions from Australia, caused by a tropical cyclone in January.
Around 98% of the world's iron ore production is used to manufacture steel, and it's expected that the surge in prices will have an effect on related markets. The global steel industry is expected to grow at a CAGR of 2% by 2019 , as forecast in a recent report. This growth could be higher thanks to a more dynamic iron ore market.
China's demand for steel has quickly grown over the past ten years, and is expected to grow at a CAGR of 6% until 2024 as noted in a market report. A renewed global interest in iron ore could result in stronger growth in this market, stimulated by increases in steel and iron ore exports.
About Research and Markets
Research and Markets is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Research and Markets
Laura Wood, Senior Manager
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: +1-646-607-1907
Fax (outside U.S.): +353-1-481-1716
SOURCE Research and Markets