Future prospects

Generally speaking, Australia and Brazil are expected to, in the long-term, be the dominant countries in the global production of iron ore. In India, which has large iron ore resources of good quality and a fast-growing steel industry, most of the produced iron ore is likely to be used within the country. Chinese production of iron ore is projected to decline slowly. If prices fall, production will fall more quickly with a so-called “shake out” in China, where many iron ore producers close down their operations.