The United Nations Conference on Trade and Development (UNCTAD) has reported that in 2009 global iron ore output decreased by 6.2 percent to 1.6 billion mt - the first decrease in global iron ore output after seven consecutive years of increase. At the same time, global crude steel output in 2009 decreased by eight percent year on year.
Due to strong demand in China, the global iron ore trade reached record levels in 2009. In the year in question, global iron ore exports increased by 7.4 percent year on year to 955 million mt - the eight consecutive year in which an increase in global iron ore exports has been registered.
In 2009, newly-created iron ore output worldwide reached 75 million mt. In 2010 up to the end of May, newly-undertaken iron ore projects had an aggregate planned iron ore output of 685 million mt. These new iron ore projects will be put into production in 2010-2012. In the three years after 2012, global iron ore output will increase at a rate of 400 million mt per year.
UNCTAD indicated that, if the three main iron ore giants - i.e., BHP Billiton, Rio Tinto and Vale - cannot control the growth in iron ore output, they may be faced with excessive iron ore output capacities.