According to the estimate of the Australian Bureau of Resources and Energy Economics (BREE) released on March 21, Australia's iron ore export volumes in 2016-17 are forecast to indicate an increase of 62 percent as compared to 2011-12.
In 2012, Australia's iron ore exports are forecast to increase by 12 percent from the previous year to total 493 million mt. The increase is supported by a forecast increase in production at a number of mines including those operated by Rio Tinto, and the ramp-up of production at BHP Billiton's Rapid Growth Project 5. Australia's exports of iron ore are forecast to increase at an annual average of 10 percent, to total 779 million mt in 2017.
The value of Australia's iron ore exports in the fiscal year 2011-12 ending on June 30, 2012 is forecast by BREE to increase by two percent to $59.7 billion, compared with the fiscal year 2010-11. This is largely attributable to an increase in export volumes being partially offset by the appreciation of the Australian dollar and a slight decline in prices from the previous corresponding period.
The report also notes that in 2012 Brazil will continue to be the world's second largest exporter of iron ore, increasing its iron ore exports by six percent from the previous year to total 333 million mt, while India's iron ore exports projected to decline due to a government policy aimed at ensuring sufficient iron ore supply for domestic steel producers. Reflecting the restrictions and the high export tax, India's iron ore exports in 2012 are forecast to decrease by 31 percent year on year to 43 million mt.