The Institute for Energy Economics and Financial Analysis (IEEFA) has stated that Australia’s iron ore and coal markets will change permanently in 2025 as steel technology changes risks, altering demand for Australian iron ore and metallurgical coal permanently with a shift in global demand towards higher quality, direct reduction-grade (DR-grade) iron ore.
IEEFA stated that the long-term future of Australia’s largest export depends on the efforts to make Australia’s lower-grade ore usable in DRI-based steelmaking processes. Australia could increase production of DR-grade iron ore, and South Australia has an opportunity to turn its high-grade ore into green iron for export. However, almost all of Australia’s iron ore exports are well below DR-grade.
