Vinneth Bajaj, Senior Mining Analyst at GlobalData, comments: “COVID-19 is expected to significantly impact global iron ore consumption, which is projected to drop by 2.8% to reach 2034.6 million t in 2020. This drop reflects how the market has been directly affected by COVID-19, with workers unable to get to sites and severe disruption to the delivery of key materials and equipment, as well as the impact of widespread disruption to economic activity.
Due to the likely drop in investment, with planned projects in commercial and industrial buildings sectors potentially being put on hold or cancelled, GlobalData expects the global construction output to contract by 2.8% in 2020.
Bajaj concluded: “Only once the virus is under control can the industry rebound and global demand return. In the long-term, it is expected that global iron ore consumption will grow at a compound annual growth rate (CAGR) of 1.3% over the forecast-period (2021 - 2024), to reach 2193.8 million t in 2024 – supported by a strong demand for growth in India and China, alongside continuous development across Russia, Japan, South Korea and Brazil.
