Steel Industry’s Upstream Sectors Resilient to Covid-19 Pandemic Impacts

SEATTLE (Scrap Monster):  The World Steel Association (worldsteel) has published a new report outlining the impacts of the Covid-19 pandemic on the steel industry’s upstream sectors.

The report noted that Australia dominates the global supply of iron ore and metallurgical coal. The country accounted for nearly 60% of the global seaborne supply during the previous year. A major disruption is likely to lead to huge impact on most steelmakers across the globe. Fortunately, the supplies have managed to remain resilient so far during the pandemic season. In fact, the country has recorded increased iron ore supply to seaborne markets. The exports from Port Headland hit record high level in March this year.

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The mining and logistics operations in Brazil too have not been significantly impacted due to the pandemic. However, Vale-the biggest iron ore producer in the country warned that the company may be forced to declare contingency measures if the epidemic spread goes out of control. The pandemic has also delayed the authorisation processes in connection with reopening of its operations that were halted due to tailings dam disaster last year.

Many iron ore and coal mines in the U.S. have been idled. Operations have also been impacted in Canada, South Africa and India, which together accounted for nearly 10% of the global seaborne iron ore supply in 2019.