South Africa's iron ore production decreased by 15.1% in January 2025 compared to the same month of the previous year, recording one of the largest declines in the mining sector. This decline contributed significantly to the 2.7% annual contraction in total mining output.
On a monthly basis, there was an 11.3% increase compared to December 2024. However, this recovery was not enough to offset the overall decrease in iron ore production. Combined with production decreases in other critical raw materials such as coal and platinum group metals (PGMs), the outlook for the sector in the first quarter of 2025 remains uncertain.
The decrease in iron ore production is also reflected in the industry's sales. In the first ten months of FY2024/25, iron ore sales revenues decreased by 11.4% y/y. Iron ore prices and demand remain under pressure due to global economic uncertainties and difficulties in key export markets such as China and the EU. Going forward, fluctuations in commodity prices and possible changes in local regulations are likely to further challenge South Africa's iron ore sector.
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