In its latest report on the iron ore market, UNCTAD stated that in 2016, global iron ore production increased by 5% year-on-year to 2.106 billion tons, primarily driven by a 30-million-ton rise in direct-shipping iron ore production from Australia. Global iron ore exports reached 1.513 billion tons, up from 1.439 billion tons in the previous year. UNCTAD believes that the global sea-borne iron ore market remained broadly balanced.

　　In 2016, global iron ore trade continued to grow, driven primarily by Australia, which contributed an additional 44 million tons to the global maritime supply. The main iron ore varieties entering the maritime market were Pilbara Blend fines and Carajás fines.

　　In its report, the United Nations Conference on Trade and Development pointed out that iron ore producers have significantly reduced mining costs over the past four years. Thanks to tighter capital controls, renegotiated contracts, and the withdrawal from the market of high-cost iron ore supplies, the overall cost of the mining industry is now $22 per dry ton lower than in 2013. In 2016, the globally weighted average production cost for maritime shipping was only $34 per dry ton, and for some low-cost iron ore producers, the production cost even dropped as low as $23 per dry ton.

　　Meanwhile, UNCTAD reported that global iron ore exploration budgets declined for the fourth consecutive year in 2016, falling to an estimated $685 million—a decrease of $460 million compared to 2015. The decline in global iron ore exploration budgets was largely driven by Australia and China, which together accounted for nearly half of the total reduction worldwide. Currently, annual iron ore exploration budgets have fallen by 83% from their peak level of $3.98 billion in 2012.