It points out that the automotive industry accounts for about 17% of global iron-ore consumption and that light vehicle sales had decreased significantly worldwide in the year to date.

“Covid-19 is expected to significantly impact global iron ore consumption, which is projected to drop by 2.8% to reach 2.04-billion tonnes 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,” comments GlobalData senior mining analyst Vinneth Bajaj.

“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 of 1.3% over 2021 to 2024, to reach 2.19-billion tonnes in 2024 – supported by strong demand for growth in India and China, alongside continuous development across Russia, Japan, South Korea and Brazil, Bajaj points out.