Green iron exports: Australia must look beyond China
With China's steel demand in structural decline, the report states that the outlook for Australia's iron ore exports is one of decreasing volumes and values, with significant revenue implications for the federal and Western Australian governments. It says the processing of iron ore into green iron has been identified as an opportunity to add value to a declining export, and is starting to look more like an economic necessity than an opportunity. The report adds that China's global green hydrogen dominance and its strategic imperative to reduce reliance on imports from Australia may limit green iron trade between the two countries, so Australia must prioritise alternative markets including Japan, South Korea, India and Southeast Asia.
Why it matters: The report frames steel decarbonisation as the context in which Australia's largest export must find buyers beyond China, since China's import-substitution strategy may cap green iron trade between the two countries.