Industry Analysis & Industry Trends
The Iron Smelting and Steel Manufacturing industry has undergone a difficult period of structural change over the past five years. Industry revenue is estimated to fall at a compound annual 7.2% over the five years through 2013-14, due to limited demand from construction industries, fluctuating steel prices, competition from import markets and a strong Australian dollar. Revenue is anticipated to decline by 1.0% in 2013-14 to reach $14.0 billion. Profitability has also struggled, declining from 15.1% of revenue in 2008-09 to an estimated 0.7% in 2013-14. Production volumes, imports and exports have all decreased, contributing to the industry's poor performance over the past five years... purchase to read more
Industry Report - Industry Analysis Chapter
Over the past five years, the industry has performed poorly and revenue has declined substantially. Industry performance depends on demand from downstream construction industries, the domestic and global price of steel and Australia's trade-weighted index. Australian steel manufacturers are small players in the scope of global steel production and therefore have little effect on world steel prices. Decreased domestic demand and continued competition from import markets adversely affected performance over the past five years. However, industry assistance was implemented in an effort to keep domestic manufacturers competitive.
Revenue and profitability
Revenue is estimated to decline at an annualised 7.2% over the five years through 2013-14 to reach $14.0 billion... purchase to read more