Industry Analysis & Industry Trends
The Iron Smelting and Steel Manufacturing industry has undergone tough structural change over the past five years. Industry revenue is expected to decline at an annualised 8.4% over the five years through 2016-17, to $9.1 billion. Falling demand from downstream markets, lower steel prices and competition from import markets have created industry production overcapacity. Falling iron and steel production volumes are also likely to contribute to a 7.9% drop in industry revenue over 2016-17. Although lower prices can boost demand for steel products, the net effect is generally negative, as manufacturers generate less revenue per product... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Iron Smelting and Steel Manufacturing industry is characterised by a moderate level of market share concentration. The industry's two major players alone, BlueScope Steel and Arrium, account for an estimated 49.1% of total industry revenue. Aside from these major players, the industry is made up of a large number of smaller scale iron smelters and steel manufacturers. These smaller operators make up over three-quarters of total businesses, with only 20.0% of companies generating more than $2.0 million in revenue, demonstrating the industry's extremely fragmented nature outside of the major players.
Larger steel manufacturers tend to benefit from economies of scale, giving them the ability to minimise per unit costs and improve profitability... purchase to read more