Industry Analysis & Industry Trends
In the past five years, the Metal and Mineral Wholesaling industry has benefited from the mining investment boom, strong foreign demand and stable domestic growth. Demand from engineering construction for basic metal products, such as structural sections, has been particularly strong, reflecting investment in resource projects and associated construction and building infrastructure. Firms supplying other sectors, including automotive manufacturers and the residential housing market, have generally fared less well.
Industry revenue is expected to increase at an annualised 1.2% over the five years through 2014-15, driven by increased mining investment and high foreign demand over these years. Growth has been constrained by the ongoing trend of wholesale bypass... purchase to read more
Industry Report - Industry Key Buyers Chapter
Industry concentration is at a medium level with the four largest companies in the industry generating an estimated 46.3% of industry revenue in 2014-15. Industry concentration has increased in the past five years, with Glencore Xstrata maintaining steady growth, while CITIC Resources Australia Pty Ltd and Mitsui-Itochu Iron Pty Ltd significantly increased operations and market share. IBISWorld estimates the four largest companies accounted for 38.1% of industry revenue in 2009-10.
The medium industry concentration level reflects small number of major firms dominating the industry, the diverse range of products supplied by firms in the industry, and the scope available for small participants to service specific geographic markets, such as provincial centres or small towns... purchase to read more