Industry Analysis & Industry Trends
Over the five years through 2016-17, the Iron Ore Mining industry's revenue is expected to decrease at an annualised 5.4%, to $52.1 billion. Early in the period, strong economic growth in China increased iron ore mining development and drove greater steel production. This fuelled demand for iron ore and contributed to high world iron ore prices. Industry revenue declined in 2012-13, due to higher global iron ore supply and reduced Chinese demand. However, it rebounded in 2013-14, on the back of a weaker Australian dollar, higher output, low Chinese inventories and increased Chinese steel output.
Iron ore prices (denominated in US dollars) started falling in mid-2014 due to a global oversupply... purchase to read more
Industry Report - Industry Analysis Chapter
The performance of the Iron Ore Mining industry is closely tied to Chinese steel production, the world price of iron ore, domestic iron ore output and the value of the Australian dollar. The largest downstream steel-using industries in China and around the world are construction, motor vehicle manufacturing, shipbuilding, plant and equipment manufacturing, and consumer goods manufacturing. Changes in these industries' demand and output affect steel demand and output, which influences demand for iron ore. As Australia is a major global supplier of iron ore, the performance of its iron ore miners also depends on the volume of ore mined each year. The interplay between the global supply and demand of iron ore helps determine yearly production volumes and world prices... purchase to read more