Industry Analysis & Industry Trends
Over the five years through 2014-15, Iron Ore Mining industry revenue is expected to increase at an annualised 7.2% to $63.1 billion. Strong economic growth in China increased development and drove greater steel production, fuelling demand for iron ore and contributing to high iron ore prices, particularly in the years prior to 2013-14. However, iron ore prices (denominated in US dollars) started falling in mid-2014 due to global iron ore oversupply, partly offset by a weaker Australian dollar. Overall, relatively high iron ore prices until this time provided an incentive for Australian iron ore mining firms to increase production to benefit from higher Chinese demand. This led to major capacity expansions and large-scale increases in Australia's iron ore output in the past five years... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Iron Ore Mining industry has a high concentration level. The mines operated by the three largest firms are estimated to account for 83.0% of industry revenue in 2014-15. All major players have major operations in the Pilbara region of Western Australia. Rio Tinto and BHP Billiton have operated in the industry for over a decade, while Fortescue Metals Group is relatively new to the industry and has grown significantly in the five years through 2014-15. To a large extent, the high industry concentration level reflects the large size of individual mines and the importance of economies of scale for industry operators.
With these large firms dominating the industry, the concentration level has increased in the past five years, as few new major firms have entered the industry... purchase to read more