Industry Analysis & Industry Trends
Over the five years through 2014-15, revenue for the Iron Ore Mining industry is estimated to increase at an annualised 12.5% to reach $80.3 billion. Strong economic growth in large nations, such as China and India, has increased steel production, fuelling demand for iron ore and boosting its price over most of the past five years. Rising prices have led to capacity expansions and large-scale increases in Australia's iron ore output, particularly between 2011-12 and 2014-15.
Following a large decline in 2012-13 due to falling prices, industry revenue rebounded in 2013-14 by 25.2% on the back of higher iron ore output, low iron ore inventories in Chinese ports and increased Chinese steel output. This was despite low prices in January 2014 and subsequent months... 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 72.5% of industry revenue in 2014-15, with the four largest estimated at 75.0%. Rio Tinto and BHP Billiton mines are located in the Pilbara region of Western Australia. 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 scale economies 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