Industry Analysis & Industry Trends
Over the five years through 2015-16, the Iron Ore Mining industry's revenue is expected to decrease at an annualised 4.1% to $52.1 billion. Early in the five-year period, strong economic growth in China led to increased iron ore mining development and drove greater steel production. This fuelled demand for iron ore and contributed to high world iron ore prices. Following a revenue decline in 2012-13, due to reduced Chinese demand, industry revenue rebounded in 2013-14 on the back of a weaker Australian dollar, higher output, low Chinese inventories and increased Chinese steel output.
However, iron ore prices (denominated in US dollars) started falling in mid-2014 due to a global oversupply... 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 four largest industry firms (by ownership) are estimated to account for 83.9% of industry revenue in 2015-16. All major players have extensive iron ore mining 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 over the past five years. The high industry concentration level reflects the large size of individual mines and the importance of economies of scale for industry operators... purchase to read more