Industry Analysis & Industry Trends
Over the five years through 2013-14, revenue for the Iron Ore Mining industry is expected to increase at an annualised 16.0% to reach $86.3 billion. Strong economic growth in large emerging nations, such as China and India, has lifted steel production, fuelling demand for iron ore and boosting its price, even allowing for the fall in 2011-12. Rising prices have led to capacity expansions and large-scale increases in Australia's iron ore output, particularly in 2013-14.
Following a large revenue decline in 2012-13 due to price falls, industry revenue is forecast to rebound in 2013-14 by 40.9% on higher iron ore output, low iron ore inventories in Chinese ports, and increased Chinese steel output... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Iron Ore Mining industry has a high concentration level with mines operated by the three largest firms estimated to account for 76.7% of industry revenue in 2013-14, and the four largest estimated at 79.9%. 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 2013-14. To a large extent, the high industry concentration level reflects the large size of individual mines and the importance of economies of scale.
Although the industry is dominated by these large firms, the industry concentration level has declined in the past five years as new firms have entered the industry to gain market share... purchase to read more