Iron out the kinks: Falling demand and rising competition have significantly reduced revenue

IBISWorld’s Iron Smelting and Steel Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Industry Threats & Opportunities

  • Competition from overseas products has been strong over the past five years
  • Firms have cut back on staff numbers in response to adverse trading conditions
  • Construction, mining and manufacturing activity are projected to increase, supporting demand

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    Industry Analysis & Industry Trends

    The Iron Smelting and Steel Manufacturing industry has undergone steep declines over the past five years. Industry revenue is expected to fall at an annualised 8.5% over the five years through 2016-17, to $9.1 billion. This includes a projected decline of 7.9% in the current year. Falling demand from downstream markets has driven industry declines. In particular, falling activity from downstream manufacturing and mining industries has reduced demand for industry products. In addition, lower steel prices and competition from import markets have put pressure on industry operators through lower prices and lessened demand, with many players reducing production over the period...

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    Industry Report - Industry Locations Chapter

    Industry locations tend to follow downstream markets rather than access to input materials such as iron ore. Consequently, industry establishments have a similar distribution to Australia's overall population and economic activity, rather than to its mining activity. The two major players' manufacturing facilities are mainly located in these areas. BlueScope has manufacturing facilities in Port Kembla, NSW and Western Port, VIC, while Arrium has facilities in Laverton, VIC and Sydney. However, Arrium does operate its Whyalla steelworks in South Australia, which is in proximity to the company's iron ore mines. However, billets from the Whyalla facility are generally transferred to their Sydney and Laverton plants for further processing before being sold to external customers.
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    Additional Insights for the Iron Smelting and Steel Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron Smelting and Steel Manufacturing Industry are

  • Establishment of export markets
  • Use of most efficient work practices
  • Use of production techniques that add value to base product(s)
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Demand from manufacturing in the Iron Smelting and Steel Manufacturing industry impact industry performance..

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    Industry Products

    What is the Iron Smelting and Steel Manufacturing Industry?

    Industry firms primarily smelt or refine iron ore or iron sands into basic iron products, such as ingots, billets and slabs. The industry also includes operators that convert steel into primary shapes by hot- or cold-rolling steel into sheets, bars and rods. Companies that mainly produce carbon and stainless steel from iron alloyed with other elements (such as carbon and chromium) are also part of the industry.

    Industry Products
    Iron products
    Other carbon steel products
    Metal-coated carbon steel
    Painted carbon steel
    Other ferroalloys
    Industry Activities
    Iron or steel bar
    Ferroalloy, including alloys of manganese, silicon or chrome
    Iron or steel flat-rolled product
    Pig iron
    Rail fastenings or other rail accessories
    Steel roof-decking
    Stainless steel
    Steel alloy
    Structural steel shapes, excluding fabricated steel
    Tin-plate sheet or strip

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from construction
  • Demand from manufacturing
  • World price of steel
  • Demand from mining
  • Trade-weighted index

  • Current Performance
  • Arrium voluntary administration
  • Downstream conditions
  • Trading environment
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Iron Smelting and Steel Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron Smelting and Steel Manufacturing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Iron and Steel Casting and Forging
  • Steel Pipe and Tube Manufacturing
  • Structural Steel Fabricating
  • Spring and Wire Product Manufacturing

  • Key Selling Industries
  • Black Coal Mining
  • Fossil Fuel Electricity Generation
  • Iron Ore Mining

  • Products & Services
  • Other carbon steel products
  • Metal-coated carbon steel
  • Iron products
  • Painted carbon steel
  • Other ferroalloys
  • Chart: Iron Smelting and Steel Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction industries
  • Manufacturing industries
  • Mining industries
  • Export markets
  • Other domestic markets
  • Rural sector
  • Chart: Major Market Segmentation for the Iron Smelting and Steel Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Iron Smelting and Steel Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron Smelting and Steel Manufacturing Industry

  • Industry Globalization
    Major Companies
    BlueScope Steel LimitedArrium Limited
  • Table: BlueScope Steel Limited - financial performance
  • Table: Arrium Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Iron Smelting and Steel Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Iron Smelting and Steel Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Blast Furnace
  • A furnace used for making integrated steel, in which coke and iron ore react together under a hot air flow to form steel.
  • Coke
  • An input that is used in steel manufacturing, which is produced by roasting coal in a coke oven.
  • Electric Arc Furnace
  • A furnace for scrap-based steelmaking, in which scrap steel is melted and recycled.
  • Ferroalloys
  • Combinations of metals that include iron and other alloying agents such as carbon or chromium.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Iron Smelting and Steel Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Iron Smelting and Steel Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Iron Smelting and Steel Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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