Melt down: Falling demand from domestic markets has reduced industry revenue

Operators in the Iron Smelting and Steel Manufacturing industry have faced mixed operating conditions over the past five years. Industry revenue is expected to fall at an annualised 0.3% over the five years through 2019-20, to total $11.2 billion. This trend includes an expected decline of 2.4% in the current year. The global steel market was oversupplied over the two years through 2015-16, due to enormous production volumes from Chinese steel mills. These producers face lower overheads and can therefore price their products lower than domestic firms. However, domestic operators have since benefited from slowing Chinese steel output over the past three years, as global oversupply has weakened...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 15-20
-0.3%
Forecast Growth 20-25
Profit
Employment
16,244
Businesses
1,062
Market Share of Companies

Industry Threats & Opportunities

  • Competition from overseas products has been strong over the past five years
  • Rising global steel prices and a weak Australian dollar have boosted export revenue
  • Major downstream markets are increasingly choosing low-cost imports over domestically produced steel
  • Industry Report - Industry Analysis Chapter

    The Iron Smelting and Steel Manufacturing industry has struggled over the past five years. The industry’s performance depends on demand for steel products from key downstream industries, domestic and global prices of steel and the value of the Australian dollar. Negative long-term factors, such as the global oversupply of cheap iron and steel, have forced the industry into decline. However, global oversupply has mostly abated due to decreased production from China since 2016-17. Industry revenue is expected to decline at an annualised 0.3% over the five years through 2019-20, to $11.2 billion. This trend includes an expected decline of 2.4% in the current year. However, recent changes in global production have provided some respite for industry operators...purchase to read more.

    Additional Insights for the Iron Smelting and Steel Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Iron Smelting and Steel Manufacturing 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 World price of coking coal in the Iron Smelting and Steel Manufacturing industry impact industry performance..

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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from construction
  • World price of coking coal
  • World price of steel
  • Demand from specialised machinery and equipment manufacturing
  • Electricity service price
  • Trade-weighted index

  • Current Performance
  • Global policy impacts
  • Arrium voluntary administration
  • Downstream conditions
  • Cost pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic demand
  • Global outlook
  • Operating conditions
  • 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

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

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

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    BlueScope Steel Limited,
  • Table: BlueScope Steel Limited - financial performance

  • 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
    Table: Industry Data for the Iron Smelting and Steel Manufacturing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Iron Smelting and Steel Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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