Paying the price: Despite rising volumes, falls in iron ore prices cause revenue to decline

Steep pricing falls have negatively affected the Iron Ore Mining industry over the past five years, despite output rising over the period. As a result, industry revenue is expected to decrease at an annualised 6.6% over the five years through 2018-19, to $60.1 billion. This includes an estimated 5.7% fall in the current year. For over a decade, strong economic growth in China drove domestic iron ore mining development to meet Chinese demand for greater steel production, fuelling higher world iron ore prices. However, iron ore prices, which are denominated in US dollars, began declining in mid-2014 due to a global more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Despite higher output, weaker iron ore prices are projected to push industry revenue lower
  • Australian iron ore production and export volumes have increased rapidly over the period
  • Industry iron ore production volumes are forecast to rise slightly over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    Despite iron ore output expanding significantly over the five years through 2018-19, the Iron Ore Mining industry is in the decline phase of its life cycle. This trend is due to declining iron ore prices in most years, which have only partly been offset by the large increases in iron ore output. Although such factors have contributed to industry profit falling dramatically over the past five years, industry margins are still relatively high.Strong demand from Chinese steel manufacturers in most years saw Australian iron ore mining firms increase production, adding to high global iron ore supplies. High production volumes, falling prices and a decline in profit margins are expected to push value-added (the industry's contribution to national GDP) down by an annualised 4.5% o...purchase to read more.

    Additional Insights for the Iron Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron Ore Mining Industry are

  • Availability of resource
  • Effective cost controls
  • Downstream ownership links
  • IBISWorld analysts also discuss how external factors such as World price of iron ore and US dollars per Australian dollar in the Iron Ore Mining industry impact industry performance..

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    What's in this report

    What is the Iron Ore Mining Industry?

    Industry firms extract iron ore and iron ore sands, and carry out beneficiation processes to refine the mined ore. The industry also includes businesses that produce sinter and other agglomerates.

    Industry Products
  • Lump ore
  • Iron ore fines
  • Iron ore pellets
  • Industry Activities
  • Iron ore dressing or beneficiating
  • Iron ore mining
  • Iron sands mining
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of iron ore
  • US dollars per Australian dollar
  • Demand from iron smelting and steel manufacturing
  • Domestic price of iron and steel
  • World price of steel

  • Current Performance
  • Industry revenue

    and output

  • Boom times
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Key industry drivers
  • Output growth
  • Industry expansion
  • Table: Iron Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron Smelting and Steel Manufacturing

  • Key Selling Industries
  • Contract Mining Services
  • Metal and Mineral Wholesaling
  • Port Operators
  • Water Freight Transport

  • Products & Services
  • Iron ore fines
  • Lump ore
  • Iron ore pellets
  • Chart: Iron Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Chinese steel manufacturers
  • Japanese steel manufacturers
  • Domestic iron and steel manufacturers
  • South Korean steel manufacturers
  • Other foreign steel manufacturers
  • Chart: Major Market Segmentation for the Iron Ore Mining 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 Ore Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron Ore Mining Industry

  • Industry Globalization
    Rio Tinto Plc - Rio Tinto Limited, BHP Billiton Limited, Fortescue Metals Group Limited, Hancock Prospecting Pty Limited,
  • Table: Rio Tinto Plc - Rio Tinto Limited - financial performance
  • Table: BHP Billiton Limited - financial performance
  • Table: Fortescue Metals Group Limited - financial performance
  • Table: Hancock Prospecting Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron Ore Mining 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 Ore Mining Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Iron Ore Output (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Basic processes that extract minerals from a mined ore.
  • Fines
  • Iron ore particles smaller than 6.0 millimetres.
  • Iron Ore Pellets
  • Marble-sized balls of an iron ore and clay mixture, baked in a large furnace.
  • Lump Ore
  • Iron ore particles sized between 6.0 millimetres and 35.0 millimetres.
  • Sinter
  • The compacting of iron ore to form a solid mass and to aid in further processing. Similar to pellets and briquettes.
  • What Our Customers Say

    Why buy this report?

    The Iron Ore Mining market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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    This report on Iron Ore Mining:
    • 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 Ore Mining 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

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