Heavy metal: Pricing falls cause industry revenue to decline despite rising volumes

Large pricing falls have 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 1.1% over the five years through 2017-18, to $63.0 billion 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. Iron ore prices, which are denominated in US dollars, began declining in mid-2014 due to a global oversupply. Previously, high world iron ore prices encouraged Australian mining firms to increase production, which created major capacity expansions and large-scale increases in Australia's iron ore output...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Weaker prices are projected to push industry revenue lower over the current year
  • 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 Investment Chapter

    The Iron Ore Mining industry is highly capital-intensive, as illustrated by the large share of depreciation as a portion of industry revenue. Significant capital costs are required for heavy earthmoving equipment, buildings, vehicles and transport networks. Companies must heavily invest in these areas to achieve economies of scale, which minimise marginal costs and maximise profit.For each dollar required for labour inputs in 2017-18, approximately $1.50 is expected to be invested in capital plant and equipment during the year. The industry's overall capital spending has increased over the past five years as new mines have been developed and existing mines have been expanded. The...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,
  • Table: Rio Tinto Plc - Rio Tinto Limited - financial performance
  • Table: BHP Billiton Limited - financial performance
  • Table: Fortescue Metals Group 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Iron Ore Output (2009-2023)

  • 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?

    IBISWorld’s Iron Ore Mining market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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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

    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 Ore Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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