Lacklustre: Volatile metal and mineral prices have constrained industry revenue growth

Operators in the Metal and Mineral Wholesaling industry have suffered due to volatile metal and ore prices over the past five years, which have limited revenue growth. However, these fluctuations have been largely offset by higher volumes, which have minimised the effect on revenue. Demand and revenue growth have been mixed across different markets. Demand from commercial and industrial building construction for basic metal products, such as structural sections, has increased. In contrast, industry firms that supply other sectors, such as automotive manufacturers, have fared less well.Industry revenue is expected to increase at an annualised 1.2% over the five years through 2017-18, to reach $23.0 billion...read more.

Industry Statistics & Market Size
Revenue
$23bn
Annual Growth 13-18
1.2%
Forecast Growth 18-23
Profit
Employment
12,325
Businesses
1,706
Market Share of Companies

Industry Threats & Opportunities

  • Profit margins have remained low, due to the highly elastic nature of commodities trading
  • Increases in multi-unit developments and dwelling commencements have boosted industry demand
  • Foreign demand for industry goods and higher forecast metal pricing will support moderate growth
  • Industry Report - Industry Locations Chapter

    New South Wales and Victoria account for the bulk of the Metal and Mineral Wholesaling industry's revenue and establishments. This reflects the distribution of both population and downstream demand industries, as well as the concentration of metal production facilities in these states. Queensland has the third-largest share of industry revenue and establishments, reflecting its proportion of Australia's population and its high mining levels.Western Australia is an important source of wholesaling revenue due to its high mineral production and accompanying construction activity. The size of the state's land mass and the remoteness of resource projects mean wholesalers cannot service the market from only a few locations. Sou...purchase to read more.

    Additional Insights for the Metal and Mineral Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Metal and Mineral Wholesaling Industry are

  • Having links with suppliers
  • Establishment of export markets
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Base metals price index and Demand from primary metal and metal product manufacturing in the Metal and Mineral Wholesaling industry impact industry performance..

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    What's in this report

    What is the Metal and Mineral Wholesaling Industry?

    Firms in the industry wholesale mineral and metal commodities. Industry firms also wholesale steel products, including pig iron, ingot steel and semi-fabricated products. These can take the form of sheets, strips, bars, rods, sections, structural steel or tubes. Industry firms may also wholesale metal waste or scrap.

    Industry Products
  • Aluminium
  • Iron ore
  • Coal
  • Copper
  • Steel
  • Zinc and other minerals
  • Industry Activities
  • Aluminium and aluminium alloy wholesaling
  • Copper and copper alloy wholesaling
  • Coal and coke wholesaling
  • Iron and steel wholesaling
  • Metallic ores wholesaling
  • Metal scrap wholesaling
  • Mineral wholesaling
  • Non-ferrous metal wholesaling
  • Precious metal scrap dealing and wholesaling
  • Steel bar, plate, rod and sheet wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Base metals price index
  • Demand from primary metal and metal product manufacturing
  • US dollars per Australian dollar
  • Demand from commercial and industrial building construction
  • Demand from heavy and civil engineering construction
  • World price of coking coal

  • Current Performance
  • Demand and revenue
  • Residential and commercial construction
  • Wholesale bypass and consolidation
  • Product mix
  • Chart: Revenue Growth

  • Industry Outlook
  • Products and markets
  • The decline of coal
  • Industry bright spots
  • Substitution and wholesale bypass
  • Table: Metal and Mineral Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Metal and Mineral Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Steel Pipe and Tube Manufacturing
  • Structural Steel Fabricating
  • Sheet Metal Product Manufacturing
  • Iron and Steel Casting
  • Iron and Steel Forging
  • Fossil Fuel Electricity Generation

  • Key Selling Industries
  • Aluminium Smelting
  • Copper, Silver, Lead and Zinc Smelting and Refining
  • Iron Smelting and Steel Manufacturing
  • Mining

  • Products & Services
  • Aluminium
  • Copper
  • Coal
  • Zinc and other minerals
  • Iron ore
  • Steel
  • Chart: Metal and Mineral Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Foreign metal and mineral buyers
  • Domestic construction industries
  • Domestic metal fabricators
  • Other domestic industries
  • Electricity generators
  • Chart: Major Market Segmentation for the Metal and Mineral Wholesaling 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 Metal and Mineral Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal and Mineral Wholesaling Industry

  • Industry Globalization
    Glencore Operations Australia Pty Limited,
  • Table: Glencore Operations Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Metal and Mineral Wholesaling 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 Metal and Mineral Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ferrous
  • A bivalent iron compound or a material containing an appreciable amount of iron.
  • Non-Ferrous Metal
  • A metal that does not contain any significant proportion of iron, such as aluminium, copper, lead and zinc.
  • Ore
  • A type of rock that contains minerals composed of important elements including metals. The ores are extracted through mining and refined to extract the valuable element(s).
  • Radio-Frequency Identification
  • The use of a tag applied to or incorporated into a product, animal or person for the purpose of identification and tracking using radio waves.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries, where producers supply goods directly to retailers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Metal and Mineral Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Metal and Mineral Wholesaling:
    • 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 Metal and Mineral Wholesaling 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 Metal and Mineral Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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