Steel trap: The declining world price of iron has significantly reduced industry revenue

The Iron Ore Mining industry has faced a difficult operating environment over the past five years. Growth in capital expenditure has increased output volumes, and a weaker New Zealand dollar has increased prices in foreign markets. However, the world price of iron has fallen significantly over the past five years, reducing industry revenue. Industry revenue is projected to decline by an annualised 12.2% over the five years through 2018-19 to $215.2 million. This includes an expected fall of 4.7% in the current year.New Zealand Steel Limited (a subsidiary of Australia-based BlueScope Steel Limited) and Taharoa Mining Investments Limited currently dominate the more.

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

Industry Threats & Opportunities

  • Lower world iron ore prices have reduced industry revenue over the past five years
  • Industry output has increased due to capacity expansions and greater capital investment
  • New iron sand mining operations are projected to begin over the next five years
  • Industry Report - Industry Locations Chapter

    The location of iron sand deposits determines the geographic distribution of industry enterprises. In the current year, almost all of the industry's output is expected to be derived from iron sand mines in the Waikato region. This region includes the Waikato North Head mine owned by New Zealand Steel, a subsidiary of Australia-based BlueScope Steel. This mine is anticipated to account for around half of the industry's output and revenue in 2018-19. The other main iron sand mine is at Taharoa, which New Zealand Steel divested to Taharoa Mining Investment Limited, a Maori Incorporation, in May 2017. This mine is likely to make up most of the balance of industry output.A few mining firms are either still in their pre-mining approval phase, or produce very low iron sand output. Sev...purchase to read more.

    Additional Insights for the Iron Ore Mining Industry

    IBISWorld has determined the most important Key Success Factors for the Iron Ore Mining are:

  • Economies of scale
  • Ability to accommodate environmental requirements
  • Ability to forward sell production when appropriate
  • IBISWorld analysts also discuss how external factors such as World price of iron ore and Capital expenditure on mining in the Iron Ore Mining industry impact industry performance..

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    What's in this report

    What is the Iron Ore Mining in New Zealand Industry?

    Industry players extract iron ore or iron sand resources, and carry out basic beneficiation processes. Firms that primarily produce sinter and other agglomerates are also included in the industry.

    Industry Products
  • High grade Iron sands
  • Medium grade iron sands
  • Industry Activities
  • Iron sand mining
  • Iron ore mining
  • Iron sand and iron ore beneficiation
  • 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
  • Capital expenditure on mining
  • US dollars per New Zealand dollar
  • residential construction capital expenditure

  • Current Performance
  • Industry structure
  • Revenue and profit
  • Enterprise and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • New mining operations
  • Mixed revenue growth
  • Enterprises and employment
  • 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
  • Non-Ferrous Metal Product Manufacturing in New Zealand

  • Key Selling Industries
  • Industrial and Mining Machinery Wholesaling in New Zealand
  • Mining Support Services in New Zealand

  • Products & Services
  • Medium grade iron sands
  • High grade Iron sands
  • Chart: Iron Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Domestic smelting firms
  • 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
    New Zealand Steel Limited, Taharoa Mining Investments Limited,
  • Table: New Zealand Steel Limited - financial performance
  • Table: Taharoa Mining Investments 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 Sand Output (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Basic process of separating ore from unwanted materials.
  • Iron Sand
  • A type of iron ore that contains magnetite, ilmenite or other oxide minerals.
  • Magnetite
  • An oxide mineral found in iron sands and other deposits, which can be separated from sand through magnetised processes.
  • Tailings
  • Waste materials from processing minerals and ores. Iron sand tailings must usually be placed back in their original location or a designated area.
  • What Our Customers Say

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    IBISWorld’s Iron Ore Mining in New Zealand 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.

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    This report on Iron Ore Mining in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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