Heavy metal: Low pricing and increasing competition have caused revenue declines

The Metal and Mineral Wholesaling industry has performed poorly over the past five years, mainly due to a mixed operating environment and unfavourable pricing movements. While demand from metal product manufacturers for the industry’s products has increased, lower prices for several metals have caused industry revenue to decline over the five years through 2017-18. In particular, steel prices declined early in the five-year period, before increasing strongly in 2015-16 and 2016-17. However, prices are anticipated to fall further in the current year, resulting in the world price of steel being lower in 2017-18 than it was in 2012-13.Demand from the construction sector has contributed to a greater need for structural steel and related metal products over the past five years...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
-0.6%
Forecast Growth 18-23
Profit
Employment
2,650
Businesses
306

Industry Threats & Opportunities

  • Lower metal prices have offset higher demand and greater industry volumes over the past five years
  • Downstream demand for basic or semi-fabricated metal goods has remained steady
  • Some key metal prices are likely to increase over the next five years
  • Industry Report - Industry Products Chapter

    The industry wholesales a range of metal and mineral products. These can be classified into three broad categories: basic metal products, recycled metals, and other metal and mineral products.Basic metal productsThis product segment comprises basic or semi-fabricated metal products, such as sheets, plates, bars, rods and strips, which are wholesaled by industry firms. These are manufactured from a range of ferrous metals, such as iron and steel, and non-ferrous metals, such as aluminium, copper, tin and nickel. Almost half of the industry's revenue is derived from basic metal products in 2017-18. This proportion has fallen over the past five years, largely due to weaker steel and aluminium prices...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

  • Ability to avoid wholesale bypass
  • Economies of scale
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Demand from fabricated metal product manufacturing and World price of steel 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 in New Zealand Industry?

    Firms in the industry wholesale a range of metal and mineral products. Key metal items include pig iron, ingot steel and semi-fabricated products of iron or steel, such as sheets, strips, bars, rods, sections, structural steel or tubes. Coal, coke, copper, aluminium and other ferrous and non-ferrous metal ore and alloy wholesaling is included in the industry. Industry firms may also wholesale metal and precious metal waste or scrap.

    Industry Products
  • Basic metal products
  • Recycled metals
  • Other metal and mineral products
  • 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
  • Demand from fabricated metal product manufacturing
  • World price of steel
  • Demand from non-ferrous metal product manufacturing
  • US dollars per New Zealand dollar
  • Demand from construction

  • Current Performance
  • Revenue and

    profit falls

  • Downstream manufacturing demand
  • Substitutes and competition
  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue gains
  • Demand and pricing
  • Enterprises and employment
  • 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
  • Structural Steel Fabricating in New Zealand
  • Architectural Aluminium Product Manufacturing in New Zealand
  • Heating, Cooling and Ventilation Equipment Manufacturing in New Zealand
  • Non-Ferrous Metal Product Manufacturing in New Zealand

  • Key Selling Industries
  • Construction in New Zealand
  • Fabricated Metal Product Manufacturing in New Zealand
  • Mining in New Zealand

  • Products & Services
  • Basic metal products
  • Recycled metals
  • Other metal and mineral products
  • Chart: Metal and Mineral Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic metal fabricators
  • Foreign metal and mineral buyers
  • Other domestic industries
  • 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Metal and Mineral Wholesaling Industry

  • Industry Globalization
    Fletcher Building Limited, Steel & Tube Holdings Limited,
  • Table: Fletcher Building Limited - financial performance
  • Table: Steel & Tube Holdings 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 simply 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).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Metal and Mineral Wholesaling in New Zealand 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
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    • Inform your decisions for marketing, strategy and planning
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    This report on Metal and Mineral Wholesaling 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 Metal and Mineral Wholesaling 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 Metal and Mineral Wholesaling 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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