Industry Analysis & Industry Trends
The Global Iron Ore Mining industry's financial performance has been highly volatile in recent years. From 2010 to 2015, the industry weathered sharp spikes and double-digit declines. After two years of strong growth in 2010 and 2011, revenue contracted in 2012 due to the plummeting price of iron ore. In 2015, industry performance has been weak due to falling iron ore prices and stagnating demand from emerging markets. However, industry performance is expected to improve over the five years to 2020, with revenue expected to rise. The gain reflects global economic growth, increased steel output and rising iron ore production and prices. These factors will be supported by recovering demand for steel from emerging economies as well as strengthening developed economies... read more
The Global Iron Ore Mining industry is highly capital intensive, as substantial amounts of capital are invested in heavy equipment necessary for mining activities. IBISWorld estimates that for every dollar spent on labor, companies allocate $1.46 per year on capital investments. This level of capital intensity is considered high relative to other industries in the overall world economy.
High capital intensity arises from the nature of the mining process, which requires significant investment in large-scale earth moving and processing equipment such as electric shovels and conveyors... read more