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
Industry Key Buyers
The four largest companies in the Global Iron Ore Mining industry account for less than 40.0% of industry revenue, indicating that industry concentration is low to moderate. The three largest companies have high production capacities, and these companies have historically dominated the industry. They are also heavily focused on internationally trading in iron ore, and their diverse mineral base ensures they typically have more capital available to invest in projects than smaller operators.
Industry concentration has increased as the largest companies in the industry, Vale, BHP Billiton and Rio Tinto, have acquired smaller players. BHP Billiton's decision to abandon its plans to merge with Rio Tinto announced in late 2007 will keep industry concentration at its current level... read more