Industry Analysis & Industry Trends
After two years of extraordinary growth in 2011 and 2010, the revenue generated by the Global Iron Ore Mining industry is expected to contract by about 4.3% in 2012. Although output will continue to expand, prices are easing from the high levels recorded in the previous year. The gains made in 2011 and 2010 follow a period of gloom during global recession. Following the recession, most iron ore supply contracts shifted from annual pricing (which has been the norm since the 1960s) to more flexible quarterly or even monthly pricing. The industry's share of total world GDP in 2012 is expected to be about 0.2%. Higher iron ore output and prices over the five years through 2012 are expected to yield average annual growth in industry revenue amounting to 23.9%... read more
Industry Products
This industry produces iron ore in the form of lump ore (size 6 millimeters to 30 millimeters) and fines (less than 6 millimeters) and iron ore pellets. Both ore and pellets are used as feedstock for steel production in blast furnaces.
Iron ore pellets account for only about 20% of total industry output. Typically, the lower grades of ore are pelletized, a process that involves binding fine ore particles into pellets and baking them.
The share of total output accounted for by iron ore pellets is estimated to have declined during the past five years, although pellet production increased in absolute terms. Iron ore pellets face a cost disadvantage compared with iron ore, mainly due to fuel costs associated with the pelletizing process... read more