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 SWOT Analysis
Global iron ore production has been robust, with increases in production outstripping demand growth over the 10 years to 2015. As demand from China slows, the large industry players will be challenged to bolster their portfolios of mining projects. Over the 10 years to 2020, IVA is expected to decline at an annualized rate of 8.8%. In comparison, world GDP is expected to increase at an average annual rate of 3.4%; therefore, the industry is declining as a share of the global economy.
The decline represents the weakness of China's market for iron ore and steel. The rapid expansion of China's steel industry not only spurred a large increase in its own iron ore production, but it also encouraged the iron ore production of other nations... read more