Just keep digging: Weakened demand from emerging economies will hamper the price of iron ore

The Iron Ore Mining industry's financial performance has been extremely volatile in recent years, despite steady production levels. Over the five years to 2018, the industry has experienced revenue spikes and declines, largely due to substantial fluctuations in the world price of iron ore, ultimately declining. Over the next five years, the world price of iron ore is expected to remain volatile. Industry revenue is expected to remain constrained despite operators in the industry continuing to become leaner and more cost efficient by shedding noncore assets as well as increasing operational efficiency. With production levels in Australia and China planned to gradually increase, industry revenue will continue to be negatively affected...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-7.3%
Forecast Growth 18-23
Profit
Employment
5,025
Businesses
20

Industry Threats & Opportunities

  • Industry revenue is expected to remain constrained despite operators becoming leaner and more cost efficient
  • Slowdown of Chinese demand has caused industry exports to decline
  • China, India and Brazil have become major consumers of industry products
  • Industry Report - Industry Key Buyers Chapter

    The Iron Ore Mining industry is highly concentrated, with the three largest companies (Cliffs Natural Resources, United States Steel Corporation and ArcelorMittal S.A.) accounting for over three quarters of industry revenue. Industry concentration, which was already high, has been steady in recent years due to continued consolidation activity. A few large companies control the largest and highest-volume producing mines. This results from the small amount of iron ore resource locations available.Cliffs Natural Resources co-owns, owns and operates four iron ore mines in the United States (Tilden, Hibbing Taconite, Northshore Mining and United Taconite). The...purchase to read more.

    Additional Insights for the Iron Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron Ore Mining Industry are

  • Effective cost controls
  • Ability to comply with environmental laws
  • Availability of resource
  • IBISWorld analysts also discuss how external factors such as Demand from iron and steel manufacturing and World price of iron ore in the Iron Ore Mining industry impact industry performance..

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    What's in this report

    What is the Iron Ore Mining Industry?

    Companies in this industry mine iron-bearing ores. In addition to ore extraction, mining includes the development of mine sites and the processing of ore into a concentrated or pellet form. Iron ore and iron ore pellets are then sold as an input for blast-furnace steel production (see the Iron and Steel Manufacturing industry, IBISWorld report 33111).

    Industry Products
  • Iron ore pellets
  • Other products
  • NA
  • Industry Activities
  • Iron ore mining
  • Iron ore beneficiating
  • 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 iron and steel manufacturing
  • World price of iron ore
  • Industrial production index
  • Trade-weighted index

  • Current Performance
  • Volatile prices
  • Trade
  • Operational trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Production, prices and profit
  • Foreign markets
  • Market entry will remain challenging
  • Table: Iron Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Paint Manufacturing
  • Cement Manufacturing
  • Iron & Steel Manufacturing
  • Nonferrous Metal Refining
  • Nonferrous Metal Rolling & Alloying

  • Key Selling Industries
  • Coal & Natural Gas Power
  • Hydroelectric Power
  • Inland Water Transportation
  • Mining, Oil & Gas Machinery Manufacturing
  • Nuclear Power
  • Petroleum Refining
  • Sand & Gravel Mining

  • Products & Services
  • Iron ore pellets
  • Other products
  • NA
  • Chart: Iron Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Steel manufacturers
  • Exports
  • Other industrial markets
  • Chart: Major Market Segmentation for the Iron Ore Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Iron Ore Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron Ore Mining Industry

  • Industry Globalization
    Cleveland-Cliffs Inc., United States Steel Corp., ArcelorMittal S.A.,
  • Table: Cleveland-Cliffs Inc. - financial performance
  • Table: United States Steel Corp. - financial performance
  • Table: ArcelorMittal S.A. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron Ore Mining 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 Iron Ore Mining Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of Iron Ore (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Beneficiation
  • A variety of processes whereby ore extracted through mining is separated into mineral and gangue, the former suitable for further processing or direct use.
  • Iron Ore Pellets
  • Marble-sized balls of an iron ore and clay mixture, baked in a large furnace.
  • Pelletizing
  • The process of compressing or molding a material into the shape of a pellet.
  • Taconite
  • An iron-bearing, high-silica, flint-like rock. It typically contains between 20.0 and 30.0% iron and occurs in the Mesabi Range of northeastern Minnesota.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Iron Ore Mining Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Iron Ore Mining:
    • 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 Iron Ore Mining 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 Iron Ore Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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