Industry Threats & Opportunities
- The industry will depend on the electricity generation sector and economic recovery
- During the recession, coal consumption decreased across all sectors, causing revenue to drop
- Sales of steaming coal to the utilities sector will continue to supply the majority of revenue... purchase to read more
Industry Analysis & Industry Trends
Strong growth is forecast in the Coal and Ore Wholesaling industry over the next five years, with demand from power generation expected to increase. The industry will face ongoing threats from environmental legislation and the growing market share of renewable energies, but booming demand from third world countries is expected to foster strong growth, particularly after 2015... ... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry within the Coal and Ore Wholesaling industry are medium. The most significant threat to potential entrants is the ability to secure long-term contracts to supply high-quality coal and coke products. Mining companies are highly discerning in making supplier choices and typically award supply contracts to large, well-established wholesalers that have a proven record.
Coal is generally sold under both contracts and on a current market or spot basis. When a company's contract expires or is terminated, it is exposed to the risk of having to sell coal into the spot market, where demand is variable and prices are subject to greater volatility. New entrants must overcome existing contracts and source contracts to compete in this industry.
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Additional Insights for the
Coal & Ore Wholesaling
IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coal & Ore Wholesaling Industry are Effective quality control Ability to control stock on hand Use of high volume/low margin strategy
IBISWorld analysts also discuss how external factors such as Demand from iron and steel manufacturing and Demand from coal and natural gas power in the Coal & Ore Wholesaling industry impact industry performance... purchase to read more