Iron Ore Mining in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Iron Ore Mining in the UK industry analysis

Revenue is forecast to contract at a compound annual rate of 1.8% over the five years through 2025 to €9.5 billion. The pandemic contributed to significant disruption in iron ore miners’ downstream markets. As China is the largest consumer of iron ore, its strict COVID-19 restrictions hindered demand in 2020 and constrained revenue growth for the period. This was followed by skyrocketing iron ore prices in 2021 as demand suddenly soared following the lifting of some pandemic-related restrictions. However, in the context of a sluggish European market, iron mining revenue failed to recover despite historically high prices. Iron ore prices started to slide in 2022. This, along with persistently weak economic conditions, continued to hinder downstream activity, limiting revenue growth through 2024. European iron ore miners have also contended with growing competition from large foreign miners, like those in China, Australia and Brazil – the world’s largest iron ore producers. This has also pressured profitability, as some of these countries can offer more competitive prices.

Trends and Insights

• China is a significant market for iron ore miners. China is the largest iron ore consumer, consuming 70% of the world’s seaborne iron ore, according to S&P Global.
• Europe’s geology favours iron pellet production. Due to the high magnetite content in European iron ore, pellets require less energy to produce.
• Large companies dominate the industry. Due to the high level of capital and financial resources required to start iron ore mining operations, larger players have gained a significant portion of market share.