Stainless: Rising iron ore volumes and prices have supported industry revenue growth

The Iron Ore Mining industry has benefited from rising prices and higher production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 1.1% over the five years through 2019-20, to $81.2 billion. This trend includes an anticipated 2.6% fall in the current year, due to a decline in iron ore prices. Strong economic growth in China over the past decade has driven developments in Australian iron ore mining to meet Chinese demand for greater steel production. This trend fuelled higher world iron ore prices, which are denominated in US dollars. Iron ore prices began declining in mid-2014 due to a global iron ore oversupply. Prices have since recovered in subsequent more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Industry revenue has grown due to greater production output and higher iron ore prices
  • Iron ore production and export volumes have increased at a faster pace than industry revenue
  • Iron ore production volumes are forecast to rise slightly over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Iron Ore Mining industry is in the mature phase of its economic life cycle. Strong demand from Chinese steel manufacturers across most of the past 10 years has driven increased production from Australian iron ore mining firms. High production volumes, rising prices and stronger profit margins have contributed to increases in industry value added, which measures the industry's contribution to the wider economy. Industry value added is projected to increase at an annualised 1.0% over the 10 years through 2024-25. This trend represents an underperformance of the wider economy, with real GDP forecast to grow at an annualised 2.6% over the same period. As a result, the industry will likely account for a smaller proportion of Australia's economy in 2024-25 than it did in 2014-15...purchase to read more.

    Additional Insights for the Iron Ore Mining Industry

    IBISWorld has determined the most important Key Success Factors for the Iron Ore Mining are:

  • Availability of resource
  • Effective cost controls
  • Downstream ownership links
  • IBISWorld analysts also discuss how external factors such as World price of iron ore and US dollars per Australian dollar 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?

    Industry firms extract iron ore and iron ore sands, and carry out beneficiation processes to refine the mined ore. The industry also includes businesses that produce sinter and other agglomerates.

    Industry Products
  • Lump ore
  • Iron ore fines
  • Iron ore pellets
  • Industry Activities
  • Iron ore dressing or beneficiating
  • Iron ore mining
  • Iron sands mining
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of iron ore
  • US dollars per Australian dollar
  • Demand from iron smelting and steel manufacturing
  • Domestic price of iron and steel
  • World price of steel

  • Current Performance
  • Industry revenue and output
  • Boom times return
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Key industry drivers
  • Output growth
  • Industry expansion
  • 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
  • Iron Smelting and Steel Manufacturing

  • Key Selling Industries
  • Contract Mining Services
  • Metal and Mineral Wholesaling
  • Port Operators
  • Water Freight Transport

  • Products & Services
  • Iron ore fines
  • Lump ore
  • Iron ore pellets
  • Chart: Iron Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Chinese steel manufacturers
  • Domestic iron and steel manufacturers
  • Japanese steel manufacturers
  • South Korean steel manufacturers
  • Other foreign steel manufacturers
  • 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
  • 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
    Rio Tinto Plc - Rio Tinto Limited, BHP Group Limited, Fortescue Metals Group Limited, Hancock Prospecting Pty Limited,
  • Table: Rio Tinto Plc - Rio Tinto Limited - financial performance
  • Table: BHP Group Limited - financial performance
  • Table: Fortescue Metals Group Limited - financial performance
  • Table: Hancock Prospecting Pty Limited - 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
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Iron Ore Output (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Basic processes that extract minerals from a mined ore.
  • Fines
  • Iron ore particles smaller than 6.3 millimetres.
  • Iron Ore Pellets
  • Marble-sized balls of an iron ore and clay mixture that have been baked in a large furnace.
  • Lump Ore
  • Iron ore particles sized between 6.3 millimetres and 31.5 millimetres.
  • Sinter
  • A process that involves compacting iron ore to form a solid mass, similar to pellets and briquettes, to aid in further processing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Iron Ore Mining market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    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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