Los Angeles, CA (PRWEB) October 25, 2013
The Iron Ore Mining industry's financial performance has been volatile in recent years. In the five years to 2013, the industry has weathered double and triple-digit revenue spikes and declines, resulting in an average annual decline of 4.9%. According to IBISWorld Industry Analyst James Crompton, “This rate includes a projected marginal 0.9% growth to $7.0 billion in 2013 due to an expected drop in the price of iron ore.” Previously, revenue declined 74.7% in 2009 in response to plummeting demand from steel producers, yet quickly rebounding iron ore prices propelled revenue over 2010. Profit has been similarly unstable, though it increased overall, and was among the highest in the mining sector. Market iron prices and the industry have benefited from growing steel demand from emerging economies, such as China.
In the five years to 2013, output has increased yet fluctuated significantly on a year-to-year basis in line with swings in demand for iron ore. In 2013, about 75.0% of the total iron ore mining output will be consumed by domestic steel manufacturers, either directly or from third-party processors. The three largest industry operators are Cliffs Natural Resources Inc., United States Steel Corporation and ArcelorMittal. Two of these companies, United States Steel Corporation and ArcelorMittal, are integrated steel producers that use their own iron ore as an input into their steel-manufacturing operations.
Within its 18 companies, the industry is expected to employ an estimated 4,723 workers in 2013, paying wages that total about $393.5 million. “Labor is an important input in the industry, but generally, increases in demand for iron ore require a minimal increase in labor,” says Crompton. In 2010, however, revenue more than doubled due to a surge in steel demand from key downstream industries, like car manufacturing and construction; consequently, employment grew 7.3% in 2010.
Through 2018, production and profit are expected to increase, supported by strong demand for steel from emerging economies and the strengthening US economy. However, the price of iron ore is projected to decline in the five years to 2018. Nevertheless, in the next five years, industry revenue is anticipated to increase as a result of strong demand from emerging economies like China.
For more information, visit IBISWorld’s Iron Ore Mining in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Iron Ore Mining 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 (IBISWorld report 33111, Iron and Steel Manufacturing).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.