Prices were volatile over the period but ultimately pushed up revenue at a rapid pace.
Los Angeles, CA (PRWEB) November 22, 2013
The Global Iron Ore Mining industry's financial performance has been highly volatile in recent years. From 2008 to 2013, the industry weathered triple-digit revenue spikes and double-digit declines. After two years of extraordinary growth in 2010 and, to a lesser extent, 2011, revenue contracted in 2012 due to plummeting prices of iron ore. In 2013, however, industry performance is expected to recover due to rebounding iron ore prices. Consequently, industry revenue is expected to grow 3.1% to total $260.2 billion over the year.
Growth has primarily been a result of higher iron ore output and prices. Strong growth in large emerging nations, such as China and India, has driven the demand for iron ore and underpinned higher prices during most of the five-year period; as a result, industry revenue and profit have expanded rapidly.
Total iron ore production worldwide is expected to reach about 2.87 billion metric tons in 2013 (compared with 2.10 billion metric tons in 2008). More than half of this total will be traded internationally. Trade occurs primarily between regions rather than within regions, although there is some intraregional trade in Europe and North America. The major importing regions are North Asia and Europe, while the major exporting regions are South America and Oceania. Following the recession, most iron ore supply contracts shifted from annual pricing (which has been the norm since the 1960s) to more flexible quarterly or even monthly pricing.
Industry performance is expected to continue improving over the five years to 2018. The gain reflects ongoing global economic growth, increased steel output and rising iron ore production and prices. These factors are supported by strong demand for steel from emerging economies (e.g. China), as well as strengthening developed economies. Profit is expected to grow slightly slower than revenue, reflecting rising wages and higher material costs (especially of fuel).
For more information, visit IBISWorld’s Global Iron Ore Mining industry report page.
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IBISWorld industry Report Key Topics
This industry consists of firms that mine iron-bearing ores (primarily hematite, magnetite and taconite). In addition to ore extraction, mining includes the development of mine sites and the processing of ore mined into a concentrate or pellet form. The iron ore and iron ore pellets are then sold as an input to blast furnace steel production.
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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