New York, NY (PRWEB) March 11, 2014
Iron is the fourth most abundant element in the earth's crust and plays a vital role in today's global economy. A primary input into steel production, iron ore has enabled the world economy to advance drastically over the past century as steel production has become a cornerstone of many industries. The Iron Ore Mining industry in Canada plays an important role in the global trade of the commodity, and the industry has performed well in the five years to 2014. IBISWorld estimates that industry revenue has grown at an annualized rate in the five years to 2014.
The industry managed to avoid many of the recession's pitfalls due to its high level of trade. According to IBISWorld Industry Analyst James Crompton, “while demand from steel production and overall economic conditions deteriorated through the recession, a drastically reduced price of iron ore in 2009 encouraged downstream markets to stockpile the commodity to take advantage of favourable pricing.” Furthermore, “when the world price of iron ore rebounded in 2010, industry operators benefited from a boost in profitable mining operations,” says Crompton. However, worries that the Chinese appetite for iron ore products is slowing are expected to contribute to a slight decline in industry revenue in 2014.
The Iron Ore Mining industry in Canada is highly concentrated, with the top three companies (Iron Ore Co. of Canada, Cliffs Natural Resources Inc. and ArcelorMittal) accounting for the majority of revenue. In the five years to 2019, IBISWorld expects the Iron Ore Mining industry in Canada to continue performing strongly. Industry revenue is expected to grow at an annualized rate in the period. Growth in exports will help drive increases in industry revenue, and demand from Asian markets is anticipated to remain robust over the five years to 2019. While concerns of slowing Chinese growth have influenced industry operations in the past five years, GDP growth of mainland China is expected to remain elevated. Furthermore, the world price of iron ore is expected to remain relatively stable, slightly declining at an annualized rate. IBISWorld forecasts that additional iron ore mining projects will come to fruition in the five years to 2019, which will boost the industry's output of the commodity. While the number of industry enterprises is expected to remain low, IBISWorld expects that new projects will primarily be located in lower cost locations.
For more information, visit IBISWorld’s Iron Ore Mining in Canada industry report page.
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IBISWorld industry Report Key Topics
This Iron Ore Mining industry mines iron ore and manganiferous ores valued primarily for their iron content. Companies in this industry also process ore into a concentrated or pellet form. This industry excludes blast furnace operations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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 and Canadian 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.