Strong demand for steel from China and other emerging economies will propel revenue growth.
New York, NY (PRWEB) December 07, 2014
The Iron Ore Mining industry's financial performance has been volatile in recent years. In the five years to 2014, the industry has weathered double- and triple-digit revenue spikes and declines; industry revenue is estimated to increase an annualized 24.6%, including a decline of 9.2% to $6.6 billion in 2014 due to an expected drop in the price of iron ore. In 2009, revenue declined sharply in response to plummeting demand from steel producers; however, quickly rebounding iron ore prices propelled revenue in 2010. “Over the five-year period, market iron prices have increased thanks to growing demand for steel from emerging economies like China, to the benefit of industry operators,” according to IBISWorld Industry Analyst James Crompton.
In the five years to 2014, output has fluctuated significantly on a year-to-year basis in line with swings in demand for iron ore. In 2014, domestic steel manufacturers will consume an estimated 75.0% of total iron ore mining output, either directly or from third-party processors. The three largest industry operators are responsible for the vast majority of production and total revenue. Two of these companies, United States Steel Corporation and ArcelorMittal, are integrated steel producers that use their own iron ore as an input into steel-manufacturing operations.
Within its 21 companies, the industry is expected to employ an estimated 4,657 workers in 2014, paying wages that total $429.6 million. “While labor is an important input in the industry, 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, such as car manufacturing and construction; consequently, employment grew 7.3% that year.
Through 2019, industry production and profit are expected to increase, supported by strong demand for steel from emerging economies and the strengthening US economy. Nevertheless, in the next five years, industry revenue is anticipated to increase as a result of persistent demand from emerging economies.
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 (Iron and Steel Manufacturing industry, IBISWorld report 33111).
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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