Iron Ore: A Global Strategic Business Report
San Jose, California (Vocus) July 19, 2010
The iron ore industry has been witnessing a flurry of activity in the last few years, primarily due to unprecedented growth in demand for iron ore in countries such as China and India, as well as rapid increase in iron ore prices during peak years, and subsequent decline following the economic downturn. Steel is an indispensable part of modern life and is a vital element to ascertain economic growth. Consumption of iron ore is closely related to steel demand as about 98% of iron ore produced is used in making steel. Due to the economic meltdown, the global steel industry witnessed significant decline, which in turn affected iron ore markets worldwide. Currently, the market is characterized by an oversupply situation with declining steel production and increasing iron ore production capacity.
China continues to dominate global consumption of iron ore, as stated by the new market research report on Iron Ore. Traditionally, China has been the key growth driver to iron ore industry across the globe and is expected to remain so for the next few years. Any change occurring in the country’s steel production scenario significantly influences global iron ore trade. Despite robust increase in production, the country continues to hold a leadership position in terms of iron ore imports. This is largely due to the fact that the country’s iron ore reserves produce low-grade ore and the demand for high-quality ore can be met only through imports. Though, China and Ukraine possess large iron ore reserves, the iron content of these reserves is about 30% to 40%, which increases the operational cost for steel production.
Further, the volatility in the global iron ore market and production cuts announced by major iron ore producers led to the advent of a new radical pricing trend in 2009. The new pricing trend is expected to offer both sellers as well as buyers respite against market turbulence. The initiative is also expected to assist the industry in reducing dependence on conventional contract pricing of the leading iron ore mining companies as a benchmark price.
Global iron ore industry is highly consolidated, with three major companies holding more than 60% of worldwide production in 2009. Brazil based Vale S.A., Anglo-Australian mining giant Rio Tinto, and Australia based BHP Billiton dominate iron ore production, with operations primarily in Australia and Brazil, which have significant iron ore reserves. Other leading companies in the global iron ore market include South Africa based Kumba Iron Ore Limited, and Sweden based LKAB.
The report titled “Iron Ore: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, reserves, pricing, import-export scenario, sea borne trade, competitive scenario, and recent industry activity. The study analyzes market data and analytics in terms of volume sales for regions including North America, Europe, Asia-Pacific and Rest of World.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Iron_Ore_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1100 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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