Ironing out: Increased global production of iron has put pressure on prices

Iron is a primary input in steel production, and performance in the Iron Ore Mining industry in Canada is closely tied to the strength of the global economy due to the widespread use of steel globally. As a result, trade is a significant part of the industry and global economic performance helps drive demand for the industry. Falling iron prices have resulted in profit margins being cut almost in half, making some mines unprofitable and forcing them to exit the industry. However, domestic production has steadily expanded due to investments from the industry's largest players. Over the five years to 2024, IBISWorld expects the Iron Ore Mining industry to experience short-term challenges, as slowing GDP growth in China will likely continue to keep downward pressure on world iron prices...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
-1.7%
Forecast Growth 19-24
Profit
Employment
5,770
Businesses
4

Industry Threats & Opportunities

  • The industry has been very sensitive due to immense volatility in the price of iron ore over the past five years
  • The collapse of iron ore prices has led several operators to close establishments
  • Domestic goods will have to compete with operators in international markets
  • Industry Report - Industry Analysis Chapter

    The Iron Ore Mining industry in Canada provides the world’s steel producers with high-quality iron ore products. Industry performance is closely linked with domestic iron production alongside the price of iron, which is highly volatile and subject to global demand and supply conditions. The industry has experienced wild revenue swings over the five years to 2019. This has partly been in response to slowing demand in Chinese markets alongside rising global production of iron that has created an imbalance between supply and demand, pushing prices down. Sharp price declines have brought down the value of industry goods, and overall industry revenue is estimated to have fallen an annualized 1.7% over the five years to 2019...purchase to read more.

    Additional Insights for the Iron Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Iron Ore Mining Industry are

  • Ability to accommodate environment requirements
  • Ability to find new resource deposits
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as World price of iron ore and Canadian effective exchange rate index in the Iron Ore Mining industry impact industry performance..

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    What's in this report

    What is the Iron Ore Mining Industry?

    This 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.

    Industry Products
  • Iron ore pellets
  • Iron ore concentrates and other
  • Industry Activities
  • Iron ore mining
  • Iron ore beneficiating
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of iron ore
  • Canadian effective exchange rate index
  • Demand from iron and steel manufacturing
  • GDP of mainland China

  • Current Performance
  • Price volatility
  • Industry activity
  • Profitability fluctuates, weakens
  • Solidifying global ties
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade to remain vital
  • New projects
  • Conditions and costs
  • Environmental regulation
  • Table: Iron Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Iron Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing in Canada
  • Ferrous Metal Foundry Products in Canada

  • Key Selling Industries
  • Construction Machinery Manufacturing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Waste Treatment & Disposal Services in Canada

  • Products & Services
  • Iron ore concentrates and other
  • Iron ore pellets
  • Chart: Iron Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Steel manufacturers
  • Other industrial markets
  • Chart: Major Market Segmentation for the Iron Ore Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Iron Ore Mining

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Iron Ore Mining Industry

  • Industry Globalization
    Iron Ore Company of Canada, ArcelorMittal SA, Baffinland Iron Mines Corporation,
  • Table: Iron Ore Company of Canada - financial performance
  • Table: ArcelorMittal SA - financial performance
  • Table: Baffinland Iron Mines Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Iron Ore Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Iron Ore Mining Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • World price of iron ore (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beneficiation
  • A variety of processes whereby ore extracted through mining is separated into mineral and gangue, the former suitable for further processing or direct use
  • Iron Ore Pellets
  • Marble-sized balls of an iron ore and clay mixture, baked in a large furnace.
  • Pelletizing
  • The process of compressing or molding a material into the shape of a pellet.
  • Taconite
  • An iron-bearing, high-silica, flint-like rock. It typically contains between 20.0 and 30.0% iron and occurs in the Mesabi Range of northeastern Minnesota.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Iron Ore Mining market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Iron Ore Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Iron Ore Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Iron Ore Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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