Iron out: A drastic drop in the iron ore price caused industry revenue to decline

A primary input in steel production, iron ore has enabled the world economy to advance drastically over the past century as steel has become a cornerstone of many industries. The Iron Ore Mining industry in Canada relies on the global trade of the commodity; as a result, the industry boomed and contracted in response to China's wavering demand for steel after it rapidly urbanized. Overall, IBISWorld estimates that a recent drastic drop in the iron ore price will cause industry revenue to fall over the five years to 2017. Over the early portion of the five years to 2022, IBISWorld expects the Iron Ore Mining industry in Canada to experience short-term challenges while iron ore prices remain weak. This will cause declines in total industry more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The industry has been very sensitive due to immense volatility in the price of iron ore over the past five years
  • High wage rates and plummeting iron ore prices have pressured profit margins
  • Industry operators are expected to experience increasing competition for supply contacts
  • Industry Report - Industry Locations Chapter

    According to the latest data from Statistics Canada, there are 9 industry establishments in Canada. However, there are several establishments that are nonproducing in 2017, and are rather engaged in maintenance or exploration which have not been included in the report. Nearly all operational mines in 2017 are located in the Labrador Trough, Quebec or Nanavut.Labrador TroughThe Labrador Trough, a geological region located through Quebec and Labrador, is the primary location for iron ore mining in Canada. The vast majority of iron ore production originates in this region, and it is home to the largest iron ore operations in Canada. It has historically been the focal point of the Iron Ore Mining industry in Canada. Iro...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-dollar 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
  • Other including Iron ore concentrates
  • 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-dollar effective exchange rate index
  • Demand from iron and steel manufacturing
  • GDP of mainland China

  • Current Performance
  • Price volatility
  • Mine closures
  • Profitability weakens
  • Solidifying global ties
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade to remain vital
  • New projects
  • Cost analytics necessary
  • 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 pellets
  • Other including Iron ore concentrates
  • 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
  • Profit
  • Wages
  • Purchases and utilities
  • Other 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
    ArcelorMittal SA, Iron Ore Co. of Canada,
  • Table: ArcelorMittal SA - financial performance
  • Table: Iron Ore Co. of Canada - 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
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of iron ore (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
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    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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