Iron Ore Mining in the US
The Iron Ore Mining industry's financial performance has been extremely volatile in recent years, despite steady production levels. Over the five years to 2019, the industry has experienced revenue spikes and declines, largely due to substantial fluctuations in the world price of iron ore. Profit, measured as earnings before interest and taxes, has been similarly unstable. Iron ore prices decreased markedly in those years dragging down industry revenue and profit. 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 SA, are integrated steel producers that use their own iron ore as an input into steel manufacturing operations. Over the next five years, the world price of iron ore is expected to remain volatile. Industry revenue is expected to remain constrained despite operators in the industry continuing to become leaner and more cost efficient by shedding noncore assets as well as increasing operational efficiency.
Companies in this 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 (see the Iron and Steel Manufacturing industry, IBISWorld report 33111).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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