Iron Smelting and Steel Manufacturing in Australia - Industry Market Research Report

Iron Smelting and Steel Manufacturing in Australia - Industry Market Research Report

Iron Smelting and Steel Manufacturing in Australia

Challenging operating conditions over the past few years have influenced the Iron Smelting and Steel Manufacturing industry's performance. After the COVID-19 outbreak, supply chain disruptions and logistical issues made it more difficult to obtain key inputs for the industry's manufacturing processes. These factors elevated global prices for inputs like coking coal, iron ore and fuel, hiking up purchase costs for manufacturers and cutting into their profit margins. Pandemic-related disruptions also dampened demand from the construction sector; movement and social distancing restrictions caused projects to be cancelled or delayed, reducing demand for steel inputs. Despite these trends, a depreciating Australian dollar has made exported steel products more appealing in international markets. Supply chain disruptions also reduced the supply of imported steel products from China. Since China has lower wage and production costs, manufacturers there can pass cost savings on to customers, making it difficult for domestic manufacturers to remain price-competitive. Revenue is expected to fall at an annualised 1.5% to $12.2 billion over the five years through 2022-23. This trend includes an anticipated drop of 3.5% in the current year, as lower world steel prices have reduced the revenue that manufacturers can make from sales.

Industry firms primarily smelt or refine iron ore or iron sands into basic iron products, such as ingots, billets and slabs. The industry also includes operators that convert steel into primary shapes by hot- or cold-rolling steel into sheets, bars and rods. Companies that mainly produce carbon and stainless steel from iron alloyed with other elements (such as carbon and chromium) are also part of the industry.

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.