Iron Smelting and Steel Manufacturing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: November 2023
ANZSIC C2110Revenue
$18.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
17,240
Businesses
982
Wages
$X.Xbn
Iron Smelting and Steel Manufacturing in Australia industry analysis
Iron smelters and steel manufacturers are facing significant challenges and opportunities amid fluctuating downstream demand, particularly from the construction and mining sectors. Seasonal variations and global economic conditions influence the industry's revenue performance, while sustainability trends are driving demand towards eco-friendly steel products.
Technological advancements and industry consolidation are reshaping the competitive landscape, fostering innovation and altering business dynamics. Key input costs like iron ore, coking coal and fuel are subject to significant fluctuations that directly affect operational efficiency and profitability. These fluctuations are compounded by imports from low-cost countries like China, which offer competitive pricing but raise concerns about quality and regulatory compliance. Additionally, changes in trade policies and ongoing global technological advancements are continuously shaping market conditions, enhancing the competitiveness of imported steel products and influencing industry strategies and investments.
Despite these challenges, revenue is expected to expand at an annualised rate of 1.9% over the five years through 2024-25, reaching $18.2 billion. However, this trend includes an anticipated fall of 2.2% in 2024-25, primarily driven by decreased world steel prices. The increased import competition heightens the pressure on domestic producers, reducing revenue.
Over the coming years, manufacturers will continue to contend with intense import competition. Potential tariffs could dampen import volumes, shifting more demand towards domestic manufacturers that compete based on quality. Total export values are also set to decline as the Australian dollar appreciates, reducing local manufacturers' competitiveness in the global market. Positive construction trends and recovering activity in the sector will support revenue growth, while lower input prices will help manufacturers expand and bolster their profit margins. Overall, revenue is forecast to climb at an annualised 1.9% over the five years through 2029-30, reaching $20.0 billion.
Trends and Insights
- Fluctuations in downstream markets, particularly in construction and mining, heavily influence manufacturers' revenue by affecting demand for steel products used in infrastructure and manufacturing. Imports from countries with lower production costs also influence market competitiveness and consumer choices.
- Demand from manufacturing industries has been strengthening. Revenue from metal-coated carbon steel, a common input for manufacturing processes, has benefited from this upturn.
- Steel manufacturers often choose their locations based on proximity to downstream markets rather than access to key input materials. This strategic approach ensures they can efficiently supply steel products to industries and consumers where demand is highest.
- Customer preferences often dictate product choices, with quality-conscious buyers willing to invest more in durable, reliable steel products. Larger manufacturers leverage economies of scale to fulfil substantial contracts, particularly for infrastructure projects, bolstering their market influence.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated $18.2bn in 2023.
Trends and Insights
Downstream market fluctuations affect manufacturers' revenue
- Fluctuations in downstream market demand, like from construction and mining industries, substantially affect smelters and manufacturers’ revenue. These sectors heavily influence steel product consumption for infrastructure and manufacturing purposes.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Recovering construction markets are set to bolster performance
- Favourable trends in the construction sector are poised to encourage sales of domestically made iron and steel. In particular, increasing investment in infrastructure projects is projected to drive robust demand for iron and steel products, particularly for building materials and structural components.
Biggest companies in the Iron Smelting and Steel Manufacturing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
BlueScope Steel | 9,281.5 | |
InfraBuild | 925.5 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Iron products, Other carbon steel products and Metal-coated carbon steel. Iron products is the largest segment of the Iron Smelting and Steel Manufacturing in Australia.
Trends and Insights
Sales of metal-coated carbon steel have grown as demand from the manufacturing sector has improved
- Most iron products are converted into carbon steel, one of the most common alloys used in the manufacturing and construction markets. Carbon steel is manufactured by alloying carbon with pure iron. Introducing carbon atoms prevents the iron lattices from sliding against one another, making the alloy harder and stronger.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Iron Ore Mining in Australia
- Lubricants and Other Petroleum Product Manufacturing in Australia
- Steel Pipe and Tube Manufacturing in Australia
- Spring and Wire Product Manufacturing in Australia
International industries
- Iron & Steel Manufacturing in the US
- Steel Rolling & Drawing in the US
- Iron & Steel Manufacturing in Canada
- Steel Rolling & Drawing in Canada
- Iron & Steel Manufacturing in the UK
Table of Contents
About this industry
Industry definition
Manufacturers smelt or refined iron ore or sands into basic iron products, like ingots, billets and slabs. The industry also includes manufacturers 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 (like carbon and chromium) are also part of the industry.
What's included in this industry?
Iron productsMetal-coated carbon steelPainted carbon steelHot-rolled coilsCold-rolled coilsSteel plates and sheets ManganeseVanadiumTungstenLead alloysCompanies
BlueScope SteelInfraBuildPurchase this report to view all 2 major companies in this industry.
Related Terms
BLAST FURNACEELECTRIC ARC FURNACECOKEFERROALLOYSMELTINGSINTERINGSTEEL BILLETINGOTELECTRIC ARC FURNACESIndustry Code
ANZSIC 2110 - Iron Smelting and Steel Manufacturing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Fluctuations in downstream markets, particularly in construction and mining, heavily influence manufacturers' revenue by affecting demand for steel products used in infrastruc...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Demand from manufacturing industries has been strengthening. Revenue from metal-coated carbon steel, a common input for manufacturing processes, has benefited from this uptur...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Steel manufacturers often choose their locations based on proximity to downstream markets rather than access to key input materials. This strategic approach ensures they can ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Customer preferences often dictate product choices, with quality-conscious buyers willing to invest more in durable, reliable steel products. Larger manufacturers leverage ec...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
BlueScope has experienced an increase in revenue over the past two years. Ongoing recoveries in the construction and building markets have elevated the company’s performance.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of BlueScope Steel's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of InfraBuild's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for BlueScope Steel, and factors influencing its performance in the industry
- Description and key data for InfraBuild, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Iron smelting and steel manufacturing operations are known for their high energy consumption. In response to government initiatives promoting renewable energy adoption, facil...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Manufacturers are increasingly automating their processes to boost efficiency, reduce the need for low-skilled labour and lower wage costs. This shift towards automation refl...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Iron Smelting and Steel Manufacturing industry in Australia in 2024?
The market size of the Iron Smelting and Steel Manufacturing industry in Australia is $18.2bn in 2024.
How many businesses are there in the Iron Smelting and Steel Manufacturing in Australia industry in 2023?
There are 982 businesses in the Iron Smelting and Steel Manufacturing industry in Australia, which has declined at a CAGR of 2.1 % between 2018 and 2023.
Has the Iron Smelting and Steel Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Iron Smelting and Steel Manufacturing industry in Australia has been growing at a CAGR of 1.9 % between 2018 and 2023.
What is the forecast growth of the Iron Smelting and Steel Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Iron Smelting and Steel Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Iron Smelting and Steel Manufacturing market in Australia?
The biggest companies operating in the Iron Smelting and Steel Manufacturing market in Australia are BlueScope Steel and InfraBuild
What does the Iron Smelting and Steel Manufacturing in Australia include?
Iron products and Metal-coated carbon steel are part of the Iron Smelting and Steel Manufacturing industry.
Which companies have the highest market share in the Iron Smelting and Steel Manufacturing in Australia?
The company holding the most market share in Australia is BlueScope Steel.
How competitive is the Iron Smelting and Steel Manufacturing industry in Australia?
The level of competition is moderate and decreasing in the Iron Smelting and Steel Manufacturing industry in Australia.
