According to a research conducted by Lucintel, a global consulting the iron ore industry is predicted to reach US $379 growing at a CAGR of 9.9% by 2018 (Lucintel, 2013). After analyzing global market trends, it was found that though the market seems to be declining in the period of 2012-14, it is expected to catch up due to recovering demand for iron ore in the emerging economies. The fives forces in the iron ore industry are as follows:

1. Analysis of Australian Iron ore industry
The Ore Wars - The Australian Iron Ore Industry
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Abstract
Five Force Analysis of Iron Ore Industry
According to a research conducted by Lucintel, a global consulting the iron ore industry is
predicted to reach US $379 growing at a CAGR of 9.9% by 2018 (Lucintel, 2013). After
analyzing global market trends, it was found that though the market seems to be declining in
the period of 2012-14, it is expected to catch up due to recovering demand for iron ore in the
emerging economies. The fives forces in the iron ore industry are as follows:
• Bargaining Power of Buyers – Consumers prefer the long term contracts for a
consistent quality grade of iron ore at reasonable prices. Besides the fact that, there
has been great demand from emerging economies like India and China, who are
undergoing rapid industrialization. The number of sources is limited whereas the
demand is huge, leading to a misbalance between the two.
• Bargaining Power of Suppliers – There is a dearth of highly skilled labors for the
iron ore industry leading to an understandable increase in their bargaining power. Iron
ore operations are cost intensive, which is even more noticeable in lower grade iron
ores.