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Abstract
LKAB (Luossavaara-Kirunavaara AB), the iron ore producer in the north of Sweden, has its comparative advantage in the market for pellets. A large deposit of magnetic ore gives LKAB a competitive cost structure in this market and a strong market position in this market. Although the market for pellets is more sensitive compared to the market for fines, LKAB seems less sensitive than its major competitors. The rise of new steel making technologies and their impact on iron ore has, in addition, worked in favor of LKAB.
This paper will focus on LKAB and identify and analyze the internal and external factors that made the successful focusing on the pellet market possible. The paper is based on official statistics, statistics provided by LKAB, and on personal interviews with researchers, managers, and workers within the company.