Iron Ore Pellets Market Growth & Trends
The global iron ore pellets market size is anticipated to reach USD 71.03 billion by 2030, registering a CAGR of 6.0% from 2024 to 2030, according to a new report by Grand View Research, Inc. The product demand is expected to be driven largely by the increased steel production in Asia Pacific. Steel production heavily consumes iron ore pellets as a vital raw material. In recent times, Asia Pacific has witnessed rapid industrialization and urbanization, which has led to a surge in steel production. Consequently, there has been a substantial rise in product demand in this region. The product is primarily utilized by large integrated steel producers in a captive form. However, there is a significant possibility for seaborne trade of the product as cross-country trade is expected to increase in the coming years due to growing demand from Asia Pacific, Middle East, and Africa.
China is currently the largest producer of steel due to its massive production capacity. However, emerging economies, such as India, Vietnam, Myanmar, Philippines, and Indonesia, are expected to experience significant growth in the steel industry. These countries are posing a challenge to Chinese steel producers due to their comparatively lower labor costs and supportive government policies. End-users are entering into long-term agreements to secure their iron ore pellet supply. For instance, in August 2023, Essar Group entered into a letter of intent (LoI) with Bahrain Steel, a subsidiary of Foulath, to procure 4 million tons of DR (direction reduction)-grade pellets per annum (MTPA) for its upcoming integrated steel plant in Ras Al Khair, Saudi Arabia.
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Iron Ore Pellets Market Report Highlights
- Asia Pacific held the largest revenue share of over 52% of the global market in 2023. This trend is anticipated to continue over the forecast period due to the presence of developing economies, such as China, India, and Vietnam, which are witnessing increasing spending in the manufacturing segment along with other end-use industries and have a wide crude steel production industry
- China held the largest revenue share in the Asia Pacific regional market in 2023. The product helps reduce energy consumption and greenhouse gas (GHG) emissions in blast furnaces, which aligns with China’s green and sustainable development goals. Due to this, there is a growing product demand in the country
- The captive trade segment dominated the market in 2023, in terms of revenue share. Iron ore pellet production is consumed in-house or shipped to a nearby steel manufacturing plant
- By product, the direct reduced pellet segment is anticipated to exhibit the fastest CAGR of 6.9% from 2024 to 2030 owing to the rising penetration of the direct reduction production method
Regional Insights
The iron ore pellets market in North America is expected to experience the fastest growth rate during the forecast period due to the high demand from the construction, aerospace & defense, and automotive industries. The increasing production of electric vehicles (EVs) in the region, as well as the revival of aircraft manufacturing operations, is expected to drive the steel demand. This is likely to increase the demand for pellets in the coming years.
U.S. Iron Ore Pellets Market Trends
The U.S. iron ore pellets market held the largest revenue share in 2023. The growth of the product market is attributed to increasing steel production and the push towards more sustainable manufacturing practices.
Europe Iron Ore Pellets Market Trends
The iron ore pellets market in Europe accounted for over 25% share of the global revenue. The region has strict environmental regulations to minimize carbon emissions. Iron pellets are a greener alternative raw material for steel production in comparison to traditional methods. They can more efficiently reduce greenhouse gas (GHG) emissions in the steel-making process.
The Germany iron ore pellets market is expected to register the fastest growth rate, in terms of revenue, from 2024 to 2030. Rising demand for steel in various industries is propelling the product demand.
Asia Pacific Iron Ore Pellets Market Trends
The iron ore pellets market in Asia Pacific held the largest share of 52% of the global revenue in 2023. This trend is anticipated to continue over the forecast period. The regional market’s growth is attributed to the presence of developing economies, such as China, India, and Vietnam, which are witnessing increasing spending in the manufacturing segment along with other end-use industries and have a wide crude steel production industry.
The China iron ore pellets market held the largest revenue share in the Asia Pacific regional market in 2023. The product helps in reducing energy consumption and GHG emissions in blast furnaces, which is in line with China’s green and sustainable development goals. Due to this, there is a growing product demand in the country.
The iron ore pellets market in India is expected to register the fastest CAGR over the forecast period.The development of palletization technology has led to improved cost-effectiveness and efficiency, resulting in increased investments by mining companies in iron ore pellet production. As a result of this technological advancement, India’s domestic market is experiencing growth.
Central & South America Iron Ore Pellets Market Trends
The Central & South American iron ore pellets market is expected to register a CAGR of 4.9% during the forecast period. Brazil, among other countries, plays a vital role in the global market. The reason behind this is the increased investment in mining operations and pelletizing facilities, which has resulted in improved availability and production capacity of iron ore pellets, leading to market growth.
The iron ore pellets market in Brazil held the largest share in 2023.The demand for iron ore pellets worldwide is increasing, especially from nations that aim to reduce their environmental impact in steel manufacturing. Brazil, with its considerable reserves and established mining infrastructure, is in a good position to meet this international demand. This has resulted in a rise in both production and consumption domestically.
Iron Ore Pellets Market Segmentation
Grand View Research has segmented the global iron ore pellets market on the basis of product, trade, and region:
Iron Ore Pellets Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
- Blast Furnace (BF) Iron Ore Pellet
- Direct Reduced (DR) Iron Ore Pellet
Iron Ore Pellets Trade Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
- Captive
- Seaborne
Iron Ore Pellets Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 – 2030)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- Russia
- Asia Pacific
- China
- India
- Japan
- Central & South America
- Brazil
- Middle East & Africa
- Iran
List of Key Players in the Iron Ore Pellets Market
- ArcelorMittal
- Bahrain Steel
- Cleveland-Cliffs
- Ferrexpo PLC
- JSW
- LKAB
- METALLOINVEST MC LLC
- Rio Tinto
- Samarco
- Tata Steel
- Vale
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