Increase in the Demand from Steel Production will Bolster the Growth of the Iron Ore Pellets Market

 The growing demand for iron ore in the steel industry leads to high usage of iron ore pellets in the developing countries, which drives the iron ore pellets market globally. According to World Steel Association report, Data Provisional, crude steel production all over the world reaches to 1869 million tonnes (MT) in 2019, which shows a growth of approx. 3% in comparison to 2018. Therefore, the high utilization of iron ore pellets across the steel industry will lead to rapid growth of the global iron ore pellets market over the forecasted period.

Data Bridge Market Research analyses that the Iron Ore Pellets Market is expected to grow at a CAGR of 3.6% in the forecast period of 2021 to 2028 and is expected to reach USD 57,516.77 million by 2028. The easy handling and transportation may increase the formation of the iron ore pellets among the manufacturers. Easy handling and transportation lead to the adoption of iron ore pellets in the market.

Key Findings of the Study

• The iron ore pellets market is anticipated to reach a value of USD 57,516.77 million by 2028, with a CAGR of around 3.6% during the forecast period from 2021 to 2028.
• Asia Pacific dominated the iron ore pellets market in 2021 due to the high consumption of pellets in steel industry.
• The furnace segment is expected to dominate with a 52.43% market share due to the growing application in the production of a variety of products, which increases its demand.
• The iron ore pellets market was adversely affected by COVID-19 outbreak due to the global economic recession led by COVID-19.
• North America is expected to register lucrative growth over the forecast period as there is high demand of steel in highly energy-intensive industry and iron pellet reduces the cost.

Availability at Uniform Sizes Maximizes the Application, Which Is Expected To Bolster the Market's Growth Rate

The availability of the uniform iron ore pellets aids in the end products, as it helps make the products more durable. During processing, the efforts are done by the individuals to reduce the level of impurities along with the strength enhancement that improves the efficiency of the product. The iron ore pellets strength and the less emission nature and majorly the contribution of steel are increasing the consumption at the faster pace. The high-quality uniformly sized iron ore pellets have increased the demand of the iron ore pellets in several products. In those products, they are used to enhance the level of strength and durability. Therefore, the availability of high-quality uniformly sized iron ore pellets maximizes the application, which is expected to boost the market's healthy growth.

Report Scope and Market Segmentation

Segment Analysis:

The iron ore pellets market is segmented on the basis of source, grade, technology, pelletizing process, balling technology and industry.

• On the basis of source, the market is segmented into hematite, magnetite, taconite and others. In 2021, hematite segment is expected to dominate the market with 40.04% market share because of its various beneficial properties such as high endurance that maintain efficiency of products, smooth surfaces, softening properties which strengthen connection with earth, which has widened its application in various industries .
• On the basis of grade, the market is segmented into blast furnace and direct reduction. The blast furnace segment is expected to dominate the market.

In 2021, blast furnace segment is expected to dominate the market with 52.43% market share

In 2021, blast furnace segment is expected to dominate the market with 52.43% market share because of its various beneficial properties such as cost-effectiveness, lower power requirement and other properties which improve the production efficiency. In addition to this, the blast furnace is also highly demanded owing to the large-scale of continuous production capability and the growing application in production of a variety of products, which increases its adoption across the globe for various applications.

• On the basis of technology, the market is segmented into electric arc furnace, electric induction furnace and oxygen based/blast furnace. In 2021, the oxygen-based/blast furnace segment is expected to dominate the market with 39.11% market share because of increasing demand for technology with high productivity and lesser environmental impact. Also, the oxygen-based/blast furnace is dominating because of growing usage in the production of various industrial metals and large-scale processing.
• On the basis of pelletizing process the market is segmented into straight travelling grate and grate kiln. In 2021, grate kiln segment is expected to dominate the market with 60.57% market share because of high uniform temperature profile, less power consumption and lower pressure drop properties. Additionally, the huge demand for pelletizing magnetite ores and high flexible property also aids segment growth.
• On the basis of balling technology, the market is segmented into balling disc and balling drum. In 2021, the balling disc segment is expected to dominate the market with 50.84% market share due to its high suitability in the mixing of material in pelletizing equipment, easy handling properties, high efficiency, and excellent wear-resisting properties with its convenience in operation along with maintenance.
• On the basis of industry, the market is segmented into construction, automotive, aerospace, shipping, railway, consumer goods, industrial and others. In 2021, construction segment is expected to dominate the market with 32.88% market share.

In 2021, the construction segment is expected to dominate the market with 32.88% market share

In 2021, construction segment is expected to dominate the market with 32.88% market share. The increased market growth of this segment can be attributed to the increasing demand of the iron ore pellets within the construction sector due to its huge amount of strengthening properties along with the easy availability due to high deposits of the iron. In addition to this, there is a surge in various developments within the construction segment, which further enhances various construction activities leading to the growth of this sector.

Major Players

Data Bridge Market Research recognizes the following companies as the major iron ore pellets market players are Anglo American (U.K), BHP Billiton Australia), Cleveland-Cliffs Inc. (U.S.), Bahrain Steel (Bahrain), Evraz plc (U.K), Jindal SAW Ltd. (India), FERREXPO plc (Switzerland), LKAB Koncernkontor (Sweden), Ternium (Luxembourg), US Steel (Pittsburgh), Vale (Brazil), Rexon Strips Limited (India), Xindia Steels Ltd. (India) and ArcelorMittal (Luxembourg).

Market Development

• In October 2020, Vale had decided to enhance the level of the output of iron ore pellet in the third quarter after the restart of the several operations. The business expansion helps widen the production capacity that generates the business's revenue.
• In July 2020, FERREXPO had announced the 5% increase in the production level of the iron ore pellet in the second quarter of this year. The announcement helps increase the production capacity of the business and increases the company's customer base.

Regional Analysis

Geographically, the countries covered in the iron ore pellets market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

As per Data Bridge Market Research analysis:

Asia-Pacific is the dominant region in iron ore pellets market during the forecast period 2021 -2028

In 2021, Asia-Pacific dominated the iron ore pellets market and will continue to dominate the iron ore pellets market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period as the production and consumption of iron ore pellets is increasing in the region. The pellets are a better feed for iron making than other feeds due to its various benefits that basically include uniform size and high metallization rate.

North America is estimated to be the fastest growing region in iron ore pellets market the forecast period 2021 -2028

North America is expected to grow during the forecast period due to the more demand for steel in highly energy-intensive industries, and iron pellet reduces the cost within the region.

COVID-19 Impact Analysis

The global iron ore pellets market was also severely affected by the COVID-19 pandemic. The imposition of various lockdown, social and travel restrictions by government authorities to curb the diseases, led to various challenges for the market. The iron ore pellets manufacturing were shut down worldwide, which further led to suspension of steel-producing services. Most importantly, the suspension of steel-producing services led to huge impact on the market. The travel restrictions led to supply chain disruptions (such as supply chain disruptions such as raw material delays or non-arrival, delayed finance flows) which also hampered the market largely. Furthermore, the iron ore pellets market suffered huge financial loss due to the declining steel utilization.

However, with declining COVID-19 cases across the globe, various restrictions will gradually relax. The steel sector is expected to rise steadily after 2021 as the construction and automobile industries recover, which will further pave the way for the market's growth. Therefore, the global iron ore pellets market is estimated to recover and grow largely post COVID-19.

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