Global Iron Ore Pellet Market – Industry Trends and Forecast to 2029

Global Iron Ore Pellet Market, By Source (Hematite, Magnetite, Taconite, Others), Grade (Blast Furnace, Direct Reduction), Technology (Oxygen Based/Blast Furnace, Electric Arc Furnace, Electric Induction Furnace), Pelletizing Process (Grate Kiln, Straight Travelling Grate), Balling Technology (Balling Disc, Balling Drum), End User (Construction, Automotive, Railway, Consumer Goods, Shipping, Industrial, Aerospace, Others) – Industry Trends and Forecast to 2029

Market Analysis and Size

Iron ore pellets are becoming an extremely important material in the steelmaking industry due to the momentous improvement in quality and production efficiency of the final products. In the major countries the government is planning to close the sintering activities for ironmaking due to increasing concerns over carbon emission from the industry. According to the World Steel Association, global crude steel production reached 1,879.9 million tons in 2019, up by 3.5% as compared to 2018. Although the market go-slow in the recent period, the steel industry and the demand for steel from various industries has been improving since 2015. Global steel demand witnessed 20.5% year-on-year growth in 2019, and is projected to grow progressively during the forecast period.

Data Bridge Market Research analyses that the iron ore pellet market was valued at USD 62.68 billion in 2021 and is expected to reach USD 84.35 billion by 2029, registering a CAGR of 3.78 % during the forecast period of 2022 to 2029. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, patent analysis and technological advancements.

Report Scope and Market Segmentation

Market Definition

Iron ore pellets are the spheres of normally 8–18 mm (0.31–0.71 in) which is used as raw material for DRI Kilns and blast furnaces. They normally contain 63%-67% Fe and several other materials which is regulating the metallurgic properties and chemical composition of the pellets. For the formation of iron ore pellet use pelletizing process. It is an agglomeration process in which iron ore fines are converted into ‘uniformed sized iron ore pellets’ that can be charged directly into a vertical furnace or into a blast furnace (BF) or rotary kiln generally used for the production of direct reduced iron (DRI). 

Iron Ore Pellet Market Dynamics

Drivers

• Rise the demand in construction and automotive sector

The major demand of steel in automotive and construction industries. These industries play a key role in indirectly influencing the demand of the iron ore pellet as it is one of the major raw materials which used for steel manufacturing. The global construction industry witnessed the strong growth that resulted in rising crude steel production, which are expected to increase the growth of the iron ore pellet market.

• Huge demand in steel industry

Iron ore pellets are one of the important raw materials which has used by the steel industry for the production of steel. These pellets help the steel industry for the rapid expansion as well as contribute in supporting the global economy. Superior assets of iron ore pellets as compared to traditional iron ore feed materials such as sinter feed and lump overs and ecological benefits of iron ore pellets in iron and steel making processes.

• Stringent rules and increase the demand for low carbon emission

Stringent rules and the increasing need for low carbon emissions from the steelmaking industry will increase the consumption of iron ore pellets. This is mostly attributable to their higher properties than other forms such as sinter and lumps. These deliver superior iron content with lower fuel consumption and significantly increase the efficiency levels in the steel-making sector.

Opportunities

Industry participants are dynamically adopting numerous strategic initiatives to achieve a competitive edge over other market players. The plans may include product launches, and production capacity expansion, mergers, acquisitions, among others. For example, Cleveland-Cliffs Inc., in March 2020, this company acquired AK Steel Holdings Corporation. Due to this initiative, Cleveland-Cliffs will be capable to influence AK Steel’s core competencies and resources to grow the iron ore and steel manufacturing overall the globe. Such trends are expected to create growth opportunities for the iron pallet market in upcoming years.

Restraints/ Challenges

Iron ore pellets market faced many challenges due to some mandatory factors, especially when it comes to industrialized Western regions. Poor level of integration between iron ore pellet steel making companies and suppliers poses a denting pellet sales, substantial demand and supply gap, Moreover, the globally driven sustainability and carbon emissions are another major factor which is impacting the overall performance of the iron ore pellet demand and supply are the major market restrains that will hamper the market's growth rate.

This iron ore pellet market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the iron ore pellet market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Iron Ore Pellet Market

The industry is also facing many challenges during COVID-19 outbreak, which may be due to the suspension of steel-producing services overall the globe. This has impacted the costing of iron ore in several parts of the world due to its decreasing consumption in the steel industry. On another side, the steel industry is expected to grow during forecast period due to the recovering automotive and construction sectors.

Recent Development

• In December 2020, Rio Tinto had declared their inclination to improve the rating system of iron ore, especially for the steelmaking constituent. The announcement helps in generates revenue for the business and growing the production capacity of the company in the future.
• In October 2020, After the restart of various operations Vale had decided to improve the level of the production of the iron ore pellet in the third quarter. The business growth helps in rising the consumer base of the company which increases the sales of the industry.

Global Iron Ore Pellet Market Scope

The iron ore pellet market is segmented on the basis of source, grade, technology, pelletizing Process, balling technology and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Source

• Hematite
• Magnetite
• Taconite
• Others

Grade

• Blast Furnace
• Direct Reduction

 Technology

• Oxygen Based/Blast Furnace
• Electric Arc Furnace
• Electric Induction Furnace

Pelletizing Process

• Grate Kiln
• Straight Travelling Grate

Balling Technology

• Balling Disc
• Balling Drum

End User

• Construction
• Automotive
• Railway
• Consumer Goods
• Shipping
• Industrial
• Aerospace
• Others

Iron Ore Pellet Market Regional Analysis/Insights

The iron ore pellet market is analysed and market size insights and trends are provided by country, source, grade, technology, pelletizing Process, balling technology and end-user as referenced above.

The countries covered in the iron ore pellet 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.

Asia-Pacific dominates the iron ore pellet market in terms of revenue and market share during the forecast period. This is due to the increasing demand for iron ore pellet in this region. The Asia-Pacific region leads the iron ore pellet market, with China leading the way in terms of production and consumption of iron ore. Due of the ease of producing iron ore, China is leading the Asia-Pacific market.

During the projected period, North America is anticipated to be the fastest developing region due to higher demand of Steel in extremely energy-intensive industry and iron pellet reduces the cost in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Iron Ore Pellet Market Share Analysis

The iron ore pellet market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to iron ore pellet market.

Some of the major players operating in the iron ore pellet market are:

• Rio Tinto (UK)
• BAILEY METAL PRODUCTS INC. (India)
• Fortescue Metals Group Limited (Australia)
• Hancock Prospecting Pty Ltd (Australia)
• Vale (Brazil)
• Cleveland-Cliffs Inc (US)
• United States Steel Corporation (US)
• ArcelorMittal (Luxambourg)
• LKAB Koncernkontor Box (Sweden)
• NMDC Limited (India)
• Mitsubishi Corporation (Japan)
• Metso Outotec (Finland)
• KIOCL Limited (India)
• FERREXPO PLC (Switzerland)
• JINDAL SAW LTD. (India)
• METALLOINVEST MC LLC (Russia)
• SIMEC (UK)
• Anglo American Plc (UK)
• BHP (Australia), Evraz, (UK)
• Metinvest (Ukraine)
• Arya Group (India)
• Rexon Strips Limited (India)