Iron Ore Pellets Market Size By Grade (Blast Furnace, Direct Reduction), By Technology (Electric Arc Furnace, Electric Induction Furnace, Oxygen Based/Blast Furnace), By Iron Content (Hematite, Magnetite), By Pelletizing Process (Travelling Grate, Grate Kiln), Industry Analysis Report, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020- 2026

Published Date: Jul 2020  |  Report ID: GMI4084  |  Authors: Kiran Pulidindi, Akshay Prakash

Report Format: PDF   |   Pages: 440   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Iron Ore Pellets Market size was valued at USD 67.16 billion in 2019 and is estimated to exhibit 3.2% CAGR from 2020 to 2026. Rising adoption of carbon free steel making technologies will surge iron ore pellets demand over the forecast time period.

Steel manufacturers are adopting carbon free steel & ironmaking processes in tandem with emerging regulations regarding carbon emissions. Agglomerated form of iron ores including, sintered and iron ore pellets are gaining recognition owing to higher iron content as compared to lumps.

Iron Ore Pellets Market Statistics

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The iron ore pellets produce ultra-fine sized particles ranging from 9 to 16 mm that enhances overall production efficiency of steel plants. Its consumption is majorly driven by rising steel demand from end-users including, automotive, manufacturing and construction industry among others.

Coal plays significant role in steelmaking sector as it accounts for over 75% of the total energy consumption in the industry. Government entities including, Environmental Protection Agency (EPA) have introduced regulations regarding hazardous air pollutants (HAP) from new and established iron and steel manufacturing plants. These initiatives will drive manufacturers towards upgrading & restructuring their manufacturing facilities, thereby driving iron ore pellets market growth.

Ongoing COVID-19 pandemic will limit the revenue generation over the forecast timeframe. Temporary closure of manufacturing facilities and slowdown in the automotive sector will lead to sudden drop in product demand. However, iron ore pellets market in China will witness limited downfall as compared to other countries owing to growing steel output and increasing domestic demand for steel products.

Iron Ore Pellets Market Report Coverage
Report Coverage Details
Base Year:2019Historical Data for:2016 to 2019
Market Size in 2019:67.16 Billion (USD) Forecast Period:2020 to 2026
Forecast Period 2020 to 2026 CAGR:3.2%No. of Pages:440
2026 Value Projection:73.40 Billion (USD) Tables, Charts & Figures:948
Geographies covered (22):U.S., Canada, Germany, Spain, Italy, UK, France, Ukraine, Poland, Austria, Russia, China, India, Japan, South Korea, Brazil, Mexico, South Africa, Saudi Arabia, Iran, Turkey, UAE
Segments covered:Grade, Balling Technology, Application, Steelmaking Technology, Product Source, Pelletizing Process, & Region
Growth Drivers:
  • Shifting trend towards carbon less steelmaking across North America and Europe
  • Proliferating steel demand in the construction sector
  • Unfavorable government policies related to sintering activities in China
  • Increasing steel usage in the automotive industry
  • Superior product benefits as compared to lumps or sinter
Pitfalls & Challenges:
  • Lack of integration between steelmakers and pellet suppliers in Western countries
  • Availability of substitutes at reasonable rate
  • Volatile iron ore prices

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Low carbon emission & high space utilization in DR plant will drive segment penetration

Iron Ore Pellets Market by Grade

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In 2019, DR grade pellets will generate around USD 15 billion and is attributed to product benefits including, lower carbon emission, improvement in space utilization of steel plant and elimination of sintering process. In 2019, around 70% of all the steel manufactured in the U.S. was made in electric arc furnace, that utilize DR grade pellets. Additionally, increasing penetration of steel in Middle East & Africa construction sector will propel the iron ore pellets market segment over forecast timeframe.

Balling discs to bank upon rising superior product demand

Balling discs segment will hold significant share in iron ore pellets market share owing to demand for producing high-quality iron ore pellets. The discs can be inclined at multiple angles based on requirements for producing desired shape, size & quality of iron ore pellets. However, challenges associated with limited capacities and requirement for closer monitoring may limit its adoption.

End-user industries to drive steel production demand

Steel production will account for majority share in iron ore pellets market and will continue its dominance over forecast time period. This is attributed to increasing steel demand from end-user industries including, automotive, construction, manufacturing and consumer durables.

Rising demand for high quality steel is expected to drive need for upgradation in traditional blast furnace technologies. Growing productivity concerns of steelmakers coupled with stringent government regulations over carbon usage will propel penetration of iron ore pellets in the sector.

Emerging nations to support EIF segment expansion

Iron Ore Pellets Market by Steelmaking Technology

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Electric induction furnace (EIF) will witness around 4.5% CAGR over forecast time period. Emerging countries including Bangladesh, India, Iran, Bhutan, etc. are investing in establishing induction furnace facilities. The technology allows for an energy-efficient, clean, and easily controllable melting process compared to the other means of steel making. Further, the absence of traditional combustion sources minimizes the oxidation loses, thereby improving yield significantly.

Need for premium quality steel will increase magnetite ores penetration

Magnetite ores holds significant share in iron ore pellets market. Higher iron content in magnetite is contributing towards its increasing adoption in steel conversion and blast furnace. The products produced from magnetite ores exhibit superior quality as compared to hematite ores. Moreover, it contains fewer impurities that reduces the processing cost.

Other sources including, Limonite, Goethite, Taconite and will witness steady growth. Goethite is found in abundance in the form of stalactite formations, concretions, oolites, accumulations, and others. Easy availability of such sources will support industry proliferation.

Rising steel production in China to drive regional growth

Iron Ore Pellets Market by Region

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Asia Pacific will account for over 50% share in iron ore pellets market size throughout the forecast time period. Growing steel output in China is key parameter supporting regional demand. Additionally, the major countries are experiencing significant growth across end-user industries. Emerging nations such as India have announced to invest in establishing DR pellets facilities owing to concerns over alumina discharge that is generated during manufacturing stage. Such trends will positively influence regional growth from 2020 to 2026.

Industry players to introduce innovative products over study timeframe

Iron ore pellets market participants are expanding their product portfolio to strengthen their market share. In October 2019, Metalloinvest announced to expand its range of iron ore pellets with improved metallurgical properties, durability, and an iron content of 62.85%. This will help in achieving optimal economic & technical performance of blast furnace together with preserving the cooling & lining system.

Key players include in the iron ore pellets industry are Cleveland-Cliffs, BHP Billiton, Rio Tinto, Vale, US Steel, and Anglo American. The industry is moderately consolidated with top players accounting for a substantial share. Major companies have established integrated facilities for producing pellets with stiff competition from other industry participants.

Iron ore pellets industry prices are highly volatile owing to supply demand imbalance. This has promoted long term contracts and agreements in the industry in order to avoid price fluctuations & to ensure stability in raw material supply.

Iron ore pellets market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in million tons and revenue in USD million from 2016 to 2026, for the following segments:

By Grade

  • Blast-furnace (BF)
  • Direct reducing (DR)

By Balling Technologies

  • Balling Disc
  • Balling Drum

By Application

  • Steel production
  • Iron based chemicals

By Technology

  • Electric arc furnace (EAF)
  • Electric induction furnace (EIF)
  • Oxygen based/blast furnace

By Iron Content

  • Hematite
  • Magnetite
  • Others

By Pelletizing Process

  • Travelling Grate (TG)
  • Grate Kiln (GK)
  • Others

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Spain
    • Italy
    • UK
    • France
    • Ukraine
    • Poland
    • Austria
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Malaysia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • Iran
    • Turkey
    • UAE
    • Kuwait


Frequently Asked Questions (FAQ) :

The overall iron ore pellet market was valued at USD 67.16 billion in the year 2019.
iron ore pellet market is likely to depict a crcr of 3.2% over 2020-2026.
According to the report published by Global Market Insights Inc., the iron ore pellets business is supposed to attain $73.40 billion by 2026.
Shifting trend towards carbon less steelmaking, proliferating steel demand in the construction sector, unfavorable government policies related to sintering activities, increasing steel usage in the automotive industry, and superior product benefits as compared to lumps or sinter are major factors expected to drive the growth of global market.
Anglo American, Bahrain Steel, BHP Billiton, Cleveland-Cliffs Inc., Evraz, FERREXPO, Jindal SAW Ltd, LKAB, Metinvest, Metalloinvest, Rio Tinto, Samarco, Ternium, US Steel, Vale, Arya Group, Rexon Strips Ltd, SIMEC Group, Xindia Steels Ltd are some of the top contributors in the industry.
The balling discs segment registered a major share in 2019 and is projected to record a remarkable growth rate throughout the forecast period.

Premium Report Details

  • Published Date: Jul 2020
  • Pages: 440
  • Tables: 912
  • Charts / Figures: 36
  • Companies covered: 19
  • Countries covered: 22

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