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Iron Ore Pellets Market Size, Share and Industry Analysis Report By Grade (Direct Reduction, Blast Furnace), By Balling Technology (Balling Drum, Balling Disc), By Application (Iron-based Chemicals, Steel Production), By Product Source (Magnetite, Hematite), By Steelmaking Technology (Electric Induction Furnace, Electric Arc Furnace, Blast Furnace/Oxygen Based), By Pelletizing Process (Grate Kiln, Travelling Grate), Regional Outlook, Competitive Landscape, Application Growth Potential & Forecast, 2021 – 2027

  • Report ID: GMI4084
  • Published Date: Jul 2021
  • Report Format: PDF

Industry Overview

Iron ore pellets market size was estimated to be valued at USD 60.4 billion in 2020 and is anticipated to exhibit 3.4% CAGR during the forecast period. The market is projected to reach 579.0 Million Tons while hitting a CAGR of 3% in terms of volume. Proliferating steel demand from the construction industry to propel the consumption of iron ore pellets.

Iron ore pellets are small balls of iron ores, which find applications in the manufacturing of steel. These pellets are formed by rolling iron ore fines of different chemical and mineralogical compositions along with additives and binders. These are widely used for producing steel that is used in several applications such as cars, planes, bridges, household appliances, bicycles, and others.

Iron Ore Pellets Market Outlook

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Residential and commercial construction sectors are propelling the usage of steel in the industry. The Europe construction market is growing at a significant rate owing to the growing demand for affordable housing in Western European countries. Similarly, ongoing construction activities in the Middle East & Africa will further enhance the demand for steel over the projected time frame. The growing construction industry is significantly contributing to the growth of the iron ore pellets market.

Stringent regulations and the rising need for low carbon emissions from the steelmaking sector will further fuel the consumption of iron ore pellets. This is mainly attributable to their superior properties than other forms such as lumps or sinter. These offer higher iron content with lower fuel consumption and significantly enhance the productivity levels in the steel-making industry.

Moreover, the Chinese government has been planning to shut down the illegally operating induction furnace steel-producing facilities, which will positively influence the market expansion in the coming years. Further, the increasing demand for steel from several industries, such as construction, automotive, consumer goods, etc., is expected to drive the iron ore pellets market share during the assessment timeline.

The COVID-19 outbreak is impeding the industry expansion

The industry is also facing challenges from the current COVID-19 outbreak, which may be due to the suspension of steel-producing services across the globe. This has impacted the pricing of iron ore in many parts of the world due to its declining consumption in the steel market. On the other hand, the steel industry is likely to grow steadily post 2021 due to the rebounding construction and automotive industries.

Blast furnace grade of iron ore pellets will dominate the industry

Iron Ore Pellets Market by Grade

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The blast furnace (BF) grade witnessed robust demand in iron ore pellets market. In 2020, the segment contributed over USD 45 billion to the industry and is anticipated to dominate the market throughout the assessment period. The superior basicity offered by the blast furnace grade as compared to the direct reduction grade (RD) is the major growth enabling factor of the market.

The quality of pellets is mostly influenced by multiple factors including the type or amount of fluxes added, associated gangue, and nature of the ore or concentrate. Blast furnace grade will be dominating the industry over the estimation period as this grade offers greater flexibility along with cost-effectiveness.

Steelmaking to generate significant demand for iron ore pellets

The steel production sector will hold over 95% revenue share in iron ore pellets market by 2027. This can be attributed to the rising demand for steel from a wide range of industries including manufacturing, infrastructure, and others.

Additionally, regulations controlling the carbon emission from steel-making industries will further catalyze the product demand. For instance, Global Carbon Atlas, a carbon emission monitoring platform, indicates that China has been a major carbon dioxide producer since 2006; therefore, in order to limit emissions, the Chinese president at a United Nations General Assembly pledged to cut carbon emissions to zero by 2060. Since the steel making industry is among the top three major carbon dioxide-producing industries, the demand for iron pellets is likely to surge in the future as they consume less energy, thereby, aiding the nation to alleviate carbon emission in the coming years.

Iron ore pellets extracted from magnetite will be most preferred

Iron Ore Pellets Market by Product Source

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Magnetite segment will generate over USD 35 billion by 2027 as it contains around 72.4% of iron content. The ore usually contains lower magnetite content; thus, this type of ore should be highly concentrated prior to producing steel. However, the magnetic properties of such ores play a major role in conveniently improving the steel production process. Ascribing to such favorable factors, the pellets produced from magnetite dominated the iron ore pellets market value. Moreover, the consumption of magnetite-based iron ore is bolstering for blast furnaces and steel conversion.

Asia Pacific will be the leading consumer of iron ore pellets

Iron Ore Pellets Market by Region

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Asia Pacific will hold over 55% share in iron ore pellets market throughout the assessment period. The growing product demand from steelmaking companies across China, India, Japan, etc., is likely to drive the product demand in the region. Further, the growing usage of high-grade steel in the automotive & construction sector is likely to be the key factor for industry growth in the coming years. North America and Europe will also have considerable growth over the prediction timeline.

Strategic initiatives to reinforce the industry foothold of manufacturers

Industry participants are actively adopting several strategic initiatives to gain a competitive edge over other players. The strategies may include mergers, acquisitions, product launches, and production capacity expansion, among others. For instance, Cleveland-Cliffs Inc., in March 2020, acquired AK Steel Holdings Corporation. With this initiative, Cleveland-Cliffs will be able to leverage AK Steel’s core competencies and resources to develop the iron ore & steel business across the world. Such trends are likely to garner growth opportunities for the iron ore pellets market in the coming years.

Some of the manufacturers of iron ore pellets industry include Anglo American, BHP Billiton, Cleveland-Cliffs Inc., Bahrain Steel, Evraz, Jindal SAW Ltd., FERREXPO, LKAB, Metinvest, Metalloinvest, Rio Tinto, Samarco, Ternium, US Steel, Vale, Arya Group, Rexon Strips Limited, SIMEC Group, Xindia Steels Ltd., ArcelorMittal, Erdemir Maden (Oyak Group), and JSC Karelsky Okatysh (Severstal).

The iron ore pellets industry report includes in-depth coverage of the industry with estimates & forecasts in terms of volume in million tons and revenue in USD Million from 2017 to 2027 for the following segments:

By Grade

  • Direct  reduction (DR)
  • Blast furnace (BF)

By Balling Technology

  • Balling drum
  • Balling disc

By Application

  • Iron based chemicals
  • Steel production

By Steelmaking Technology

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

By Product Source

  • Magnetite
  • Hematite
  • Others

By Pelletizing Process

  • Grate Kiln (GK)
  • Travelling Grate (TG)
  • 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
    • Russia
    • Austria
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Australia
  • Latin America
    • Mexico
    • Brazil
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • Iran
    • Turkey
    • UAE
    • Kuwait
Authors: Kiran Pulidindi, Akshay Prakash

Frequently Asked Questions (FAQ) :

The iron ore pellets market revenue reached more than USD 60.4 billion in 2020 and is projected to strike a 3.4% CAGR through 2027 owing to the expanding steel penetration in the construction sector.

The overall industry size from the blast furnace (BF) grade segment accounted for around USD 45 billion in 2020 and will grow at a robust pace through 2027.

Steel production applications of iron ore pellets are likely to record close to 95% of the revenue share by 2027 owing to the increasing adoption of steel in industries such as manufacturing, and infrastructure.

The magnetite source segment is anticipated to exceed USD 35 billion by 2027 owing to its high iron content.

Asia Pacific will register over 55% share through 2027 driven by higher demand from the steelmaking companies in China, India, and Japan.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 19
  • Tables & Figures: 948
  • Countries covered: 22
  • Pages: 450

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