Iron Ore Pellets Market Size - By Grade, Balling Technologies, Application, Technology, Product Source Analysis, Share, Growth Forecast, 2025 - 2034

Iron Ore Pellets Market Size

The global iron ore pellets market was valued at USD 108.5 billion in 2024. The market is expected to grow from USD 115.1 billion in 2025 to USD 237.2 billion in 2034 at a CAGR of 8.4%, according to the latest report published by Global Market Insights Inc.

• Proliferating demand for steel in the construction sector is set to foster market growth. These small balls of iron ore are made of powder extracted from materials considered waste. The booming infrastructural development across the globe has bolstered the demand for steel in various industries. Moreover, a supportive regulatory backdrop in achieving smart city plans is anticipated to boost product penetration over the next 10 years.
   
• Notably, unfavorable government policies associated with sintering activities, especially in China are providing huge opportunities for the iron ore pellets market. As sintering is an alternative process of formulizing iron ore for steelmaking, stringent regulations on sintering processes due to safety and health concerns regarding the production space are propelling industry growth.
   
• Lack of integration and unity among steelmakers and pellet suppliers are hampering the market growth. Steelmakers and pellet suppliers work hand-in-hand for the industry to flourish. Many steel manufacturers and suppliers clash due to varying prices of iron ore and hamper the deployment of iron ore pellets in the market, restricting the overall market growth. However, the growing demand for steel in the booming industrial sector including the automotive industry is forecasted to aid the industry in overcoming this issue.
   

Iron Ore Pellets Market Trends

• Rising global steel demand-The market for iron ore pellets is growing at a rapid rate on account of increased demand from the steel industry. Iron ore pellets are generally used in the production of steel due to uniform size, high iron content, and low impurities, which enhance the efficiency of furnaces and reduce emission. Indeed, global steel production has been on an upward trajectory, especially in emerging economies such as India and China, which should keep demand for iron ore pellets firm.
   
• Steel production growth and future pellet demand in developing countries- According to the Ministry of Steel of India increase in domestic steel production has been measured at 14% by government publications for the year 2022 vis-a-vis 2021. India aims to double its steel production very soon by 2034 so that it can support longer-term pellet demand as the Chinese government aims for cleaner and efficient steel production under its dual-carbon policy goals. According to USGS data, the world iron ore production increased from 2.4 billion tons in 2021 to nearly 2.6 billion tons in 2022 and even higher figures.
   
• Geopolitical factors and green policies on pellet market driving growth- Supply chain constraints typically affected by geopolitical tension and trade policies pull the strings for the dynamics of the pellet market and often lead to price unpredictability. The demand, however, is subject to EAF proliferation in developed markets, especially in the USA and Europe, where high-quality pellets are required for EAF-based steel production. Government policies aimed at promoting green steel and accelerating decarbonization provide further impetus to the growth of the pellet market and position iron ore pellets as a key feedstock in global sustainable steel-making.
   

Iron Ore Pellets Market Analysis

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In terms of grade, the market is categorized into blast furnace and direct reduction. The blast furnace (BF) segment was valued at USD 81.7 billion in 2024 and is likely to grow at a significant growth rate over the projection period due to its cost-effectiveness compared to the traditional direct reduction grades (DR). They are extensively used for the steelmaking process as they have a flexible design and adapt to large-scale production quickly.
 

Steel demand is on the rise in sectors like construction, automobiles, and infrastructure, thus propelling demand growth for the blast furnace. Modern technology in pellet production is improving the blast furnace's quality and efficiency, making it more favorable for the steel manufacturer. Environmental control measures and the urge for sustainability will also encourage the use of blast furnace technologies with eco-friendly pellet formulation. As demand for steel continues to increase worldwide, efficient and large-scale production of pellets for blast furnaces will become even more significant.
 

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In terms of application, the iron ore pellets industry is segregated into steel production and iron-based chemicals. The steel production segment dominates the market and covers 99.1 % of iron ore pellets market. These ore pellets are widely applicable in the steel used for cars, planes, bridges, household appliances, bicycles, and others. Also, their effectiveness in water treatment, along with stringent regulatory norms for wastewater treatment initiatives, are fostering market expansion.
 

High-quality grades of steel products, which infrastructures being built worldwide, also support growth in the pellet market. Developments in processing innovations for the pellets are improving their purity and performance, making them more applicable for special chemicals. More stringent environmental regulations influence the innovation of pellet production techniques that favor the environment, which is likely to be an additional growth factor in this sector.
 

With regards to pelletizing source, the market is divided into traveling grate, grate kiln, and others. The iron ore pellets market from the grate kiln segment accounted for USD 23.2 billion in 2024. The segment expansion is driven by its provision that offers lower bed depth as compared to a straight grate. The process results in an improved & uniform temperature profile and reduced pressure drop lowering the power consumption, hence, augmenting the product penetration.

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• The North America iron ore pellets market grows steadily as demands in high-quality steel increase mainly from the automotive, construction, and infrastructure sectors. The emerging trend in the region is moving toward electric arc furnace (EAF) steelmaking as a process that requires premium pellets for high efficiency and minimum emissions. U.S. and Canadian producers also invest money in advanced pelletizing technologies so that they can meet stricter environment standards while improving product quality. Furthermore, supply chain disruptions and trade policies impact stability and pricing within the market; thus, companies diversify their sources and increase local production. Overall, the North American market looks forward to continuing expansion with a move towards more sustainable and efficient steel production methods.
   
• The U.S. iron ore pellets market reached USD 7.65 billion in 2024. The U.S. market primarily depends on the strong steel-making sector in the region, which is in constant demand for quality raw materials to prepare for strong and reliable steel products. The soaring infrastructure development help consume the steel equally for construction of transport networks, commercial buildings, and renewable energy projects, thus further increasing the demand for iron ore pellets. U.S. steel producers have to comply with severe environmental regulations which have forced them to cleaner and more efficient processing routes, for which high-grade pellets are indispensable. The strong focus on sustainable practices in the region has also fostered an increase in environmentally friendly pellet production methods, hence, growth of the market. Besides, the ramp-up in automotive manufacturing and aerospace in U.S. increases the demand for high-strength steel mostly produced from iron ore pellets. All these elements thus play a key role in the growing demand for iron ore pellets to sustain the expansion of the regional industry.
   
• Another major demand driver is the proximity of U.S. steel plants to abundant iron ore sources and pellet processing facilities, reducing logistics costs and allowing stable supply chain assurance. Modernization and technological upgrade endeavours in steel plants focus on improving efficiency and product quality, which involves increased reliance on premium pellet feedstocks. Plus, the government schemes in support of infrastructure resilience and sustainable construction are expected to stimulate steel consumption, therefore indirectly benefitting the iron ore pellet market. The regional emphasis on recycling and waste minimization also encourages the use of high-grade pellets in steel production to meet environmental targets. Overall, the combination of industrial development, regulatory support, and technological advancement makes U.S. an attractive market for iron ore pellets.
   

Europe Iron Ore Pellets Market
 

• There is also increased development of the Europe market due to the demand for green steel and decarbonization initiatives being pushed under the European Green Deal. The region has laid focus on the use of electric arc-furnace (EAF) technology, which requires the use of best-quality pellets that improve energy efficiency and lower emissions. European steel producers have been digging deep investments into sustainable practices and cleaner raw materials to raise pellet consumption. Trade policies and supply chain concerns create challenges, pushing local sourcing and recycling efforts. The market will therefore expand on the grounds of sustainable steelmaking and regulatory treatment for green processes within Europe.
   

The iron ore pellets market in Germany is projected to see substantial growth from 2025 to 2034.
 

• Some very promising developments are predicted for the iron ore pellets industry in Germany between 2025 and 2034. Efforts to modernize the steel industry and shift to environmentally sustainable practices have been undertaken by Germany. Stringent environmental regulations in Germany are stimulating the use of high-quality pellets that emit considerably less during the steel production process. Furthermore, the rapid increase in demand for steel in the automotive and civil engineering sectors, as well as in machinery, is one of the drivers expanding the market. The investments of the country have also shifted towards technology upgrades for recycling initiatives, which help support the pellet market's growth and position Germany as an industry player worldwide during this period.
   

Asia Pacific Iron Ore Pellets Market
 

The iron ore pellets industry in China is projected to see substantial growth from 2025 to 2034.
 

• Rising demand for the construction of infrastructure entails good investment opportunities, which will support the growth of the iron ore pellets market in China. China is still the world's most prolific producer of steel, which in turn requires high-quality raw materials for efficient production. The government's efforts to minimize carbon emissions and pursue cleaner steel-making technologies will increase the demand for quality pellets further. Besides, investments in new iron and steel plants will create new opportunities for pellet consumption as existing establishments modernize. The political strategy on sustainable practices combined with technological development should impact market growth during the projected years positively.
   

Latin America Iron Ore Pellets Market
 

The market in Brazil is expected to grow at a significant pace from 2025 to 2034.
 

• Brazil's iron ore pellet market is forecasted to grow from 2025 to 2034 since mineral resource-rich Brazil would increase its steel production capacity to demand further imports or meet the domestic demand. The encouraging government policies and investment in mining and processing infrastructure would help market to grow. In addition, because of the availability of good-grade iron ore, Brazil is developing effective pelletizing facilities to fit well into the global market. Rising demand for steels in construction, automotive and infrastructure sectors add up to increasing consumption of iron ore pellets in Brazil.
   

Middle East & Africa Iron Ore Pellets Market
 

The market in Saudi Arabia is expected to grow at a significant pace from 2025 to 2034.
 

• Saudi Arabia is anticipated to experience a solid and buoyant growth in the iron ore pellets market from 2025 to 2034, as the country has taken significant measures including diversifying its economy and creating a solid industrial base. Initiatives taken by the Kingdom to enhance the production of steel for domestic use, which are also largely infrastructural, construction, and manufacturing initiatives, include government investments in mining and mineral processing facilities that ultimately reduce import reliance while promoting local production. Besides, raising investments and joint ventures between other countries' steel companies and Saudi Arabia will improve pellet consumption. The country's initiatives to improve the environment and promote sustainable practices also contribute to the growth of this market in Saudi Arabia over the above period.
   

Iron Ore Pellets Market Share

Iron ore pellets industry is shaped by mix of established global leaders and emerging players. Major players in the iron ore pellets market include Evraz, Anglo American, BHP Billiton, Bahrain Steel, Cleveland-Cliffs, and FERREXPO. Amongst these, each one represents a significant source of excellent quality iron ore pellets that provides necessary supply to iron ore manufacturers worldwide. Among them, BHP Billiton and Anglo American represent two of the largest multinational mining companies producing substantial iron ore output for both domestic and international markets. Cleveland-Cliffs is the Minnesota-based supplier that plays a very important role in North American pellets production. It helps the domestic steel industry.
 

Evraz, Russia, and FERREXPO, one of the leading Ukrainian producers, also lead big shares in the pellet market, especially in Europe and Asia. Bahrain Steel leads in the Middle East alone with most of the sales going to the GCC countries. Together, these companies set market trends while balancing production capacity with high and growing demand for efficient high-grade pellets made for steel production.
 

Iron Ore Pellets Market Companies

Major players operating in the industry are:
 

• Anglo American
• Bahrain Steel
• BHP Billiton
• Cleveland-Cliffs
• Evraz
• FERREXPO
• Iron Ore Company of Canada
• Jindal SAW
• LKAB Koncernkontor
• METALLOINVEST
  
   
• Anglo American

Anglo American is one of the emerging key players in the big mining sector, with an iron ore-focused entity in all its vastness through its Minas-Rio operation, Brazil. The company is committed to sustainable mining practices and the production of high-quality iron ore products such as pellets intended to be consumed by the global steel industry. Anglo American is all about innovation and technology that increase efficiency and environmental performance for the company and the operations. Thus, the supply chain and strategic partnerships enable the company to become one of the major players in the pellet segment. Its very sound financial position helps with ongoing investments in mining and processing capacity to grow further.
 

• Bahrain Steel

Bahrain Steel places great emphasis on quality, efficiency, and environmental sustainability in its pellet-making processes. It offers logistical advantages vis-a-vis locations for pellets exporting to neighboring countries as well as beyond. The focus on technological innovation augmented by capacity expansion underpinned the Company's growth in this market segment of iron ore pellets.
 

• BHP Billiton

BHP Billiton, one of the largest diversified mining companies in the world, has a major scope in iron ore activities through its Western Australia Operations. BHP has a name for large-scale and low-cost mining and pelletizing operations supplying high-grade iron ore to steel producers around the globe. The company puts special emphasis on sustainable mining practices, technological innovation, and responsible management of resources. With its complex logistics network and a key focus on quality, BHP thus stands as a leading supplier in the global iron ore pellet market. The company is continuing to invest in increasing production capacity to respond to the growing international demand for pellets.
 

Iron Ore Pellets Industry News

• In September 2024, Metso secured a contract from Beijing Shougang International Engineering Technology Co. Ltd (BSIET) for the supply of traveling grate pelletizing plant to Ruifeng Iron and Steel Group of Tangshan, Hebei, China. Commencing from 2025, the production capacity of the plant will be 1.7 MTPA. This plant has been designed based on Metso's Compact pellet plant technology. The project aims to replace several traditional shaft furnaces, which provides an efficient way of operation with a reduced emission level.
   
• In August 2023, Bahrain Steel entered into partnership agreements with Essar Group for the KSA Green Steel Project, particularly related to the supply of the required iron ore pellets to Green Steel Arabia (GSA). The partnership further aims to improve the sustainability of steel production within Saudi Arabia, ensuring a steady flow of high-quality raw materials needed for the manufacture of 'green' steel.
   
• In August 2023, Greensteel partnered with industrial giants Rio Tinto and Vale for its direct reduction in iron ore pellets. This partnership is huge in that it is an enabler in supporting the green steel manufacturing projects of the company in Sweden. The successful establishment of a reliable source of high-grade iron ore pellets is expected to drastically reduce emissions but above all responsible in keeping with sustainable global goals regarding steelmaking.
   

The iron ore pellets market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Grade

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

Market, By Balling Technologies

• Balling disc
• Balling drum

Market, By Application

• Steel production
• Iron based chemicals

Market, By Technology

• Electric arc furnace
• Electric induction furnace
• Oxygen based/blast furnace

Market, By Product Source

• Hematite
• Magnetite
• Others

Market, By Pelletizing Process

• Travelling grate (TG)
• Grate kiln (GK)
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of Middle East & Africa