Iron Ore Pellets Market Analysis

Iron Ore Pellets Market Analysis

In terms of grade, the iron ore pellets market is categorized into blast furnace and direct reduction. The blast furnace (BF) segment was valued at USD 48 billion in 2022 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.
 

With respect to balling technology, the iron ore pellets market is divided into balling disc and balling drum. The balling drum segment is anticipated to reach over USD 27 billion in revenue by end of 2032 on account of its ability to control the ore balls when the balling device is connected in a closed circuit with a screen for removing and recycling the undersized materials. Furthermore, the benefit of producing large quantities of iron ore pellets with this technology is fostering the segment share.
 

Based on product source, the industry is segmented into magnetite, hematite, and others. The iron ore pellets market from magnetite product source segment is projected to progress at more than 3.5% CAGR over 2023-2032. Magnetite is one of the primary iron ores minerals and is the most magnetic of all naturally found minerals on Earth, with the exception of exceedingly rare native iron deposits. A major driver boosting magnetite market share is its properties including iron oxides and ferrimagnetic.
 

Magnetite ore usually contains around 72.4% of iron content along with low magnetite content. The magnetic properties of such ores play a major role in conveniently improving the steel production process. The final products produced from such ores are of higher quality compared to the hematite ores. Moreover, the magnetite ore also contains fewer impurities, thereby elevating the cost of processing of such ores. The higher iron content in magnetite is contributing to its increasing adoption in steel conversion and blast furnace.
 

In terms of application, the iron ore pellets market is segregated into steel production and iron-based chemicals. The iron-based chemicals segment is slated to grow at over 3% CAGR from 2023 to 2032. 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.
 

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 13 billion in 2022. 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.
 

APAC iron ore pellets market is set to depict over 4% CAGR between 2023 and 2032. The escalating automobile demand and production in the region is fueling regional progression. According to the OICA in 2018, Asia Pacific accounted for over 50% of automotive production the world over.