Iron Ore Pellets Market to exceed USD $70 billion by 2026
Published Date: July 10, 2020 Authors: Kiran Pulidindi, Akshay Prakash
According to a new research report by Global Market Insights, Inc., the Iron Ore Pellets Market size to exceed $70 billion by 2026. Rising need for the low carbon emission from steelmaking sector will drive the product demand over projected timeframe.
Iron ore pellets are small ball shaped agglomerates that are used in production of steel. Growing demand for steel products in the end-user sectors including construction, automotive, consumer goods are estimated to drive the iron ore pellets market by 2026. However, the industry may face challenges from its substitute products such as lumps or sinter that are available at reasonable rate.
Browse key industry insights spread across 440 pages with 912 market data tables & 36 figures & charts from the report, “Iron Ore Pellets Market share By Grade (Blast Furnace, Direct Reduction), By Balling Technology (Balling Disc, Balling Drum), By Application (Steel Production, Iron Based Chemicals), By Steelmaking Technology (Electric Arc Furnace, Electric Induction Furnace, Oxygen Based/Blast Furnace), By Product Source (Hematite, Magnetite), By Pelletizing Process (Travelling Grate, Grate Kiln), Industry Analysis Report, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 - 2026” in detail along with the table of contents:
The growing demand for blast furnace grades in the iron pelletizing process is credited to its cost-effectiveness as compared to modern direct reduction grades (DR). Additionally, the design flexibility of blast furnace grades along with the capability for adapting to large scale production will further accentuate the iron ore pellets market penetration over the study period.
Balling drum to contribute in high revenue generation
The balling drums will witness around 2% CAGR through 2026. It can produce pellets with size ranging from 8 to 16 mm that are not uniform in diameter. In this process, major portion of discharge, that is smaller than the target size is returned to the drum after screening. The superior control of the ball is achieved when the balling device is in a closed circuit with a screen for removing and recycling the undersize materials. Further, the technology is ideal for producing large quantities of pellets, thereby boosting the iron ore pellets market growth over the study period.
Iron-based chemicals will hold significant share in iron ore pellets market share over the study timeframe. Proliferation in usage of product in making chemicals for water treatment will propel segment growth. Moreover, increasing focus of regulatory bodies to improve discharged water quality will support the revenue generation.
The coagulants are usually available in multiple forms including ferric chloride, ferric sulfate, and ferrous sulfate. However, these chemicals are highly corrosive in nature. Thus, the ferric sulfate form is used more than ferric chloride, since the introduction of chloride ions further increases the corrosivity of water.
Blast furnace to continually propel market owing to superior metal control
Oxygen based/blast furnace accounted for over 75% share in iron ore pellets market in 2019. The technology enables for easier injection of a high amount of natural gas. The optimum injection of pulverized coal and natural gas enables the mitigation of carbon dioxide emissions while maintaining sufficient energy supply for the downstream processes.
Based on pelletizing process, grate kiln process will witness over 2.5% CAGR through 2026. The process grants for the provision for a lower bed depth as compared to a straight grate. This allows for a significantly improved and uniform temperature profile. Further, the system reduced pressure drop to a certain extent, that contributes towards reduced power consumption.
Europe will showcase considerable growth owing to growing automotive production along with investment from automotive manufacturers in the region. The entry of new participants in the region will to escalate the iron ore pellets industry demand. For instance, in 2019, KIOCL signed an agreement with Glencore and Steel Mont to market their products in the European countries.
The key manufacturers in iron ore pellets industry include, Anglo America, Bahrain Steel, BHP Billiton, Cleveland Cliffs Inc., Evraz, Ferrexpo, Jindal SAW Ltd., LKAB, Metinvest, Metalloinvestment, and Rio Tinto.