The global iron ore pellets market size is predicted to reach over USD 65.0 billion by 2028. Steel production expansion in Asia Pacific developing nations such as India, China, Japan, South Korea, and Vietnam is a key driver likely to drive market development in the future years. Increasing adoption in steel production is expected to increase iron ore pellets market concentration over the coming years. The COVID-19 epidemic has made severe impact on the global iron ore pellets market. Supply chain interruptions, nationwide lockdown, and production shut down has made significant impact on the industry. According to some economists, the global economy is expected to have a significant comeback by the end of 2021, which would likely boost the iron ore pellets industry's growth in the near future.
Steel's major end-use industries are building and automobile manufacturing. Because iron ore is one of the key raw materials used in steel production, these sectors have a significant impact on iron ore pellet demand. Until 2020, the global construction sector grew rapidly, resulting in increased crude steel output, particularly in India, China and other Asian nations.
Iron Ore Pellets Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 25 billion|
|Growth Rate||CAGR of 8% during 2021-2028|
|Segment Covered||Trade, Product, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||NMDC Limited, Fortescue Metals, Bahrain Steel, Rio Tinto, US Steel, Cleveland-Cliffs, ArcelorMittal, BHP Billiton, Vale, and LKAB.|
Key Segments of the Global Iron Ore Pellets Market
Trade Overview, 2019-2028 (USD Billion, Kilo Tons)
Product Overview, 2019-2028 (USD Billion, Kilo Tons)
- Blast Furnace
- Direct Reduced
Regional Overview, 2019-2028 (USD Billion, Kilo Tons)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global iron ore pellets market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global iron ore pellets market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the iron ore pellets industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on type, application, and end user. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global iron ore pellets market. The report will benefit Every stakeholder involved in the iron ore pellets market.
- Managers within the iron ore pellets industry looking to publish recent and forecasted statistics about the global iron ore pellets market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global iron ore pellets market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Iron ore pellets are becoming more popular in developing countries as a result of a growing need for lower emissions and dust in comparison to other materials, which is driving the iron ore pellets market. Raw material price fluctuations might be a stumbling hurdle for the iron ore pellets sector. The demand for high-grade iron ore pellets has recently increased, and this trend is expected to continue, owing to various governments' initiatives toward more environmentally friendly steel production, which has provided an opportunity for the iron ore pellets market. Accidents that occur during the production of iron ore pellets may be a source of concern for the iron ore pellets industry.
With a revenue share of more than 50% in 2020, blast furnace (BF) pellets dominated the iron ore pellet market. It is a lower-grade product as compared to iron pellets produced in the Direct Reduced (DR) technique, and as a result, it is less expensive. In most integrated steel factories, the blast furnace technique is used. The major element driving the expansion of the BF category is the lower cost of these iron ore pellets, which is combined with the number of integrated steel mills prevalent in developed nations.
Because of growing demand in emerging nations in the Middle East and Africa, as well as Asia Pacific, the direct reduced sector is expected to expand the most during the projected period. Direct reduction facilities have lower operational costs and initial capital expenditures than integrated steel mills, and as a result, they are becoming increasingly popular in emerging nations like Japan, India, and China.
In 2020, the captive category dominated the iron ore pellets market. This indicates that the majority of iron ore pellets are consumed in-house or transported to neighbouring clients for steel manufacture. The majority of the world's biggest steel corporations, such as ArcelorMittal, which accounts for a significant portion of global steel production, get its iron ore pellet requirements from their own manufacturing enterprises. Because of the growing demand for iron ore pellets from non-integrated steel manufacturers, seaborne trade is expected to rise at the quickest rate. The extent of seaborne trade is mostly determined by the trading prices of iron ore pellets in different locations.
The market for iron ore pellets was controlled by Asia Pacific in 2020 and is expected to continue its dominancy over the forecast period. This can be due to China's massive steel production base. China alone generated more than half of all global crude steel in 2020, according to the World Steel Association. Furthermore, because many areas of China have already initiated industrial operations, a rapid and efficient recovery from the COVID-19 pandemic in 2020 is anticipated to help market growth in the country.
The market has been marked by fierce rivalry, with some of the main industry players controlling a sizable portion of the market. Vale's iron ore mines are mostly located in Brazil and China. Multinational companies with established iron ore mining and processing facilities control a major portion of the iron ore pellet industry. The major players of the global iron ore pellets market are NMDC Limited, Fortescue Metals, Bahrain Steel, Rio Tinto, US Steel, Cleveland-Cliffs, ArcelorMittal, BHP Billiton, Vale, and LKAB.