The steel industry is a prominent consumer of iron ore pellets. Manufacturers provide pellets to the steel industry through supply agreements. Growth of the steel industry acts as a primary driving factor for the progress of the global iron ore pellets market.
According to the World Steel Association, global crude steel production reached 1,869.9 million tons in 2019, up by 3.4% as compared to 2018. Despite the market slowdown in the recent past, the steel industry and the demand for steel from several industries has been recovering since 2015. Global steel demand witnessed 20% year-on-year growth in 2019, and is estimated to grow steadily over the forecast period.
Rising building and construction industry coupled with rapid industrialization is expected to propel the demand for steel across the globe. The growth of the steel industry is expected to further drive the growth of the iron ore pellets market across the world.
Growing Economies to Represent High Growth Opportunities, Due to Increasing Steel Production Capacity
China is the leading steel producer and largest consumer of iron ore, as well as leading iron ore pellets importer. China’s steel production witnessed 6.6% growth in 2018 in comparison with 2017. In India, the government has set a target of 300 million tons of steel making capacity with the approval of National Steel Policy (NSP) 2017, as it seeks to create a globally competitive steel industry in India. Further, SAIL has planned to enhance the country’s crude steel capacity to 50 million tons by 2031. Iran has planned to hit more than 50 million tons of iron ore pellet production capacity by 2025, owing to growing steel production. Iran’s steel production increased by 3.5 million tons in 2018 in comparison with 2017.
Such growth activities are estimated to drive the iron ore pellets market in the years to come.
Limited Availability of High-grade Lump Ore Boosting Demand for Iron Ore Pellets
Earlier, lump ores were the primary source used in the iron making process. However, over the years, high-grade lump ore reserves have been gradually depleting, attributable to excessive mining activities by multiple companies. This limited availability of high-grade lump ore is becoming a cause of concern for the iron & steel industry, as it is becoming increasingly difficult to find suitable lump ore for direct use in blast furnaces.
Moreover, the sintering process that is used when utilizing lump ore causes more pollution as compared to the pelletizing process, owing to which, prominent steel producers are preferring the use of iron ore pellets as blast furnace feed over lump ore. Thus, the limited availability of as well as the environmental drawbacks of high-quality lump ores is leading to the increasing demand for iron ore pellets.
Global Iron Ore Pellets Market: Competition Overview
The global iron ore pellets market is moderately fragmented, and tier one market players account for more than one-fourth of total market share. Some of the key players operating in this market are FERREXPO Plc., Vale S.A., Cleveland-Cliffs Inc., and Luossavaara-Kiirunavaara AB, among others.
The iron ore pellets market is expected to grow substantially in the coming years. This growth is anticipated to be supported by the increasing number of environmental regulations on sinter feed, shifting technological trends in the steel industry, and depletion in high quality lump ores, besides other factors. China is expected to hold a prominent share in the global iron ore pellets market. Players in the iron ore pellets market can focus on the signing of supply agreements for the development of a strong customer base.
Iron Ore Pellets Market – Scope of the Report
A new market study published by Persistence Market Research (PMR) on the global iron ore pellets market comprises global industry analysis of 2014–2018 and forecasts for 2019–2029. The report provides an in-depth evaluation of the most important market dynamics. The report also comprises crucial drivers, trends, opportunities, and restraints, along with detailed information about the iron ore pellets market structure. This report also presents exclusive facts and figures about how the iron ore pellets market is expected to grow over the forecast period.
Key indicators of market growth, such as value chain analysis and supply chain, compounded annual growth rate (CAGR), and year-on-year (Y-o-Y) growth of the market are explained in PMR’s report in a comprehensive manner. This information helps readers understand the quantitative development projections of the iron ore pellets market for the forecast period.
The study is relevant for stakeholders in the iron ore pellets market, as well as manufacturers, distributors, suppliers, and investors. Industry experts, researchers, journalists, and business researchers in the iron ore pellets market can leverage the information and statistics presented in PMR’s report.
The report includes facts & figures related to the macro as well as microeconomic factors that are impacting the growth of the iron ore pellets market. The study also offers actionable insights based on the future trends in the iron ore pellets market. Furthermore, regional players and new entrants in the iron ore pellets market can also use the information presented in this report to make effective business decisions and gain momentum in the market.
Iron Ore Pellets Market: Segmentation
PMR’s report has segmented the iron ore pellets market into grade and region. This report offers comprehensive data and information about the important market dynamics and growth parameters related to these categories.
Key Questions Answered in PMR’s Iron Ore Pellets Market Report
Iron Ore Pellets Market: Research Methodology
PMR uses an exclusive research methodology to conduct comprehensive research on the development of the iron ore pellets market and reach conclusions on the future growth factors of the market. Primary and secondary and research is utilized by our analysts to ensure precision and reliability of the conclusions in this report.
Secondary resources referred to by PMR’s analysts during the iron ore pellets market study comprise facts and figures from World Bank, OEM websites, government websites, white papers, trade journals, and external and internal databases. Our analysts have thoroughly interviewed several industry experts, such as sales supervisors, sales operation managers, product portfolio managers, senior managers, market intelligence managers, marketing/product managers, and production managers, to obtain information with the utmost accuracy.
Comprehensive information acquired from primary and secondary resources is validated from companies operating in the iron ore pellets market to make PMR’s projection on the growth prospects of the iron ore pellets market for 2019 to 2029 even more accurate and reliable for all involved stakeholders.