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Iron Ore Pellets Market Segmented By BF Grade, DR Grade in Europe Middle, East Latin America, Africa Southeast, Asia Oceania
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.
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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.
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Get a Customized VersionEarlier, 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.
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.
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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.
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.
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The global iron ore pellets market is slated to reach US$ 58 Bn in the year 2021.
The global iron ore pellets market is expected to grow 2.7 times between 2021 and 2031.
The global iron ore pellets market witnessed a CAGR of 2.9% between 2015 and 2020.
The ongoing trend is that of blast furnace pellets being used increasingly. They account for more than 50 of the market share.
The fact that steel is being produced at an exponential rate is driving the demand for iron ore.
The top 5 players driving the iron ore pellets market include Vale, Rio Tinto, Cleveland-Cliffs, BHP Billiton, and US Steel. They account for more than 40% of the market share.
The top 5 countries driving demand include India, China, Vietnam, the US, and Germany.
North America holds more than 30% of the market share.
Europe is expected to register growth at the rate of 1.9% in the iron ore pellets market between 2021 and 2031.
Vietnam is the key producer of iron ore pellets.
