Iron Ore Pellets Market By Source (Hematite, Magnetite, Taconite, Others) By Grade (Blast Furnace, Direct Reduction) By Technology (Oxygen Based/Blast Furnace, Electric Arc Furnace, Electric Induction Furnace) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global iron ore pellets market report explores the critical analysis of the industry using key parameters. The report consists of investment strategies, the need for investments in the iron ore pellets industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the iron ore pellets industry and how economic and non-economic barriers are helping the industry grow. Moreover, the report analyzes the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses such as porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

Key Highlights of the report

How are the major segments performing in the Potassium Derivatives market?

• With a revenue share of 54.4% in 2021, blast furnace pellets dominated the market for iron ore pellets by grade. Since it is a lower-grade product than the iron pellets used in the Direct Reduction grade, the price of iron ore pellets of blast furnace grade is less.
• By application, the iron ore pellets market will see a significant revenue share from the steel manufacturing industry. This is a result of the increasing demand for steel from various sectors, including infrastructure and manufacturing.
•  

Which region dominated the iron ore pellets market?

In terms of revenue, Asia Pacific accounted for 41.9% of the global market for iron ore pellets in 2021. Throughout the forecast, this tendency is expected to persist. The region's rise is ascribed to growing nations like China, India, and Vietnam, whose economies have large sectors for producing crude steel and are seeing rising investment in manufacturing and other end-use industries.

How is US Market Performing in the iron ore pellets market?

The US is the world's fourth-largest producer of steel. Construction spending in the residential sector is anticipated to increase because of population growth and rising per capita disposable income among the middle class. According to the Organization for Economic Cooperation and Development, the United States had a GDP per capita of USD 65,297.5 in 2019 and is expected to increase by 2.4% by 2021. This will probably be helpful for the country's steel market to expand, which will benefit the iron ore pellets market.

What is the competitive environment of the iron ore pellets market?

The iron ore pellets industry's competitive environment provides information on the entire economic profit made by suppliers and businesses, the sales and revenues created in this sector, the iron ore pellets market share globally, the business organization summary, the introduction of new products, and the opportunities for the industrial iron ore pellets market. The market for iron ore pellets is moderately fragmented worldwide, with the top four market participants holding more than one-fourth of the iron ore pellet market share.

Executive Summary

How are iron ore pellets made?

Small iron ore balls, known as iron ore pellets, are used in steel production. These pellets are created by rolling iron ore fines with additives and binders with various chemical and mineralogical compositions. These are frequently employed in producing steel, which is utilized in various products, including automobiles, airplanes, bridges, home appliances, bicycles, etc.

Which are the key investments by the iron ore pellets market players?

Key market players in the iron ore pellets market make various investments. For instance, Rio Tinto committed to enhancing the iron ore price structure, particularly for the element used in steel production, in December 2020. The announcement boosts the company's capability for production and produces income as we advance. After restarting several operations in October 2020, Vale planned to increase iron ore pellet production in the third quarter. The company's customer base grows due to business expansion, which boosts sales.

Some major players in the iron ore pellets market are Vale (Brazil), Mitsubishi Corporation RtM Japan Ltd (Japan), Cleveland-Cliffs Inc (US), and United States Steel Corporation. (US), ARCELORMITTAL (Luxembourg), Metso Outotec (Finland), KIOCL Limited (India), FERREXPO PLC (Switzerland), JINDAL SAW LTD. (India), Iron Ore Company of Canada (Canada), LKAB Koncernkontor (Sweden), METALLOINVEST MC LLC (Russia), Bahrain Steel (Bahrain), SIMEC (England).

What are the Major Driving Factors for the iron ore Pellet Market?

Earlier, the main iron source for the production process was lump ores. However, high-grade lump ore deposits have been steadily declining over time as a result of widespread mining activities by numerous firms. Because it is getting harder to find enough lump ore for direct use in blast furnaces, the iron and steel industry is concerned about the limited supply of high-grade lump ore. Major steel firms prefer to use iron ore pellets as blast furnace feed instead of lump ore because the sintering process, employed when lump ore is used, generates more pollution than the pelletizing process. These factors have led to an increase in the demand for iron ore pellets. Additionally, it is anticipated that steel consumption will increase internationally as the building and construction sector expands along with growing industrialization. According to forecasts, the worldwide market for iron ore pellets will expand with the steel industry.

What are the Major Risks for the iron ore pellets Market?

Because the market depends so heavily on iron and steel, changes in the price of the raw materials (iron and steel) will be detrimental to the iron ore pellets market. The growth of the iron ore pellets market globally is anticipated to be hampered by this aspect. Additionally, accidents that occur while making iron ore pellets could be a problem for the industry. This aspect is anticipated to impact the iron ore pellets market outlook negatively.

Which is the key grade in the iron ore pellets market?

Blast furnace pellets dominated iron ore pellet sales in 2021. Since it is a lower-grade product than the iron pellets used in the Direct Reduced (DR) technique, it is less expensive than its substitute. Integrated steel factories frequently use the blast furnace process. The key driver fueling the growth of the blast furnace category is the lower cost of these iron ore pellets, along with the number of integrated steel factories found in developed economies. Because of increased demand in Asia Pacific's emerging nations, the direct reduced sector is anticipated to grow at the highest rate between 2020 and 2027. Direct reduction plants are more common in developing nations like India because they have lower operational and initial capital expenditure costs than integrated steel mills.

How is the iron ore pellets market performing in regions?

Currently, Asia-Pacific dominates the market in terms of revenue and market share, and this trend is expected to continue throughout the projected period of 2021–2028. Due to its many advantages, including consistent size and a high metallization rate in the area, pellets are a superior feed for manufacturing iron than other feeds, which is why the market expansion in this area is attributed to them. 2019 saw China produce the most crude steel, at 996.3 million tonnes. Long-term projections indicate it will continue to be the principal consumer of iron ore pellet products. China held the largest proportion of the global steel market thanks to its sizable steel industry and the country's profusion of end-use sectors.

On the other hand, the strong demand for steel in highly energy-intensive industries and the lower cost of iron pellets in North America are expected to contribute to the region's lucrative expansion throughout the projection period of 2022–2029. Furthermore, the region's demand will increase due to its low environmental effect.

What is the opportunity for the iron ore pellets manufacturers?

During the projected 2021 to 2028, market participants will have profitable opportunities thanks to significant investments in research and development efforts that further improve product applications. Additionally, the market for iron ore pellets will continue to develop due to government initiatives to promote more environmentally friendly steel production.

What is the Market Size of iron ore pellets regarding value?

The global iron ore pellets market is anticipated to grow at a substantial CAGR of 3.5% in the upcoming years. The global Iron Ore Pellets industry was estimated to be worth USD 45.5 billion in 2021 and was expected to be worth USD 55.9 billion by 2028.

What are the major players planning for the future of the iron ore pellets market?

Industry participants are actively implementing several strategic measures to get an advantage over rivals. The tactics could include, among others, new launches, mergers, acquisitions, and increases in manufacturing capacity. For instance, in March 2020, Cleveland-Cliffs Inc. purchased AK Steel Holdings Corporation. Cleveland-Cliffs will be able to expand the iron ore & steel industry globally by utilizing AK Steel's core expertise and resources through this project. These trends will probably create growth prospects for the iron ore pellets industry in the upcoming years.

Segmentation of Global Iron Ore Pellets Market-

Global Iron Ore Pellets Market – By Source

• Hematite
• Magnetite
• Taconite
• Others
•  

Global Iron Ore Pellets Market – By Grade

• Blast Furnace
• Direct Reduction
•  

Global Iron Ore Pellets Market – By Technology

• Oxygen Based/Blast Furnace
• Electric Arc Furnace
• Electric Induction Furnace
•  

Global Iron Ore Pellets Market – By Palletizing Process

• Grate Kiln
• Straight Travelling Grate
•  

Global Iron Ore Pellets Market – By Balling Technology

• Balling Disc
• Balling Drum
•  

Global Iron Ore Pellets Market – By Application

• Iron-based Chemicals
• Steel Production
•  

Global Iron Ore Pellets Market – By Industry

• Construction
• Automotive
• Railway
• Consumer Goods
• Shipping
• Industrial
• Aerospace
• Others
•  

Global Iron Ore Pellets Market – By Region

• North America
  • USA
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-east Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East and Africa