Iron Ore Pellets Market

Iron Ore Pellets Market Study by Electric Induction Furnaces, Oxygen-based/Blast Furnaces, and Electric Arc Furnaces from 2023 to 2033

Analysis of Iron Ore Pellets Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Iron Ore Pellets Market Outlook (2023 to 2033)

The global iron ore pellets market is valued at US$ 52.35 billion in 2023 and is slated to reach a market size of US$ 78.24 billion by 2033. The market is forecasted to expand at a CAGR of 4.1% from 2023 to 2033.

  • The extensive magnetic properties of magnetite iron ore play a pivotal role in shaping the steel production process effectively.
  • Worldwide consumption of magnetite iron ore pellets is expected to rise faster at a CAGR of 4.3% over the forecast period.
  • Blast furnaces account for nearly two-thirds share of the worldwide consumption of iron ore pellets.

When iron ore fines are pelletized, they create iron ore pellets that are all the same size. Iron ore fines and certain additives, such as bentonite, are combined during the pelletization process and subsequently transformed into oval lumps using a pelletizer.

Over the past decade, there has been substantial growth in demand for iron ore pellets. This growth is attributed to the increased adoption of iron ore pellets in the steel industry. This is linked to the prominent usage of iron ore for different technological aspects of the steelmaking process, including electric induction furnaces, oxygen-based/blast furnaces, and electric arc furnaces.

The market is anticipated to expand steadily over the coming years due to an increase in iron and steel production facilities and the rising demand for carbon-free steel. These iron ore pellets play a crucial role in the manufacture of steel. Because of the expanding demand for steel in emerging economies, iron ore production has significantly expanded in recent years.

Increasing steel consumption across a wide range of end-user industries is expected to boost market growth over the forecast period. When compared to sinters and lumps, iron ore pellets tend to showcase improved functional abilities, paving the way for their increased usage in the global market.

The need for iron ore pellets is anticipated to rise in line with the demand for steel and steel-based products in the production of automobiles as well as in industrial, residential, and commercial construction. Additionally, producers of iron ore pellets offer new developments to improve the production process's energy efficiency.

Report Attributes


Iron Ore Pellets Market Size (2023)

US$ 52.35 Billion

Projected Market Value (2033)

US$ 78.24 Billion

Global Market Growth Rate (2023 to 2033)

4.1% CAGR

Market Share of Blast Furnaces (BF) (2023)


South Korea Market Growth Rate (2023 to 2033)

3.7% CAGR

Japan Market Size (2033)

US$ 6.96 Billion

Market Share of Magnetite (2023)


United Kingdom Market Size (2033)

US$ 8.52 Billion

Key Companies Profiled

  • Vale
  • Rio Tinto
  • ArcelorMittal S.A.
  • Mitsubishi Corporation
  • Jindal SAW Ltd.
  • Cleveland-Cliffs
  • BHP Billiton
  • Fortescue Metals Group
  • Bahrain Steel
  • Xindia Steels Ltd.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

What is Stimulating Global Demand for Iron Ore Pellets?

“Limited Availability of High-grade Lump Ore”

Over the past few years, lump ores have been the main source used in the production of iron. Furthermore, the pelletizing process produces less pollution than the sintering process used when using lump ore, which is why renowned steel companies choose to use iron ore pellets as blast furnace feed rather than lump ore.

Steelmaking has seen a considerable shift in technological advancements due to tightening regulatory screws over sinter input due to connected environmental concerns. As a result, the industry continues to see a slew of new improvements in the iron ore pelletizing process.

Steelmakers and consumers have been suffering from a scarcity of lump ores of the appropriate quality due to excessive mining activities. Thus, iron ore finds its perfect place in dominating the production of steel. In addition, iron ore pellets have been utilized by different integrated and non-integrated steel manufacturers based on their versatility in shaping the final steel product.

“Rising Metal Additive Manufacturing Presents New Growth Opportunities”

Additive manufacturing (AM) helps create exceptional components with very precise and intricate details. Due to reduced component weight, a requirement for fewer resources, and the ability to make mixed parts, AM has quickly entered the medical and aviation industries.

Immediate metal laser sintering and specialized laser liquefying are the most well-known and widely used techniques for producing metal components using additive manufacturing. These developments make it easier to create components by heating powdered metal with a heating source. A few 3D printing businesses have started generating the foundational components needed for construction.

  • Arup offered a useful method for underlying printing components used in development applications. This is expected to facilitate the production of steel products more with less functional time.

What is Hampering the Sales of Iron Ore Pellets to Some Extent?

“Fluctuating Raw Material Prices”

The market for iron ore pellets faced major challenges to growth due to some unavoidable factors. Poor levels of integration between iron ore pellet suppliers and steelmaking companies pose a significant demand and supply gap, denting pellet sales.

Fluctuations in raw material prices will be detrimental to the iron ore pellets market. Accidents that occur during the process of making iron ore pellets might be a problem for the iron ore pellets industry. This aspect is anticipated to slow the market growth rate for iron ore pellets.

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How are Start-ups Changing the Iron Ore Pellets Landscape?

“Emerging Market Players Offering Innovative Hydrogen-based Electrolyzers to Smelt Iron Ore”

High levels of carbon dioxide are emitted during the procedures involved in melting iron ore to make steel. However, since the by-products of the hydrogen process in metallurgy are just water vapor as opposed to the carbon monoxide and carbon dioxide created by the existing blast furnace processes in use, hydrogen offers a sustainable alternative. Innovative hydrogen-based electrolyzers are being created by new entrants to c and lower carbon emissions.

  • The patented Anion Exchange Membrane (AEM) electrolyzer technology is developed by a start-up based in the United States, Origen Hydrogen. It employs a solid-state gadget instead of costly metallurgy and liquid electrolytes. It has several industrial uses, including the production of fertilizer and environmentally friendly steel. The method also makes it possible to produce the zero-carbon hydrogen feedstock required for steel production.

Iron Ore Pellets Market Forecast by Fact.MR

Country-wise Insights

What is the Market Outlook for Iron Ore Pellets in the United States?

“Increasing Steel Usage in Automotive Industry”

  • The market in the United States is predicted to expand at a CAGR of 4.4% over the projection period.

The United States market is expanding due to shifting trends toward carbon-less steelmaking. Steel demand is anticipated to be driven by rising electric vehicle production and the revival of aircraft manufacturing industries. The demand for iron ore pellets is projected to rise as a result over the coming years.

Why is the United Kingdom a Prominent Market for Producers of Iron Ore Pellets?

“Surging Structural Steel Demand in Construction Sector

  • The market in the United Kingdom is valued at US$ 6.07 billion in 2023.

An increase in construction activities in the United Kingdom is fueling the structural steel demand. Rising disposable income and the presence of top producers of iron ore pellets are supporting market expansion. A rise in pelletizing factories is also fueling market growth in the country.

Why Japan is Emerging as a Lucrative Market for Iron Ore Pellets?

“Rapid Expansion of Steel Production Industry”

  • Demand for iron ore pellets in Japan is set to rise at a CAGR of 5.3% through 2033.

The rapidly expanding steel production industry will play a significant role in increasing iron ore pellet consumption in Japan. Manufacturers are experiencing the ease of labor force for producing steel with the benefit of abundant raw materials. Even manufacturers witness high capacity utilization rates owing to developed infrastructure and raw material availability.

How is Demand for Iron Ore Pellets Shaping Up in South Korea?

“Unfavorable Government Policies Related to Sintering Activities”

  • The market in South Korea is set to reach US$ 3.67 billion by 2033.

An increase in spending on the manufacturing sector, rapid industrialization, and the presence of the crude steel production industry. The booming infrastructure projects in the country are driving steel demand and, in turn, boosting sales of iron ore pellets. Unfavorable government policies related to sintering activities are boosting market value in the country.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Category-wise Insights

Which Iron Ore Pellet Grade is Leading in Terms of Revenue Generation?

“Blast Furnace Grade Preferred Due to its Cost-effectiveness

Based on grade, the market is divided into direct reduction (DR) and blast furnaces (BF).

  • Blast furnace (BF) accounts for 61% share of the global market.

Blast furnace grade has been seen playing a pivotal role in driving overall demand for iron ore pellets. The advantages offered by the furnace grade as compared to direct reduction grade (RD) remain a major growth enabler for the market. The quality of pellets is influenced by a variety of key factors, including the type and amount of fillers added and the nature of concentrated ore.

Blast furnace grade is preferred due to its cost-effectiveness compared to the conventional direct reduction grades (DR). It is widely utilized in the steelmaking process because of its adaptable design and quick large-scale output.

Integrated steel factories extensively use the blast furnace process. The key driver fueling the growth of the blast furnace grade is the lower cost of these iron ore pellets, together with a rise in integrated steel factories found in developed countries.

Why is Demand for Magnetite Iron Ore Gaining Traction?

“Higher Iron Content in Magnetite Driving its Popularity

The market is segmented into magnetite, hematite, and others by source.

  • Currently, magnetite iron ore holds 39% share of the global market.

Magnetite iron ore has remained a major growth factor for global iron ore pellet demand. Also, upper-hand capabilities and ease of availability prospered by these ores help steel makers reduce their overall cost of production.

The most magnetic occurring mineral on Earth, except the incredibly rare native iron deposits, is magnetite, one of the main minerals found in iron ores. Iron oxides and ferrimagnetic characteristics of magnetite are two significant factors promoting its market share.

The steel manufacturing process is greatly facilitated by the magnetic characteristics of such ores. As opposed to hematite ores, these ores provide higher-quality finished products. The increased use of magnetite in steel conversion and blast furnaces is a result of its greater iron concentration.

Competitive Landscape

Major businesses compete mostly on price and quality while focusing on long-term relationships with steel producers. To stay ahead of the competition, leading companies put a lot of emphasis on growing their production capacities, quality control, product standards, advancing technology, supply chain management, and forming strategic growth alliances.

For instance,

  • In 2020, Rio Tinto committed to enhancing the iron ore price structure, particularly for the element used in steel production. The announcement boosts the company's capability for manufacturing and produces income going forward.
  • In 2020, a four-year deal to supply Algoma Steel Inc. in Ontario, Canada with significant quantities of high-quality iron ore pellets was announced by the United States Steel Corporation.

Key Segments of Iron Ore Pellets Industry Research

  • By Grade :

    • Direct Reduction (DR)
    • Blast Furnaces (BF)
  • By Source :

    • Magnetite
    • Hematite
    • Others
  • By Application :

    • Iron-based Chemicals
    • Steel Production
  • By End Use :

    • Electric Induction Furnaces
    • Oxygen-based/Blast Furnaces
    • Electric Arc Furnaces
  • By Region :

    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

- FAQs -

What is the current size of the iron ore pellets market?

The global iron ore pellets market is valued at US$ 52.35 billion in 2023.

What is the forecasted size of the market for iron ore pellets for 2033?

Sales of iron ore pellets are forecasted to reach US$ 78.24 billion by 2033.

At what rate will the iron ore pellets market expand?

The market for iron ore pellets is set to rise at a CAGR of 4.1% through 2033.

Which grade accounts for the leading market share?

Blast furnace (BF) grade iron ore pellets account for 61% share of the global market.

Who are the key producers of iron ore pellets?

Vale, Rio Tinto, and ArcelorMittal S.A. are leading manufacturers of iron ore pellets.

Iron Ore Pellets Market

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