Iron Ore Pellets Market

Market Snapshot

According to a research study done by Fact.MR, demand for iron ore pellets is anticipated to increase at a CAGR of 4.3% over the period of 2021 to 2031, up from 399 Mn tons in 2021.

Increasing steel consumption across a wide range of downstream industries open the doors for market growth throughout the assessment period of 2021 to 2031. When opposed to sinters and lumps, iron ore pellets tend to showcase improved functional abilities, guiding the way for their increased usage in the global market.

The study by Fact.MR, a market research and competitive intelligence provider, throws light on key economic and future feasibility of adoption in key end-use industries. Iron ore pellets, the backbone of the steel industry, is a multibillion-dollar business that is continuously growing.

Iron Ore Pellets Industry Report Scope

Demand Analysis of Iron Ore Pellets from 2016 to 2020 Vs Market Projections for 2021 to 2031

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

The global market witnessed growth at 3.9% CAGR during the historic period of 2016-2020. In addition to increasing consumption of steel by the automobile sector, demand for steel from the building and construction industry has been steadily increasing.

Rapidly expanding steel production industry in fast-developing Asian nations such as China, India, and Vietnam will play a significant role in increasing iron ore pellet consumption in the near future. A growing number of pelletizing factories around the world is also helping shape market growth for the long run.

How is the Steel Industry Stimulating Demand for Iron Ore Pellets?

Steelmaking has seen a considerable shift in technology developments 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. Furthermore, due to excessive mining activities, steelmakers and consumers have been suffering from a scarcity of lump ores of the appropriate quality.

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.

What are the Common Obstructions Faced by Iron Ore Pellet Manufacturers?

The market for iron ore pellets faced major challenges to growth due to some unavoidable factors, especially when it comes to developed Western regions. Poor level of integration between iron ore pellet suppliers and steelmaking companies poses a significant demand and supply gap, denting pellet sales.

Also, carbon emissions and the globally driven sustainability drive embarks another major factor impacting the overall performance of the iron ore pellet supply and demand landscape. The present stand of the steelmaking industry accounts more than 10% of the world’s CO2 emissions, making it imperative for prominent players to stay focused on decarbonisation efforts.

Country-wise Analysis

How is China Driving Iron Ore Pellet Consumption?

China, holding a massive share in overall steel production, regulates the demand and supply for iron pellets effectively. Its production houses are capable enough to produce more than 50% of the world’s steel. Although the Chinese steel market was hit severely during the COVID-19, after Q4 of 2020, business was seen to engage in the recovery curve attributed to large-scale steel project closures globally.

In addition, manufacturers are experiencing ease of labour 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 across Established and Evolving Markets?

India: India has also emerged as prominent consumer of iron ore pellets owing to its contribution to global steel manufacturing. China, being the largest producer of steel, imports raw material from India, thus proving its prominence in the global steel market.

Although, India is witnessing lower volumes of steel production owing to badly impacted sectors and end-use industry post COVID-19. Moreover, demand is still surging, and Fact.MR anticipates that India will add 200 BPS to its net value by 2021-end.

Japan: Japan remains another prominent consumer of iron ore pellets, and Fact.MR believes it to be a potential hotspot elevating overall demand. Growth is attributed to increasing steel output in Japan touching 9.2 Mn tons.

Prominent manufacturers have structured their production bases in Japan, thus maintaining a strong trade balance globally. Fact.MR anticipates Japan to gain 110 BPS in net valuation by 2021-end.

Category-wise Analysis

Why Has Magnetite Iron Ore Remained the Focal Point?

Magnetite iron ore has remained a major growth lever for global iron ore pellet demand. Fact.MR believes that the magnetite segment shall surpass a net valuation of US$ 33 Bn by 2031.

Manufacturers are producing iron ore pellets as their prime material attributed to their high iron percentage touching more than 70%. However, extensive magnetic properties of such ores play a pivotal role in shaping the steel production process effectively. Also, upper hand capabilities and ease of availability prospered by these ores help steel makers reduce their overall cost of production.

Considering the aforementioned factors, the magnetite iron ore pellets market is set register an incremental dollar opportunity of US$ 1.2 Bn by 2021-end.

Which Grade of Iron Ore Pellets Showcases Upper-Edge Capabilities?

Blast furnace grade has been seen playing a pivotal role in driving overall demand for iron ore pellets. This grade has witnessed robust demand during the historic timeframe of 2016-2020 at a solid CAGR of 4.9%. During FY 2020, blast furnace grade iron ore made supreme contribution, allowing the business to achieve manifold growth.

Advantages offered by the furnace grade as comparable to direct reduction grade (RD) remains a major growth enabler for the market. The quality of pellets is influenced by a variety of key factors, including type and amount of fillers added and nature of concentrated ore.

Hence, Fact.MR anticipates that the blast furnace grade shall be dominating the market over the assessment period expanding at healthy CAGR of 5.6%.

Competitive landscape

Top manufacturers of iron ore pellets include Vale, Cleveland-Cliffs Inc., Rio Tinto, Fortescue Metals, United States Steel Corporation, Bahrain Steel, ArcelorMittal, NMDC Limited, LKAB, Mitsubishi Corporation, BHP Billiton, ArcelorMittal S.A., Ferrexpo plc, Jindal SAW Limited, Xindia Steels Ltd., and Metso Outotec.

Iron Ore Pellets Industry Research - Key Segments

• By Grade

  • Direct  Reduction (DR)
  • Blast Furnaces (BF)

• By Source

  • Magnetite
  • Hematite
  • Others

• By Application

  • Iron-based Chemicals
  • Steel Production

•  By End Use

  • Iron Ore Pellets for Electric Induction Furnaces
  • Iron Ore Pellets for Oxygen-based/Blast Furnaces
  • Iron Ore Pellets for Electric Arc Furnaces

Iron Ore Pellets Market- Scope of Report

A recent study by Fact.MR on the iron ore pellets market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the development of iron ore pellets.

The study also provides the dynamics that are responsible for influencing the future status of the market over the forecast period. A detailed assessment of value chain analysis, business execution, cost structure analysis, and supply chain analysis across regional markets has been covered in the report.

A list of prominent companies manufacturing iron ore pellets, along with their product portfolios, key strategies, SWOT Analysis, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including captive consumption rates, product-wise pricing, revenue growth and list of consumers with consumption quantity, apparent trade analysis, product enhancements, application mapping and revenue generation from iron ore pellets across the globe.

A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account revenue through iron ore pellets during the forecast period.

Analysis on Market Size Evaluation

The market has been analyzed for each market segment in terms of volume (KT), and value (US$ Bn).

Market estimates at global and regional levels for iron ore pellets are available in terms of “US$ Mn”. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a company can look to achieve, along with identifying potential resources, considering the revenue perspective in the global iron ore pellets market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include market forces analysis, which is expected to have a momentous influence on the growth of the iron ore pellets market during the forecast period.

Country-specific valuation on revenue for iron ore pellets has been offered for each regional market, along with market scope estimates and forecasts, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value for key countries has also been included in the report.

In-depth Analysis on Competition

The report sheds light on leading providers of iron ore pellets, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in the iron ore pellets has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the iron ore pellets market.