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Iron Ore Pellets Market

Iron Ore Pellets Market Analysis By Grade (Direct Reduction, Blast Furnaces), By Source (Magnetite, Hematite, Others), By Application (Iron-based Chemicals, Steel Production), By End Use (Electric Induction Furnaces, Oxygen-based/Blast Furnaces) & Region- Global Market Insights 2021- 2031

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 (2021-2031)

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.

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Iron Ore Pellets Industry Report Scope



Market size value in 2020

USD 46 Billion

Market forecast value in 2031

USD 68 Billion

Global Growth Rate

CAGR 4.3%

North America Market Size in 2020

USD 14.5 Billion

Latin America Market Size in 2020

USD 2.2 Billion

Europe America Market Size in 2020

USD 9.1 Billion

East Asia America Market Size in 2020

USD 11.8 Billion

South Asia America Market Size in 2020

USD 6.5 Billion
Middle East and Africa Market Size in 2020 USD 1.7 Billion

Forecast Period


Historical Data Available for


Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East Africa

Key Market Segments Covered

  • By Grade
  • By Source
  • By Application
  • By End-use
  • Region

Key Companies Profiled

  • 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 p2lc
  • Jindal SAW Limited
  • Xindia Steels Ltd.
  • Metso Outotec
Iron Ore Pellets Market

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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.

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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.

Iron ore pellets market regional analysis by Fact.MR

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

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

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East Africa

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In 2020, iron ore pellet demand was estimated as 399 Mn tons.

Sales of iron ore pellets are projected to increase at a CAGR of around 4.3% during 2021 – 2031.

Sales of iron ore pellets increased at a CAGR of around 3.9% during 2016 – 2020.  

Increased adoption rates for different iron ore pellets in steel manufacturing has remained a major factor for market growth.

Top 4 iron ore pellet manufacturers account for around 30% share in the market.

The top 3 countries driving demand for iron ore pellets are the U.S., China, and India.

East Asia accounted for more than two-third of global iron ore pellet sales in 2020.

The European market for iron ore pellets is projected to expand at a CAGR of 5.9% during 2021 – 2031.

The market in Japan and South Korea is slated to expand at 5.2% and 4.8% CAGRs, respectively, with both countries cumulatively accounting for 35% share of the East Asia market.

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