The iron ore pellets market size is expected to be valued at around $90 billion by 2032, as per a recent research report announced by Global Market Insights Inc.
According to the report, rising purchasing power is the chief driver of the iron ore pellets industry, with the growing preference for superior steel for various heavy-equipment industries also contributing to future market growth. Surging demand for EVs and advanced vehicles across the world has also raised the demand for steel in the automotive industry while automakers are profiting from the softening of steel prices, fuelling product penetration.
With respect to grade, the report classifies the iron ore pellets market into categories of blast furnace and direct reduction. The direct reduction (DR) segment valuation was recorded at more than $14 billion in 2022. DR grade supports the processing of large quantities of iron, capable of producing 97% pure iron, the report says, which makes it a suitable feedstock for electric furnaces. These abilities are slated to push the demand for DR grade iron ore pellets in the coming years.
Iron ore pellets market share from the electric arc furnace segment is projected to witness growth by 4% between 2023 and 2032. Various benefits, states the report, such as reduced pollution and superior metallurgical control, are boosting the demand for EAF technology. In addition, the capability of electric arc furnace technology to achieve temperatures of up to 1800°c is likely to spur segment development in the upcoming period.
Another factor that will contribute to the expansion of the market are the ongoing partnerships and production capacity expansion efforts by industry players, the report added. For instance, in October 2022, mining firm Anglo American and high-grade steel supplier Thyssenkrupp Steel Europe AG signed a memorandum of understanding to create new avenues for decarbonizing steelmaking. The partnership aimed to conduct joint research to expedite the development of high-quality feedstock for lower carbon steel production. Some key players profiled in the iron ore pellets market report include Anglo American, BHP Billiton, Evraz, Cleveland-Cliffs Inc., FERREXPO, Bahrain Steel, and Jindal SAW Ltd., among others.
Source: Global Market Insights