Iron Ore Pellets Market – By Grade, By Balling Technologies, By Application, By Technology, By Product Source and Forecast, 2025 - 2034

Iron Ore Pellets Market Size

The global iron ore pellets market was valued at USD 108.5 billion in 2024 and is estimated to grow at a CAGR of over 8.4% from 2025 to 2034.
 

Proliferating demand for steel in the construction sector is set to foster market growth. These small balls of iron ore are made of powder extracted from materials considered waste. The booming infrastructural development across the globe has bolstered the demand for steel in various industries. Moreover, a supportive regulatory backdrop on achieving smart city plans is anticipated to boost product penetration over the next 10 years.
 

Notably, unfavorable government policies associated with sintering activities, especially in China are providing huge opportunities for the iron ore pellets industry. As sintering is an alternative process of formulizing iron ore for steelmaking, stringent regulations on sintering processes due to safety and health concerns regarding the production space are propelling industry growth.
 

Lack of integration and unity among steelmakers and pellet suppliers are hampering the market growth. Steelmakers and pellet suppliers work hand-in-hand for the industry to flourish. Many steel manufacturers and suppliers clash due to varying prices of iron ore and hamper the deployment of iron ore pellets in the market, restricting the overall market growth. However, the growing demand for steel in the booming industrial sector including the automotive industry is forecasted to aid the industry in overcoming this issue.
 

Iron Ore Pellets Market Trends

This market for iron ore pellets is growing at a rapid rate on account of increased demand from the steel industry. Iron ore pellets are generally used in the production of steel due to uniform size, high iron content, and low impurities, which enhance the efficiency of furnaces and reduce emission. Indeed, global steel production has been on an upward trajectory, especially in emerging economies such as India and China, which should keep demand for iron ore pellets firm.
 

Government reports indicate that India's ministry of steel has achieved a 14% increase in domestic steel production in the year 2022 compared to 2021. India is targeting to double its steel output in 2034, and the Chinese government's focus on cleaner, more efficient steel production under its "dual-carbon" policy goals will support long-term pellet demand. According to USGS statistics, global iron ore production increased from 2.4 billion metric tons in 2021 to about 2.6 billion metric tons in the year 2022 and is on a broader trend itself
 

Supply chain constraints, largely influenced by geopolitical tensions and trade policies, affect the pellet market's dynamics, often leading to price volatility. Another key factor influencing demand is the rising use of electric arc furnaces in developed markets such as the US and Europe; as EAF-based steel production requires high-quality pellets. Government policies to promote green steel and accelerate decarbonization spur further expansion in the pellet market, pushing iron ore pellets to become a critical input product in sustainable steelmaking globally.
 

Iron Ore Pellets Market Analysis

In terms of grade, the market is categorized into blast furnace and direct reduction. The blast furnace (BF) segment was valued at USD 81.7 billion in 2024 and is likely to grow at a significant growth rate over the projection period due to its cost-effectiveness compared to the traditional direct reduction grades (DR). They are extensively used for the steelmaking process as they have a flexible design and adapt to large-scale production quickly.
 

With respect to balling technology, the iron ore pellets market is divided into balling disc and balling drum. The balling drum segment is anticipated to reach over USD 96.9 billion in revenue by 2034 on account of its ability to control the ore balls when the balling device is connected in a closed circuit with a screen for removing and recycling the undersized materials. Furthermore, the benefit of producing large quantities of iron ore pellets with this technology is fostering the segment share.
 

In terms of application, the market is segregated into steel production and iron-based chemicals. The iron-based chemicals segment is slated to grow at over 8.7% CAGR from 2024 to 2034. These ore pellets are widely applicable in the steel used for cars, planes, bridges, household appliances, bicycles, and others. Also, their effectiveness in water treatment, along with stringent regulatory norms for wastewater treatment initiatives are fostering market expansion.
 

With regards to pelletizing source, the market is divided into traveling grate, grate kiln, and others. The iron ore pellets market from the grate kiln segment accounted for USD 23.2 billion in 2024. The segment expansion is driven by its provision that offers lower bed depth as compared to a straight grate. The process results in an improved & uniform temperature profile and reduced pressure drop lowering the power consumption, hence, augmenting the product penetration.
 

Magnetite ore usually contains around 72.4% of iron content along with low magnetite content. The magnetic properties of such ores play a major role in conveniently improving the steel production process. The final products produced from such ores are of higher quality compared to the hematite ores. Moreover, the magnetite ore also contains fewer impurities, thereby elevating the cost of processing of such ores. The higher iron content in magnetite is contributing to its increasing adoption in steel conversion and blast furnace.
 

APAC iron ore pellets market is set to depict over 8.9% CAGR between 2025 and 2034. China is one of the major region contributing to this growth. The escalating automobile demand and production in the region is fueling regional progression. According to the OICA in 2022, Asia Pacific accounted for over 50% of automotive production the world over.
 

Iron Ore Pellets Market Share

The following companies are prominent in the international market; those listed include Evraz, Anglo American, BHP Billiton, Bahrain Steel, Cleveland-Cliffs, and FERREXPO. Amongst these, each one represents a significant source of excellent quality iron ore pellets that provides necessary supply to iron ore manufacturers worldwide. Among them, BHP Billiton and Anglo American represent two of the largest multinational mining companies producing substantial iron ore output for both domestic and international markets. Cleveland-Cliffs is the Minnesota-based supplier that plays a very important role in North American pellets production. It helps the domestic steel industry.
 

Evraz, Russia, and FERREXPO, one of the leading Ukrainian producers, also lead big shares in the pellet market, especially in Europe and Asia. Bahrain Steel leads in the Middle East alone with most of the sales going to the GCC countries. Together, these companies set market trends while balancing production capacity with high and growing demand for efficient high-grade pellets made for steel production.
 

Iron Ore Pellets Market Companies

Major players operating in the iron ore pellets coating industry are: 

• Anglo American
• Bahrain Steel
• BHP Billiton
• Cleveland-Cliffs
• Evraz
• FERREXPO
• Iron Ore Company of Canada
• Jindal SAW
• LKAB Koncernkontor
• METALLOINVEST MC
   

Iron Ore Pellets Industry News

• In September 25, 2024, Metso secured a contract with Beijing Shougang International Engineering Technology Co. Ltd (BSIET) to deliver a traveling grate pelletizing plant for Ruifeng Iron and Steel Group in Tangshan, Hebei, China. The plant, set to produce 1.7 million tons per annum (MTPA) starting in 2025, will feature Metso’s Compact pellet plant technology, including indurating machine design, process gas fan systems, and control systems. This project aims to replace several shaft furnaces, enhancing efficiency and reducing emissions.
   
• In August 2023, Foulath arm Bahrain Steel announced a collaboration with Essar Group for the KSA Green Steel Project, focusing on the supply of iron ore pellets to the Green Steel Arabia (GSA) initiative. This partnership aims to enhance the sustainability of steel production in Saudi Arabia by ensuring a steady supply of high-quality raw materials necessary for green steel manufacturing.
   
• In August 2023, Green Steel forged a partnership with industry giants Rio Tinto and Vale to procure direct reduction iron ore pellets. This collaboration is pivotal for supporting their green steel production operations in Sweden. By securing a reliable supply of high-grade iron ore pellets, Green Steel aims to significantly lower carbon emissions and promote environmentally responsible steel manufacturing, aligning with global sustainability goals.
   

The iron ore pellets market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Grade

• Blast furnace (BF)
• Direct reduction (DR)

Market, By Balling Technologies

• Balling disc
• Balling drum

Market, By Application

• Steel production
• Iron based chemicals

Market, By Technology

• Electric arc furnace
• Electric induction furnace
• Oxygen based/Blast Furnace
• Adhesives
• Others

Market, By Technology

• Electric arc furnace
• Electric induction furnace
• Oxygen based/blast Furnace

Market, By Product Source

• Hematite
• Magnetite
• Others

Market, By Pelletizing Process

• Travelling grate (TG)
• Grate kiln (GK)
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa