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.