Pellets are little iron ore balls used in steel production. They're manufactured employing technology that makes use of the leftover powder generated during the ore extraction process. Pellets are used to make steel, which is used to build bridges, automobiles, planes, bicycles, household goods, and much more.
However, the ore must first pass through a blast furnace, which can only operate when air can smoothly and freely circulate. As a result, the material must be large enough to allow for gaps between each component. Furthermore, the ore must be robust enough to avoid crushing and blocking the blast furnace. As a result, pellet manufacturing is critical to the steelmaking process. The iron ore pellets global market size was valued at USD 42,722 million in 2021 and it is expected to grow at a commendable growth rate of 5% during the forecast period (2022–2030). For the Asia Pacific region, it is expected to be 31650 million USD in 2030 growing at a rate of 5.5 % CAGR. Iron ore pellets are used more frequently in developing countries because they emit less pollution and dust than other materials. This drives the iron ore pellets market. The iron ore pellets market may be constrained by raw material price changes.
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The Asia Pacific iron ore pellets market is divided into two categories: product and trade. The worldwide iron ore pellets market is divided into blast furnace grade and direct reduced grade pellets based on product. The direct reduced grade pellets category is the most dominant, with an expected market value of USD 28,958 million by 2030, growing at a CAGR of 5%, an incredible increase from the previous market statistics of USD 18,384 million in 2021. BF Iron pellets are also expanding at a good rate and major the factor pushing the expansion of the Blast Furnace category is the lower price of these iron ore pellets, which is aggregated with the number of integrated steel mills prevalent in developed countries. Direct reduced iron is a fantastic natural resource used in steel production. The direct decrease technique uses DR iron pellets to remove artificially bound oxygen from pellets and irregularity ores without causing them to dissolve. Direct decrease iron contains a lot of iron ore and very little copper, as well as other undesirable metals and small components. Steel made from direct reduced iron can be used for a variety of purposes, including consistent cylinders, plates, fashioning bars, fine wire, and drawing items.
Over the next few years, the demand for a reliable and clean source of iron is expected to rise due to increased steel interest. This is likely to increase demand for DR grade iron metal pellets. The blast furnace grade pellets segment has a considerable market share, with a market value of USD 22,287 million in 2021 and a CAGR of 5% to USD 38,439 million by 2030. The rate of steel production in China has an impact on blast furnace pellet usage patterns. The required oxygen heaters have completely swamped China's steel production. Almost 89.6% of all general raw steel shipped in China is processed by basic oxygen heaters. This method of steelmaking necessitates a large quantity of blast furnace-grade pellets. In comparison to the direct decrease procedure, the blast heater process for steelmaking takes more capital. Furthermore, the former requires coke for steel production. In comparison to BF grade iron ore pellets, DR grade iron metal pellets have a higher entrance. Because they are manufactured from low-grade ores that have gone through ore beneficiation, blast furnace grade iron metal pellets have a high Fe (Iron) concentration.
When separated by trade, the iron ore pellets market is further divided into captive and seaborne, with the seaborne sector dominating the market with a projected revenue of USD 35,414 million by 2030 at a CAGR of 5%, up from an early figure of USD 21,958 million in 2021. The term "seaborne exchange" refers to the movement of press metal pellets across the ocean. Mass items, notably ores and metals, represent a considerable offer in the global seaborne exchange.
The exhibition of dry mass products has been driven by iron metal for the past 10 years. Iron metal exchange development has also been faster than in other freight segments. According to our research, the iron metal trade has grown by more than 250% in the last twenty years. The Captive trade segment has the second highest market value, with a market share of USD 18,719 million in 2021 and a CAGR of 5% from 2021 to 2030 of USD 29,981 million.
Iron ore pellets delivered for self-use or regional interest cooking are included in captive trade. Some of the firms that work together across the value chain have their own captive mines, which provide a steady supply of raw materials.
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With a CAGR of 6%, the Asia-Pacific region will lead the global market by 2030, with an estimated market value of USD 31,649 million, up from USD 18,485 million in 2021. Asia Pacific dominated the iron ore pellet market in 2020, and it is likely to do so again throughout the forecast period. This could be owing to China's large steel manufacturing base. According to the data, China will produce more than half of all world crude steel in 2020. Furthermore, because many parts of China have already begun industrial operations, a quick and effective recovery from the COVID-19 pandemic in 2020 is expected to aid China's market growth. One of the driving factors for Asia Pacific iron ore pellets market is a high concentration of product manufacturers in the region. Crude steel output in large economies like China and India has increased significantly, from 920.0 million tonnes in 2018 to 996.3 million tonnes in 2019, and from 109.3 million tonnes in 2018 to 111.2 million tonnes in 2019. Apart from India, China, Japan, and South Korea, smaller ASEAN economies are also growing rapidly as a result of government initiatives and urbanisation.
Some of the major players in the Asia Pacific Region (having significant market shares) are listed below: