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).
Pellets are little iron ore balls used in steel manufacturing. 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 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. For the LAMEA region, it is expected to be 2,009.1 million USD in 2030 growing at a rate of 3.1 % 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.
The LAMEA 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 worldwide 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.
The LAMEA region is separated into Brazil, Mexico, and the rest of LAMEA, while the Middle East and Africa region is divided into GCC, Turkey, South Africa, and the rest of MEA. Over the next few years, the Latin American, Middle Eastern, and African markets are expected to show enormous untapped business potential. Several sectors are investing in Latin America, the Middle East, and Africa, recognising the significant market development potential of these regions. According to market sources, Vale, the Brazilian iron ore giant, has raised its premiums for blast furnace (BF) and direct-reduced (DR) iron ore pellets for the second quarter of 2022 which will surely enhance the iron ore pellet market in the region.
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