Home Advanced Materials LAMEA Iron Ore Pellets Market Analysis, Share to [2022-2030]
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LAMEA Iron Ore Pellets Market Size, Share & Trends Analysis Report By Product (Blast Furnace Grade Pellets, Direct Reduced Grade Pellets), By Trade (Captive, Seaborne), By Balling Technology (Balling disc, Balling drum), By Application (Steel production, Iron-based chemicals), By Steelmaking Technology (Electric arc furnace, Electric induction furnace, Oxygen based/blast furnace), By Product Source (Hematite, Magnetite, Taconite, Others), By Pelletizing Process (Travelling grate, Grate kiln, Others), By End-use (Automotive, Railway, Shipping, Aerospace, Construction, Consumer Goods, Others) and By Country(Brazil, Mexico, Argentina, Chile, Colombia, UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of LAMEA) Forecasts, 2022-2030

Report Code: SRAM3131DR
Last Updated : Nov 20, 2022
Author : Straits Research
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Market Overview

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.

LAMEA Iron Ore Pellets Market

Market Dynamics

Lamea iron ore pellets market drivers

  • Increase in Demand for Steel: The sustained demand for steel in various locations is projected to drive demand for iron ore pellets. Steel is widely employed in a variety of industries, including construction, automotive, oil and gas, appliances, industrial machines, and other operations. One of the main end-use industries for steel products is construction. Construction accounts for more than half of global demand, according to the World Steel Association. One of the major factors fuelling interest in steel is the growing need for housing due to population growth. According to the United Nations' World Population Prospects, the global population is expected to reach 8.6 billion by 2030. This is expected to increase demand for new homes along these lines, thereby contributing to the growth of steel products and iron ore pellets.

Lamea iron ore pellets market restraints

  • Availability of Substitutes- Significant Obstacle: The use of aluminium as a steel alternative, mostly in automobiles, is expected to reduce demand for steel, limiting the growth of the iron ore pellets industry. The lightweight nature of aluminium, along with its solidity, is the primary reason for its increasing use in cars. This advances eco-friendliness and vehicle performance, as well as assisting producers in adhering to the stringent standards imposed by various government organisations to dispose of waste in a safe and secure manner. Automobile manufacturers are under increasing pressure to meet administrative requirements relating to vehicle natural effects. Due to increased emanation of ozone-harming compounds, the Corporate Average Fuel Economy (CAFE) guideline, which began in the United States, has increased its goal for normal eco-friendliness from 2012 to 2025. Essentially, the European Union is updating its recommendations to reduce vehicle weight and increase environmental friendliness.
  • As a result, concepts and approaches to car vehicle weight have been adjusted all over the world. The use of aluminium to reduce vehicle weight is expected to play a critical role in achieving administrative requirements.

Key market opportunities

  • Advancement in technology: Electric arc furnace steelmaking technology is expected to grow at a rate of around 4.5% per year, owing to its good metallurgical control and minimal carbon emissions. The aforementioned considerations are anticipated to drive demand for electric arc technology to update current facilities or expand operations. Hematite-based iron ore pellets are expected to have a considerable market share due to their low particle attrition rate and high specific gravity. Furthermore, this type of source is widely available throughout the region, thus serving as a growth stimulus for the business.
Study Period 2018-2030 CAGR 3.1%
Historical Period 2018-2020 Forecast Period 2022-2030
Base Year 2021 Base Year Market Size USD 42,722 Million
Forecast Year 2030 Forecast Year Market Size USD 2.00 Billion
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Regional Analysis

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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Segmental Analysis

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.

Market Size By Product

Market Size By Product
  • Blast Furnace Grade Pellets
  • Direct Reduced Grade Pellets


  • Impact of covid-19

    The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

    South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

    The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.


    List of key players in LAMEA Iron Ore Pellets Market

    1. ArcelorMittal
    2. FERREXPO
    3. Jindal SAW Ltd
    4. Vale
    5. Cleveland-Cliffs Inc.
    6. United States Steel Corporation
    7. Metso Outotec
    LAMEA Iron Ore Pellets Market Share of Key Players

    Recent Developments


    LAMEA Iron Ore Pellets Market Segmentations

    By Product (2018-2030)

    • Blast Furnace Grade Pellets
    • Direct Reduced Grade Pellets

    By Trade (2018-2030)

    • Captive
    • Seaborne

    By Balling Technology (2018-2030)

    • Balling disc
    • Balling drum

    By Application (2018-2030)

    • Steel production
    • Iron-based chemicals

    By Steelmaking Technology (2018-2030)

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

    By Product Source (2018-2030)

    • Hematite
    • Magnetite
    • Taconite
    • Others

    By Pelletizing Process (2018-2030)

    • Travelling grate
    • Grate kiln
    • Others

    By End-use (2018-2030)

    • Automotive
    • Railway
    • Shipping
    • Aerospace
    • Construction
    • Consumer Goods
    • Others

    Frequently Asked Questions (FAQs)

    How big is the LAMEA market?
    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).
    Key verticals adopting the LAMEA market include: ArcelorMittal, FERREXPO, Jindal SAW Ltd, Vale, Cleveland-Cliffs Inc., United States Steel Corporation, Metso Outotec
    Increase in Demand for Steel is the key drivers for the growth of the market.
    By Product and By Trade are the main Segmentations of LAMEA market.


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