PUBLISHER: Grand View Research | PRODUCT CODE: 1511999
PUBLISHER: Grand View Research | PRODUCT CODE: 1511999
The global iron ore pellets market size is anticipated to reach USD 71.03 billion by 2030, registering a CAGR of 6.0% from 2024 to 2030, according to a new report by Grand View Research, Inc. The product demand is expected to be driven largely by the increased steel production in Asia Pacific. Steel production heavily consumes iron ore pellets as a vital raw material. In recent times, Asia Pacific has witnessed rapid industrialization and urbanization, which has led to a surge in steel production. Consequently, there has been a substantial rise in product demand in this region. The product is primarily utilized by large integrated steel producers in a captive form. However, there is a significant possibility for seaborne trade of the product as cross-country trade is expected to increase in the coming years due to growing demand from Asia Pacific, Middle East, and Africa.
China is currently the largest producer of steel due to its massive production capacity. However, emerging economies, such as India, Vietnam, Myanmar, Philippines, and Indonesia, are expected to experience significant growth in the steel industry. These countries are posing a challenge to Chinese steel producers due to their comparatively lower labor costs and supportive government policies. End-users are entering into long-term agreements to secure their iron ore pellet supply. For instance, in August 2023, Essar Group entered into a letter of intent (LoI) with Bahrain Steel, a subsidiary of Foulath, to procure 4 million tons of DR (direction reduction)-grade pellets per annum (MTPA) for its upcoming integrated steel plant in Ras Al Khair, Saudi Arabia.