According to BlueWeave Consulting, the Iron Ore pellets are expected to grow at a significant rate during the forecast period. The global Iron Ore pellets Market is projected to reach a valuation of 62.13 million by the year 2027 by growing at a CAGR of 3.37% during the forecast period 2021-2027. The demand for iron ore pellets has increased especially after various governments have taken steps towards more sustainable steel production acting as an opportunity for the iron ore pellets market. The consumption of Iron ore pellets is majorly driven by rising steel demand from end-users including, the Automotive, Manufacturing, Defense, and Construction sectors among others.
Limited Availability of High-grade Lump
Mined iron ore contains lumps of varying sizes, the biggest one is more than 1 meter (40 inches) across and the smallest one is about 1 millimeter (0.04 inch). Globally, around two billion tones of iron ore (average 62%) is used in the form of lumps/sinter/pellets to produce steel.
Earlier, lump ores were the primary source used in the iron-making process. However, over the years, high-grade lump ore reserves have been gradually depleting, attributable to excessive mining activities by multiple companies.
This limited availability of high-grade lump ore is becoming a cause of concern for the iron & steel industry, as it is becoming increasingly difficult to find suitable lump ore for direct use in blast furnaces. Shortage of high-grade iron ore lumps is a major driver of iron ore pellet sales.
Sample Copy of the report: https://www.blueweaveconsulting.com/report/global-iron-ore-pellets-market/report-sample
Innovations in Iron ore pelletizing
The pelletizing process is currently the most widely used option for producing suitable agglomerates for ironmaking applications from fines of iron ore concentrate.
Quality requirements for Direct Reduced method pellets are higher and since lump ore of the required quality is not available, pellets are the only viable feed for the new Direct Reduced method plants.
Iron Ore Pellets provide advantages to end-users, such as improved productivity of blast furnaces, the opportunity to increase the iron content of the charge materials, and superior environmental performance of pellet plants as compared to sinter plants. Consequently, the number of pelletizing plants is expected to increase in the future. The main iron-producing systems, blast furnace, and Direct Reduced reactors will not be replaced in the near future.
Captive in product offerings are predicted to be the major market driven factor in the US Iron Ore Pellets market industry
Captive holds the largest share in the marking owing to most of the iron ore pellet production is consumed in-house or shipped to nearby customers for steel manufacturing. Most of the major steel companies across the globe, who account for a major share in global steel production, source their iron ore pellet requirements through their own manufacturing firms.
Iron Ore pellets Market: Competitive Landscape
The global iron ore pellets market is highly fragmented with numerous unorganized players. As new players enter the market with new models during the forecast period, it would become even more fragmented.. The key players in this market are Rio Tinto Ltd., BMP Group Ltd., Fortescue Metals Group Ltd., Hancock Prospecting Pty Ltd., Vale S.A., Cleveland-Cliffs Inc., United States Steel Corporation, ArcelorMittal S.A., Luossavaara-KiirunavaaraAktiebolag, National Mineral Development Corporation, and other prominent players.
Key market players are entering into collaborations and engaging in mergers & acquisitions of companies to capture a greater market share. Furthermore, the market participants are focusing on improving their services to attain a competitive edge over other players..
Restraints
The Fluctuations in the Prices of Raw Material
The fluctuations in the prices of raw materials are hampering the growth of the global iron ore pellets market. Fluctuating raw material costs and inadequate price control can negatively impact a company's performance. The cost of raw materials remains the top overall business concern among industries and manufacturers. With regard to the extreme price volatility of raw materials, it becomes a real challenge for manufactures to remain competitive and assure sustainable margins. Chemicals and manufacturing industries are highly affected when prices of raw material fluctuate, which in turn influence the bottom line results of companies, besides hindering the market growth.
Impact of COVID-19
The coronavirus-induced pandemic has severely affected the global economy besides affecting business operations. Due to the high infection rates and adverse impact on public health systems, various countries had to enforce nationwide lockdowns which had a major impact on industrial supply chains, trade, and related services.
COVID-19 has had a major impact on the global iron ore pellets market as it stalled the development of several industries, including the construction industry, as well as the steel manufacturing industry that uses iron ore pellets. Additionally, nationwide lockdowns had a negative impact on the construction sector, supply chain, raw material manufacturers, mining companies, and logistics sector, which in turn stifled the growth of the iron ore pellets market. Additionally, production, operation, and infrastructural development activities have decelerated owing to the spread of coronavirus, which is further anticipated to impact the demand. Additionally, the Asia-Pacific is expected to be severely impacted by the spread of COVID-19 owing to the pandemic’s impact on China, Japan, and India.
About Us
BlueWeave Consulting (BWC) provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost the performance of your business solutions. BWC has built its reputation from the scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
Contact Us:
BlueWeave Consulting & Research Pvt. Ltd
+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662