Demand for the iron ore pellet market forecast to increase
Published by Oliver Kleinschmidt,
Editorial Assistant
Dry Bulk,
The global iron ore pellet market value has been forecast to increase from US$66 503.9 million in 2023 to US$141 988.8 million in 2033. Over the assessment period, global demand for iron ore pellets was projected to surge at a CAGR of 7.9% according to Future Market Insights.
The demand for iron ore pellets is closely tied to the global steel industry. Iron ore pellets are a critical raw material in steelmaking, used to enhance the efficiency of the steel production process.
Iron ore pellets have been witnessing higher demand from the iron and steel sectors, and the trend was expected to continue through 2033. This was due to the expanding construction sector and rapid urbanisation globally.
According to the World Steel Association, global crude steel production reached 1 950.5 million t in 2021, up 3.7% from 2020. Rise in production and consumption of steel and steel-based products worldwide could likely bolster iron ore pellet sales through to 2033.
The properties and environmental benefits of iron ore pellets have made them a popular raw material choice in the iron and steel industry. Hence, expansion of these industries was predicted to elevate demand for iron ore pellets.
The global iron ore pellet market was predicted to expand over 2.1X through 2033. This has been due to the growing demand for steel from several end-use industries such as the construction and automobile industry.
Key takeaways from Future Market Insights report
- The global market for iron ore pellets is projected to thrive at 7.9% CAGR through 2033.
- Based on the segment, BF grade is expected to surge at a CAGR of 7.1% by 2033.
- East Asia is expected to account for a significant share of around 37.4% in 2033.
- The US industry value is set to reach US$9,204.8 million in 2033.
- China is projected to attain a valuation of US$35,299.4 million in 2033.
- Iron ore pellet demand in India is predicted to rise at 11.7% CAGR through 2033.
"The iron ore pellet market is expected to witness healthy growth due to escalating environmental regulations, expanding industrial sectors, and increasing emphasis on high-grade steel for several applications. As industries worldwide strive to reduce their environmental impact and ensure compliance, demand for effective iron ore pellets is expected to rise rapidly, creating growth prospects for the target market," said Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.).
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Read the article online at: https://www.drybulkmagazine.com/dry-bulk/07122023/demand-for-the-iron-ore-pellet-market-forecast-to-increase/
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