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NEW YORK, Oct. 21, 2021 /PRNewswire/ -- Fact.MR – A Market Research and Competitive Intelligence Provider: As per the latest Fact.MR analysis, the global iron ore pellets market size was valued at US$ 46 Bn in 2020 and is expected to reach around US$ 68 Bn by 2031.

Demand for iron ore pellets is expected to soar owing to the rising adoption in steel manufacturing plants. Sales are projected to increase at a CAGR of 4.3% between 2021 and 2031, with market volume surpassing 399 Mn tons in 2021.

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As iron forms the main component of steel, increasing steel production is expected to create huge demand for iron ore pellets. According to the Worldsteel Association, world crude steel production for the 64 countries reached 156.8 million tons in August 2021. This is anticipated to create ample of growth opportunities for iron ore pellets market.

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Iron ore pellet is a type of agglomerated iron ore fines which has better tumbler index as compared to that of parent ore. It can also be used as substitute of lump ore for the production of direct reduced iron (DRI) and in blast furnaces for the production of hot metal.

Iron ore pellets are a better feed for iron and steel making as compared to other feeds. They are mostly preferred due to various benefits such as uniform size, high metallization rate, increased productivity, lower energy cost, higher yield, increased permeability in blast furnaces to optimize fuel consumption rate, and lower maintenance cost.

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Implementation of stringent emission regulations and increasing efforts to achieve de-carbonization targets will continue to fuel the consumption of iron ore pellets. Pellet usage significantly reduces carbon and poisonous gas emissions such as SOx, NOx and CO2 particulate matters.

It also saves the environment as well as cut down the expenditure on waste gas treatment, scrubbers etc. Hence, demand for iron ore pellets is expected to manifold over the coming years, estimates Fact.MR. As per the study, construction and automotive industries are the two major end-use industries of steel. Rising demand from these industries indirectly plays a crucial role in expanding the iron ore pellets market.

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Fact.MR projects North America market was estimated to be worth around US$ 14.5 Bn in 2020. Rapid expansion of steel production industry, presence of leading market players and increasing vehicle production are some of the factors driving the growth across the North America iron ore pellets market. "As the focus is shifting towards decarbonizing the atmosphere, sales of iron ore pellets are expected to witness huge upsurge. Steel manufacturers are showing keen interest in utilizing iron ore pellets for steel production since it helps to significantly reduce carbon emissions," says the Fact.MR analyst.

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Key Takeaways from Iron Ore Pellets Market Survey

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With massive steel production, China will continue to dominate the iron ore pellets market across East Asia during the forecast period.
India is emerging as a lucrative market for iron ore pellets, registering 200 BPS to its net value by 2021 end. Japan market is experiencing strong growth amid increasing steel output, gaining 110 BPS in net valuation by 2021 end. Based on source, blast furnace grade is anticipated to dominate the market during the forecast period, expanding at a healthy CAGR of 5.6% Magnetite remains the most preferred source for manufacturing iron ore pellets due to its high iron content, creating incremental $ opportunity of US$ 1.2 Bn by 2021 end. 

Key Drivers

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• Depletion of high-grade ore reserves is positively impacting the growth of iron pellets market.

• Various advantages associated with iron ore pellets such as higher iron content and ecofriendly nature fosters their demand across various industries.

• Increasing vehicle production and rise in construction activities will continue to fuel the demand for iron ore pellets during the forecast period.

• Key Restraints

• Poor level of integration between iron ore pellet suppliers and steelmaking companies poses a significant demand and supply gap, denting pellet sales.

• Fluctuations in the raw material prices will act as a restraining factor for the iron ore pellets market.

• Rising emission levels in steel plants causing adverse environmental effects will also hinder the growth in the market.

Competitive Landscape

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Companies operating in the iron ore pellets market are focusing on increasing their production capacity. Some of the companies are collaborating with local and regional players to retain their dominance in the industry.

Some of the prominent players operating in the iron ore pellets market profiled by Fact.MR are:

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• Vale

• Cleveland-Cliffs Inc.

• Rio Tinto

• Fortescue Metals

• United States Steel Corporation

• Bahrain Steel

• ArcelorMittal

• NMDC Limited

• LKAB

• Mitsubishi Corporation

• BHP Billiton

• ArcelorMittal S.A.

• Ferrexpo p2lc

• Jindal SAW Limited

• Xindia Steels Ltd.

• Metso Outotec

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News Source: NEW YORK, Oct. 21, 2021 /PRNewswire/ https://www.prnewswire.com/news-releases/iron-ore-pellets-demand-to-surpass-399-mn-tons-in-2021-as-application-in-steel-production-surges-301405815.html

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