Global Iron Ore Pellets Industry - Outlook 2030

Iron ore pellets are the feed material for steel manufacturing companies and fed to the blast furnace and DRI mills in the steelmaking process. The pellets industry is witnessing a structural change in demand supply scenario led by shift in iron and steel industry towards higher quality raw material. This trend is further strengthened by the Chinese government rationalisation of steel industry as well as implementation of environmental controls to reduce emissions from the local production of pig iron and sintering.

Furthermore, the tailings dam collapse of the second largest pellet player globally has withdrawn the supply of 30.5 Million Tonnes of pellets from the seaborne market. Consequent to the above factors, the iron ore pellets premiums have increased sharply. Our report showcases a detailed demand supply analysis of the major drivers that have changed the pellets industry outlook, which primarily include the Chinese environmental policy implications on steel industry, ferrous scrap supply outlook, coking coal prices and the changing proportion of pellets in BF feed mix globally.

On the back of these drivers, the global iron ore pellets demand is expected to register a CAGR of 4% till 2030. Addedly, the pellet premiums, which have recorded the highest levels last seen in 2008, are going to benefit large pellets players.