Iron Ore Market is predicted to reach USD 420.57 billion at a CAGR of 2.70% during the forecast period

Iron Ore Market Highlights

The iron ore market will go from USD 349.85 Billion in 2023 to USD 420.57 Billion by 2030, with a CAGR of 2.70% between 2023 and 2030, believes Market Research Future (MRFR). Iron is one of the most widely used metals in the world and is primarily used as the main component of steel, which is used in the engineering, construction, machinery, and automotive industries. As a result, the production of iron ore is a critical driver of the global economy. Brazil and Australia are two of the biggest iron producers globally, depending on the generation of usable iron ore. In 2021, Australia produced a staggering 900 million metric tons of iron ore.

While Brazil and Australia are the leading iron ore exporters in the world, by far, China is the biggest iron ore importer. Similar to several other commodities, Chinese demand notably defines the worldwide iron ore market. around two-thirds of worldwide iron ore exports are to China, coming to more than one billion metric tons. Compared to this, the United States, in 2020, consumed just around 35 million metric tons of iron ore, while the total iron ore shipment in the country stood at nearly 40 million metric tons.

In 2021, the steel industry in Canada exported nearly 8.9 million tons of semi-finished steel items. The country exported 57.3 million tons of iron ore at a value of USD 5 billion in 2021, down from 54.5 million tons in 2020. Iron ore pellets formed around 31% of the volume, however, 79% of the value. Concentrates formed the remaining 68% of the volume and 21% of the value. The market for iron ore has been mainly shaped by the rising demand for steel. Many industries, including construction, the production of automobiles, and shipbuilding, depend on steel. Steel demand is anticipated to increase as the world economy continues to recover from the COVID-19 pandemic. This is particularly true in developing nations where the need for construction materials is being driven by urbanization and infrastructure investment.

The growing industrialization and urbanization of emerging economies are other factors boosting the iron ore industry. Steel and other construction materials are in greater demand as a result of the tremendous infrastructure development and city expansion taking place in nations like China and India. As more emerging nations become industrialized and urbanized, this tendency is anticipated to continue. Technology development is also contributing to the expansion of the iron ore market. The manufacturing of iron ore is becoming more efficient, which lowers costs and increases output. New technologies like automation and artificial intelligence are contributing to this. As a result, mining companies are able to dig out more iron ore from the earth for less money.

Market Segmentation

Hematite, Magnetite, Limonite, Siderite, and Others are among the market segments based on product type. It's possible that the hematite section will dominate. Hematite is one of the most important ores for iron pellets. It is mined in numerous locations all over the world. However, because of significant equipment investments, production only comes from a few enormous deposits where enterprises can efficiently mine and process the ore.

Sinter Fines, Lumps, Pellets, and Others are among the market segmentation, with respect to form in the global marketplace. Sinter fines led the market in 2021 and are expected to grow at the quickest rate going forward. The sinter fines are composed of tiny, atypical iron nodules and minute amounts of other minerals. 

Regional Insights

The Asia-Pacific holds the biggest market share on account of the rapid surge in the construction industry in China and India as well as the subsequent increase in the number of residential and commercial buildings. Additionally benefiting the local market are rising per capita disposable incomes and improved living standards. The Green Corridor, the Smart Cities Mission, and the port building are examples of infrastructure projects in which the Indian government is investing more money, which is increasing demand for iron ore. This will promote economic development in the Asia-Pacific area.

Competitive Landscape

The important iron ore manufacturers in the market include Vale, Rio Tinto, BHP, Fortescue Metals Group Ltd, Ansteel group corporation limited, ArcelorMittal, METALLOINVEST, Cleveland-Cliffs Inc, HBIS GROUP, Anglo American, and more.