Global Iron Ore Market to Reach 2.7 Billion Metric Tons by 2026

Supported by end-use industries and positive outlook across both developed and developing economies, steel demand is projected to increase in 2021 and 2022. The industry is likely to gain from eventual stabilization of ongoing COVID-19 waves along with vaccination programs, facilitating gradual return of primary steel-consuming nations to normalcy. The steel industry has experienced faster-than-expected recovery from the impact of lockdowns and production disruptions amid the COVID-19 outbreak. The rebound can be attributed to the strong contribution from major end-use sectors like construction and automotive. Representing the primary steel consumer, the global construction sector reported drop in output in 2020, considerably higher than the 2% decline experienced during the 2009 financial downturn. However, the sector is anticipated to recover quickly and attain the 2019 levels.

Amid the COVID-19 crisis, the global market for Iron Ore estimated at 2.1 Billion Metric Tons in the year 2020, is projected to reach a revised size of 2.7 Billion Metric Tons by 2026, growing at a CAGR of 3.7% over the analysis period. Fines, one of the segments analyzed in the report, is projected to grow at a 4% CAGR to reach 1.3 Billion Metric Tons by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the HBI/DRI segment is readjusted to a revised 3.4% CAGR for the next 7-year period. This segment currently accounts for a 27.3% share of the global Iron Ore market.

The U.S. Market is Estimated at 32.7 Million Metric Tons in 2021, While China is Forecast to Reach 1.6 Billion Metric Tons by 2026

The Iron Ore market in the U.S. is estimated at 32.7 Million Metric Tons in the year 2021. The country currently accounts for a 1.5% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of 1.6 Billion Metric Tons in the year 2026 trailing a CAGR of 4.1% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 1.6% and 1.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.9% CAGR while Rest of European market (as defined in the study) will reach 1.7 Billion Metric Tons by the end of the analysis period. Traditionally, China has been the key driver to the growth in iron ore industry across the globe and is expected to remain so for the next few years. Any change occurring in the country`s steel production significantly influences global iron ore trade. Chinese demand for iron ore is primarily due to rapid urbanization and industrialization and a robust GDP growth, which exceeds the growth rates of most of the countries in the west.

Pellets Segment to Reach 426.3 Million Metric Tons by 2026

In the global Pellets segment, USA, Canada, Japan, China and Europe will drive the 3% CAGR estimated for this segment. These regional markets accounting for a combined market size of 244.9 Million Metric Tons in the year 2020 will reach a projected size of 329.6 Million Metric Tons by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach 81 Million Metric Tons by the year 2026, while Latin America will expand at a 3.6% CAGR through the analysis period.