Iron Ore Market Size, Share & Trends Analysis Report By Type (Fines, Pellets, Lumps), By End Use (Steel Industry, Others), By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), And Segment Forecasts, 2025 - 2030

Iron Ore Market Size & Trends

The global iron ore market size was estimated at USD 275.23 billion in 2024 and is projected to grow at a CAGR of 4.0% from 2025 to 2030. The global demand for construction steel is anticipated to drive iron ore consumption worldwide.

The requirement for non-residential and commercial construction and affordable housing units in emerging countries is expected to drive the consumption of construction steel in the coming years, thereby surging the demand for iron ore.

According to World Population Prospects, published by the United Nations, the global population is projected to reach 8.6 billion by 2030, 9.8 billion in 2050, and 11.2 billion in 2100. This, in turn, is expected to fuel the demand for new houses, indirectly contributing to the global demand for iron ore for manufacturing steel.

Iron ore is a naturally occurring mineral found in the Earth's crust, primarily consisting of iron oxides like hematite and magnetite. It is an essential raw material for producing iron and steel. The extraction process involves refining the ore to separate the iron from impurities, yielding various iron ore grades. These different grades are used in steel production, which is critical for multiple industries. The demand for iron ore is primarily driven by the growing need for steel, fueled by rapid industrialization and urban growth, particularly in emerging economies like China and India.

Drivers, Opportunities & Restraints

As of May 2025, the U.S. Federal Reserve has maintained its benchmark interest rate at 4.3%-4.5% since December 2024, following a series of rate cuts totaling 100 basis points over the latter half of 2024. Concurrently, the U.S. dollar strengthened against major currencies, including the Euro and the Chinese Yuan. In January 2025, the Euro fell to 1.04 against the U.S. dollar, reflecting the greenback's increased purchasing power.

Rising construction expenditures worldwide are one of the major drivers of the growth of the global iron ore industry. In 2024, U.S. construction spending reached a record high of USD 2.17 trillion, marking a 7.2% year-over-year increase. The surge was mainly fueled by strong demand for data-center facilities and manufacturing projects, with private residential construction also seeing growth. In January 2025, total construction spending continued to rise, estimated at USD 2.19 trillion, up 3.3% from the previous year. Residential construction stood at USD 932.70 billion, though slightly lower than December’s estimate. This sustained growth in construction, particularly in manufacturing and residential sectors, is expected to drive demand for raw materials, especially iron ore, essential for steel production. As infrastructure projects and construction activities increase, the global iron ore industry will benefit from the rising need for steel in buildings, roads, and industrial facilities.

Infrastructure projects, particularly in developing regions, are poised to boost the demand for steel and iron ore significantly. Government spending on large-scale infrastructure developments, including constructing and enhancing roads, bridges, airports, railways, ports, and other public facilities, is expected to drive market growth. These initiatives require substantial quantities of steel for construction, directly impacting the demand for iron ore, the key raw material used in steel production. As infrastructure projects expand, steel consumption rises, stimulating the demand for iron ore, which could lead to higher prices and increased production, offering valuable opportunities for suppliers and investors in the industry.

The U.S. Federal Reserve has maintained interest rates of 4.25% to 4.50% since December 2024. As per the latest developments, it appears unlikely that the Federal Reserve will impose an interest rate cut during the third quarter of 2024. This indicates stable economic growth and a revival in manufacturing activities, creating growth opportunities for the iron ore industry.

China's construction industry is the largest steel consumer in the world. As such, purchase contracts for iron ore are centered around its prices in China. The prevailing fluctuations in the price of iron ore indicate the demand for subdued steel from the construction industry in China. The low iron ore prices are expected to reduce the costs of raw materials used for steel production. Hence, producers' profitability in the global steel industry is anticipated to be high over the next few years. This is expected to have a cascading effect on iron ore supply and prices and can restrain the profitability of iron ore producers.

The steel industry is embracing new technologies to improve efficiency, reduce costs, and enhance environmental sustainability in steel production. One of the key advancements involves the growing adoption of alternative steelmaking methods, such as Electric Arc Furnaces (EAFs) and hydrogen-based reduction processes. These innovative techniques often require different raw materials and may rely more on scrap steel as feedstock, which reduces the dependency on traditional blast furnaces and primary iron ore. This shift in production methods is expected to significantly impact the demand for iron ore, potentially altering market dynamics as the industry moves towards more sustainable practices.

Iron Ore Price Trends

In the first quarter of 2024, iron ore prices experienced a significant decline, dropping nearly 30% due to concerns over weakened demand from China, the world's largest commodity consumer. This downturn was attributed to ongoing challenges in China's real estate sector and broader economic uncertainties. However, by April 2024, prices began to stabilize, supported by efforts to revive the Chinese real estate market and initiatives by the Steel Association of China to enhance capacity utilization in anticipation of future demand.

Despite expectations for a mid-2024 recovery, economic reforms in China faced delays, leading to postponed implementation of new construction projects and deferred steel procurement. Consequently, iron ore prices remained below the anticipated USD 100 per ton threshold. Nevertheless, prices showed mild recovery by the end of 2024, reaching an average of approximately USD 117 per ton. This rebound was driven by the execution of global construction projects and a strengthening U.S. dollar against the Chinese yuan, which improved purchasing power.

Looking ahead, global iron ore prices are projected to remain within the USD 80 to USD 100 per ton range over the next 18 months, influenced by subdued worldwide demand and persistent supply-side growth challenges. This outlook suggests limited upward momentum in the near term, despite favourable economic conditions in key markets.

Market Concentration & Characteristics

The global iron ore industry is at a lower industry growth stage, indicating an accelerated pace of development. Iron ore deposits are located worldwide, with Australia, Brazil, the U.S., and Canada being the most prominent producers. The global iron ore industry is consolidated due to the high capital costs and required regulatory approvals. As such, the market is characterized by large-scale producers of iron ore that cater to its global demand.

The market's degree of innovation is moderate and is characterized by upgrading technologies for mining and processing (beneficiation) iron ore. Presently, companies worldwide are focused on sustainable mining activities and are trying to ensure that their production processes achieve a low carbon footprint and incur minimal costs. The level of M&A activities in the market remained low in 2023.

Iron ore mining activities endure a high regulatory impact as players carrying out these activities are governed by stringent laws to obtain mining licenses and environmental clearance, and they have minimal socio-economic implications. Compliance with these regulations often requires significant investments in advanced technologies and sustainable mining practices, leading to a surge in operational costs. The substitutes for iron ore are limited, as it is a key raw material for producing steel. It is mainly found processed into pellets, lumps, and fines. The concentration of end users is also high in the market, as iron ore is used in the construction and cement manufacturing industries, as well as foundries and refractories. It is also used for manufacturing chemicals, ferroalloys, and glass.

Type Insights

The pellets segment led the market with the largest revenue share of 56.3% in 2024. Pellets are ground iron ore fines converted to spherical-shaped balls. They have good physical properties for bulk and mechanical transportation over long distances. These balls also have excellent metallurgical properties that are better than raw iron ore. Pellets are used as raw materials for iron manufacturing, as a substitute for sinter and lumps.

Pellets are preferred for their desirable shape, size, strength, and excellent metallurgical properties. Their usage in blast furnaces can increase the productivity of iron plants without the requirement for additional capital investments. They enhance the productivity of the iron-making units without any further capital investments.

End Use Insights

The steel industry segment accounted for the largest market revenue share in 2024. Iron ore in the form of fines, lumps, pellets, and sinters is used to manufacture steel. Primary steelmaking involves pig iron, which is smelted from iron ore in the basic oxygen furnace (BOF) or electric arc furnace (EAF). These methods produce high-quality steel, which is further developed into different shapes.

Steel is further used in various end use industries. The construction and automotive industries account for the most significant revenue shares of the overall global steel consumed. Infrastructure development and construction activities extensively require high volumes of steel to enhance structures' aesthetic appeal and corrosion resistance.

In March 2024, the U.S. Department of Energy (DOE) announced a historic investment of USD 6 billion to fund 33 industrial decarbonization projects across more than 20 states. This initiative, the largest in U.S. history, aims to reduce greenhouse gas emissions from energy-intensive industries such as steel, cement, aluminium, and food production. The funding is sourced from the Inflation Reduction Act and the Bipartisan Infrastructure Law, with USD 5.47 billion allocated and USD 489 million from the latter.

The selected projects are expected to eliminate approximately 14 million metric tons of carbon emissions annually, equivalent to removing about 3 million gasoline-powered cars from the road. Notably, nearly 80% of these projects are in disadvantaged communities, aligning with the administration's commitment to equitable environmental benefits. Private sector investments are expected to match the federal funding, bringing the total investment to over USD 20 billion. These projects are anticipated to set new standards for clean manufacturing in the United States and globally, supporting the nation's net-zero carbon goals. Other end uses of iron ore include foundries, cement manufacturing, coal washeries, ferroalloys, chemical plants, glass manufacturing, and refractories.

Regional Insights

The iron ore market in North America is anticipated to grow at a significant CAGR during the forecast period. The growth has been due to various activities and government investments in infrastructure development projects. Countries in the region, especially the U.S. and Mexico, focus on accelerating their economic growth by investing in infrastructure development projects and supporting their manufacturing industry. This, in turn, is expected to surge the demand for steel, leading to a rise in iron ore consumption in the coming years.

U.S. Iron Ore Market Trends

The iron ore market in the U.S. is the third-largest steel producer in the world. The country's construction industry drives demand for steel, which drives demand for iron ore. According to the U.S. Census Bureau, total construction spending in the country during the first three months of 2024 amounted to USD 461.00 billion, an increase of 10.6% year over year.

Asia Pacific Iron Ore Market Trends

Asia Pacific dominated the iron ore market with the largest revenue share of 70.0% in 2024, due to the large crude steel production volume in China, India, and Japan. This steel is used in residential and commercial construction activities as well as the automotive & transportation, energy, and electronics industries. The construction industry in the region has witnessed significant growth over the past few years, owing to ongoing industrial development and its robust economy. This, in turn, has led to a rise in steel consumption, thereby contributing to the demand for iron ore used as a raw material to manufacture steel.

The China iron ore market demand for iron ore diminished in 2023 due to a slowdown in its domestic market. This downturn was primarily influenced by the weakening of the country's real estate sector, which began in the fourth quarter of 2021 due to the debt crisis faced by real estate developers in China. However, the market indicated a moderate revival in 2023, encouraging iron ore producers to bank on stable prices.

Europe Iron Ore Market Trends

The iron ore market in Europe is anticipated to grow at a significant CAGR during the forecast period. The iron ore and steel industry continues to face significant challenges stemming from the ongoing Russia-Ukraine conflict, high energy costs, labor shortages, and increased competition from low-cost imports. These factors have reduced production capacities and economic strain across the sector.

The Germany iron ore market accounted for the largest revenue share of over 14% in Europe in 2024. The country's market growth is moderate due to geopolitical issues in Europe and increased input costs. However, the demand for sustainable energy production, consumer packaging, electric vehicles, and green construction is anticipated to improve in the coming years. In addition, the country is the largest exporter of semi-finished and finished steel in Europe.

Latin America Iron Ore Market Trends

The iron ore market in Latin America is projected to grow at a substantial CAGR during the forecast period, due to the region's flourishing construction industry. For instance, in March 2024, Hilton announced its accelerated expansion in the Caribbean and Latin America. With record room growth in 2023 and a robust pipeline of nearly 110 hotels, Hilton plans to open more than 15 hotels across the Caribbean and Latin America in 2024. Hilton is also introducing new brands to the region. Home2 Suites by Hilton has signed new hotels in Mexico, and Spark by Hilton is set to launch in CALA in 2025, aiming to redefine the premium economy segment.

Middle East Iron Ore Market Trends

The iron ore market in the Middle East and Africa (MEA) is anticipated to grow at the fastest CAGR during the forecast period, driven by substantial infrastructure investments and strategic partnerships. For instance, the Government of Egypt focuses on infrastructure development while attracting foreign investors to reduce its fiscal deficit. The Ras El Hekma project, undertaken by Abu Dhabi Developmental Holding Company (ADQ) for a total investment of USD 35 billion, is anticipated to mobilize infrastructure development projects in the country further. Such projects are expected to sustain iron ore manufacturing in the Middle East & Africa during the forecast period.

A joint venture between Egyptian and Qatari investors is set to establish a USD 100 million iron and steel plant in Qena, southern Egypt. The facility aims to commence operations in 2026 and focus on rebar production, with most output directed towards regional and international markets. 

Key Iron Ore Company Insights

Some key players operating in the market are Vale, Rio Tinto, BHP, and ArcelorMittal.

• Brazil-based Vale was incorporated in 1942. It is the largest producer of iron ore in the world. The company has mining assets in Brazil, China, and Oman. The ore extracted by it in Carajas, Brazil, has an iron content of 67%, one of the world's highest. Vale produces iron ore pellets and briquettes.

• Rio Tinto was founded in 1873 and is one of the world’s largest mining and metals companies. Headquartered in Melbourne, the company’s iron ore operations are primarily based in the Pilbara region of Western Australia, where it manages an integrated system of 17 iron ore mines. Rio Tinto produces a wide range of iron ore products, including lump, fines, sinter feed, and pellets, which are shipped globally, with a strong focus on the Asia-Pacific region, particularly China, Japan, and South Korea.

• Australia-based BHP was founded in 1966. Its operations include integrated iron ore mines and rail & port operations in Pilbara, Western Australia. The company produces lumps, sinters, fines, and pellets.

• Luxembourg-based ArcelorMittal was incorporated in 2006 because of the merger of Arcelor with India-based Mittal Steel. Its seaborne iron ore mines are located in Quebec (Canada), as well as in Liberia. The company produces iron ore lumps, fines, concentrated pellets, and sinter feed.

Recent Developments

• In April 2024, Australia-based Strike Resources Limited, an iron ore company, completed its negotiations to sell its Pilbara Paulsens East Iron Ore Project to Australia-based Miracle Iron Holdings for ~USD 13.4 million (A$ 20.5 million).

• On February 14, 2025, Brazil-based Vale confirmed a significant investment of USD 12.26 billion in its Carajás complex in Pará. The investment will be deployed through 2030 and aims to boost annual iron ore production to 200 million tons, while also expanding copper output by 32%, reaching 350,000 tons annually. This move is part of Vale’s broader strategy to strengthen its position in the global iron ore supply and enhance the value of its mineral assets.

• On March 26, 2024, Vale and China’s Jinnan Steel Group announced a joint investment of over USD 600 million to construct an iron ore beneficiation plant in the Sohar Port and Freezone, Oman. The facility will process 18 million tonnes of low-grade ore annually to produce 12.6 million tonnes of high-grade iron ore concentrate. Scheduled for completion by mid-2027, this project aims to support the production of direct reduction pellets and briquettes for low-carbon steel.

Iron Ore Market Report Scope

Global Iron Ore Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global iron ore market report based on type, end use, and region:

• Type Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • Fines

  • Lumps

  • Pellets

  • Others

• End Use Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • Steel Industry

  • Others

• Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Turkey

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa