The 7th Indian Iron Ore & Pellet Summit held on August 22-23, 2024, focused on the dynamic transformations in India’s iron ore pellet market amid global decarbonization efforts and shifting demand patterns. The event analyzed India's pellet demand-supply dynamics, policy transitions, and global market trends, emphasizing the growing importance of iron ore pellets as a preferred raw material in decarbonized steelmaking, particularly for Direct Reduced Iron (DRI) processes.
India’s pellet production stood at 95 million tonnes (MnT) in FY24 and is projected to reach 160 MnT by FY30, reflecting a compound annual growth rate (CAGR) of 7.7%, the fastest globally. The summit highlighted a significant increase in pellet use in the blast furnace (BF) charge mix, rising from 27% in FY21 to an expected 38% by FY30. This shift is driven by technological advancements and efficiency improvements, especially the transition from coal-based DRI (CDRI) to pellet-based DRI (PDRI).
Despite India’s growing domestic demand, the country is also poised to become a key exporter of high-grade pellets, particularly for DRI applications. Currently, 90% of Indian pellet exports go to China, primarily BF-grade pellets, while emerging markets such as the Middle East and North Africa (MENA) and the European Union (EU) remain largely untapped, especially for DR-grade pellets. The summit underscored the need to explore these new export markets to diversify India’s pellet trade.
Maintaining pellet quality amid ore depletion is a critical challenge, with focus on key characteristics like compressive strength (CCS), porosity, and low impurities to enhance value-in-use (VIU) in steelmaking. India’s pellet capacity utilization is at 63%, lower than China’s 91%, indicating room for growth. The event stressed the importance of policy support and technological innovation to expand capacity, improve utilization, and align with green steel initiatives. Balancing domestic demand with export opportunities, backed by reliable ore supply, remains a priority for sustaining India’s competitive edge in the global pellet market.
