U.S. Hot Briquetted Iron Market Size, Share & COVID-19 Impact Analysis, By Type (Fe Content 90-92% and Fe Content >92%), By Application (Electric Arc Furnaces, Blast Furnaces, Basic Oxygen Furnaces, and Others), and Country Forecast, 2023-2030

The U.S. hot briquetted iron market size was worth USD 747.5 million in 2022 and is projected to grow at a CAGR of 6.3% during the forecast period.

Hot Briquetted Iron (HBI) is a form of direct reduced iron that is compacted or briquetted at temperatures above 650 degrees Celsius. It is produced by reducing iron ore pellets or lump ore into metallic iron through the use of reducing gas in a solid-state process. This product is often used as a feedstock in electric arc furnaces for steelmaking, providing a convenient and efficient way to transport and handle iron for steel production.

The U.S. hot briquetted iron market declined during the COVID-19 pandemic due to the decreased demand for steel products from the construction industry. The production restrictions and transportation challenges affected the product’s availability in the U.S. Furthermore, many companies delayed their expansion plans. For instance, Cleveland-Cliffs Inc. temporarily halted its HBI project construction in Ohio. However, the market is expected to regain its momentum during the forecast period with the rising demand for steel in the country.

U.S. Hot Briquetted Iron Market Trends

Ability to Comply with Stricter Environmental Policies to Fuel Market Growth

Stricter environmental regulations in the U.S. are among the key factors shaping the future of the iron-making industry. Adoption of stringent regulations is likely to create higher demand for eco-friendly alternatives, such as Hot Briquetted Iron (HBI). HBI’s lower carbon footprint, reduced emissions, and minimized waste generation align with the environmental standards. This makes it an attractive choice for the steel-making industry that is continuously striving to comply with the evolving regulations and reduce its environmental impact. As governments across the U.S. set new emission reduction targets, the eco-friendly nature of HBI is likely to aid it in positioning itself as a favorable alternative to traditional ironmaking methods.

U.S. Hot Briquetted Iron Market Growth Factors

Rising Demand for Steel in Construction Industry to Drive Market Growth

Infrastructure development in the U.S. significantly influences the demand for HBI. The government's commitment to support economic growth through infrastructure investment, as reflected through initiatives, such as the American Jobs Plan, plays a crucial role in the construction industry's growth. As the country increases its investment in the expansion and upgrade of its aging infrastructure, the demand for steel is anticipated to rise during the forecast period. These infrastructure projects often need high-quality steel with specific strength characteristics. HBI is known for its high quality and purity, making it a preferred choice for industries aiming to meet stringent requirements in the construction and infrastructure applications. In addition, HBI is a cleaner and more energy-efficient source of iron, which aligns with the changing sustainability goals. As a result of this, companies engaged in infrastructure development are likely to choose HBI-based steel over traditional steel to reduce the overall impact of their projects. Hence, rising demand for steel from the construction industry will drive the U.S. hot briquetted iron market growth.

RESTRAINING FACTORS

High Economic Barriers and Hesitance to Adopt New Technologies will Limit Market Growth

The transition from traditional ironmaking methods to HBI requires substantial initial investment for new equipment, facility modification, and adoption of new technologies. Companies are likely to be hesitant to commit to this expense without a clear understanding of the long-term benefits and a reasonable expectation of timely return on investment. In addition to this, industries often resist departing from well-established practices due to their familiarity and the perceived risks associated with adopting new technologies. The inertia to change is likely to be a limiting factor, as decision-makers may be reluctant to move away from traditional blast furnace methods that have been reliable for many years.

U.S. Hot Briquetted Iron Market Segmentation Analysis

By Type Analysis

Based on type, the market is bifurcated into Fe content 90-92% and Fe content >92%.

The Fe content 90-92% segment accounted for the largest share of the market in 2022. Hot briquetted iron with iron content ranging from 90-92% is a widely consumed grade owing to its ability to strike a balance between the production cost and high purity.

Contradictory to this, hot briquetted iron with >92% iron content is consumed in specific applications where purity is prioritized over the production cost. This is because cost increases significantly with each additional percentage rise in purity.

By Application Analysis

Based on application, the market is segmented into electric arc furnaces, blast furnaces, basic oxygen furnaces, and others.

The electric arc furnaces segment held the largest U.S. hot briquetted iron market share in 2022. The ability of these furnaces to process different types of feedstocks has made them popular in the steelmaking industry. The high purity of HBI makes it an ideal choice for steelmaking in an electric arc furnace. A combination of this type of iron and electric arc furnaces can enhance productivity and contribute to a reduction in the environmental footprint.

HBI, when processed in blast furnaces, can help reduce CO2 emissions and enhance the productivity of these furnaces by performing cleaner and more efficient operations.

List of Key Companies in U.S. Hot Briquetted Iron Market

The competitive landscape is highly consolidated, with a few players accounting for a large market share. There are existing players with well-established production facilities across the globe with a strong distribution network. These players benefit from economies of scale and established supply chains, making it difficult for new entrants to compete effectively. These key players include Voestalpine Group, Cleveland-Cliffs Inc., and METALLOINVEST MC LLC, among others.

LIST OF KEY COMPANIES PROFILED

• Voestalpine Group (U.S.)


• Cleveland-Cliffs Inc. (U.S.)


• METALLOINVEST MC LLC (Russia)


• ArcelorMittal (Luxembourg)


• Libyan Iron and Steel Company (Libya)


• Orinoco Iron S.C.S. (Venezuela)


• QATAR STEEL (Qatar)


• COMSIGUA CA (Venezuela)


• Jindal Shadeed Iron & Steel LLC (Oman)


• JSW Group (India)

KEY INDUSTRY DEVELOPMENTS

• April 2022: ArcelorMittal acquired 80% stake in Voestalpine’s world-class HBI plant located in Corpus Christi, Texas. This acquisition would help the company strengthen its position and guarantee the security of supply to ArcelorMittal’s facilities, including AM/NS Calvert in Alabama.


• June 2021: Cleveland-Cliffs held a ribbon-cutting ceremony at its hot briquetted iron facility in Ohio. On this occasion, the company celebrated the completion of six months of continued production of hot briquetted iron at its facility, which was built using a billion-dollar investment. The company claims the facility to be one of its kind, and a successful operation for six months will help it make critical decisions regarding the adoption of HBI-related technologies.

REPORT COVERAGE

The report thoroughly examines key factors, such as leading companies, applications, and products. It also provides information regarding the latest market trends and highlights significant industry advancements. The report includes different factors that have contributed to the market's growth in recent years. It also examines the market’s newest dynamics, opportunities, historical data, and revenue growth estimates at the country level.

Report Scope & Segmentation