Iron Ore

Iron ore is the raw material used to produce pig iron and sponge iron, which is one of the main raw materials to make steel. It primarily consists of iron oxides and is extracted through mining processes. The key types include hematite and magnetite, both important sources for iron production.

Global Demand

The global iron ore market size was valued at $385.9 billion in 2021, and it is expected to grow at a CAGR of 3.7% from 2022 to 2030. The rising demand for iron ore is largely driven by the construction and manufacturing sectors, with China being the largest consumer, accounting for nearly 60% of the global consumption. In 2023, global steel production was over 1.88 billion metric tons, which directly impacts iron ore demand, as 98% of mined iron ore is used in steelmaking.

National Demand

India is the 4th largest producer of iron ore globally, producing 255 million tons in 2021. Domestically, the demand for iron ore is growing due to government initiatives such as the National Steel Policy aiming for 300 million tons of steel production by 2030, which would significantly increase iron ore consumption within India.

Reserves in India

India has significant iron ore reserves, primarily concentrated in Odisha, Karnataka, Chhattisgarh, and Jharkhand. The total reserves are estimated at around 33 billion tons. Odisha accounts for nearly half of India’s iron ore production.