Hot Briquetted Iron Market Size To Reach $10.90 Billion By 2033

Hot Briquetted Iron Market Growth & Trends

The global hot briquetted iron market size is anticipated to reach USD 10.90 billion by 2033, expanding at a CAGR of 7.4% from 2025 to 2033, according to a new report by Grand View Research, Inc. The rapid shift toward electric arc furnace-based steelmaking, combined with the increasing availability of low-cost natural gas in key producing regions such as the Middle East, North America, and Russia, primarily drives the growth of the Hot Briquetted Iron (HBI) market. EAF operators increasingly prefer HBI as a premium metallic charge because it offers high iron content, low gangue, and consistent quality, which helps improve productivity, reduce energy use, and achieve tighter control over steel chemistry. As steelmakers look to move away from traditional blast furnace basic oxygen furnace routes in favor of more flexible and less capital-intensive EAFs, the structural increase in EAF capacity translates directly into higher long-term demand for HBI as a key metallic input.

Decarbonization of the steel industry is another powerful growth engine for the HBI market. Many integrated and mini-mill producers have announced net-zero or deep decarbonization targets aligned with 2030 and 2050 climate goals, which push them to adopt lower-carbon metallics. Compared to sinter and coke-intensive blast furnace ironmaking, HBI-based EAF routes can achieve significant reductions in direct CO? emissions, especially when combined with natural gas-based direct reduced iron (DRI) processes and, over time, green or blue hydrogen. HBI also enables the partial or full replacement of scrap in EAFs, which is important in regions where scrap quality is declining and residual elements create challenges for producing high-grade steels with a lower carbon footprint.

The growing demand for high-quality steel in downstream sectors, such as the automotive, construction, oil and gas, and machinery industries, further supports HBI consumption. Many of these end-use industries require flat and special steels with narrow tolerances, low impurities, and improved mechanical properties. Using HBI as part of the metallic charge helps steelmakers reduce tramp elements associated with obsolete scrap, improving steel cleanliness and surface quality. This is particularly critical for advanced high-strength steels, line pipe grades, and other specialty products where defects and inclusions can have serious performance implications, thereby making HBI an attractive and often necessary input for premium steel production.

Regional dynamics also play a significant role in driving the HBI market. Large, gas-rich economies, particularly in the Middle East and North Africa, are investing in integrated DRI–HBI complexes designed for export to European and Asian markets, which are transitioning away from blast furnaces. HBI is easier and safer to transport and store than cold DRI pellets because its briquetted form significantly reduces reactivity and the risk of reoxidation, which enables long-distance seaborne trade. As more projects come online in countries such as Qatar, Saudi Arabia, the UAE, and Russia, the global merchant supply of HBI is expected to increase, supporting steelmakers in scrap-deficient regions and reinforcing HBI’s role as a globally traded commodity in the metallics sector.

Moreover, technological advancements and supportive policy frameworks are reinforcing the growth of the HBI market. Continued improvements in direct reduction technologies, including higher-capacity shaft furnaces, enhanced process control, and the gradual integration of hydrogen into DRI processes, improve the efficiency and environmental performance of HBI production. At the same time, carbon pricing mechanisms, emissions trading schemes, green steel standards, and green financing instruments incentivize steelmakers to adopt lower-carbon feedstocks, such as HBI. These technological and regulatory trends collectively reduce the relative cost of switching to HBI-based EAF steelmaking, encouraging long-term contracts and investments that underpin a positive growth outlook for the global hot briquetted iron industry.

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Hot Briquetted Iron Market Report Highlights

• Based on route, electric arc furnaces accounted for the largest revenue market share of 82.3% in 2024, driven by rising adoption of scrap-based steelmaking, strong demand for high-purity metallic inputs, and the growing shift toward low-emission steel production.

• Based on end use, the automotive segment is anticipated to register the fastest CAGR of 7.7% over the forecast period, due to rising production of lightweight vehicles, growing preference for high-strength steel inputs, and steady expansion of electric vehicle manufacturing that boosts the need for consistent HBI supply.

• Asia Pacific is the dominant hot briquetted iron industry region. It held a revenue share of 56.2% in 2024, due to rapid industrial expansion, steady growth in steel production, and continuous investments in EAF-based capacity additions across emerging economies.

Hot Briquetted Iron Market Segmentation

Grand View Research has segmented the global hot briquetted iron market based on route, end use, and region:

Hot Briquetted Iron Route Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

• Electric Arc Furnaces

• Blast Furnaces/Basic Oxygen Furnaces

• Induction Furnace

Hot Briquetted Iron End Use Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

• Automotive

• Construction

• Industrial Machinery

Hot Briquetted Iron Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

• Latin America

  • Brazil

• Middle East & Africa

List of Key Players in the Hot Briquetted Iron Market

• AM/NS India

• ArcelorMittal

• Ghadir Iron and Steel Company

• Jindal Shadeed Iron & Steel LLC

• Khorasan Steel II

• Kobe Steel Ltd

• Midrex Technologies Inc.

• NUCOR

• Tosyali Algeria A.S.

• Welspun Group