The global hot briquetted iron (HBI) market was valued at USD 4.4 billion in 2024 and is projected to reach USD 8.1 billion by the end of 2035, expanding at a CAGR of 5.8% from 2025 to 2035. Market growth is driven by rising demand for high-quality steel production, increasing adoption of electric arc furnace (EAF) technology, and the steel industry’s growing focus on reducing carbon emissions.

The hot briquetted iron (HBI) market is witnessing steadiness as customers are looking for cleaner and efficient raw material during steel production. HBI is developed through compaction of direct reduced iron (DRI) at elevated temperature to resist re-oxidation. It finds its principal application in blast furnaces and electric arc furnaces (EAFs) as high-quality feedstock with minimal residual impurities, thereby enabling low-carbon steelmaking.

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Hot briquetted iron (HBI) is densified Direct Reduced Iron (DRI) made by compressing the hot DRI at elevated temperatures into heavy, pillow-like briquettes. The operation minimizes the danger of re-oxidation and forms a material easier and safer to transport and store. HBI is an elite feedstock in steel manufacturing and mainly applied in electric arc furnaces (EAFs) and occasionally in blast furnaces.

Key Findings of the Market Report

• Electric Arc Furnaces (EAF) represent the dominant application segment, accounting for over 80% of HBI consumption, as these furnaces require high-purity metallics to dilute the impurities found in recycled scrap.
• The "Above 92% Fe" grade is the fastest-growing segment, driven by the automotive and aerospace industries' demand for ultra-clean, high-performance steel.
• Middle East & Africa and North America are the leading production hubs, benefiting from abundant, low-cost natural gas—a key reactant in the direct reduction process.
• Russia remains a major global exporter of HBI, though geopolitical shifts are prompting new capacity developments in the United States and Oman.

Global Market: Growth Drivers

• Decarbonization of the Steel Industry: Traditional blast furnaces are coal-heavy; HBI produced via natural gas (and increasingly hydrogen) offers a significantly lower carbon footprint, aligning with global Net-Zero 2050 goals.
• Shortage of High-Quality Scrap: As global demand for "prime" scrap outstrips supply, HBI serves as a "sweetener," allowing steelmakers to use lower-grade scrap while maintaining the chemical integrity of the final product.
• Expansion of Mini-Mills: The global shift from integrated steel plants toward flexible, EAF-based mini-mills is creating a permanent structural demand for high-quality iron charge materials.
• Safety in Logistics: Because HBI is non-reactive and has a high bulk density ($5.0\text{ g/cm}^3$), it reduces the insurance and handling costs associated with transporting volatile sponge iron.
• Hydrogen-Ready Infrastructure: New HBI plants are being designed as "hydrogen-ready," allowing for a seamless transition from natural gas to green hydrogen as it becomes commercially available.

Regional Landscape

• North America is witnessing a "reshoring" of iron production. The U.S. has transformed from a pure importer to a significant producer, with major facilities in Texas and Ohio supporting the local EAF-dominated steel industry.
• Middle East & Africa is the global leader in gas-based DRI/HBI technology. Countries like Qatar, Oman, and Libya are leveraging their energy resources to become the "world's merchant HBI suppliers," exporting to Europe and Asia.
• Europe is the primary demand center for "Green HBI." Leading steelmakers in Germany and Sweden are investing in HBI-to-EAF pathways to replace aging coal-based blast furnaces and meet strict EU emission trading system (ETS) requirements.
• Asia-Pacific is the largest consumer overall, led by China's gradual pivot from blast furnaces to EAFs to combat urban air pollution.

Key Market Players

The market is moderately consolidated, with major steel integrated companies and specialized technology providers leading the space:

• Metalloinvest (Russia)
• Voestalpine AG (Austria)
• Cleveland-Cliffs Inc. (USA)
• ArcelorMittal (Luxembourg)
• Qatar Steel (Qatar)
• Jindal Shadeed Iron & Steel (Oman)
• Libyan Iron and Steel Company (LISCO) (Libya)
• Kobe Steel, Ltd. (Japan)
• Nucor Corporation (USA)
• TENOVA S.p.A. (Italy)

Hot Briquetted Iron (HBI) Market Development

·         On April 2025 saw Primetals Technologies, Rio Tinto, Mitsubishi, and Voestalpine enter into a cooperation to construct an industrial‑scale H₂‑DRI/HBI pilot plant at the Linz premises of Voestalpine. The new plant will manufacture ~3 t/hr of hot metal through hydrogen‑based reduction of fines with no pelletizing, with near-zero CO₂ emissions. Startup is planned for mid‑2027. Rio Tinto will provide 70 % of iron ore and technical assistance.

·         On January 13, 2023, Metalloinvest launched upgraded direct reduction facilities in Lebedinsky GOK's No. 3 hot briquetted iron production facility (HBI-3), thereby boosting yearly production capacity by 3% to over 2 million tons of briquettes.

·         In April 2022, ArcelorMittal announced that it had signed an agreement to acquire 80% of controlling stake in voestalpine's new-generation Corpus Christi, Texas-based hot briquetted iron (HBI) plant. Voestalpine will retain the rest of the 20% interest under the agreement. The Corpus Christi facility, which boasts a world-leading capacity for production, is valued at approximately US$ 1 Bn under the agreement.

·         Each of these players has been profiled in the Hot Briquetted Iron (HBI) market research report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments

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Market Segmentation

By Fe (Iron) Content

• 90% to 92% Fe
• Above 92% Fe

By Application

• Electric Arc Furnaces (EAF)
• Blast Furnaces (BF)
• Basic Oxygen Furnaces (BOF)
• Foundry Furnaces

By End-Use Industry

• Construction & Infrastructure
• Automotive
• Machinery & Equipment
• Aerospace & Defense

By Region

• North America
• Europe
• Asia-Pacific
• Middle East & Africa
• Latin America

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