Merchant Pig Iron Market Size, Share, Analysis, Trends, Growth Report, 2030

Merchant Pig Iron Industry Prospective:

The global merchant pig iron market size was worth around USD 45 billion in 2022 and is predicted to grow to around USD 86.4 billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.5% between 2023 and 2030.       

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Merchant Pig Iron Market: Overview

When iron ore is smelted using a high-carbon fuel, such as coke, pig iron is a byproduct of the process. Limestone is typically used in this process as the flux. As fuel, charcoal and anthracite are also acceptable options. Due to its silica, dross, and relatively high carbon content, it is extremely brittle. Except for a few specific applications, pig iron shouldn't be used directly as a material. Whereas, cold pig iron used as feedstock for the steel and ferrous casting industries is known as merchant pig iron. It is cast into ingots and sold to third parties. The market growth of the merchant pig iron industry is driven by various factors including the growing steel industry, increasing construction & infrastructural development, growing automotive industry, and increasing technological advancements.

Key Insights

• As per the analysis shared by our research analyst, the global Merchant Pig Iron market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2023-2030).
• In terms of revenue, the global Merchant Pig Iron market size was valued at around USD 45 billion in 2022 and is projected to reach USD 86.4 billion, by 2030.
• The growing construction and infrastructural development is expected to the merchant pig iron drive market growth during the forecast period.
• Based on the type, the basic pig iron segment is expected to dominate the market during the forecast period.
• Based on the production facility, the dedicated merchant plants segment is expected to hold a significant market share over the forecast period.
• Based on the industry vertical, the automotive segment is expected to hold a significant market share during the forecast period.
• Based on region, the Asia Pacific is expected to grow at the highest CAGR over the forecast period.

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Merchant Pig Iron Market: Growth Drivers

Increasing construction and Infrastructural developments drive market growth

Steel is essential to infrastructure projects like building roads, bridges, buildings, and railroads. The demand for pig iron is driven by growing building and infrastructure development activities since merchant pig iron is a crucial raw material for the manufacturing of steel. For instance, the Punjab, Haryana, and Rajasthan Road infrastructure will be upgraded by the Indian government with the construction of 313 km of new roads for Rs 11,000 crore. The amount transferred from the National Investment Fund (NIF) as of March 2022 was estimated to be Rs. 20,000 crores (USD 2.61 billion).

The money allocated to the Ministry of Road Transport and Highways for 2022–23 is over INR 68,000 crore higher than what was previously anticipated for 2021–22. This ministry will see the most absolute increase of all other ministries in 2022–2023. This additional financing has nearly exclusively gone toward NHAI investments. After some time, the NHAI won’t require any borrowing and will simply spend budgeted funds. As of November 2021, the NHAI owes a total of INR 3.38 lakh crore. This is around 150% more than what the NHAI would receive in 2022–2023. Thus, the aforementioned stats drive the global merchant pig iron market growth.

Merchant Pig Iron Market: Restraints

Environmental concerns hinder market growth

The environmental effect of using pig iron in the automobile sector is one of the main limitations in the merchant pig iron industry. High levels of energy are consumed during the manufacture of pig iron, and greenhouse gases like carbon dioxide (CO2) are also released. There is pressure to develop cleaner, more environmentally friendly production techniques as the automobile sector places more emphasis on sustainability and lowering its carbon footprint. Thus, this is expected to limit the market growth over the forecast period.

Merchant Pig Iron Market: Opportunities

The growing automotive sector offers a lucrative opportunity for market growth

In the automotive sector, merchant pig iron is important because it is a crucial raw material in the production of steel, which is then utilized to create a variety of vehicle parts and components. Thus, the growing automotive sector is expected to drive the growth of the merchant pig iron market over the projected timeframe. For instance, according to the China Association of Automobile Manufacturers, automobile production and sales reached 2.561 million and 2.622 million units in June 2023, representing increases of 9.8% and 10.1% month over month and 2.5% and 4.8% year over year, respectively. Automobile production and sales from January to June were 13.248 million and 13.239 million, respectively, with annual growth rates of 9.3% and 9.8%.

Merchant Pig Iron Market: Challenges

The availability of substitutes poses a major challenge to market growth

While modern production techniques and material science have led to the development of replacement materials with distinctive features, such as advanced plastics and carbon fiber composites, steel is still a crucial component of the automobile industry. For particular automobile parts, these materials are occasionally taken into consideration, which might lessen the reliance on steel made from pig iron. Therefore, it poses a major challenge to the market growth.

Merchant Pig Iron Market: Segmentation

The global Merchant Pig Iron industry is segmented based on type, production facility, industry vertical, and region.

Based on the type, the global market is bifurcated into basic pig iron, foundry pig iron, and high-purity pig iron. The basic pig iron segment is expected to dominate the market during the forecast period. Basic pig iron is the source of merchant pig iron. It is created by taking basic pig iron and treating it further to improve its composition and quality so that it is ready for sale to outside clients. These extra processes might involve tweaks to the carbon content, impurity reductions, and quality control methods. The finished product may be traded and utilized as a raw material by many businesses, including foundries and steel producers. Thereby, driving the segment growth.

Based on the production facility, the global Merchant Pig Iron industry is bifurcated into dedicated merchant plants and integrated steel mills. The dedicated merchant plants segment is expected to hold a significant market share over the forecast period because of the increased demand for merchant pig iron by the engineering and automobile sectors for making various casting parts.

Based on the industry vertical, the global Merchant Pig Iron market is bifurcated into automotive, engineering & industrial, power generation, pipes & fittings, and others. The automotive segment is expected to hold the largest market share over the forecast period. Steel sheets formed from pig iron are widely utilized in the production of vehicle body panels such as doors, hoods, fenders, and trunk lids. These panels provide structural integrity as well as passenger protection. Thereby, driving the market growth.

Merchant Pig Iron Market: Report Scope

Merchant Pig Iron Market: Regional Analysis

Asia Pacific is expected to grow at the highest CAGR over the forecast period

The Asia Pacific is expected to grow at the highest CAGR in the global merchant pig iron market over the forecast period. APAC is one of the world's major automobile industries. China, in particular, has the largest automobile market in the world and is a key buyer of merchant pig iron for steel manufacturing. The expansion of the region's electric vehicle (EV) sector has also raised steel demand and, by extension, merchant pig iron for the fabrication of EV components.

For instance, according to the press release ET EnergyWorld, global electric vehicle (EV) sales increased by 50% year on year in the second quarter (Q2) of this year, as China's domestic market maintained its worldwide dominance. Moreover, in June 2023, 713,932 new passenger plug-in electric cars were registered in China, according to EV Volumes statistics. This is the biggest result ever and represents a 28 percent rise year over year. Thus, the aforementioned stats are expected to drive the market growth in the region.

Merchant Pig Iron Market: Competitive Analysis

The global Merchant Pig Iron market is dominated by players like:

• Tata Metaliks
• Baosteel
• Cleveland-Cliffs
• Donetsk Metallurgical Plant
• Benxi Steel
• KOBE Steel
• Maritime Iron
• Metinvest
• DXC Technology
• Metalloinvest MC
• Industrial Metallurgical Holding
• Severstal

The global Merchant Pig Iron market is segmented as follows:

By Type

• Basic Pig Iron
• Foundry Pig Iron
• High Purity Pig Iron

By Production Facility

• Dedicated Merchant Plants
• Integrated Steel Mills

By Industry Vertical

• Automotive
• Engineering and Industrial
• Power Generation
• Pipes and Fittings
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa