Hot Briquetted Iron Market Share Led by Voestalpine & Cleveland-Cliffs 2025

Market Overview

The Hot Briquetted Iron (HBI) Market is growing steadily as global steel producers pursue cleaner, more efficient raw materials for electric arc furnaces (EAFs) and direct-reduced iron (DRI)–based steelmaking. HBI is produced by compacting direct-reduced iron into dense briquettes, making it safer and more stable for storage, handling, and long-distance shipping. With increasing demand for high-quality metallics and reduced carbon emissions in steel production, HBI has become an essential feedstock for modern steel mills worldwide.

The shift toward low-carbon steelmaking is one of the primary factors driving market expansion. HBI offers higher purity, lower impurity levels, and better metallization than scrap, enabling steelmakers to produce premium-grade steel products. As governments tighten emissions regulations and industries push for greener supply chains, many steel manufacturers are transitioning toward DRI/HBI processes that use natural gas or hydrogen in place of coal-based methods.

Additionally, growth in automotive manufacturing, construction, heavy engineering, and infrastructure development is increasing global steel consumption, indirectly fueling HBI demand. The rise of EAF-based steelmaking, particularly in developing economies, is further accelerating market growth. As scrap availability tightens and quality inconsistencies remain a challenge, HBI continues to provide a reliable, high-performance alternative.

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Regional Dynamics

The Middle East dominates the Hot Briquetted Iron Market due to abundant natural gas reserves and large-scale DRI production facilities. Countries such as Iran, Saudi Arabia, and the UAE are leading producers and exporters of HBI. Their strategic geographic position and cost-efficient production infrastructure enable strong exports to Europe and Asia.

North America is emerging as a major consumer as the United States and Canada expand their EAF-based steelmaking capacity. Increased investment in low-carbon steel technologies and infrastructure revitalization projects is boosting regional demand. The U.S. steel industry is particularly focused on reducing reliance on imported scrap and improving raw-material quality, making HBI an attractive option.

Europe is another significant market, propelled by strict environmental regulations and growing adoption of green steel initiatives. Countries such as Germany, Italy, and Austria are increasing use of HBI to lower emissions and improve furnace productivity. As Europe accelerates its transition toward hydrogen-based DRI, long-term HBI consumption is expected to remain strong.

The Asia–Pacific region shows fast-growing demand driven by rapid industrialization, expansion of steelmaking facilities, and rising infrastructure projects. India is a key growth market, benefiting from rising EAF capacity and government-supported manufacturing expansion. Japan and South Korea are increasing HBI imports to secure stable metallics supply and meet high-quality steel production requirements.

Latin America and Africa are developing markets with growing steel industries and increasing interest in alternative metallics. Brazil, in particular, is a growing producer of HBI due to its access to iron ore and natural gas.

Key Market Trends

Key trends include rising adoption of hydrogen-based DRI production, increasing EAF installations worldwide, growing need for high-purity metallics, and expanding long-distance HBI trade routes. Enhanced briquetting technologies and cleaner natural gas resources are also influencing the market.