High Purity Pig Iron Market Size, Share & Trends Analysis Report By Application (Energy, Industrial, Automotive & Transportation), By Region (North America, Middle East & Africa, CSA, Europe, Asia Pacific), And Segment Forecasts, 2022 - 2030

Report Overview

The global high purity pig iron market size was valued at USD 8.19 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030. The industry is anticipated to be driven by the rising demand for casting products in different industrial applications, mainly wind energy. HPPI is a by-product obtained from the smelting of ilmenite in electric arc furnaces for the production of titanium slag. The process is carried out in the presence of coke or coal at approximately 1800 °C. HPPI has low sulfur, phosphor, and manganese content along with low traces of other elements. Due to large-scale production from ilmenite, high purity pig iron has consistent physical and chemical properties.

The demand for HPPI in the U.S. is anticipated to grow on account of moderate and stable demand for ductile iron castings. The advantages of HPPI in casings, such as dilution of undesirable elements in the melt, improved mechanical properties, no requirement of costly heat treatment methods, low slag formation, and greater bulk density compared to steel scrap, are projected to benefit the industry growth. The replacement of blast furnaces instead of electric furnaces in the U.S. is also expected to benefit industry growth. Electric furnaces have relatively low-cost production and low carbon emissions. These furnaces prefer pure iron as it dilutes the impurities in steel scrap. In addition, the growing usage of steel scrap is also likely to push the industry's growth.

HPPI finds application in gearboxes and other components of wind turbines. Ductile casting products manufactured using high purity pig iron have low weight and can meet several mechanical properties (impact, tensile, fatigue) without heat treatment. Thus, with investments in the wind energy industry, the demand for HPPI is expected to increase over the coming years. The wind turbine assemblies made using ductile iron castings include the rotor system (bearing, blade, adapter, and hub), shaft system (bearings and shaft), turbine frame (yaw ring, bed plate, nacelle), and gearbox (bearings, support, and housing) among others. The preference for such products is increasing due to improved reliability and low density at low temperatures.

Application Insights

The automotive & transportation applications segment led the global industry in 2021 and accounted for the maximum share of more than 50.55% of the overall revenue. HPPI is the primary ferrous raw material used for manufacturing ductile iron castings also known as spheroidal graphite or nodular iron castings. These castings are used in the production of different auto parts, such as gear housings, crankshafts, cylinder heads, diesel engine blocks, and safety parts among others. The growing applications of nodular iron cast products in the automotive industry are projected to benefit segment growth. These products have higher ductility and fatigue strength compared to grey iron and high static strength than cast steels. In addition, these products also have good machinability and cast-ability.

These properties make them suitable a choice in critical safety parts and medium-stressed automotive applications. Energy is anticipated to remain the fastest-growing application segment during the forecast period. Rising wind energy capacities around the world are projected to boost the demand for high purity pig iron products. For instance, as reported by Global Wind Energy Council, 93.6 GW of new capacity of wind energy was added in 2021 at a global level, with an increase of 1.8% over the last year. The industrial segment is also anticipated to observe a positive trend over the forecast period. HPPI finds application in ductile iron castings, which are further used in pipes, pump housings, valves, frames, rod guides, glands, fluid power products, different types of joints, and components in tooling, agriculture, and paper industries.

Regional Insights

On the basis of geographies, the Asia Pacific region dominated the global industry in 2021 and accounted for the largest share of more than 81.50% of the overall revenue. High production output from foundries along with the growing demand for cast products from different industries is expected to benefit the market in this region. China, the largest manufacturing hub in the world, is anticipated to dominate the HPPI market from 2022 to 2030. New investments in wind energy installations, government support through subsidies, and rising reliance on electricity generation through renewable energy sources are likely to propel the growth of the HPPI industry in China. For instance, as per the Global Wind Energy Council report 2022, China led the new wind power installations in 2021.

The country accounted for a share of 50.9% of the global wind energy installations with 47.6 GW of installed capacity in the same year. India is another promising region for high purity pig iron. A strong focus on renewable energy generation along with the growing industrial sector is likely to benefit the product demand in the country. For instance, the renewable energy sector observed a record investment of nearly USD 14.5 billion in FY 2021-22, an increase of 125% compared to the previous year. Europe is estimated to register the second-fastest CAGR from 2022 to 2030. Increasing focus on the renewable energy sector along with high demand for lightweight components in vehicles is projected to fuel the production of nodular iron castings and thus, benefit HPPI demand. In Europe, the U.K. leads in wind energy generation. Notably, 75% of wind turbines are installed off the U.K. coast.

Key Companies & Market Share Insights

The global industry is highly competitive with most of the players in South Africa, Norway, Canada, and China. Growing product demand is compelling manufacturers to expand their production capacities. As a result, the industry has also witnessed several mergers & acquisitions in the last decade. Recently, in 2021, Reedy Lagoon Corp. announced its plan to invest in the production of HPPI. The company is developing a project called Burracoppin Green HPPI and is determined to form vertical integration across the supply chain. The company is projected to target steel makers from Australia, Europe, North America, and Asia. Some of the prominent players in the global high purity pig iron market include:

• Rio Tinto Fer et Titane (RTFT)

• Tronox Holdings plc

• Richards Bay Minerals (RBM)

• Eramet Group

• Sesa Goa Iron Ore

• Mineral-Loy

High Purity Pig Iron Market Report Scope

Global High Purity Pig Iron Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global high purity pig iron market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • Automotive & Transportation

  • Energy

  • Industrial

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa

    • Iran