Hot Briquetted Iron (HBI) Market Size, Share, Growth, and Industry Analysis, By Type (90-92%, Above 92%), By Application (Electric Arc Furnaces, Blast Furnaces, Basic Oxygen Furnaces, Others), Regional Insights and Forecast From 2026 To 2035

Hot Briquetted Iron (HBI) Market Overview

The global hot briquetted iron (HBI) market size is estimated at USD 5002.47 Million in 2026, set to expand to USD 6154.39 Million by 2035, growing at a CAGR of 2.3% during the forecast from 2026 to 2035,  supported by increasing demand for high-quality iron feedstock, expanding steel production, and the growing adoption of efficient, lower-emission steelmaking technologies worldwide.

The USA hot briquetted iron market is shaped by the steady expansion of electric arc furnace steelmaking, which accounts for about 70% of domestic crude steel output. Cleveland-Cliffs operates a Toledo plant with an annual HBI capacity of 1.9 million tonnes, giving American mills a reliable domestic source of low-residual iron units. North America holds a 15% share of the global HBI market. Domestic demand is supported by premium flat steel producers that need clean feedstock for automotive and appliance grades. Access to low-cost natural gas and iron ore pellets keeps the USA competitive in direct reduction.

Key Findings

• Market Size and Forecast: global hot briquetted iron (hbi) market size is estimated at USD 5002.47 Million in 2026, set to expand to USD 6154.39 Million by 2035, growing at a CAGR of 2.3%.
• Type Leadership: The 90-92% segment leads with 57% share, driven by lower production cost, wide availability and steady electric arc furnace charging.
• Application Leadership: Electric arc furnaces hold 61% share, as steelmakers use HBI to dilute scrap impurities and meet demand for low-emission steel.
• Key Company Landscape: Metalloinvest and Cleveland-Cliffs lead through large integrated HBI capacity, advanced direct reduction operations and strong supply positions with major steelmakers.
• Leading Region: Middle East and Africa leads with 34% share, backed by abundant natural gas, export-oriented direct reduction plants and steel investments.

Latest Trends

Hydrogen-ready direct reduction is the defining trend in the hot briquetted iron (HBI) market. New plants are being designed with zero-reformer and flexible gas technologies that can shift from natural gas to hydrogen over time. Several announced projects target an annual capacity of 2 million tonnes each, showing that producers are building for scale rather than pilot volumes.

Steelmakers are also using HBI in blast furnaces to cut coke consumption, since each charge of briquettes can lower emissions by about 25% in the blast furnace route. Long-term offtake agreements between iron producers and green steel mills are becoming common, which stabilizes demand and supports financing for new HBI capacity in gas-rich regions.

Market Dynamics

DRIVER

"Rising adoption of electric arc furnace steelmaking."

Electric arc furnaces account for 61% of HBI consumption, as they require clean, low-residual iron to offset copper and tin contamination in scrap. With scrap quality declining across mature markets, steelmakers increasingly depend on HBI to produce high-grade flat steel. Its high density, consistent chemical composition, and safe handling properties further enhance its appeal. These characteristics enable efficient long-distance transportation, reliable storage, and continuous furnace charging, making HBI a valuable raw material for modern steelmaking operations.

RESTRAINT

"Dependence on natural gas availability and pricing."

Most hot briquetted iron (HBI) is produced through gas-based direct reduction, making production economics highly dependent on local natural gas availability and pricing. Regions lacking competitively priced gas face higher conversion costs and greater reliance on imported briquettes. Energy market volatility can further discourage investment by creating uncertainty around operating costs and long-term profitability. Additionally, some steelmakers continue to prefer cheaper alternatives, such as pig iron or scrap, when premium, low-residual feedstock is not essential for their specific product requirements.

OPPORTUNITY

"Growth of green iron and hydrogen-based direct reduction."

Developers are establishing export-oriented green HBI hubs in regions offering low-cost renewable energy and convenient port access. One announced project in Oman has secured offtake term sheets covering 2.5 million tonnes of annual production, highlighting strong buyer interest. As steelmakers increasingly prioritize traceable, low-carbon raw materials to meet decarbonization targets, green HBI producers may command premium prices. These premiums could improve project profitability, attract investment.

CHALLENGE

"High capital costs and complex logistics."

Greenfield HBI plants require substantial capital investment, with a 2-million-tonne facility often costing over USD 1 billion. Briquettes also demand careful handling and storage during transportation to minimize reoxidation and fines generation. Additionally, securing consistent supplies of high-quality iron ore pellets, experienced engineering talent, and reliable export infrastructure presents significant challenges. These barriers are particularly pronounced for new market entrants establishing operations outside established steelmaking hubs, where limited industrial infrastructure.

Hot Briquetted Iron (HBI) Market Segmentation

The hot briquetted iron (HBI) market is segmented by type and application to highlight key demand areas. By type, the 90–92% grade leads the market. By application, electric arc furnaces represent the leading segment, followed by blast furnaces, basic oxygen furnaces, and other uses. These segments reflect varying steelmaking processes and quality requirements, helping manufacturers and industry stakeholders identify market opportunities and optimize production strategies.

By Type

Based on Type the global market can be categorized in to 90-92% and Above 92%.

• 90-92%: This segment leads with a 57% share because it balances cost and performance for most steelmakers. Briquettes in this grade provide dependable iron units for electric arc furnace charging and are produced at established gas-based plants in the Middle East, Russia and Latin America. Its wide availability and competitive freight value keep demand strong among mills that prioritize cost efficiency.

• Above 92%: This segment holds a 43% share and is gaining momentum as new direct reduction plants target higher metallization levels. New hydrogen-ready designs promise metallization of 94%, which improves melting efficiency and lowers electricity use per tonne of steel. Premium flat steel producers and green steel mills favor this grade for its consistent quality and lower slag generation.

By Application

Based on Application the global market can be categorized in to Electric Arc Furnaces, Blast Furnaces, Basic Oxygen Furnaces and Others.

• Electric Arc Furnaces: Electric arc furnaces dominate with a 61% share because HBI supplies clean iron units that dilute residual elements in scrap. Mills producing automotive, appliance and specialty grades rely on briquettes to meet strict chemistry targets. Continuous charging and stable density also improve melting efficiency and furnace productivity.

• Blast Furnaces: Blast furnaces account for an 18% share as operators charge HBI to raise productivity and reduce coke use. Adding briquettes to the burden can cut emissions by about 25%, which makes the practice attractive for integrated mills under pressure to lower their carbon footprint while keeping existing assets running.

• Basic Oxygen Furnaces: Basic oxygen furnaces hold a 14% share, using HBI as a coolant and a clean iron source in place of scrap. The briquettes provide predictable cooling and low residuals, helping integrated mills stabilize chemistry when scrap quality varies. Adoption grows where scrap prices are high.

• Others: Other applications represent a 7% share and include induction furnaces, foundries and ironmaking trials with emerging processes. Specialty producers value the consistent chemistry and low impurity levels of briquettes, while research projects test HBI as a feedstock for next-generation smelting and melting technologies.

Hot Briquetted Iron (HBI) Market Regional Outlook

• North America

North America holds a 15% share of the hot briquetted iron (HBI) market, supported by a mature electric arc furnace industry and strong demand for premium flat steel. Cleveland-Cliffs operates a Toledo plant with an annual capacity of 1.9 million tonnes, which anchors regional supply.

Low-cost shale gas and domestic iron ore pellets give producers a durable cost advantage. Imports from Trinidad, Russia and Brazil supplement local output, while mills continue to look for low-residual iron units to improve scrap based steel quality.

• Europe

Europe accounts for an 18% share of the market, driven by decarbonization targets and the gradual shift from blast furnaces to electric steelmaking. Steelmakers in Austria, Germany and France are evaluating HBI to cut coke use and meet strict emission limits.

Projects such as the planned 2 million tonne hydrogen-based plant at Fos-sur-Mer show the region's push toward green iron. Voestalpine and other integrated mills use briquettes to improve furnace productivity while preparing for lower-carbon production routes.

• Asia Pacific

Asia Pacific holds a 24% share and remains the fastest expanding consumer of briquettes as steel capacity moves toward electric arc furnaces. India, Japan, South Korea and Southeast Asia are investing in direct reduction and import infrastructure to secure clean iron units.

Projects such as the planned 2 million tonne low-carbon plant at Port Hedland and a 2.5 million tonne facility in Sabah, Malaysia highlight regional momentum. JSW Steel and Essar Steel contribute to local supply and technology adoption.

• Middle East & Africa

Middle East and Africa leads with a 34% share thanks to abundant natural gas, port access and export-oriented direct reduction plants. Jindal Shadeed in Oman operates an annual HBI capacity of 1.5 million tonnes and ships briquettes to steelmakers across several continents.

Large green iron projects in Duqm are targeting the use of low-cost renewable energy and hydrogen. Lisco in Libya also contributes to regional supply, and new investments continue to strengthen the area's position as a global exporter of briquettes.

• Rest of the World

Rest of the World holds a 9% share, led by Latin America and the CIS region. Venezuelan producers such as Orinoco Iron and Comsigua built early HBI capacity around local iron ore and gas, although operating continuity has varied with economic conditions.

Brazil is advancing plans for a 2.5 million tonne complex at Port of Açu, supported by letters of intent from domestic buyers. Kazakhstan and Azerbaijan are each planning 2 million tonne plants, which could add new export volumes for regional steelmakers.

Key Industry Players

The hot briquetted iron (HBI) market features integrated mining and steel groups, specialist direct reduction operators and new green iron developers. Leading vendors compete on plant scale, ore access, gas costs and product quality, while partnerships with technology providers and long-term offtake agreements with steelmakers strengthen their positioning. Emerging players focus on hydrogen-ready plants and export hubs in gas-rich or renewable-rich regions.

List of Top Hot Briquetted Iron (HBI) Companies

• Metalloinvest
• Orinoco Iron
• Voestalpine
• Jindal Shadeed
• Cleveland-Cliffs
• Essar Steel
• Lisco
• Comsigua
• Lion Group
• JSW Steel

Investment Analysis and Opportunities

Investment in the hot briquetted iron (HBI) market is rising as steelmakers and miners look to secure clean iron units for electric arc furnaces. Announced projects commonly target an annual capacity of 2 million tonnes, with capital commitments that frequently exceed USD 1 billion per plant. Export credit agencies and international lenders are increasingly backing these projects, which improves access to financing for developers in emerging regions.

Opportunities are strongest in locations that combine ore access, competitive energy and deepwater ports. Co-locating briquette plants next to electric steel mills reduces logistics costs and creates stable demand. Developers that secure long-term offtake contracts with green steelmakers can lock in premium pricing and lower financing risk, while mining companies can capture additional value from pellets.

New Product Development

Technology providers are developing zero-reformer direct reduction systems that allow plants to operate on natural gas and shift toward hydrogen as supply grows. Newer designs promise metallization of 94% and above, improving melting efficiency in electric arc furnaces. Producers are also adding on-site electrolysis and low-carbon hydrogen units to reduce the carbon intensity of briquettes.

Product innovation is also focused on handling and storage. Improved briquette density above 5 tonnes per cubic meter, better passivation methods and optimized shipping practices reduce reoxidation and fines during long sea voyages. Some producers now tailor chemistry for specific steel grades, offering customized iron content and carbon levels to premium flat steel and specialty mills.

Recent Developments

• June 2026:

Azerbaijan Metal Company signed a basic design contract with Sinosteel to develop a plant with an annual capacity of 2 million tonnes. The project will use ENERGIRON ZR technology to produce low-carbon hot briquetted iron (HBI), supporting sustainable steelmaking and strengthening the supply of lower-emission iron products.

• August 2026:

GravitHy awarded Danieli a basic engineering contract for a plant with an annual production capacity of 2 million tonnes. The facility will use ENERGIRON Zero-Reformer technology and on-site low-carbon hydrogen to produce reduced iron, supporting sustainable steelmaking and supplying an adjacent electric steel mill with lower-carbon feedstock.

• April 2026:

POSCO Holdings received approval to develop a 2 million tonne plant in partnership with Marubeni and China Steel. The facility will use natural gas, with potential hydrogen integration, to reduce carbon emissions, support lower-carbon steel production, and strengthen the partners’ capabilities in sustainable ironmaking technologies.

Report Coverage

This report covers the global hot briquetted iron (HBI) market across types, applications, regions and leading companies. It evaluates market share, production trends, technology developments and competitive positioning, with analysis of drivers, restraints, opportunities and challenges.

The study profiles 10 leading companies and evaluates regional performance across North America, Europe, Asia Pacific, the Middle East and Africa, and the Rest of the World. It applies consistent market share values across all regions to ensure comparability and provide a standardized view of the competitive landscape.