Hot Briquetted Iron (HBI) Market Size & Insights Report [2034]

Hot Briquetted Iron (HBI) Market Overview

Global Hot Briquetted Iron (HBI) market size is estimated at USD 4890 million in 2025, set to expand to USD 6016.77 million by 2034, growing at a CAGR of 2.3%.

The Hot Briquetted Iron (HBI) Market is expanding due to rising steel production dependence on high-purity metallic feedstock, with global HBI output reaching nearly 11.4 million tons and global hot-DRI volumes nearing 13.9 million tons. More than 25 countries now use HBI in steelmaking, and individual plant capacities range from 1.0 million to 2.5 million tons per year, contributing to large-scale supply volumes. Merchant HBI trade has surpassed 10% of the international metallics market, supported by over 40 million tons of global direct reduction iron movement annually. The HBI export ecosystem has strengthened with multi-million-ton logistical corridors linking producing regions across continents.

The U.S. HBI market is characterized by heavy EAF dependence, with over 300 operational EAF units and EAF technology contributing more than 50% of U.S. steel production volume. Domestic HBI supply remains limited, leading to import reliance exceeding 500,000 tons annually in some years. Feedstock usage data shows U.S. EAF operators typically charge 50–200 kg of HBI per ton of steel, depending on grade requirements. The country’s steel sector handles more than 80 million tons of total production annually and depends on iron metallics such as HBI to meet rising purity standards. This positions the U.S. as a consistent importer within the global Hot Briquetted Iron (HBI) Market.

Key Findings

Key Market Driver: The primary growth driver is the rising adoption of HBI in electric arc furnaces where more than 47% of global steel output is shifting toward higher metallic purity requirements, creating a sustained demand for high-grade iron inputs.
Major Market Restraint: Limited natural gas availability, fluctuating iron ore grade consistency, and structural energy constraints account for nearly 28% of operational bottlenecks affecting global HBI production capacity expansion.
Emerging Trends: Over 33% of new steel decarbonization projects globally incorporate HBI or hydrogen-based DRI technologies, indicating the rapid transition toward cleaner metallic feedstock in the steelmaking chain.
Regional Leadership: Approximately 41% of global HBI output capacity is concentrated in a handful of regions with favorable gas infrastructure, enabling these regions to dominate long-term HBI market leadership.
Competitive Landscape: Around 25% of global production comes from top-tier HBI manufacturers, creating a competitive environment driven by plant capacities ranging between 1.5 and 2.5 million tons.
Market Segmentation: About 59% of HBI consumption is driven by Electric Arc Furnaces, followed by Blast Furnaces, Basic Oxygen Furnaces, and other specialty applications representing the remaining share.
Recent Development: Nearly 22% of all new ironmaking projects announced over the past two years involve new HBI plants, expansions, or hydrogen-ready DRI pathways, reflecting accelerating technological modernization.

Hot Briquetted Iron (HBI) Market Latest Trends

Major trends in the Hot Briquetted Iron (HBI) Market include rapid adoption of higher-grade metallic feedstock driven by decarbonization targets, with global HBI production stabilizing at 11.4 million tons and hot DRI volumes at 13.9 million tons, marking one of the fastest expansions in metallics. Over 40 million tons of direct-reduced iron are produced globally every year, contributing to high HBI demand. More than 15 large-scale HBI facilities globally boast capacities ranging from 1.0 to 2.5 million tons annually, and recent hydrogen-based ironmaking trials have involved batch test runs of 200–500 tons per melt campaign. Countries pursuing green steel initiatives account for over 30% of new investment, with HBI positioned as a primary decarbonized metallic. Technology developers have announced more than 10 hydrogen-ready DRI/HBI facilities currently in progress, expected to push global merchant HBI trade volumes beyond 12 million tons in the next cycle. Major steel producers have increased high-grade feedstock demand by 18–22%, driven by EAF transitions and scrap quality challenges. This surge is reinforcing the role of HBI as a premium feedstock in EAF, BOF, and hybrid steelmaking routes.

Hot Briquetted Iron (HBI) Market Dynamics

DRIVER

Rising demand for high-purity metallic feedstock in global steelmaking.

The Hot Briquetted Iron (HBI) Market is driven by the widespread global shift toward high-purity metallics, with HBI consumption rising proportionately to EAF dominance across developed economies. HDRI output soared from 1.8 million tons in the early 2000s to 13.9 million tons recently, marking a more than 600% expansion. HBI’s superior density of around 5 g/cm³ and iron content between 90–92% and above 92% make it a consistent substitute for scrap variations. Many steel plants using EAFs report productivity increases of 8–12% when charging 100–200 kg of HBI per ton of steel. The shift from blast furnace routes to EAF-based steelmaking—which already accounts for more than 47% of global capacity—is expected to raise HBI demand significantly. More than 25 countries have integrated HBI into their operational process flow, indicating growing adoption driven by chemical stability, low impurity levels, and high bulk density.

RESTRAINT

Dependence on natural gas, high energy consumption, and feedstock limitations.

Hot Briquetted Iron (HBI) production depends heavily on natural gas availability and consistent ore supply. More than 70% of global HBI capacity relies on natural-gas-based reduction, concentrating production in fewer than 10 regions with dependable gas infrastructure. Plants with annual nameplate capacities of 1.5 million tons often run below peak output due to gas shortages or fluctuating elemental purity of ore lumps. Capital expenditure for a single 2.0-million-ton-per-year plant often crosses extremely high investment thresholds, limiting expansion even for major players. Regions with unstable gas pipelines experience output fluctuations of 10–18% annually, impacting global supply chains. Variability in ore quality—specifically Fe content ranging from 65% to 68% before processing—also limits consistency in HBI production.

OPPORTUNITY

Decarbonization-driven demand for HBI in hydrogen-based steelmaking.

The global movement toward carbon-neutral steelmaking is generating major opportunities in the Hot Briquetted Iron (HBI) Industry Report, especially with more than 30% of new steel projects including hydrogen-ready DRI/HBI pathways. Modeling studies show that integrating HBI into global supply chains could reduce blast furnace hot metal dependencies by more than 1.5–2.0 billion tons in long-term decarbonization scenarios. More than 10 new facilities are being designed with hydrogen-ready configurations, each carrying capacities from 1.0 to 2.5 million tons per year, generating projected green HBI supply potential of more than 15 million tons annually. Commercial off-take agreements covering 0.8–1.2 million tons have already been disclosed in green metallic markets. This creates large-scale opportunities for merchant HBI traders, port operators, and EAF-based mills aiming to reduce carbon emissions by 40–60% in their upstream value chain.

CHALLENGE

High logistical costs, handling requirements, and furnace integration limitations.

HBI logistics impose major challenges due to product density, heat retention requirements, and the need for specialized discharge systems. While global HBI production stands at 11.4 million tons, it accounts for less than 5% of total iron metallics consumed globally—highlighting its limited share relative to the overall 1.8+ billion–ton steel industry. HBI shipping parcels usually range from 20,000 to 70,000 tons, requiring deep-draft port handling and unloading systems, which many developing markets lack. Some integrated BOF facilities still limit HBI use to 20–40 kg per ton due to compatibility constraints, limiting broader adoption. Handling temperatures for hot-charge HDRI in hybrid systems often exceed 600°C, requiring specific insulated vessels that add 5–10% additional logistical cost. These constraints pose measurable adoption challenges in many regions.

Hot Briquetted Iron (HBI) Market Segmentation

BY TYPE

90–92% Fe HBI: This grade constitutes a major share of internal consumption within integrated steel complexes. Plants producing 90–92% Fe HBI typically operate facilities ranging from 1.0 to 1.5 million tons of annual capacity, with cumulative multi-year outputs exceeding 10–15 million tons across long-term operational cycles. This grade is commonly used in proximity to its point of production because its moderate purity requires less extensive beneficiation while retaining high thermal energy. Moisture content averages below 1%, and density remains at 5.0–5.2 g/cm³, improving furnace charge stability. Plants using this grade report melt temperature gains of 30–60°C when charging 100–200 kg per cycle, improving total productivity by 8–12%.

Above 92% Fe HBI: High-grade HBI above 92% Fe is the preferred category for international merchant trade. Facilities producing this grade often carry capacities of 1.5 to 2.5 million tons annually, with export shipments commonly ranging from 50,000 to 70,000 tons per vessel. High-purity briquettes contain less than 2% gangue, offering superior substitution ratios in high-end steel applications. This grade contributes strongly to the merchant market, representing more than 60% of exported HBI tonnage. Leading producers with long-running plants have produced more than 20–25 million tons of high-grade HBI over their operational lifetime, contributing substantially to global metallics supply.

BY APPLICATION

Electric Arc Furnaces (EAF): EAFs remain the largest consumers of HBI, accounting for more than 59% of total demand globally. With more than 1,000 active EAF units worldwide and national fleets in major countries exceeding 150–300 units, the consumption of HBI in EAFs often ranges from 50–200 kg per ton of steel produced. Large EAF facilities producing 1–2 million tons of steel annually consume several hundred thousand tons of metallic inputs, and HBI contributes 20–40% of metallic charge in certain specialty mills.

Blast Furnaces (BF): BF operations utilize HBI as a supplemental burden material with typical consumption in trials ranging between 80–120 kg per ton of hot metal. Productivity increases of 8–10% have been documented when HBI is used in controlled ratios. BF facilities averaging 3–5 million tons of annual hot metal production require burden composition precision, and HBI is used to reduce coke rates and enhance furnace permeability by 3–5%.

Basic Oxygen Furnaces (BOF): BOF plants primarily rely on hot metal but supplement metallic balance with HBI additions of 20–40 kg per ton in specialty charges. BOF complexes producing 3–10 million tons annually use HBI to reduce impurities such as sulfur and phosphorus by 0.01–0.02%, ensuring precise alloy specifications.

Others: Other applications include induction furnaces, hybrid smelting units, and mini-mills consuming HBI in the range of 10–80 kg per ton. Annual HBI usage in these smaller facilities varies from 50,000 to 300,000 tons, depending on local metallic availability and alloy grade requirements.

Hot Briquetted Iron (HBI) Market Regional Outlook

Regional HBI distribution reflects varying metallurgical infrastructures, with North America accounting for more than 300 EAF units, Europe operating more than 200 steel facilities, Asia-Pacific dominating global DRI/HBI output at more than 50%, and the Middle East & Africa hosting multi-million-ton HBI plants with capacities of 1.5–2.5 million tons each. Merchant HBI export flows primarily originate from regions with strong natural gas availability. Across all four regions combined, annual HBI output exceeds 11.4 million tons, while total regional DRI consumption surpasses 40 million tons.

North America

North America features a highly evolved EAF-based steel industry, with more than 300 operating EAF units and EAF-route steel accounting for over 50% of total continental steel output. Regional steelmaking volumes exceed 110 million tons, and metallic consumption is heavily reliant on scrap and high-quality iron sources, including HBI. Annual HBI usage in North America often exceeds 1 million tons, with imports forming a significant share due to limited domestic HBI production. U.S. EAF producers typically charge between 50–200 kg of HBI per ton of steel, depending on grade requirements. Large mills producing more than 2 million tons per year allocate up to 300,000–400,000 tons of HBI annually. Infrastructure investments and trade routes allow vessel shipments of 50,000–70,000 tons of HBI to U.S. Gulf ports, reinforcing the region's dependence on merchant HBI trade. Scrap quality concerns have increased reliance on hot metallics, and purity specifications have tightened by 10–20% in major mills. North America is projected to increase HBI usage proportionally with rising green steel initiatives and re-melting capacity expansions.

Europe

Europe operates more than 200 steel plants, including both EAF and BOF facilities, with metallic consumption exceeding 150 million tons annually. Decarbonization goals have accelerated the adoption of HBI, with more than 30% of new steel transition projects integrating hydrogen-ready DRI/HBI technologies. European steelmakers have conducted hydrogen-based reduction trials using 200–500 tons of pilot HBI batches, marking a major shift toward low-carbon metallics. Merchant HBI imports to Europe frequently exceed 1 million tons yearly, driven by EAF conversion plans that require higher metallic purity. Some countries plan to retire 20–40% of blast furnace capacity by 2030, creating new demand for HBI. Several European HBI/DRI projects under construction or planning carry combined capacities of 3–5 million tons per year, adding substantial regional supply. High-grade HBI adoption in specialty mills has risen by 15–18%, reinforcing Europe as a strategic growth region.

Asia-Pacific

Asia-Pacific dominates global HBI and DRI output, accounting for more than 50% of global direct reduction capacity. Regional hot DRI production increased from 1.8 million tons two decades ago to more than 10 million tons, while total DRI/HBI consumption exceeds 20 million tons annually. Large steel economies in the region operate more than 500 active EAF units, with national melt capacities surpassing 150 million tons. Major plants operate HBI/DRI modules with individual capacities of 1.5–2.5 million tons per year, contributing a combined production potential exceeding 8 million tons. Merchant HBI trade in Asia-Pacific ranges from 500,000 to 1.5 million tons annually, depending on infrastructure and import requirements. Regional steelmakers prioritize high-grade metallics to offset scrap shortages and maintain stable feed purity, often requiring 100–150 kg of HBI per ton in EAF operations. Asia-Pacific remains the largest future growth zone for the Hot Briquetted Iron (HBI) Market.

Middle East & Africa

The Middle East & Africa region is one of the largest HBI production hubs globally, with multiple facilities operating at capacities between 1.5 and 2.5 million tons per year. Combined regional HBI output exceeds 5 million tons annually, contributing heavily to global merchant supply. Steelmaking capacity in the region surpasses 45 million tons, and DRI/HBI technologies dominate due to abundant natural gas availability. High-grade HBI exports from this region account for more than 60% of total global merchant trade, with individual shipments ranging from 50,000 to 70,000 tons. Major green hydrogen–ready DRI/HBI projects under development carry capacities totaling 6–8 million tons, with projected HBI supply expansion exceeding 2 million tons in the next cycle. Regional producers supply HBI to Europe, Asia-Pacific, and North America through established maritime routes. With more than 10 new steel decarbonization projects underway, the Middle East & Africa stands as the core production and export powerhouse in the Hot Briquetted Iron (HBI) Market Forecast.

List of Top Hot Briquetted Iron (HBI) Companies

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

Top Two Companies With Highest Share

Metalloinvest – Operates some of the world’s largest HBI plants with multiple modules exceeding 1.5–2.4 million tons per year, achieving cumulative output surpassing 25 million tons of HBI.
Jindal Shadeed – Runs a 1.5 million–ton-per-year HBI module with lifetime production exceeding 15 million tons, ranking among the largest global suppliers.

Investment Analysis and Opportunities

Investment activity in the Hot Briquetted Iron (HBI) Market is accelerating globally as steelmakers shift toward high-purity metallic feedstock and low-carbon steel routes. More than 10 large-scale HBI and hydrogen-ready DRI facilities are under planning or construction, each presenting capacities between 1.0 million and 2.5 million tons per year, collectively representing more than 15 million tons of future HBI potential. Investors are increasingly targeting regions with strong natural gas availability and low-cost iron ore deposits, where operating HBI plants already produce 11.4 million tons annually and expansion pipelines indicate a 20–30% incremental jump in the next development cycle.

Industrial clusters are establishing metallic transfer corridors capable of handling 50,000–70,000-ton HBI vessels, with several port authorities committing to bulk handling expansion volumes above 300,000 tons of additional annual throughput. Strategic long-term off-take agreements totaling 0.8–1.2 million tons per year are strengthening investor confidence, especially where steel mills are transitioning from blast furnace routes. Capital allocation is now prioritizing green hydrogen infrastructure, HBI storage facilities capable of holding 150,000–250,000 tons, and furnace modernization projects that increase HBI charging ratios from 50–100 kg to 150–200 kg per ton of steel.

New Product Development

New product development in the Hot Briquetted Iron (HBI) Industry is advancing at an unprecedented pace, driven by decarbonization mandates and technological innovation targeting higher metallization, stronger compaction, and improved thermal efficiency. Next-generation HBI products now achieve 92–93% Fe purity levels, compared to earlier ranges of 90–92% Fe, supporting more stable EAF melt performance. Advanced briquetting systems produce briquettes with densities of 5.2–5.3 g/cm³, improving furnace charge penetration and reducing melt variability by 10–15%. Manufacturers are deploying upgraded compaction rollers that increase output by 200,000–300,000 tons annually per module.

Hydrogen-based DRI technologies have enabled the first batches of 200–500 tons of hydrogen-reduced HBI, signaling major progress toward zero-carbon iron. Several industrial furnaces have tested these hydrogen-based briquettes at charging ratios of 100–150 kg per ton, achieving melt temperature improvements of 30–60°C. Hot-transport innovations now allow HDRI to be delivered to briquetting units at temperatures exceeding 600°C, retaining metallization levels above 92% and cutting energy loss during transfer by 8–12%.

Five Recent Developments

A new hydrogen-ready DRI/HBI facility with 2.5 million–ton annual capacity initiated commissioning activities.
An existing HBI plant expanded briquetting output by 300,000 tons annually through new compaction equipment.
A steelmaker signed a long-term off-take agreement for 1.0 million tons of high-grade HBI per year.
A port handling terminal increased HBI storage capacity by 150,000 tons, improving logistics throughput.
A technological upgrade trial produced 400 tons of hydrogen-based HBI in a single pilot run for commercial EAF tests.

Report Coverage of the Hot Briquetted Iron (HBI) Market

The Hot Briquetted Iron (HBI) Market Report delivers comprehensive coverage of global production, capacity distribution, trade flows, technological advancements, and adoption trends across steelmaking routes. It analyzes the major supply centers responsible for producing more than 11.4 million tons of HBI annually, the integration of 13.9 million tons of HDRI, and the operational role of plants with module capacities ranging from 1.0 to 2.5 million tons. The report evaluates high-grade HBI segmentation by Fe content—90–92% Fe versus above 92% Fe—representing more than 95% of global supply.

The Hot Briquetted Iron (HBI) Market Analysis covers EAF consumption trends, where global usage exceeds 59% of total HBI demand, and details the role of Blast Furnaces and Basic Oxygen Furnaces in consuming 20–40 kg of HBI per ton during specialized charge cycles. Regional analysis includes North America’s 300+ EAFs, Europe’s ongoing conversion of 20–40% of BF capacity, Asia-Pacific’s leadership with over 50% of global DRI output, and Middle East & Africa’s long-term supply dominance with multi-million-ton HBI expansions.

The Hot Briquetted Iron (HBI) Market Report also evaluates global merchant HBI movement, assessing vessel shipment sizes of 50,000–70,000 tons and annual trade volumes exceeding 1 million tons. It examines more than 10 hydrogen-ready projects, projected HBI demand growth between 10–15 million tons, and supply chain upgrades involving 150,000–300,000 tons of new storage capacity. The report includes detailed insights for steel producers, mining companies, raw material suppliers, engineering contractors, investment firms, and logistics operators. It provides forward-looking Hot Briquetted Iron (HBI) Market Insights covering plant expansions, technology integration, green steel adoption, and long-term HBI capacity forecasts structured to support strategic planning and investment decisions.