Global Pig Iron Market Overview
According to Global Market Monitor, the global pig iron market size will be $633.15 billion in 2024 with a CAGR of 1.54% from 2024 to 2029.
Pig iron is an iron-carbon alloy with high carbon content and contains other scum components such as silicon, manganese, and sulfur. Therefore, although pig iron is hard, pig iron is brittle, has almost no plasticity, cannot be forged, and cannot be used directly as a material.
Affected by terminal markets such as construction, automobiles, and electronics, the global steel demand continues to grow, which promotes the development of the pig iron market. The demand for high-performance castings in the automotive, aerospace, and construction machinery industries is also one factor that promotes the development of the pig iron industry.
Fluctuations of Raw Materials
Iron ore is the main raw material for the pig iron industry. Over the years, iron ore prices have fluctuated wildly. Since the end of 2018, iron ore prices have been on an upward trend. The main reason is that since the supply-side reform of China's steel industry (an attempt to eliminate excess steel production capacity), steel mills' profit margins have continued to increase, boosting iron ore demand and prices.
After the National Day of 2024, the current price of iron ore has turned from a strong upward trend to a high decline, of which the main iron ore contract fell 11.66% from the high point, which reversed most of the previous increase. At present, with the weakening of the favorable effect of domestic policies, the trading logic of the black metal market has gradually turned into reality, although the current iron ore demand performance is still good, it has not brought substantial improvement in the fundamentals, the high inventory situation has not changed, and the realistic logic is leading, the mine price is still under pressure.The high volatility of raw material iron ore prices is an important reason restricting the pig iron industry.
Pig iron is produced by smelting iron ore in a blast furnace or smelting ilmenite in an electric furnace. Pig iron is supplied in various ingot sizes and weights, ranging from 3 kg to over 50 kg. The vast majority of pig iron is produced and consumed in integrated steel plants. Pig iron is mainly used for steelmaking and production of castings, such as cast-iron pipes, mechanical parts, gears, machine bases, pistons, etc. Technological progress is particularly important for the pig iron industry.
At present, automated and intelligent production technology is developing rapidly, and it is expected to replace the current industrial equipment for pig iron production in the future. This provides favorable conditions for the development of the pig iron market. In addition, the development of information technology and communication technology is expected to provide favorable conditions for the development of the market. However, technological development has led to the development and production of many alternative products, and the production of alternative products with lower prices and better performance may hinder the development of the market.
Market Players
Baowu is one of the major players operating in the Pig Iron market, holding a share of 8.67% in 2024. BaoWu is a state-owned steel company formed by Baosteel Group in 2016 by absorbing its smaller state-owned counterpart, Wuhan Iron and Steel Company. The company has created a pattern of coordinated development of the new materials industry, smart service industry, resources, and environment industry, industrial park industry, industrial finance industry, and other related industries based on the green, high-quality, and smart steel manufacturing industry.
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Company Name |
Baowu |
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Website |
www.baowugroup.com |
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Established Time |
2016 |
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Headquarters |
China |
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Sales Region |
Mainly in China |
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