Iron Ore Pellets: The Golden Link in the Steel Production Chain in 1404
Iron ore pellets are one of the most important intermediate products in the steel industry, produced from iron ore concentrate and additives. Due to their high strength, uniform granulation, and suitable grade, this product serves as the primary raw material for direct reduced iron (DRI) production units and many steelmaking plants.
How Are Pellets Produced?
The pellet production process begins by mixing iron ore concentrate, bentonite, and a small amount of water. This mixture is formed into green pellets in pelletizing discs or drums, and then fired in special furnaces at temperatures above 1,200°C. The result of this process is a pellet with high mechanical strength suitable for use in direct reduction units.
Advantages of Using Pellets
- Increased efficiency in DRI (direct reduced iron) production
- Reduced energy consumption in the reduction process
- Reduced impurity levels
- Easier transportation and storage
- Improved quality of the steel produced
Status of the Pellet Industry in 1404 (2025/26)
In 1404, Iran's pellet industry remains one of the strategic segments of the steel supply chain. Although producers face challenges such as electricity and gas restrictions, rising production costs, and fluctuations in global markets, the country's production capacity remains at a high level.
Based on published statistics from the 1403 (2024/25) performance year — which serves as the basis for the industry's assessment at the start of 1404 — major Iranian mining and steel companies produced nearly 35 million tons of pellets, marking approximately 7% growth over the previous year. Additionally, Iran's pellet exports in 1403 reached more than 10.8 million tons, demonstrating the country's strong capacity in export markets. This trend is expected to continue in 1404 as development projects and improvements to energy infrastructure come online.
Future Outlook
Given the steel industry's development plans, the increasing capacity of direct reduction units, and investment in iron ore mines, demand for pellets is expected to keep growing in the coming years. The development of new technologies, reduced energy consumption, and the completion of the value chain from mine to steel will be the key factors determining this industry's future success.
Summary
Iron ore pellets are one of the most important products in the steel supply chain, playing a decisive role in the production of direct reduced iron and steel. The high quality of this product, increased productivity at steel plants, and Iran's strong position in pellet production and export all demonstrate that this industry will remain one of the strategic sectors of the country's economy and mining industry.
