Global HBI Additives Market to Grow at 6.4% CAGR Through 2034 Amid Advancements in Industrial Applications

The global HBI additives market was valued at US$ 273.5 Mn in 2023 and is projected to reach US$ 537.6 Mn by the end of 2034, expanding at a CAGR of 6.4% from 2024 to 2034. The accelerating transition to hydrogen-based steelmaking, rising global steel production, increasing adoption of electric arc furnaces (EAFs), and the growing need to reduce carbon emissions across the iron and steel value chain are driving market growth.

The shift toward low-carbon iron production is creating new opportunities for HBI additives, as hot briquetted iron provides a dense, lower-reactivity source of iron units suitable for steelmaking and can be transported more safely than conventional direct reduced iron. Growing investments in green hydrogen, direct reduced iron (DRI), and green steel projects are expected to further strengthen demand for HBI and associated additives through 2034.

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Analyst Viewpoint

Growth in hydrogen economy in steelmaking is augmenting the HBI additives market dynamics. Primary blast furnace (BF) - basic oxygen furnace (BOF) route and the secondary scrap-based electric arc furnace (EAF) route lead to carbon dioxide emissions. HBI produced with a hydrogen-rich gas significantly lowers CO2 emissions.

Rise in steel production is also propelling the HBI additives industry value. The use of HBI in electric arc furnaces is growing with an increase in steel production. HBI can be manufactured to be shipped over great distances and melted in several iron and steel processes.

Key players operating in the HBI additives market landscape are focusing on sustainable iron production and complying with emission standards.

Market Introduction

Hot Briquetted Iron (HBI) is the densified briquette form of Direct Reduced Iron (DRI). The compaction of DRI into a dense briquette reduces its porosity and thus the surface area available to oxygen and water.

HBI is a source of clean iron units that can be used as an additive. It has high iron and low metallic residuals ideal for the production of high-quality iron and steel products in various furnaces.

HBI is produced in the form of briquettes at high temperatures and pressure with roller presses. It is also available in powder and granule forms.

Hot briquetting is applied for products from pellets and lump ore (shaft furnaces) and from fine ore (fluid bed reactors). HBI is much safer to transport as a bulk cargo than DRI as it has a much lower reactivity and tendency to reoxidise and self-heat.

Growth in Hydrogen Economy in Steelmaking Fueling HBI Additives Market Size

The global steel industry is under increasing pressure to reduce its carbon footprint, encouraging producers to explore hydrogen-based reduction technologies and alternative ironmaking routes. According to the International Energy Agency (IEA), the carbon footprint of steel production is approximately 1.4 tons of CO₂ per ton of steel produced, highlighting the scale of the decarbonization challenge facing the industry.

The increasing availability of green hydrogen and expectations of declining hydrogen production costs are encouraging steel manufacturers and project developers to evaluate hydrogen-based direct reduction. Government carbon-neutrality targets, including long-term ambitions to achieve net-zero emissions by 2050, are also encouraging investments in low-carbon steel technologies.

HBI produced through natural gas-based and increasingly hydrogen-rich direct reduction processes can serve as an important intermediate feedstock for lower-emission steelmaking. Consequently, the expansion of green hydrogen infrastructure is expected to create additional opportunities for the HBI additives market.

Green hydrogen developers are also exploring integrated projects combining renewable power, hydrogen production, direct reduction, and HBI manufacturing. In June 2024, CWP Global announced plans to use hydrogen from its 30 GW Aman project in Mauritania to produce green iron for export to Europe. The proposed approach involves converting iron ore into HBI to help support decarbonization of Europe's steel industry, highlighting the growing connection between renewable hydrogen and HBI production.

Rise in Steel Production Augmenting Market Trajectory

Continued expansion of steel production is another major factor supporting demand for HBI and related additives. EAF-based steelmaking is increasingly incorporating HBI and DRI as sources of iron units, particularly where steelmakers require feedstocks with low levels of residual elements to manufacture higher-quality steel products.

The growing deployment of EAF capacity, combined with the need to complement scrap availability with alternative iron units, is strengthening the role of HBI in modern steelmaking. HBI can also be produced in regions with abundant natural gas, renewable energy, or iron ore resources and transported to steelmaking centers, increasing its strategic value within international supply chains.

Steel production growth in major markets is reinforcing this demand. According to the supplied industry data, U.S. steel production increased from 6,500 thousand tons in February 2024 to 6,900 thousand tons in March 2024. India, the world's second-largest steel producer after China, recorded 125.32 MT of crude steel production and 121.29 MT of finished steel production in FY23, according to the India Brand Equity Foundation (IBEF).

The continued development of steel capacity, particularly EAF-based facilities, is therefore expected to support HBI consumption and contribute to the expansion of the HBI additives market.

Regional Outlook

Asia Pacific held the leading share of the global HBI additives market in 2023 and is expected to maintain its prominent position during the forecast period. Increasing investments in green steel, renewable energy, hydrogen infrastructure, and low-carbon ironmaking are supporting market development across the region.

Steel producers and other industry stakeholders in Asia Pacific are increasingly evaluating hydrogen-based iron and steel production as a pathway to reduce emissions and lower dependence on coal-intensive conventional processes. Strategic collaborations between renewable energy developers and steel companies are helping establish the infrastructure required for future green steel production.

In 2023, Global Power Synergy Public Company Limited (GPSC), Thailand, and Meranti Steel Pte. Ltd., Singapore, announced strategic cooperation covering renewable energy solutions, including offsite solar and wind power, as well as a future green hydrogen supply chain for Meranti's green steel project in Thailand.

Latin America is also emerging as an important region for HBI development because of its iron ore resources and growing investment in low-carbon ironmaking. In 2023, Vale signed a memorandum of understanding with Port of Açu to study the development of a Mega Hub at the port in São João da Barra, Brazil, for HBI production using the direct reduction route.

Meanwhile, Middle East & Africa offers significant potential because of its abundant solar resources, access to high-grade iron ore, and increasing investment in green hydrogen. The availability of renewable energy and iron ore pellets can support co-located DRI and HBI facilities designed to serve domestic steel producers as well as international export markets.

Analysis of Key Players

The competitive landscape of the HBI additives market includes chemical manufacturers, mineral and materials suppliers, and companies providing specialized additives used across iron and steelmaking processes. Leading participants are focusing on product development, sustainable steel production, strategic collaborations, and technologies that help steelmakers improve process efficiency while meeting increasingly stringent emissions requirements.

Major companies operating in the HBI additives market include Elkem ASA, Glencore, Carmeuse, Lhoist, Evonik Industries, Sibelco, BASF SE, and The Lubrizol Corporation.

These companies are profiled based on company overview, business segments, product portfolios, geographical presence, strategic initiatives, recent developments, and financial performance.

Key Player Strategies

Development of Sustainable Additives

Manufacturers are focusing on additives that can improve the efficiency and quality of HBI-based steelmaking while supporting the industry's broader transition toward lower-emission production processes.

Strategic Partnerships and Project Collaboration

Companies are increasingly working with steelmakers, mining companies, hydrogen developers, and renewable energy providers to participate in emerging green iron and steel projects.

Expansion of Product Portfolios

Leading players are strengthening their offerings across binders, fluxing agents, carbonaceous materials, reducing agents, antioxidants, alloying elements, deoxidizers, and desulfurizers to address diverse steelmaking requirements.

Focus on Emission Compliance

Growing environmental regulations and corporate decarbonization commitments are encouraging market participants to develop solutions compatible with cleaner ironmaking and steelmaking technologies.

Key Developments

• In February 2024, steel and mining company Metalloinvest's Lebedinsky GOK produced its 60 millionth ton of HBI feedstock, supporting the use of iron units in electric furnaces and contributing to lower-carbon steelmaking.
• In 2023, Meranti Green Steel, a Singapore-based steel company, partnered with Green Steel of WA, an Australian green steel recycling mill, to develop an HBI production and export hub in Western Australia.

HBI Additives Market Segmentation

By Product Type

• Binders
• Fluxing Agents
• Carbonaceous Materials
• Reducing Agents
• Antioxidants/Stabilizers
• Alloying Elements
• Deoxidizers
• Desulfurizers

By Additive Type

• Metallic Additives
• Non-metallic Additives

By Form

• Powders
• Briquettes
• Granules

By Application

• Steel Production
• Foundries and Castings

Regions Covered

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

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Frequently Asked Questions

·        How big was the global HBI additives market in 2023?

It was valued at US$ 273.5 Mn in 2023

·        How is the HBI additives industry expected to grow during the forecast period?

It is anticipated to grow at a CAGR of 6.4% from 2024 to 2034

·        What are the key factors driving the demand for HBI additives?

Growth in hydrogen economy in steelmaking and rise in steel production

·        Which was the major region in the global HBI additives landscape in 2023?

Asia Pacific was the leading region in 2023

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