Hot Briquetted Iron Market Report: Market Size & Forecast 2026

Hot Briquetted Iron (HBI) is produced by reducing iron ore using natural gas in shaft furnaces, then compressing the resulting DRI into dense briquettes. The briquetting process prevents re-oxidation during storage and transport, making HBI suitable for long-distance shipping and use in electric arc furnace steelmaking. It serves as a premium feedstock due to its high iron content (typically above 94 percent), low residual levels, and consistent metallurgical properties, positioning it as a critical complement to traditional iron ore and scrap in modern steel production.

• •HBI is a compacted form of direct reduced iron, enabling safe transport without re-oxidation risks
• •Market size estimates for 2025 range from approximately $4.3 billion to $6.4 billion across various industry reports
• •The broader DRI market, closely tied to HBI production, was valued at roughly $57.8 billion in 2025

The global push to decarbonize steelmaking is one of the most significant catalysts for HBI demand, as EAF-based steel production offers a substantially lower carbon footprint than traditional blast furnace routes. Many steelmakers are increasing EAF capacity to meet emissions targets, and HBI is a key feedstock for these facilities because it provides consistent iron quality and high metallization rates. Additionally, the growing supply-demand imbalance for high-quality scrap, particularly as restrictions on exports tighten in some regions, has made HBI an increasingly attractive alternative.

• •Decarbonization policies worldwide are accelerating the shift toward EAF-based steelmaking, which relies heavily on HBI
• •Rising steel production in emerging markets, particularly across Asia-Pacific, is driving demand for premium iron units
• •Scrap export restrictions and quality variability have pushed mills toward the more consistent HBI supply

The HBI market is segmented by production method, with gas-based HBI dominating due to the abundance of natural gas resources in key producing regions. End-use applications are heavily concentrated in the steel industry, particularly EAF steelmaking, though some HBI is consumed in foundries and other metallurgical processes. Regionally, the Middle East and North Africa remain dominant producers due to competitive natural gas costs and established DRI infrastructure, while North America, particularly the United States, represents a strong consumer market driven by domestic EAF steel capacity.

• •The United States HBI market alone is estimated at approximately $891.8 million in 2025, growing at around 6.1 percent annually
• •Middle East and North Africa hold the largest share of global HBI production capacity
• •Asia-Pacific is an increasingly important consumer region, with demand closely tied to steel output from EAF mills

What are the recent trends and outlook?

The HBI market is expected to sustain steady growth through 2035, with projections ranging from approximately $6.2 billion to over $8 billion depending on the forecast horizon and methodology. Key trends include continued expansion of EAF steelmaking capacity in North America and Europe, where environmental regulations are tightening. Trade dynamics are also evolving, as some steel-producing nations introduce carbon border adjustments that could further tilt the economics in favor of lower-carbon ironmaking routes reliant on HBI. Long-term, the industry is exploring green hydrogen-based DRI production, which could eventually yield near-zero-carbon HBI and reshape the global competitive landscape.

• •Industry projections place the HBI market between approximately $6 billion and $8.1 billion by 2035, representing meaningful long-term growth
• •Green HBI produced with hydrogen-based DRI technology is emerging as a potential premium product aligned with carbon-neutral steel goals
• •Carbon pricing and emissions trading schemes in the European Union and other regions are expected to drive structural demand toward HBI-fortified EAF steelmaking