Iron ore pellets are a major dry bulk cargo, with global seaborne trade of approximately 100 to 120 million tonnes per year. The cargo is iron ore concentrate that has been agglomerated through pelletising — rolling fine concentrate with binders into spherical pellets and firing them at approximately 1,250 to 1,300 degrees Celsius — to produce a uniform, dense, hard product suitable for blast furnace and direct reduction iron (DRI) feedstock. The IMSBC Code regulates iron ore pellets under a Group C schedule, distinct from iron ore (also Group C) and iron ore fines and concentrate (Group A).
Schedule structure
The IMSBC Code includes a dedicated entry for iron ore pellets:
- Iron ore pellets: hard agglomerated spherical pellets of approximately 8 to 16 millimetres diameter. Group C (not liquefiable, no chemical hazard).
The Group C classification reflects the absence of fines and the low moisture content of the fired pellet product, both of which eliminate the liquefaction risk that applies to fine concentrate.
Cargo properties
Iron ore pellets are uniform spherical agglomerates produced by:
- Crushing, grinding, and beneficiating iron ore to fine concentrate.
- Mixing the concentrate with bentonite or other binders.
- Forming green pellets in a balling drum or disc.
- Firing in a grate-kiln or straight-grate furnace at approximately 1,250 to 1,300 degrees Celsius.
- Cooling and screening to size.
The fired pellet has iron content typically 65 to 67 per cent Fe, comparable to high-grade direct shipping iron ore but with much more uniform particle size and improved blast furnace permeability characteristics. Bulk density is approximately 2.0 to 2.4 tonnes per cubic metre, with stowage factor of approximately 0.42 to 0.50 cubic metres per tonne.
The cargo is non-toxic, non-flammable, non-self-heating, and non-reactive with steel structure. Standard bulk cargo handling procedures apply.
Major exporters
Iron ore pellet seaborne trade flows include:
- Brazil: the dominant exporter, with Vale’s Vitória pellet plants and other Brazilian operations supplying approximately 30 to 35 per cent of global trade. Exports flow through Tubarão.
- Sweden: LKAB’s Kiruna and Malmberget pellet plants supply European steelmakers through the Baltic ports of Luleå and the Norwegian Sea port of Narvik.
- Russia: Lebedinsky GOK, Mikhailovsky GOK, and other Kursk Magnetic Anomaly pelletising operations export through Saint Petersburg and Black Sea ports.
- Canada: IOC (Iron Ore Company of Canada) pellet plant at Sept-Îles, Québec.
- United States: Cliffs Natural Resources pellet plants supplying domestic and Canadian steelmakers.
- India: AM/NS, Essar, and Tata Steel pellet plants.
- Bahrain: Bahrain Steel pellet plant exporting to Middle Eastern markets.
Major importers
Iron ore pellet imports go principally to:
- China (the largest single importer, despite also being the largest direct shipping iron ore importer; pellets are used in blast furnaces requiring premium feedstock).
- Japan and South Korea (significant pellet importers for premium grade blast furnaces).
- European Union (especially northern European steelmakers, supplied principally from Sweden and Brazil).
- Middle East (Saudi Arabia, Bahrain, Oman use pellets for both DRI and blast furnace).
- Türkiye and other Mediterranean steelmakers.
Loading and discharge
Loading is by shore conveyor and shiploader. The cargo is highly flowable and self-trims. Hold preparation is straightforward: cleanliness, bilge clearance, no special chemical compatibility issues. Loading rates of 3,000 to 6,000 tonnes per hour are typical at major export terminals.
Discharge is by grab-fitted shore cranes at receiving steelmaker and DRI plant terminals.