Key Drivers of the U.S. Hot Briquetted Iron Market Boom
The U.S. hot briquetted iron (HBI) market is projected to grow from US$ 891.8 Mn in 2025 to US$ 1,346.4 Mn by 2032, with a CAGR of 6.1%. This growth is driven by the shift from blast furnaces to Electric Arc Furnaces (EAFs), which will account for 75% of U.S. steel production by 2030. HBI's appeal is further enhanced by its lower carbon footprint, higher iron content, government infrastructure investments, and increased exports to Europe and Asia. The Midwest, holding a 39% market share in 2025, benefits from strong transportation networks and steel hubs, while hydrogenbased DRI technology, reducing CO₂ emissions by up to 90%, boosts HBI's role in sustainable steel production.
Rising Demand for High-Quality Steel Production
The U.S. hot briquetted iron (HBI) market is witnessing significant growth, primarily driven by the increasing demand for high-quality steel. With Electric Arc Furnaces (EAFs) gaining prominence, the need for premium raw materials like HBI has surged. HBI offers lower impurities compared to scrap steel, making it a preferred choice for producing high-grade steel used in automotive, construction, and manufacturing industries.
Shift Towards Electric Arc Furnaces (EAFs)
The transition from traditional blast furnaces to EAFs is fueling HBI adoption in the U.S. steel industry. As EAFs rely on direct reduced iron (DRI) and HBI to enhance steel quality and reduce carbon emissions, demand for HBI continues to rise. The projected increase in EAF usage, expected to reach 38% market share by 2025, directly contributes to HBI market expansion.
Decarbonization and Green Steel Initiatives
Sustainability efforts in the steel industry are accelerating the adoption of HBI. As companies aim to reduce carbon footprints, HBI is emerging as a key enabler of green steel production. Unlike traditional pig iron, HBI is produced with lower CO₂ emissions, aligning with the U.S. government's climate goals and corporate ESG commitments.
Increased Domestic Production Capacity
The U.S. is ramping up domestic HBI production to reduce dependence on imports. Major steel manufacturers are investing in HBI plants to ensure a stable supply chain. New production facilities in states like Texas and Ohio are strengthening the U.S. HBI market, ensuring a consistent and highquality supply for steelmakers.
Supply Chain Resilience and Import Substitution
Disruptions in global raw material supply chains have prompted U.S. steelmakers to secure reliable domestic sources of HBI. By reducing reliance on imported pig iron and scrap steel, the U.S. is enhancing its steel industry’s resilience against geopolitical and trade uncertainties. This shift towards localized HBI production is a key factor driving market growth.
Rising Infrastructure Investments
The U.S. government's infrastructure push, including large-scale projects in transportation, energy, and construction, is boosting steel demand. As steelmakers focus on producing higher-quality steel for bridges, highways, and buildings, the demand for HBI as a superior raw material continues to rise.
Future Outlook: HBI as a Cornerstone of U.S. Steel Growth
With ongoing technological advancements and policy support, the U.S. hot briquetted iron market is poised for long-term growth. As steelmakers prioritize low-emission and high-efficiency production methods, HBI is set to play a crucial role in shaping the future of sustainable steel manufacturing in the U.S.