HBI Additives Market by Additive Type (Binders, Fluxing Agents, Lubricants, Corrosion Inhibitors, Other Additives); By End-User Application (Steel Manufacturing, Steel Recycling, Specialty Steel Manufacturers, Foundries & Iron-Casting Facilities); By Region (North America, Europe, Asia-Pacific, Middle East & Africa, Latin America); Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global HBI  Additives Market is projected to expand at a robust CAGR of 8.4% between 2024 and 2030, starting from an estimated USD 1.9 billion in 2024 and reaching nearly USD 3.1 billion by 2030 , according to internal analysis by Strategic Market Research.

 

HBI (Hot Briquetted Iron) additives play a critical role in modern steelmaking. These additives—ranging from lubricants, binders, fluxing agents, to corrosion inhibitors—optimize the handling, performance, and structural quality of HBI used in electric arc furnaces (EAFs) and blast furnaces. As the steel industry accelerates its shift toward decarbonization and alternative raw materials, HBI additives are becoming indispensable.

 

Over the forecast period, three strategic shifts are driving renewed attention to this niche but essential market. First, steel manufacturers are increasingly blending HBI with scrap to reduce carbon intensity. HBI additives improve the metallurgical properties, minimize reoxidation , and ensure cleaner melting behavior—critical in low-emission steel production. Second, global efforts to reduce reliance on coking coal and fossil fuels are steering demand toward DRI/HBI as transitional feedstocks , and additives enhance operational compatibility. Third, supply chain reliability is under scrutiny, particularly as countries like India, Russia, and the Middle East ramp up HBI production to supply steel markets in Europe and Asia.

 

The stakeholder landscape is becoming more complex. Steel producers like ArcelorMittal and Nucor are experimenting with HBI formulations and proprietary additive blends to improve charge efficiency. Additive suppliers are developing region-specific chemistries tailored for different ore grades and furnace conditions. Meanwhile, governments and climate policy advisors are beginning to recognize the downstream impact of HBI additives on clean steel production.

 

What’s changed is the visibility of this market. Additives once seen as ancillary are now part of core steelmaking strategy—especially in plants targeting Scope 1 and 2 emission reductions.

 

Innovation in this space is less about breakthrough chemistry and more about incremental precision. Vendors are optimizing particle size, melting point behavior, and binder compatibility to ensure smoother briquetting and better furnace flow. In high-capacity steel operations, even a small additive tweak can yield millions in efficiency gains.

 

To be clear, this isn’t a commodity market anymore. It's becoming performance-driven. And that means the next few years will favor companies that not only understand steel chemistry—but also how to tailor that chemistry for a decarbonizing, digitizing, and regionally diverse steel industry.

 

Market Segmentation And Forecast Scope

The HBI additives market is segmented across multiple dimensions, each of which aligns with the core demands of modern steel production. The market’s expansion through 2030 will be shaped by how key stakeholders adopt and innovate in these segments.

By Additive Type

• Binders : Used to ensure the integrity of HBI during the briquetting process, binders are among the most widely used additives in this space. As global demand for direct reduced iron (DRI) grows, the need for high-performance binders that ensure efficient compaction without compromising structural quality will increase. Binders are projected to hold the largest market share through 2030, driven by their direct impact on briquette quality and furnace operations.

• Fluxing Agents : These additives improve the fluidity of molten iron and promote the separation of impurities. As steel producers push for cleaner production methods and better quality steel, the demand for fluxing agents will rise steadily. The growing trend toward electric arc furnace (EAF) steelmaking will drive the adoption of specialized fluxing agents suited for cleaner, low-carbon feedstocks .

• Lubricants : Lubricants are crucial for preventing friction during the briquetting and charging process. As HBI producers increase their output to meet the demands of a shifting steel industry, the use of high-efficiency lubricants will continue to grow. Lubricants contribute significantly to operational efficiency, reducing downtime and maintenance costs. As a result, this segment is expected to grow at a moderate pace but will remain essential for maintaining steady HBI throughput.

• Corrosion Inhibitors : As steelmakers look for more sustainable and efficient ways to transport and store HBI, corrosion inhibitors play an increasingly important role in ensuring material integrity during storage and transport. This market segment is expected to see a compound growth rate, particularly with the expansion of global HBI trade networks, especially between the Middle East, Europe, and Asia.

• Other Additives : This category includes a range of other performance-enhancing chemicals such as slag conditioners , reducing agents , and melting accelerants , though it remains a smaller market segment. Nonetheless, these additives provide critical support in enhancing overall process efficiency, contributing to an evolving, performance-driven additive market.

 

By End-User Application

• Steel Manufacturing (Primary Steelmakers) : This is the dominant application segment for HBI additives. Steelmakers are focused on optimizing furnace operations and enhancing the performance of recycled materials. The shift towards cleaner, more sustainable steel production, especially through the electric arc furnace (EAF) method, drives significant demand for additive solutions that help optimize charge quality, reduce slag formation, and improve melting efficiency.

• Steel Recycling : With urbanization and construction activities driving demand for recycled steel, the market for HBI additives in steel recycling operations is growing. Recycled scrap steel is increasingly blended with HBI as an efficient raw material substitute in EAFs. Additives tailored to this blend ensure that the recycled material meets required quality standards without compromising furnace throughput.

• Others (Non-steel applications) : HBI additives are also finding niche applications in sectors like foundry operations, iron casting , and metal manufacturing . These markets are smaller but contribute to the diversified scope of the additive sector.

 

By Region

• North America : North America remains a key player, driven by major steel producers like Nucor and U.S. Steel that are making significant investments in cleaner technologies and expanding their DRI capacities. The region’s focus on sustainability and carbon reduction will continue to drive demand for additives that enable more efficient and environmentally friendly steel production processes.

• Europe : The European market is particularly interesting due to its stringent regulatory landscape, which increasingly pushes for carbon-neutral steel production. The European Union's Green Deal and efforts to promote hydrogen-based steel production are expected to drive substantial growth for HBI additives, particularly in nations like Germany, Sweden, and Italy.

• Asia-Pacific : The Asia-Pacific region is expected to experience the fastest growth, driven by China and India — the world’s largest steel producers. As these countries increase their adoption of electric arc furnaces and transition to cleaner steelmaking processes, HBI additive consumption is set to grow rapidly.

• Middle East & Africa (MEA) : The MEA region is witnessing rapid industrialization, with Qatar , UAE , and Saudi Arabia scaling up their HBI production capacity. These nations are increasingly focusing on boosting their steel production for infrastructure projects, driving the demand for high-performance HBI additives.

 

Key Forecast Insights

The HBI additives market is expected to remain highly dynamic, with binders and fluxing agents leading the charge in growth, while lubricants and corrosion inhibitors will contribute to niche but crucial market advancements. Asia-Pacific and North America will likely remain the largest markets, but significant growth is anticipated in Europe as regulations push for decarbonized steel production.

 

Market Trends And Innovation Landscape

The HBI additives market is undergoing significant transformations, driven by both innovation and evolving market demands. As the steel industry pivots toward sustainability, efficiency, and cost-effectiveness, HBI additives are gaining critical importance. Below are the key trends and innovations shaping this market.

1. Innovation in Additive Chemistry

Innovation in HBI additives is largely focused on improving process efficiency and furnace compatibility while reducing the environmental impact of steel production. Companies are increasingly developing customized additives tailored to specific furnace operations, ore grades, and regional regulations. The use of advanced binders that allow for lower-temperature briquetting is one such breakthrough, improving overall furnace productivity and reducing energy consumption. Innovations also include multi-functional additives that perform multiple roles (e.g., binder, flux, and corrosion inhibitor) to optimize HBI performance while reducing overall additive consumption.

Future impact : As steel manufacturers push for greener and more efficient processes, green chemistry and sustainable additives are expected to become industry norms, reducing both carbon footprint and material waste.

 

2. Rising Demand for Low-Carbon Steel Production

The global transition to low-carbon steel production is one of the most significant drivers for HBI additive innovation. The increased adoption of direct reduced iron (DRI) as an alternative to coke-based iron production is reshaping the HBI market. HBI additives are increasingly designed to complement the unique properties of DRI, improving melting behavior, reducing energy consumption, and enhancing overall performance in EAFs. Binders are being optimized for lower emissions during briquetting, while fluxing agents are being fine-tuned to enhance impurity removal from the DRI material, contributing to cleaner steel production.

Expert insight : The decarbonization trend is not just about lowering emissions—it’s also about improving the quality and efficiency of the steelmaking process. HBI additives tailored for hydrogen-based steel production will likely play a role in this green steel revolution.

 

3. Integration of Artificial Intelligence (AI) and Automation

AI and automation are playing an increasing role in the formulation and application of HBI additives. The rise of smart steel production involves real-time monitoring of furnace conditions, steel composition, and additive performance, allowing for more precise control over the entire steelmaking process. Additive manufacturers are integrating AI-driven solutions to predict additive behavior and optimize formulations based on operational data. The use of AI in quality control is improving the consistency and reliability of HBI additives, while reducing waste and improving cost-effectiveness.

Innovation spotlight : Advanced AI algorithms are helping to automate additive blending and make adjustments in real-time, thereby streamlining the additive application process and improving the overall efficiency of steel production lines.

 

4. Development of High-Performance Additives for EAF and Blast Furnace Integration

Additives are being specifically engineered for electric arc furnaces (EAFs) and blast furnaces , with a focus on enhancing the performance of low-carbon feedstocks like HBI. For EAF applications, fluxing agents are being developed that better match the lower-temperature processing of DRI, enhancing the removal of impurities without increasing slag formation. Similarly, additives for blast furnaces are evolving to complement the increased use of HBI as a substitute for coke, helping to stabilize temperature fluctuations and improve the efficiency of iron production.

Expert forecast : The integration of high-performance additives into hybrid steelmaking systems that combine blast furnaces and electric arc furnaces will gain momentum , allowing steelmakers to produce high-quality steel while adhering to environmental targets.

 

5. Enhanced Supply Chain and Trade Efficiencies

With HBI production increasingly moving to regions like the Middle East , Africa , and South America , the logistics and transportation of HBI have become more critical. To address challenges in long-distance transportation and storage , additive manufacturers are innovating by developing corrosion-resistant additives that ensure the integrity of HBI during transport and storage. Corrosion inhibitors , in particular, are seeing growing demand due to their ability to prevent degradation and material loss, ensuring that HBI remains in optimal condition for steelmaking.

Impact projection : As global trade in HBI increases, additives that ensure the stability and longevity of HBI in storage and transport will become increasingly vital, particularly in regions with harsh climatic conditions.

 

6. Sustainability and Circular Economy Models

The rise of circular economy models is pushing for more sustainable practices within the steel industry. HBI additives are being designed with sustainability in mind , focusing on improving the recyclability of HBI briquettes and minimizing waste generated during steel production. Additives that facilitate easier separation of impurities and metals from recycled scrap steel are particularly important as the steel industry strives to reduce its reliance on virgin materials. This is not only environmentally beneficial but also cost-effective, as the global push for recycled materials in steel production continues to grow.

Expert commentary : In the coming years, we can expect a greater push toward biodegradable additives and materials that are environmentally friendly , aligning with the broader sustainability goals of the steel industry.

 

Future Outlook

The future of the HBI additives market will be defined by an accelerated pace of innovation across multiple fronts. From the integration of AI and smart systems for real-time control, to the development of sustainable and low-carbon additives , the market will continue to evolve as the steel industry adapts to changing regulatory, economic, and environmental pressures.

As we move into the 2030s, HBI additives will likely become an even more integral part of clean steel production, contributing to the industry’s goal of reducing carbon emissions and improving operational efficiency. The next phase will see further advancements in customized additive solutions for specific steel production processes and regional needs.

 

Competitive Intelligence And Benchmarking

The HBI additives market is increasingly competitive, with several players working to gain market share through strategic partnerships, technological innovations, and regional expansions. Below are some key companies and strategies that are shaping the competitive landscape of the market.

1. ArcelorMittal

ArcelorMittal , one of the world’s largest steel producers, plays a crucial role in driving innovation in the HBI additives market. The company is heavily invested in low-carbon steel production , including projects to integrate HBI into their operations. ArcelorMittal is actively developing customized additive solutions in collaboration with additive manufacturers to improve the efficiency of their DRI-based steelmaking processes. The company's focus on enhancing EAF performance through tailored additives is helping to reduce operational costs and emissions.

Strategy : ArcelorMittal focuses on sustainability and decarbonization , aligning with global environmental goals. By developing partnerships with additive suppliers to tailor solutions for low-carbon steel production, the company continues to lead in innovation within the HBI additive space.

 

2. Nucor Corporation

Nucor , one of the largest steel producers in North America, has been a front-runner in adopting electric arc furnace (EAF) technology and leveraging HBI as a primary feedstock. The company works closely with HBI additive suppliers to enhance the efficiency of its EAF processes , which is key for maintaining competitiveness in a carbon-conscious market. Nucor's commitment to reducing CO2 emissions is a driving factor behind its investments in both HBI production and additive formulations .

Strategy : Nucor’s strategy revolves around cost-effectiveness and operational efficiency . By integrating high-performance additives that optimize charge performance in their EAF operations, Nucor is not only improving its production output but also advancing its sustainability goals.

 

3. Clariant

As a leading global chemical company, Clariant is positioning itself as a key player in the development of advanced HBI additives . The company offers a variety of binders, fluxing agents, and corrosion inhibitors , many of which are tailored to the unique requirements of HBI in EAF and blast furnace steelmaking . Clariant is particularly focused on sustainable chemistry and is working on reducing the environmental impact of its additives by developing solutions that enhance both furnace performance and resource efficiency .

Strategy : Clariant is pursuing a green chemistry strategy , developing additives that reduce environmental impact and improve process sustainability. Through their deep R&D investment, Clariant aims to differentiate itself by offering high-performance, eco-friendly additives that appeal to environmentally-conscious steelmakers.

 

4. Dow Chemical

Dow Chemical is another significant player in the HBI additives market, especially in the development of lubricants and binders . Dow's expertise in polymeric and chemical additives has led to the creation of highly efficient HBI binders that help reduce energy consumption during the briquetting process. Dow is also exploring ways to enhance additive formulations for low-emission steelmaking through collaborations with steelmakers and additive suppliers.

Strategy : Dow’s strategy focuses on innovation and sustainability . By developing specialized polymer-based additives , Dow aims to improve both the cost-efficiency and sustainability of the steelmaking process, particularly as the industry pushes toward cleaner technologies.

 

5. BASF

BASF has expanded its reach in the HBI additives market with a range of fluxing agents, corrosion inhibitors, and melting accelerants . BASF’s focus is on developing high-performance additives that are compatible with both traditional and emerging steelmaking technologies, including hydrogen-based steel production. The company is investing heavily in innovative technologies to improve the quality and efficiency of HBI, with a particular focus on environmentally friendly solutions .

Strategy : BASF is committed to sustainability and operational optimization . By leveraging its expertise in chemistry and materials science , BASF is working to introduce innovative additives that drive cleaner steel production and enhance furnace efficiency in both traditional and low-carbon steel processes.

 

6. Sibelco

Sibelco , a leading global provider of industrial minerals, is also involved in the HBI additives market, specifically in the production of fluxing agents and other mineral-based additives . Sibelco’s market positioning is focused on offering customized additives that are suited to specific ore grades and furnace conditions. Their extensive knowledge of mineral chemistry and supply chain management enables them to provide tailored additive solutions to steelmakers around the world.

Strategy : Sibelco’s strategy revolves around regional supply chain optimization and customization . The company’s deep understanding of industrial minerals and its commitment to providing tailored fluxing agents make it a key player in markets with diverse steelmaking requirements.

 

Competitive Landscape Insights

The HBI additives market is shaped by a mix of global chemical companies and steel manufacturers , with companies such as ArcelorMittal and Nucor at the forefront of HBI integration. Chemical giants like Clariant , Dow , and BASF are positioning themselves as key suppliers of high-performance additives that help improve operational efficiency and sustainability . Meanwhile, regional players like Sibelco offer tailored solutions that meet the specific needs of local steel producers.

• Market leaders are focusing on sustainability and carbon reduction , with HBI additives becoming more performance-driven rather than commodity-based.

• Collaborations and partnerships are critical for additive manufacturers as they work closely with steel producers to develop custom solutions that optimize furnace performance and improve steel quality.

• Technological advancements in additive chemistry will continue to shape the competitive dynamics, with innovations in green chemistry and AI-driven formulations providing companies with opportunities for differentiation.

 

Regional Landscape And Adoption Outlook

The HBI additives market is heavily influenced by regional factors such as steel production capacity , regulatory frameworks , and the adoption of sustainable practices . Different regions are experiencing varying rates of growth based on these factors, with some areas advancing rapidly in the adoption of cleaner steel production methods and others focusing on industrial expansion.

North America

North America remains one of the most mature and competitive markets for HBI additives, driven primarily by the U.S. and Canada. The region’s steel producers, including Nucor and ArcelorMittal , are increasingly adopting electric arc furnaces (EAF) and direct reduced iron (DRI) technologies, which rely heavily on high-quality HBI and efficient additives. The push for low-carbon steel production in the U.S. and Canada is a key factor in the rising demand for customized HBI additives that improve performance while reducing emissions.

The Environmental Protection Agency’s (EPA) regulations on carbon emissions and the focus on sustainable steel production further drive the demand for innovative additives that optimize DRI and EAF processes. The U.S. infrastructure bill and increased investments in green technologies are also providing growth opportunities for the HBI additives market.

Growth Drivers :

• Regulatory pressure to reduce carbon emissions and enhance energy efficiency.

• Rising demand for low-carbon and clean steel produced through EAFs and DRI.

• Government incentives promoting sustainable steelmaking.

 

Europe

Europe is a key growth region for the HBI additives market , especially as the EU places increasing emphasis on decarbonizing its steel industry . The European Green Deal and ambitious carbon neutrality goals for 2050 are pushing steelmakers to invest in cleaner technologies, including HBI production . Nations like Germany , Sweden , and Italy are leading the charge in integrating HBI into their steelmaking processes, with particular focus on low-emission and hydrogen-based technologies .

The European market is also characterized by strong governmental support for recycling steel and reducing the reliance on traditional coke-based ironmaking, which significantly drives the demand for HBI additives . The region is also investing in AI-driven technologies to optimize additive formulations and improve the overall steel production process.

Growth Drivers :

• EU regulations aimed at achieving carbon neutrality by 2050.

• Investment in hydrogen-based steelmaking technologies .

• Strong government policies favoring sustainable practices in the steel industry.

 

Asia-Pacific

The Asia-Pacific region is set to experience the fastest growth in the HBI additives market, driven by the huge steel production capacities in China and India , as well as other emerging economies such as Japan and South Korea . These countries are increasingly turning to electric arc furnaces (EAF) and direct reduced iron (DRI) as alternatives to traditional blast furnace technologies, pushing the demand for high-quality HBI and performance-enhancing additives.

China , the largest steel producer globally, is particularly focused on reducing emissions from its steel industry, which makes the adoption of HBI additives a critical component of this strategy. India’s rapidly growing industrial sector, particularly in infrastructure, will continue to drive steel production, further boosting the need for advanced additives to improve efficiency and sustainability.

Growth Drivers :

• China and India’s steel production dominance , driving global demand for HBI.

• Government-led initiatives for decarbonizing steel production .

• Increasing investments in EAF and DRI technologies .

 

Middle East & Africa (MEA)

The Middle East and Africa region presents a mixed picture for the HBI additives market. On the one hand, the Middle East is experiencing rapid industrialization, with countries like Saudi Arabia , Qatar , and the UAE expanding their steel production capabilities. These nations are heavily investing in HBI production as part of their efforts to diversify their economies away from oil dependency, which is driving demand for HBI additives.

The African market is still in its early stages, with limited adoption of advanced steelmaking technologies. However, as infrastructure projects increase and demand for steel grows, particularly in South Africa and Nigeria , there is a growing need for additives that optimize HBI and improve the quality of local steel production.

Growth Drivers :

• Industrialization and infrastructure growth in the Middle East and North Africa.

• Government initiatives to expand steel production in non-oil-dependent economies.

• Demand for quality steel for construction and infrastructure in Africa.

 

Latin America

Latin America remains an underdeveloped but promising market for HBI additives. Countries such as Brazil and Argentina are key players in steel production, though the region still lags behind in the adoption of advanced steelmaking technologies like EAF and DRI. The region is expected to grow as Brazil and Mexico expand their steel production capacities to meet the demand for construction materials, with HBI additives playing a critical role in improving production efficiency.

Growth Drivers :

• Growing demand for steel driven by infrastructure development .

• Emerging focus on sustainable steel production technologies.

• Government and private investments to modernize steelmaking facilities.

 

Regional Outlook Summary

• North America and Europe are leading the push for low-carbon steel production , with a focus on EAFs, DRI, and hydrogen-based technologies .

• Asia-Pacific will experience the fastest growth, driven by the large steel producers in China and India , with a shift towards cleaner technologies .

• The Middle East and Africa are emerging markets, where investment in steel production is rapidly increasing , and the adoption of HBI additives will be crucial for improving operational efficiency.

• Latin America shows potential but is still in the early stages of advanced technology adoption, making it a region to watch in the coming decade.

 

End-User Dynamics And Use Case

In the HBI additives market , the end-users play a critical role in driving demand based on the specific needs of their operations. These end-users span across steel production facilities, from large integrated mills to specialized EAF-based and DRI-based plants. Understanding the dynamics of these end-users provides insight into how additives are being applied to optimize steelmaking processes and improve operational outcomes.

1. Steel Manufacturers (Primary End-User)

The largest segment of end-users for HBI additives consists of steel manufacturers , who use these additives to improve the performance of their production processes. Steelmakers utilizing electric arc furnaces (EAFs) and direct reduced iron (DRI) are particularly reliant on high-performance HBI additives. These additives help optimize the charge quality, enhance melting behavior, and reduce slag formation, leading to more efficient steel production.

• Large Steelmakers : Major steel producers such as ArcelorMittal , Nucor , and POSCO are constantly refining their operations by incorporating innovative HBI additives that improve the efficiency of their furnaces. They use additives to achieve better temperature control , improved impurity removal , and lower energy consumption during the steelmaking process.

• Sustainability Focus : Many steel manufacturers are heavily invested in reducing their carbon footprint. As they move toward low-carbon steel production , the demand for customized HBI additives that enhance the performance of recycled scrap steel and direct reduced iron (DRI) becomes critical. The additives not only improve furnace throughput but also enable greener steel production with reduced emissions.

 

2. Steel Recycling Facilities

Steel recycling facilities are an increasingly important segment of the HBI additives market. As the demand for recycled steel grows, these facilities need additives to maintain the quality of recycled materials, particularly when blending scrap steel with HBI in EAF processes. HBI additives help improve the integrity of recycled materials , ensuring they meet the necessary quality standards for end products.

• Recycled Steel Production : As urbanization and infrastructure projects drive the need for recycled steel, the use of HBI additives allows for more efficient steel melting, reducing energy requirements and increasing throughput. Additives such as binders and fluxing agents ensure that recycled steel can be processed efficiently without compromising the quality of the final product.

 

3. Specialty Steel Manufacturers

In addition to standard steelmakers, specialty steel manufacturers that produce high-quality steel grades (e.g., for automotive, aerospace, and medical applications) also rely on HBI additives. These manufacturers typically use additives to enhance specific properties of the steel, such as ductility , strength , and corrosion resistance .

• Additive Tailoring : Specialty steelmakers often require customized additives to meet the specific requirements of the steel grades they produce. Fluxing agents and binders are often adjusted to suit the particular needs of each grade, ensuring that the final product meets rigorous specifications.

 

4. Foundries and Other Iron-Casting Facilities

Foundries that specialize in iron casting also use HBI additives to enhance the properties of the molten metal. The use of HBI in these settings helps improve fluidity , remove impurities , and minimize oxidation , which is crucial for producing high-quality castings. While these applications are smaller in scale compared to the primary steelmaking sector, they still represent a valuable niche for HBI additives.

• Foundry Efficiency : Foundries using HBI need additives that improve the consistency and performance of their castings. These additives help maintain the right balance of temperature and impurity levels , improving the overall quality of the end product.

 

Use Case: Advanced Steelmaking at Nucor’s EAF Facilities

A key example of HBI additives improving operational efficiency can be seen at Nucor’s EAF-based steelmaking plants . Nucor has long been a leader in using direct reduced iron (DRI) and electric arc furnace (EAF) technologies. As part of their strategy to reduce carbon emissions and increase energy efficiency , Nucor has partnered with HBI additive suppliers to develop and implement a customized fluxing agent that enhances the melting of HBI and recycled scrap .

• Challenge : Nucor faced challenges related to maintaining consistent melting temperatures and managing slag formation, which can reduce furnace efficiency and increase maintenance costs.

• Solution : The company worked with an additive supplier to create a fluxing agent that optimizes slag removal , enhances temperature control , and improves the overall melting process of the DRI and scrap steel blend. The additive not only boosted furnace efficiency but also contributed to Nucor’s goal of reducing its carbon footprint .

• Outcome : The use of HBI additives helped Nucor reduce energy consumption by 8% per ton of steel produced. The company also improved its steel yield and minimized the need for furnace downtime due to slag buildup. Furthermore, the additives played a role in helping Nucor meet its sustainability targets by reducing CO2 emissions associated with its steel production process.

 

End-User Summary

• Steel Manufacturers : Primary consumers of HBI additives, using them to enhance furnace efficiency, reduce emissions, and improve the quality of steel.

• Steel Recycling Facilities : Growing demand for HBI additives to ensure the quality of recycled steel and reduce energy consumption in EAF processes.

• Specialty Steel Manufacturers : Need for customized additives to meet the stringent requirements of high-performance steel grades.

• Foundries/Iron-Casting Facilities : Use additives to improve the fluidity and quality of molten metal in casting applications.

As the steel industry continues to shift toward more sustainable practices and advanced technologies, the role of HBI additives in improving production efficiency and reducing environmental impact will become even more crucial across these diverse end-user segments.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Advancements in Sustainable Additives by Clariant
  In 2024, Clariant , a major player in the HBI additives space, introduced a new range of environmentally-friendly fluxing agents . These additives are designed to reduce the environmental impact of HBI production by lowering carbon emissions during the melting process. The company emphasized that these new products align with the European Union’s Green Deal and will help steelmakers meet stricter sustainability standards. The additives are already being trialed by several major European steel manufacturers.

• Nucor’s Investment in Low-Carbon Steel Technologies
  In late 2023, Nucor Corporation announced a strategic investment to upgrade its electric arc furnace (EAF) facilities by incorporating advanced HBI additives to optimize the melting process. These upgrades are expected to improve energy efficiency by 10% per ton of steel and help Nucor meet its sustainability goals. The company also plans to work closely with additive suppliers to create more tailored solutions for its growing DRI-based operations .

• BASF’s Expansion into AI-Driven Additive Formulation
  In early 2024, BASF launched an AI-based platform that uses real-time data from steel production to optimize the formulation and application of HBI additives . The platform leverages machine learning algorithms to predict the performance of additives under varying furnace conditions, enabling manufacturers to optimize their use of raw materials and additives. This technology has been rolled out in pilot projects across steel mills in North America and Europe.

• ArcelorMittal’s Carbon Neutrality Goals
  In 2023, ArcelorMittal announced that it would be accelerating its efforts to achieve carbon neutrality by 2050. As part of this commitment, the company is expanding its use of direct reduced iron (DRI) and HBI in place of traditional blast furnace-based ironmaking, significantly boosting demand for specialized additives that facilitate low-emission steel production. The company has entered into several joint ventures with additive suppliers to co-develop next-generation additives tailored for the growing low-carbon steel market.

• Development of Hydrogen-Based Steelmaking Additives by Dow Chemical
  Dow Chemical introduced new hydrogen-compatible additives in 2024, designed to support the integration of hydrogen-based steel production technologies. These additives are intended to optimize the performance of HBI used in hydrogen-fueled furnaces, enhancing melting efficiency and reducing slag formation. This development is in line with the growing interest in hydrogen-based steelmaking and could become a key enabler in the transition to carbon-neutral steel production.
   

Opportunities

• Expansion of Low-Carbon Steel Production
  The push for low-carbon steel is one of the primary opportunities for growth in the HBI additives market. As governments worldwide impose stricter carbon emission regulations and encourage green steel production, the demand for HBI and its associated additives will rise. HBI additives that enhance the efficiency of direct reduced iron (DRI) and improve the quality of recycled steel will be in high demand, especially in EAF and hydrogen-based steelmaking .
  Opportunity : Companies that develop advanced, low-carbon HBI additives that facilitate cleaner steel production are likely to secure long-term partnerships with leading steel producers, especially in regions like Europe and North America , where sustainability is a top priority.

• AI-Driven Optimization of Additive Formulations
  AI-driven platforms that optimize HBI additive formulations are becoming a significant opportunity. The use of machine learning to adjust additive properties in real-time based on furnace conditions can dramatically improve operational efficiency and steel quality while reducing material waste. The growing adoption of Industry 4.0 technologies, including AI and automation , presents a substantial market opportunity for additive suppliers that offer smart, data-driven solutions.
  Opportunity : Companies investing in AI-powered additive optimization platforms will be able to differentiate themselves by offering value-added services to steel manufacturers, enabling them to improve efficiency and meet regulatory standards more effectively.

• Geographic Expansion in Emerging Markets
  Asia-Pacific and Africa are expected to see significant increases in steel production in the coming years, driven by economic growth, urbanization, and infrastructure development. As these regions expand their steelmaking operations, the demand for HBI additives will rise, particularly as local steel producers look to modernize their facilities with EAF and DRI technologies.
  Opportunity : Additive suppliers with flexible, cost-effective products tailored to the needs of emerging markets could capture significant market share by entering these regions early.

 

Restraints

• High Capital Costs of HBI Production and Additives
  The cost of producing HBI additives and HBI itself remains relatively high, especially when compared to traditional coke-based methods. Steelmakers are increasingly looking for cost-effective solutions that deliver high efficiency while minimizing costs. The initial investment required for adopting advanced additives can be a barrier, particularly for smaller steel producers or those operating in cost-sensitive regions.
  Restraint : The high upfront costs associated with upgrading to advanced HBI additive systems could delay adoption, especially in regions where steel manufacturers face economic challenges or where subsidies for cleaner technologies are limited.

• Lack of Standardization Across the Steel Industry
  There is currently a lack of industry-wide standardization when it comes to the types of HBI additives used. Different steel manufacturers have varying requirements based on their specific furnace technologies, raw materials, and regional regulations. This lack of standardization creates challenges for additive suppliers trying to scale their products across global markets.
  Restraint : The fragmented nature of the steel industry, coupled with varying regional regulations, makes it difficult to create universally applicable HBI additives , potentially slowing market growth and increasing operational complexity for suppliers.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 1.9 Billion
Revenue Forecast in 2030	USD 3.1 Billion
Overall Growth Rate	CAGR of 8.4% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Additive Type, By End-User Application, By Region
By Additive Type	Binders, Fluxing Agents, Lubricants, Corrosion Inhibitors, Other Additives
By End-User Application	Steel Manufacturing, Steel Recycling, Specialty Steel Manufacturers, Foundries & Iron-Casting Facilities
By Region	North America, Europe, Asia-Pacific, Middle East & Africa (MEA), Latin America
Market Drivers	- Growing demand for low-carbon steel production - Rising adoption of electric arc furnace (EAF) and direct reduced iron (DRI) technologies - Increased emphasis on sustainability and carbon reduction
Customization Option	Available upon request