DR PELLET: Shortages to persist in 2019, with no material for spot trade

It is unlikely that there will be any spot-market activity in 2019 for direct-reduction (DR) grade iron ore pellets, according to Saudi Arabian steelmaker Rajhi Steel.

“From a short-term perspective, we do not expect that the DR pellet spot market will appear, unless some buyers cancel long-term agreements unexpectedly,” Saad Thani Alruily, the company’s supply chain manager, told Fastmarkets on Thursday November 8. Fastmarkets estimated that the total volume of DR pellet traded in 2018 will be around 40 million tonnes, while market sources said that the spot market was almost non-existent. Researchers at Fastmarkets have estimated the global output of DR pellet in 2017 at around 35 million tonnes. Vale, the world’s largest supplier of DR pellet, has sold nothing on the spot market in 2018, with all its tonnages this year under contract, Alruily said. “Spot shipments may appear gradually only after Samarco comes back to full operation,” he added. Brazilian iron ore...


Marina Shulga

November 08, 2018

18:50 GMT