DR pellet market unstable after Vale’s accident, premium increase

The global market for direct reduced (DR) grade pellets continues to suffer from a shortage after being aggravated by Vale’s dam collapse in late January, which has pushed the DR pellet premium up further, Fastmarkets has learned.

“Vale’s bottleneck is in the supply of its high-quality pellet feed not in its pelletizing capacity, that is why the pellet market especially for the DR-[grade] is not stable,” one buyer told Fastmarkets. The DR-pellet premium price increased to around $68 per tonne in the annual contracts signed after Vale’s accident on January 25, while the basis for DR-pellet pricing moved to a 65% Fe iron ore index from a 62% Fe iron ore index....

Published

Marina Shulga

April 02, 2019

13:12 GMT

London