NAIS 2019: Egypt to face short-term shortage of DR pellet

Egypt, the largest consumer of direct reduced (DR) grade pellets in North Africa, may face a short-term pellet shortage as a result of Vale’s production cuts, Fastmarkets heard at the North Africa Iron & Steel Summit in Cairo on April 16-17.

“There will be a challenge in the next few months to secure DR pellets [a feedstock for direct-reduced iron making] as a knock-on effect of Vale’s accident,” one steel producer, who uses pellet as a raw material said. “It will be difficult to compensate the shortage [of DR pellets] from other suppliers, even [from those who have pellets] of low quality.” In 2019, Vale’s Brazil operations - the world’s biggest iron ore producer – expects iron ore and pellets sales to reduce to 307-332 million tonnes per year,...

Published

Marina Shulga

April 23, 2019

10:15 GMT

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