Steel mills in the Middle East and North Africa (Mena) region are using alternative DRI feedstock such as [lower iron content] blast furnace-grade (BF) pellet and lump iron ore amid the continued supply shortage of DR-grade pellet in the global market, market participants said.
Mining disasters, worker strikes and logistical problems have all hit DR-grade pellet producers in recent years.
The direct reduction process is a unique method of iron making that requires iron ore pellet with a higher iron content.
The monthly Fastmarkets 67.5% Fe DR-grade iron ore pellet premium assessment, which reflects the relative rarity of high-grade feedstock as well as processing costs, was at $68 per dry metric tonne (dmt) on May 31, compared with $67 per dmt a month earlier.
“We are trying to maintain yield but also keep costs down with a mix of prime and moderate quality DRI feedstock,” Tarun Goyal, head of raw materials at Oman DRI-based...