DR pellet under pressure from falling steel prices; contracts may move to quarterly basis next year

The direct-reduced (DR) iron pellet market has remained under pressure over the past month amid falling steel prices and oversupply, with several sources reporting that the market may move to quarterly-basis contracts next year to mitigate risks.

Fastmarkets cut its iron ore DR-grade pellet premium, Middle East reference, to $39 per tonne on Thursday October 31, from $41 per tonne on September 30. Fastmarkets’ index for iron ore 65% Fe, Brazil-origin fines, cfr Qingdao, which is used as the basis for pellet premium contracts, averaged $97.13 per tonne in October, down from $99.84 per tonne in September. “The DR pellet market is under...

Published

Marina Shulga

November 01, 2019

11:45 GMT

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