The need for flexible sourcing of direct-reduced iron (DRI) production feedstock will continue over the next three to five years, market participants said at Fastmarkets' 7th World DRI and Pellet Congress in Dubai this week.
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...