Iran, Qatar Could Grow Positions in DR-Grade Pellet Market
11/05/2024 - The demand for direct reduction (DR)-grade pellets is only set to grow and could potentially account for 40% to 50% of the seaborne market, said Tarraco Commodities Solutions chief executive officer Gilberto Cardoso.
Presenting during an AIST European Steel Forum panel discussion on Tuesday, Cardoso said the winners in the new landscape will be regions such as the Middle East and North Africa, which have access to cheap natural gas and growing hydrogen production capabilities. Given that, he said, major exporters of DR-grade pellets, such as Iran and Qatar, will likely play an increasingly important role in the global market, providing critical supplies to Europe and Asia.
Also among the winners, he said, will be companies in countries with secure access to high-grade iron ore, such as in Brazil and Canada.
The losers, he said, are likely to be traditional blast furnace operators that fail to adapt to new technologies, as rising carbon costs make them less competitive.
Organized by the AIST European Member Chapter, the AIST European Steel Forum continues through tomorrow. Be sure to check AIST Steel News for updates.
Also among the winners, he said, will be companies in countries with secure access to high-grade iron ore, such as in Brazil and Canada.
The losers, he said, are likely to be traditional blast furnace operators that fail to adapt to new technologies, as rising carbon costs make them less competitive.
Organized by the AIST European Member Chapter, the AIST European Steel Forum continues through tomorrow. Be sure to check AIST Steel News for updates.
