DR pellet capacity tight, alternatives eyed

摘要

London—The lack of growth in iron ore pellet capacity for low impurity, direct reduction (DR) pellets may continue to press up on metallics costs and narrow steel margins, feeding demand for alternative iron ores. Plants are routinely using high grade BF pellets, capitalizing on falling demand at BFs for pellets in the second half of 2019 and lower spot prices than under contract terms, according to several iron ore buyers for DRI plants.