DRI, pellet cost rise, scrap fall sets up margin tensions

摘要

London—Higher iron ore prices and pellet premiums have been lifting global direct reduction iron (DRI) costs since January, stoking concerns on margins amid a drop in ferrous scrap prices from a peak in early January. The cost trend may set up changing preferences in steel and raw material trade, as surging Atlantic hot-rolled coil steel prices support metallics, according to a Feb. 10 analysis by S&P Global Platts. The rise in DR pellet premiums for the first quarter, assessed at $46.25/dmt in February from a $24.50/dmt average in the fourth quarter, based on Platts assessments, has pushed up DRI costs as benchmark Turkey HMS 80:20 scrap prices have fallen 20% since January.