Higher demand for iron pellets explained Iron pellets for dummies
New Data On Reducing Steel Emissions Shows Opportunity For Iron Ore Pellets
according to this article we are well positioned .
electric arc furnace is our competitor
Electric arc furnace (EAF) technology is recognized as a more sustainable alternative to traditional blast furnace-basic oxygen furnace (BF-BOF) technology. This steelmaking method has historically relied on steel scrap as a primary feed, but as the scrap market tightens, producers are turning increasingly to direct-reduced iron (DRI) as an alternate feed. And as DRI production relies significantly on pellets as a feed, this will further increase the demand for pellets.
In fact, Wood Mackenzie stated that in order to reduce emissions from the sector by the required 75% (to meet a 2-degree scenario), DRI production would need to triple:
“Steel’s potential extreme decarbonisation in a 2°C scenario would mean tripling DRI production. This presents a huge opportunity for suppliers of premium iron ore,” said Rohan Kendall, head of iron ore research. “Although the rise in scrap consumption would lead to total iron ore demand falling by 24% below our base case, the market for pellet products would expand by 35%.”
This increased demand for pellets has already created a bottleneck in the market.
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