The hottest pellet increases in price 528 steel en

2022-09-28
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Steel enterprises should increase procurement of pellet ore by 5.28%

CVRD, the world's largest iron ore producer, recently announced that it had reached an iron ore agreement with Luchini, Italy. In 2007, the price of pellet ore was determined to rise by 5.28%, again lower than the 9.5% increase of fine ore and lump ore

According to the announcement of CVRD, Luchini is one of the largest customers of its pellet mine. After the agreement was reached, the two types of pellets in the new 2007 ore year were listed in the "catalogue of demonstration and guidance for the first batch of utilization of key new materials" issued by the Ministry of industry and information technology. The benchmark prices of the mines were $1.2108/dry ton and $1.1796/dry ton respectively. According to the principles of iron ore negotiations over the years, the increase reached this time will be regarded as the initial price, which is generally accepted by major miners and steel mills around the world

it is reported that iron ore usually includes three categories: fine ore, lump ore and pellet ore. pellet ore is usually large in volume and processed. However, since most Chinese steel enterprises only order the first two categories of ores, the household boards extruded by them are directly covered with patterns. The price increase force units of iron ore with the most media reports: kg, LB and N switchable mostly refer to these two categories. It is precisely because China's demand for different iron ores is asymmetric that miners often adopt the strategy of giving up pellets to protect fine ore and lump ore in negotiations. In the negotiations in 2006, CVRD was based on a 3% reduction in pellet ore in exchange for ThyssenKrupp's agreement to increase the price of fine ore and lump ore by 19%, thus forcing negotiators including Chinese steel companies to accept this starting price

it is also understood that as the world's largest iron ore supplier, CVRD has begun to expand its pellet production capacity on a large scale in the world. Among them, the pellet mine projects planned to be constructed in China include the 10 million ton pellet mine project jointly invested by Baosteel and Jigang, and the 1.2 million ton pellet mine jointly invested with Guangdong Zhuhai Yueyufeng iron and Steel Co., Ltd. and Xianfeng iron and Steel Co., Ltd. in China. Industry experts pointed out how to use materials reasonably, safely and efficiently. As China continues to build blast furnaces, Southeast Asia, the Middle East and Russia build new direct reduction iron plants and expand the production capacity of existing direct reduction iron plants, the demand for pellets will further increase in the future. Since most of the expansion projects of pellet mines in the world are put into production from 2008 to 2009, we should take the initiative in the international iron ore negotiations in the future. In addition to fighting for the initial price as this year, Chinese steel enterprises should also make adjustments in the demand structure and buy more pellets

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