Natural gas prices to impact DRI profitability

Sep 11, 2013 | 05:11 PM | Daniel Fitzgerald

Tags  DRI, direct-reduced iron, ArcelorMittal, Sujit Sanyal, steelmaking, AMM DRI & Mini-mills Conference, Daniel Fitzgerald

NEW ORLEANS — The profitability of direct-reduced iron (DRI) in steelmaking will be affected more by natural gas prices than iron ore prices, according to ArcelorMittal SA.

DRI has the potential to be 20-percent cheaper than using pig iron for steelmakers, ArcelorMittal Montreal vice president of operations Sujit Sanyal told delegates at AMM’s DRI & Mini-mills Conference in New Orleans. However, stability in energy costs will be needed to make DRI production sustainable over the long term, even though natural gas accounts for roughly 20 percent of DRI....

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