Does the iron ore market feel the need - the need for pellet feed?
Seaborne trade in pellet feed is a small but relatively fast growing segment of the iron ore market. Vale is the world's largest supplier of seaborne pellet feed but over the next five years its dominance will be challenged by Anglo American's Minas Rio and CITIC's Sino Iron. Seaborne pellet feed will have to be priced competitively in order to displace other forms of iron units in the consumption mix. We estimate that a $5/t premium over 65% Fe fines is appropriate over the medium term.
Table of contents
Seaborne supply - a potential growth sub-set of the iron ore market
Chinese demand – the worst is over for pellet feed
Middle East – struggling to realise demand potential
Anglo American (Minas Rio)
CITIC (Sino Iron)
Ansteel (Karara Mining)
Russian and Ukrainian suppliers
How is it priced?
Tables and charts
This report includes 10 images and tables including:
Chart 1: global exports of iron ore (tonnes)
Chart 2: global exports of iron ore (share)
Chart 3: pellet feed exports by country
Chart 4: pellet feed exports by company
Destination of Minas Rio material for the life of mine. Source: Reuters trade flow
Does the iron ore market feel the need - the need for pellet feed?: Table 1