The shift to green steel is driving demand for low carbon metallics. As a result, interest in the DR pellets value chain has soared. DR pellets are an essential input for producing direct reduced iron (DRI), which is a highly pure form of iron, and is often used as a feedstock along with steel scrap to produce steel in the electric arc furnace (EAF). DR pellet has a typical Fe content above 66%, higher than typical of blast furnace (BF) pellets.

AME forecasts the iron ore 62% price to average US$120/t in the September Quarter of 2022. It is estimated that low crude steel output from China during the second half of 2022 will diminish the iron ore prices.

AME is modelling a slightly quieter resources pricing environment as actual commercial risk, and importantly, the permanent perception of risk is fast changing due to a plethora of structural changes.

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