Swedish-based iron ore producer LKAB has announced that it will supply pellets to Austrian steelmaker voestalpine's new direct reduction plant near Corpus Christi, Texas, US, thereby taking its next step into the North American market.
"This is a further step in our strategy to broaden our customer base and gain wider global coverage for our pellet products," stated Lars-Eric Aaro, president and CEO of LKAB.
LKAB's high-tech, climate-smart pellets are specially adapted for steelmaking via the direct reduction process. The direct reduction route utilizes natural gas, which reduces carbon dioxide emissions. The relatively low US gas price is boosting profitability and investment in a growing American steel market.