Iron ore pellet deal between Qasco and LKAB
According to recent market reports, last week
Qatar Steel Company (Qasco) signed a long term contract with Swedish supplier, Luossovaara-Kiirunavaara AB (LKAB) for purchase of 3.5 million tons of
iron ore pellet until 2010.
Currently, there is a strong steel demand both from local and other Gulf Cooperation Countries (GCC), which is expected to continue at least for the next 10 years in line with property and major infrastructure projects of the countries in the area. Qasco, aiming to supply the demand in the area, plans to secure its requirements for its expansion plans through this contract.
As reported by SteelOrbis early this year, Qasco is planning to bring its annual iron
production capacity from 800'000 tons up to 4 million tons in 10 years. In the first stage, 1.5 million tons of iron is expected to be added to the current annual capacity till 2006.