US steelmaker Nucor has inked a five-year deal with Brazilian iron ore and pellet producer Samarco for the supply of direct reduced iron ore pellets.
Accordingly, the deal between the two companies will start when Samarco’s third pelletizing plant resumes production in January 2025. With the help of the new plant, the Brazilian producer will be able to ramp up its pellet production to 16.5 million per year from 9 million mt per year.
Nucor aims to reduce its greenhouse gas emissions, including Scopes 1, 2 and 3, to zero by 2050.
According to Samarco president Rodrigo Vilela, the demand for direct reduced pellet is on the rise since global decarbonization efforts have been accelerated and several industries are looking for cleaner inputs for their production.
