Brazilian mining giant Vale S.A. (Vale) has announced that it has concluded direct reduction (DR) pellet price negotiations for 2009 with Trinidad-based DR iron producer Nu-Iron Unlimited, a unit of US-based steelmaker Nucor.
As an outcome of these negotiations, the DR pellet price decreased by 48.3 percent compared to the 2008 benchmark prices. Therefore, Vale's new reference price per dry metric ton Fe unit for 2009 is US$1.2523 for DR pellets.
The price cut in question is in line with the agreement reached by Vale this month with Japanese and South Korean steelmakers.
In September 2004, Nucor acquired the assets of an idled DR iron plant located in Louisana and subsequently moved these assets to Trinidad. In January 2007, Nucor announced the successful startup of Nu-Iron Unlimited.
The Trinidad site benefits from a low cost supply of natural gas and favorable logistics for receipt of Brazilian iron ore and for shipment of DRI to the US.