Bahrain Steel Signs 20 Year Pellet Feed Supply Deal with Anglo American

Bahrain Steel - wholly owned company of Foulath Holding, has recently signed a 20 year agreement with Anglo American Marketing Limited for pellet feed supply for its plant in Hidd region with a total of 8 Mtpa . The contract provides for iron ore grade supplied at minimum of 67% Fe with less than 2% impurities. The agreement is expected to fulfill about 60% of total pellet feed required by the Company for the year and is expected to maintain full production capacity of 12 Mtpa.

The pellet sourcing by the company has already been initiated from Anglo American's Minas-Rio mine. Bahrain Steel has two pelletizing plants with total capacity of 12 MnT p.a. and it is the third largest pellet producing plant in the world.

As per reports, demand for iron ore pellet is increasing majorly in Mena region with expected demand to reach 46 MnT by 2027. The contract will be a step ahead for the company to deliver quality product customers in the Mena region and beyond, relying on Bahrain Steel for their supply of DR pellets.

Towards early Apr19, Bahrain Steel unveiled its plans to double its pellet production over the next 10 years. The company commemorated its 30 years of production since its inception in 1989. Last year in 2018, the company has achieved the landmark production and passed the milestone of having produced 100 MnT of pellets since its inception.

The company has been slowly ramping up its capacity in the last few years. From the initial 5.5 MnT output, Bahrain Steel produced 8 MnT of pellets in 2018, gaining a 26% market share in the GCC and an enviable record for quality output. In the current year, it plans to utilize its full installed capacity of 12 MnT.

Out of the total production, Bahrain Steel supplies 20% to its subsidiary company Sulb. The rest is supplied to steelmakers throughout the world but the key focus is the GCC market which has an estimated demand of 22 MnT.

The company, which claims to have a 26% market share of the GCC market, is looking to capturing new markets in the GCC and North Africa.

Bahrain Steel expansion plan in upcoming months-:

Bahrain Steel under its expansion plan is looking to target North Africa market as there are new plants coming up the region. The company is currently in negotiations with a new plant coming up in Algeria. In Egypt, company has already supplied to Ezz Dekheila Steel Company Alexandria (EZDK).

Bahrain Steel is looking to expand its stockyard capacity to support its increased production.

~Sourced