UAE: Emirates Steel Signs Four Year Pellet Supply Deal with Vale
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Middle East based integrated steel plant - Emirates Steel has signed a four year pellet deal with world's largest iron ore producer Vale. The deal is for supply of iron ore pellet for Emirates Steel plant in Abu Dhabi from 2018-2021. Emirates Steel has iron ore pellet requirement of around 6 MnT per annum.
The agreement with world's leading producer of iron ore and pellet, Vale(with pellet plant in Brazil and Oman) is expected to support the pellet demand of Emirates Steel.
Al Remeithi, CEO Emirates Steel said: "The agreement with Vale comes in line with our company's strategy, which aims to secure flexible source of iron ore at competitive, stable and long term prices."
Emirates Steel is one of the leading steel manufacturers in the Middle East region with the capacity to produce 3.5 million tons of rebar, wire rod and heavy sections.
Besides, Vale has increased its pellet production through ramp-up at Tubarao I and II pellet plant, along with restart at Tubarao IV and Sao Luis pellet plant in Q3 CY18.
UAE imports surge 32% in CY17:
UAE imports in CY17 stood at 3.72 MnT, up 32% against 2.82 MnT in CY16. For Jan-Sep'18, Bahrain stood largest exporter of pellet to UAE at 1.08 MnT followed by Brazil at 0.81 MnT. UAE imports from Bahrain, Brazil and Russia has depicted increase Y-o-Y.
UAE Pellet Imports
| Countries | CY'16 | CY'17 |
| Bahrain | 646,895 | 1,393,940 |
| Brazil | 410,259 | 1,018,442 |
| Sweden | 1,142,005 | 1,004,110 |
| Russia | 50,739 | 131,958 |
| South Africa | - | - |
| Canada | 566,331 | 170,115 |
| Grand Total | 2,816,229 | 3,718,566 |
Quantity in MT
Source: SteelMint Stats
