Direct reduced/hot-briquetted iron trade is likely to increase further in 2018, with recently-commissioned HBI plants ramping up production in the US and Russia, according to Midrex. However, Iran has banned the export of DRI in favour of domestic use after these exports soared in 2017.

Russia continued to be the world’s largest merchant DRI/HBI supplier in 2017 with shipments of 3.3 million tonnes, while the US became a merchant supplier for the first time. Following Russia in second place was Trinidad and Tobago, represented entirely by Nu-Iron, as the ArcelorMittal plants at Point Lisas remained idle. Venezuela, historically one of the leading suppliers of HBI, managed to ship only 1.2mt in 2017.

The US, Italy and Turkey were the largest customers for DRI products, importing around 40% of international trade last year.

Global DRI/HBI production grew by 20% on-year in 2017 to an annual record 87.1mt, despite continued output disruptions at major producer Venezuela, Midrex says in a report sent to Kallanish.

The growth was due mainly to new DRI plants in Iran, as well as Metalloinvest’s new HBI plant in Russia and Voestalpine’s new US HBI unit. Iranian output surged 28% last year to 20.55mt, while Russian output grew 23% to 6.99mt and US production rose 65% to 2.99mt.

Multi-year-low imported LNG prices boosted DRI output in India by 21% in 2017 to 22.34mt, meaning it retained its position as the world’s top DRI producer. Improved gas supply and steel demand in Egypt helped increase the country’s DRI output 66% to 4.67mt. However, the country’s DRI capacity remains underutilised.

In Venezuela dire economic conditions continued to subdue DRI output. Although this production rose 6% to 1.68mt in 2017, this was still down from 7.71mt in 2007.

Future major DRI capacity additions include the 1.6m t/year Cleveland-Cliffs HBI plant due for commissioning in 2020 in Ohio, USA. In Algeria, Tosyali Algeria and Algerian Qatari Steel are each on course to launch 2.5m t/y DRI plants in 2018 and 2019 respectively.

In regional terms the Middle East and North Africa remained the largest DRI producer, raising production 19% in 2017 to 40.53mt. This was followed by Asia and Oceania with a 19% increase to 22.91mt and Latin America with a 14% hike to 10.51mt.