The Middle East and North Africa (MENA) region is expected to face a significant raw material shortage as (DRI) projects expand rapidly.
Over the next two to three years, DRI/HBI production capacity in the region (excluding Iran) is projected to rise by 21–23 million tons, reaching around 55 million tons annually, up from the current 33 million tons. This growth will increase the region’s demand for high quality pellets to an estimated 85–90 million tons.
According to reports, MENA will soon require an additional 30–40 million tons of pellets, highlighting a major supply gap that will need to be filled through higher domestic production and substantial imports.
Experts note that despite global capacity expansions, the global pellet market is likely to remain tight until 2030. While the region has a strong opportunity to lead global efforts in steel decarbonization and green steel development, challenges related to high quality raw material supply, logistics, and water resources continue to pose significant constraints.
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