[SMM Express] Demand for DR pellets in MENA is likely to reach 85-90 million tonnes in future

Published: Nov 26, 2025 11:10

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With the growth of direct reduced iron (DRI) production and planned projects, the MENA region will need more high-quality DR pellets in the near future. This was discussed at the Middle East Iron and Steel Conference (MEIS) held last week

Direct reduction capacity in MENA (excluding Iran) is expected to grow by 21-23 million tons over the next 2-3 years, provided that all major projects are launched on time.

As a result, demand for DR pellets in the region is likely to reach 85-90 million tons. This signals an expected supply shortage in the market for this product in the near term and the fact that both local production and imports will be needed.

To meet the additional demand of 30-40 million tons, global suppliers are working to increase capacity. For example, Brazilian mining company Samarco plans to reach a production volume of 26 million tons of pellets in 2028, compared to 15-16 million tons in 2025.

Despite the favorable environment, pellet producers face many challenges, the main one being the type and quality of iron ore. High-quality raw material resources are depleted, so enrichment is extremely important. Other problems include logistics, licensing, and water supply.

It is expected that part of the demand in the MENA region will be met by local producers. However, the DR-pellet market will remain in deficit until 2030, and most of the product is likely to come from existing producers such as Vale.

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