Steel Products Prices North America

Cargill Invests in New Ukraine Iron Ore Plant
Written by Sandy Williams
May 11, 2021
Cargill Metals and Canadian mining company Black Iron are teaming up to create a new iron ore plant in the Ukraine. The May 10 agreement gives Cargill offtake rights to the first 4 million metric tons of ore produced per year for the next 10 years along with profit sharing. On the profit share, Black Iron will receive 100% of the 65% iron content fines benchmark price, currently ~$230 per MT, and share with Cargill a portion of the incremental sale price of its higher iron content and low impurity magnetite product. In return, Cargill will provide financing of $75 million for the plant, which will produce 68% iron content magnetite pellets.
The higher iron content is expected to reduce steel-producing emissions by approximately 30% and put the proposed Ukraine plant among the top 4% of global production by iron content.
Black Iron’s CEO Matt Simpson stated: “Black Iron received several offtake and investment proposals and chose Cargill based on its proposal striking the optimal balance of investment quantum, structure and shared vision on the increasing demand for high-grade ore as the global ferrous industry is shifting to become greener.”
“We are very pleased to help finance Black Iron’s Shymanivske Project,” said Lee Kirk, Managing Director of Cargill Metals. “A relationship with Black Iron would be an excellent fit with Cargill Metals’ growth strategy to develop a high-grade and CO2-reducing iron ore portfolio to help customers navigate the environmental and carbon challenges and opportunities ahead, and to support the sustainability efforts and low carbon ambitions of the ferrous industry.”
Iron ore prices are at record highs due to strong global steel demand driven by a surge in infrastructure building to boost economies weakened by the pandemic. The Shymanivske iron ore pellets are expected to attract a premium price in a variety of markets.
Final details for the project and financing agreement are in progress. The Shymanivske project in Kryviy Rih, Ukraine, is surrounded by five other operating mines, including ArcelorMittal’s iron ore complex.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products Prices North America

CRU: Q3 will be the lowest point in current sheet price cycle
CRU Principal Analyst Shankhadeep Mukherjee expects a restocking cycle for steel sheet products in most parts of the world due to either low inventories or seasonally stronger demand.

CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.

SMU Price Ranges: Sheet and plate steady ahead of Independence Day
Sheet and plate prices were little changed in the shortened week ahead of Independence Day, according to SMU’s latest check of the market.

Nucor maintains plate prices, opens August order book
Nucor aims to keep plate prices flat again with the opening of its August order book.

Nucor CSP remains level at $900/ton
Nucor maintained its weekly list price for hot-rolled (HR) coil this week, following two consecutive increases.