Japanese owner Mitsui Osk Lines (MOL) is joining forces with Cyprus-based dry bulk specialist shipping SMT to jointly explore options for the shipping of direct reduced iron (DRI).
Interest in DRI produced by reducing iron ore with natural gas or hydrogen is growing as the steel sector increases attempts to reduce CO2 emissions.
Mol, which has been delivering iron ore to steel industries for many years, said that shipping DRI requires specialized skills and care to avoid overheating and that SMT, with a fleet of over 65 vessels involved in the shipping and transshipment of dry bulk cargo, is a world leader in this field.
SMT has delivered transshipment solutions in an iron ore export operation in Sierra Leone since 2021 and an iron ore import in Trinidad since 2018.
The two companies have signed a memorandum of understanding under which Mol committed to reinforce DRI transportation capacity to address the growing demand with the necessary safety measures in collaboration with SMT shipping.
“Producing steel through DRI requires high-grade iron ore, not only in terms of Fe content, but also low impurity, something that is stimulating the development of the huge Simandou iron ore mine in West Africa,” Derek Langston, global head of dry cargo research at Braemar told the nearly 600 delegates attending last year’s genre.
With this green transition, Langston said: “There will be new emerging exchanges. There will be new steel production hubs,” suggesting that both the Middle East and Australia would become more prominent as steel manufacturers.
Adis is an experienced news reporter with expertise in finance, media, and education. He has written across the spectrum of the offshore energy and ocean industries for many years and is a member of the International Federation of Journalists. He had previously written for the titles of Navingo Media Groups, including Offshore Energy, Subsea World News, and Marine Energy.
February 28, 2025
February 28, 2025
February 28, 2025
February 28, 2025
February 28, 2025
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