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A major reason behind Mittal's success had been his
anticipation that the price of steel scrap, the main raw material for
mini-mills, would rise as more mini-mills were constructed. He had therefore
invested in a substitute for scrap known as direct-reduced iron (DRI), and was
soon producing more of it than any one else. DRI cost about $95 a tonne in 1996,
compared with $155 a tonne for the high-quality scrap that mini-mills mostly
used, and $125 a tonne for the pig-iron used to make steel in blast furnaces.
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