Raw materials situation in India

To meet the future demand of steel, one has to ensure the supply of basic raw materials to the steel industry. Metallurgical grade coking coal, scrap, iron ore and sponge iron are, among others  the important raw materials for steel production through different routes.

Metallurgical grade coking coal

Blast furnace-BOF route will continue to play a significant role to meet the increased demand of steel. This route is dependent entirely on the availability of hot metal through blast furnace. Blast furnace cannot work without coke and coke is produced by carbonization of metallurgical grade coking coal. Shortage of metallurgical grade coking coal reserves within the country is of serious concern. For the long time India is dependent on the imported high grade, low ash coking coal from Australia amounting to 30 to50% of its total requirement. In the future import of coking coal may become expensive. Thus, integrated steel plants producers must search ways and means to operate the blast furnace with the bare minimum coke consumption (the bare minimum coke is that  which is just required to maintain the permeability of the bed in the blast furnace). Other technologies like pulverised coal and tar injection in the blast furnace must also be explored. Additionally, smelting reduction processes like COREX, ROMELT must also be developed to supplement the hot metal.

Iron ore

The situation with respect to iron ore is good as long as appropriate export policies are put in place. With the growth of steel production to 110 million tons per annum by 2019-20, iron ore requirement would be around 200 million tons. Iron ore reserves may not create much problem to sustain the steel production at least for the next two or three decades.


Scrap

Scrap is an important raw material for the growth of EAF and IF. The shortage of scrap necessitates the search for alternative raw materials. In this connection sponge iron (also known as directly reduced iron or DRI) has proved to be a promising alternative to scrap. In fact there are electric furnaces which are operating with large percent of sponge iron in the feed. Sponge iron is produced by reducing iron ore either by using coal or natural gas. Under Indian conditions coal based sponge iron processes are more attractive as compared with gas based ones. Several coal based sponge iron plants are operating in the states of Chattisgarh, Orrisa, West Bengal and Jharkhand doe to availability of high grade iron ore in these states.


DRI plants are installing various capacity induction furnaces to produce mild steels for long product applications. Secondary producers of steel are located in all parts of India to meet the local specialised demand of steel. Their share in India’s total steel production may reach up to 50%