Emerging steel markets and their impact on coking coal and coke. Dr. Kalyan Sen CFRI

The buoyancy in Indian steel market is a combination of demand for exports, mainly to China and a positive outlook in certain sectors. This will lead to increased demand of good quality coking coal and Low ash metallurgical (LAM) coke. India Govt. thrust on infrastructure projects, lower interest rates, booming economy: The steel production is expected to grow at rapid pace.

Part II3

By India would require 31 million tonnes (mt) 12.5 mt produced & consumed by main producers 18.5 mt will be required by secondary steel producers out of which 14 mt need to be produced by Merchant coke producers. Estimated Demand of Met Coke What are the supply sources ? 31 mt of coke is equivalent to ~ 44 mt of washed coking coal !!

Fuel supply chain Existing trend ( ) · Import of coke 2.245mt · Import of coking coal mt · Washery Cleans ~ 8 mt

Fuel supply chain Future projection ( ) ·Import of coke 4.5mt ·Washery cleans ~ 8 mt ( The output of the existing washeries is likely to decline ) · Import of coking coal 30 mt ? Considering steep increase in price of both coke & coking coal and their availability, the situation is rather gloomy

Constraints of price & availability Coke imports in india were 2,782mt in out of which 89% was from China.. Coke price rise < Explosion in coke demand in China < Large rise in Chinese coke production costs < Gradual erosion of coke capacity out side of China The rise in coke price coupled with its unavailability has become the biggest challenge confronting the secondary sector pig iron industry

Coking coal having good coking properties, low sulphur and ash contents has become world wide a costly and rare commodity. Additional global sources for long term availability ;China & USA- envisaged increased production will mostly be consumed by the respective countries. ;Indonesia - a meagre amount may be available ;Russia - a lot, but requires major infrastructural investment

Scope for utilsation of Indigenous resources Area for Improvement Quality Quantity CostCulture Optimisation

84.0% 13.0% 3.0% Prime coking LVC MVC HVC Semi-coking 19% 50% 15% 11% 6% Indian Coal Scenario: Total Coal Reserves 246 Bt Non- coking Coking Others Inferior grade 68% GSI, Jan.2004

Imperatives for enhancing washed coal production Renovation & modernisation of existing washeries to maximise the output at desired quality; with further deterioration of feed quality the washery output, in the absence of drastic modernisation programme, is going to decline. Installation of fine coal treatment plant to treat the waste slurries & the freshly generated fines to produce Cleans in the ash range 10-14%. Installation of new washeries to treat the Low Volatile NLW coals ( LVC coal, if prepared judiciously, has the potentiality to offer excellent quality coke)

by increasing the capacity of washed coal production, adoption of innovative coke making technology and PCI route. by utilising abundantly available non-coking coal through adoptation of alternate routes of steel making The challenge of minimising the import dependency on desired fuel can be met

Characteristics of LVC(NLW) p High raw coal ash35-45% p High Maturity Ro = 1.3 p Low volatile matter content15-20% p High Inertinite content (60-70%) p Poor washability potential

Beneficiation in existing washeries k 2-product circuit About 70-75% with 40-45% ash with no market outlet

Beneficiation in existing washeries k 3-product circuit LVCC requires disposal of 20% as reject 50% middling with 41% ash (outlet ?)

Coals of western Jharia coalfields need a different beneficiation strategy INTEGRATED MULTI-STREAM BENEFICIATION

4-Product Circuit k Cleans (25-30%), 17-18% ash k Cleans II (18-20%), 22-28% ash k Middlings (20-22%), 34% ash k Rejects (28-30%), 60-65% ash

Suggested beneficiation scheme: ç Coal crushed to a nominal top size of 100/75 mm and screened at lower size, 25/20/13 mm ç Coarser fraction ( oversize) treated in washing unit to produce POWER COAL (~ 34% ash) ç Finer fraction (undersize) deep beneficiated for metallurgical coal of ash 17-18% ç Combined rejects (ash 50-55%) sent to FBC boilers

Judicious beneficiation of available coal is a necessity For a typical SR - process,

Beneficiation strategy Category I Category I: Non-coking coal (ash 30-40%) Cleans 75-80% (ash 25%) Reject (ash 60-65%) (FBC boiler) Jigging

Category III Category III: LVC coal (ash > 35%) Beneficiation strategy …... 3-pdt Jig4-pdt washing User Yld% (A%) Total Cls (17-18) Steel Jig Cleans50 (22-24)-- Corex Cleans II (25-30) Corex** Middling20-22 (34)20-22 (33-35) Power Reject28-30 (60-65)25-30 (55-65) FBC

Part II22 Thank You

Scope for utilsation of Indigenous resources Area for Improvement Quality Quantity Cost Culture Optimisation