1. RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY
3RD INDIA INTERNATIONAL DRI SUMMIT 2016
Aditi Tarafdar & Saptarshi Bhattacharya
19th August 2016, New Delhi

2. CONTENT PRESENT STEEL SCENARIO PRESENT DRI SCENARIO
IRON AND STEEL MAKING ROUTE ADOPTED IN INDIA
CRUDE STEEL PRODUCTION SHARE
EXPECTED STEEL AND DRI SCENARIO
CHALLENGES DUE TO NATURAL GAS
CHALLENGE DUE TO ENERGY AND ENVIRONMENTAL ISSUES
LONG TERM SUSTAINABILITY
CONCLUDING REMARKS
3rd largest producer of steel after China and Japan.
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3. PRESENT STEEL SCENARIO
World steel production, : 1621 MT
Indian steel production, 2015 : 89 MT
Indian steel consumption, 2014 : 84 MT
World ranking in steel production : 3rd
World ranking in steel consumption : 3rd
Indian steel industry has maintained its growth path, even the industry in general has confronted the adverse effect of global over capacity and economic volatility.
World prod in 2005: 1148, representing a CAGR of 3.5%
Indian steel prod in : 43.4, representing a CAGR of 7.4%
Source : World Steel in Figures 2016, WSA
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4. MAJOR STEEL PRODUCING COUNTRIES OF WORLD - 2015
3rd
Capacity 110 MT in in india
Cap utilisation 81 %
2014 scenario:
1st – China – 822.8
2nd – Japan – 110.7
3rd – USA – 88.2
4th – India – 87.3
5th – S. Korea-71.5
6th- Russia – 71.5
Source : World Steel in Figures 2016, WSA
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5. DOMESTIC STEEL SCENARIO
The National Steel Policy 2005 envisaged steel production to reach 110 mt by
Expansion plan
KPO- 3+3
JSW, Dolvi-2
JSPL, angul
POSCO
Tata Gopalpur
SAIL
VSP
BSL
BPSL
Unfavorable issues or challenges are land acquisition and regulatory clearances. Foreign direct investment (FDI) in steel not geeting meaningful due to regulatory bottleneck.
NOTE : (1) As per JPC Statistics
(2) As per Working group on Steel for 12th Five Year Plan
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6. STEEL CONSUMPTION TREND
Steel consumption CAGR (2005 to 2014) : 7.7 %
Steel production CAGR: 7.43% ( to )
Source : Steel Statistical Yearbook 2015, WSA
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7. WORLD DRI SCENARIO
Sustenance and continued growth of India steel industry will necessitate huge input of raw materials
Source: World Steel Association,
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8. DOMESTIC DRI PRODUCTIONto to
GROWTH RATE: 2.35%
to : CAGR: 12.7%
to : CAGR: -5.3%
to : GR: 2.35%
Source: SIMA, 2015
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9. DRI CONSUMPTION IN INDIA
CAGR: 4.2%
: 10.29 :
Source : JPC statistics, several editions
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10. DRI CONSUMPTION PER TON CRUDE STEEL
CAGR: 4.2%
DRI kg/ton of total CS: 300 (avg)
DRI kg/ton of electric CS: 500 (avg)
Source : JPC statistics, several editions
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11. IRON & STEEL MAKING ROUTES CURRENTLY ADOPTED IN INDIA
IRON MAKING
BLAST FURNACE
HOT METAL
STEEL MAKING
COREX
HOT METAL
BOF
EAF
DR-SHAFT FURNACE
LIQUID
STEEL
DRI
INDUCN FCE
DR-ROTARY KILN
DRI
OPEN HEARTH
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12. CRUDE STEEL PRODUCTION SHARE
58% crude steel by EAF/EIF route
Process Route
World
India
Oxygen Route (%) 70
BF/COREX
/BOF/THF/EOF : 42
Electric Route (%) 30
DRI - EAF : 26
DRI – EIF : 32
Source: JPC, Year
Major Indian steel production is dependent on EAF/EIF route
Hot metal can replace DRI partially in EAF/EIF charge
Scrap availability is an issue
DRI will continue to be one of the main charge material for electric steel making
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13. STEEL AND DRI DEMAND IN INDIA
Steel consumption, : 84 MT
Projected steel demand, : ~ 155 – 190 MT
Expected domestic crude steel : ~ 132 – 162 MT
production
Expected crude steel production : ~ 46 – 57 MT
(through Electric steel making route)
Projected DRI demand, : ~ 23 – 28 MT
Steel demand:
CAGR 7.7%: 190
CAGR 5.75%: 155
Considering 85% of CS demand by domestic production in :
Considering 35% through EF route in :
DRI 500 kg per ton of EF steel making
Considering past trend of DRI consumption growth rate of 4.2%, demand in will be around 23.5 MT
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14. CHALLENGE DUE TO NATURAL GAS
Restricted availability of natural gas for production of gas based DRI.
Imported liquefied natural gas (LNG) more costly, and not feasible.
Alternatives of gaseous reductant source need to be developed at cost effective price.
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15. CHALLENGE DUE TO NATURAL GAS (CONT’D)
RECENT INNOVATION IN GAS BASED PROCESS :
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16. CHALLENGE DUE TO ENERGY AND ENVIRONMENTAL ISSUES
Pollution control measures gained more prominence in the steel sector in recent past.
Energy Intensity and CO2 emission have become the key parameters, influencing the DRI industry.
Aim is to reduce specific energy consumption below 25 GJ/tCS in future.
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17. CARBON EMISSION FOR DIFFERENT PROCESS ROUTES IN INDIAN STEEL PLANTS8 40
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18. LONG TERM SUSTAINABILITY
Adoption of appropriate production processes/technologies
Environment friendliness
Proper utilisation of locally available raw materials
Financial viability
Long Term Sustainability
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19. CONCLUDING REMARKS
To improve the quality of basic raw materials and develop suitable beneficiation technologies to suit the Indian condition.
To utilize iron ore fines, including beneficiated micro fines, in relevant agglomeration techniques like pelletising.
Coal gasification to produce syn-gas for use in direct reduction or use of alternative fuel replacing natural gas. Explore possibility of utilising alternative energy sources eg. Coal Bed Methane.
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20. CONCLUDING REMARKS (CONT’D)
To develop and adopt technologies and practices which will have favorable impact on energy consumption and carbon dioxide emission.
To focus on technologies for reducing water consumption in sponge iron plants, including program to ensure zero discharge
Considering limited availability of scrap for electric steel making, there will be substantial demand of DRI in future
With adoption of appropriate policy framework, the outlook would appear to be bright for the DRI industry, particularly in view of small and medium scale steel industries.
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21. THANK YOU Aditi Tarafdar aditi.t@dastur.com Chief Engineer