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
 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

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 2
 PRESENT STEEL SCENARIO

 World steel production, 2015 : 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

Source : World Steel in Figures 2016, WSA

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 3
 MAJOR STEEL PRODUCING COUNTRIES OF WORLD - 2015
803.8
800

600
Quantity, mill. tons

400

3rd

200
105.2 89.4 78.8 70.9 69.7
42.7 33.3 31.5 23
0

Source : World Steel in Figures 2016, WSA

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 4
 DOMESTIC STEEL SCENARIO
(2)
(2) 149
150 140
Crude steel capacity, million ton

(1)
110
100

50

0
2014-15 2016-17 2019-20
Terminal Year
NOTE : (1) As per JPC Statistics 2014-15
(2) As per Working group on Steel for 12th Five Year Plan

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 5
 STEEL CONSUMPTION TREND

90
Quantity, mill. tons

60

30

Source : Steel Statistical Yearbook 2015, WSA

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 6
 WORLD DRI SCENARIO
2014 26.5%

2013 23.0% Russia

European Union
2012 27.4%
NAFTA Countries
Year

2011 30.0% Central and South

America

2010 33.1%
Africa

Middle East
2009 34.2%

Other Asian
31.3%
Countries
2008
India
2007 28.3%

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

Production, million tons

Source: World Steel Association,

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 7
Production, million ton DOMESTIC DRI PRODUCTION

25.0
2004-05 to 2010-11 2011-12 to 2014-15

20.0
TH %
OW 5
GR E: 2.3
T
RA

15.0

10.0

5.0

0.0
2005-06

2008-09

2010-11

2012-13

2013-14

2015-16
2004-05

2006-07

2007-08

2009-10

2011-12

2014-15
Coal Based DRI Production Gas Based DRI Production Total DRI Production
Source: SIMA, 2015

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 8
 DRI CONSUMPTION IN INDIA

30

24.3 25. 1
Quantity, mill. tons

20

10

Source : JPC statistics, several editions

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 9
 DRI CONSUMPTION PER TON CRUDE STEEL

639 676 Kg of DRI per ton of total CS

641
626 Kg of DRI per ton of CS by EAF/EIF
600
578
553
Quantity,kg/tons of crude steel

450 440 457

378 370 396
360 360 355 393
295 315
300 265
237 224 227
181
150

Source : JPC statistics, several editions

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 10
 IRON & STEEL MAKING ROUTES
CURRENTLY ADOPTED IN INDIA
IRON MAKING

BLAST HOT
FURNACE METAL
STEEL MAKING
HOT BOF
METAL
COREX EAF

DR-SHAFT LIQUID
DRI STEEL
FURNACE
INDUCN FCE
DR-ROTARY DRI OPEN
KILN HEARTH

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 11
 CRUDE STEEL PRODUCTION SHARE

Process Route World India Electric Route production /Total crude steel
production
65% 58% crude
Oxygen Route 70 BF/COREX
(%) /BOF/THF/EOF : 42 60%
steel by
EAF/EIF route
Electric Route 30 DRI - EAF : 26 55%
(%)
50%
DRI – EIF : 32
45%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: JPC, Year 2014-15 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15

 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

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 12
 STEEL AND DRI DEMAND IN INDIA

 Steel consumption, 2014 : 84 MT

 Projected steel demand, 2025 : ~ 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, 2024-25 : ~ 23 – 28 MT

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 13
 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.

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 14
 CHALLENGE DUE TO NATURAL GAS (CONT’D)

RECENT INNOVATION IN GAS BASED PROCESS :

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 15
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.

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 16
CARBON EMISSION FOR DIFFERENT PROCESS
ROUTES IN INDIAN STEEL PLANTS

100
95
90 8
87
CO2 Emmission Intensity, index

40
71

60

55

30
BF - BOF DR (Gas) - EAF DR (Coal) - EAF Average (India) Average (World)

Process Routes

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 17
 LONG TERM SUSTAINABILITY

Adoption of appropriate
production Long Term
processes/technologies Sustainability

Environ
Financi
ment
al
friendlin
viability
ess

Proper utilisation of
locally available raw
materials

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 18
 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.

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 19
 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.

RELEVANCE OF DRI IN THE SUSTAINABLE GROWTH OF INDIAN STEEL INDUSTRY 19.08.2016 Company Confidential 20
 THANK YOU

M. N. Dastur & Company (P) Ltd Aditi Tarafdar aditi.t@dastur.com

Consulting Engineers Chief Engineer +91.9830681668
www.dastur.com