World's direct reduction industry produced 74.55 million tons of DRI Products in 2014 according to data compiled by Midrex Technologies Inc and audited by World Steel Dynamics. Production fell slightly from 2013 due to natural gas shortages and curtailments in India and operational disruptions in other DRI producing regions, as well general downturns in steel market conditions. DRI growth was evident in a number of nations including USA and Bahrain. Plants based on MIDREX Direct Reduction Technology accounted for 47.12 million tons, which once again led all technologies with 63.2 percent of the market total.
Output in 2014 was more than 70 percent greater than in 2000. Factors mentioned previously that have limited growth for the last decade persist but have been somewhat offset by demand for DRI products in “non-traditional” applications (i.e., blast furnaces and basic oxygen furnaces) and by the introduction of new reductant sources (i.e., gasified coal and coke oven gas).
The concentration of growth in the Gulf area is a result of the many plants which have been started-up in the past few years. In Bahrain, production increased rapidly as the SULB plant, which had been commissioned the prior year, was ramped up toward full capacity. Nearby, the Gulf nations of Saudi Arabia and Qatar also saw significantly greater DRI production due to strong internal demand by their national economies.
New national records for DRI output were established in six nations; Russia, Canada and four countries in the Gulf region, Bahrain, Iran, Qatar and Saudi Arabia. Although, it did not set a new record, it bears note that the South African DRI industry accomplished an increase of 10 percent over the pre- vious year while national steel production dropped by more than eight percent. In the USA, the DRI plant owned by Nucor Steel began production, which marked the first time in five years that DRI was made in the US.
FORCES AFFECTING THE INDUSTRY
Growth in North America and the Middle East can be attributed to both product demand and availability of low cost natural gas, which is the primary fuel used for direct reduction. Various economic and political stresses did, however, stunt DRI production in other locations. Libya continued to suffer as rival groups struggled for control of the country and its resources. Egypt has yet to fully recover from political disrup- tions and Iran was restricted by international sanctions. Venezuela continued to experience production difficulties due to infrastructure issues caused by the nationalization of the industry and other political and economic factors.
Only 12 years ago, Venezuela was the world’s pre eminent manufacturer of direct reduced iron. Venezuelan output in 2014 was down to 1.7 million tons, less than 20 percent of the peak of nearly 9 million tons achieved in 2005. The decline in HBI exports was even more pronounced. ISSB reported only 212 thousand tons of DRI/HBI exports from Venezuela, a bit more than five percent of the 4 million tons shipped in 2006. Much of the problem derives from inability to sustain operation of the iron ore pellet supply chain, beginning with the mines and continuing through the pellet plants.
India, too, experienced an insufficient supply of pellets, but there the problem was compounded by a lack of natural gas at a favorable price. Steps have been taken to alleviate this problem. Jindal Steel and Power's MIDREX Direct Reduction Plant (JSPL-Angul) commenced operation using only syngas produced by a dedicated coal gasification plant. This is a first of a kind project that demonstrates that gas short regions also can produce DRI. Also in India, the MIDREX Plant at the JSW Dolvi Works in Raigad, Maharashtra, began using coke oven gas to augment its gas supply. This is another example of a means to produce DRI when a nearby integrated steel works is generating coke.
It should be noted that a large quantity of the DRI made in India is produced in rotary kilns using coal; therefore, Iran had the largest production by plants using natural gas as the fuel/reductant.
source: Midrex |
