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Indian Import of Scrap metals forecasted to be high owing to low sponge Iron Production

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by - 2/11/2013 18978 Views

According to the 2012 -2013 survey, it appears that the import of scrap metals into India will increase sharply.

The demand for sponge iron rose when due to the increasing trend of scrap prices and when there was scarcity of quality scrap for steel production. The first DRI (Direct Reduced Iron) plant was setup in 1957 in Mexico since then there has been a continuous growth in this industry.

The main reason for the rapid growth of sponge iron industry was that using the sponge iron in electric arc furnace that requires only partly substitution of scrap in steel production.

Sponge iron is produced by subjecting iron ore to reduction process with reducing agents like natural gas or coal gas. Now, the sponge iron also known as direct reduced iron production units have cut short its production by 50% compared to the last year. Inadequate supply of iron ore is the root for sudden collapse in the production of sponge iron. This will compel the DRI manufacturers to go for import of metal scraps to cope the situation.

The table below reveals the demand of Sponge Iron periodically.





Sector-wise Demand of Scrap and DRI/HBI (in lakh tons)


Period                      Sector                                           Melting Scrap         DRI/HBI

2001-02           EAF (Electric Arc furnace)                            31                       43

                          IF (Induction Furnace)                                 55                        17

2006-07           EAF                                                                 45                        60

                          IF                                                                     73                        35

2011-12          EAF                                                                  64                        82

                         IF                                                                      76                        56

*HBI = Hot Briquetted Iron

Raigarh, Saraikela-Kharswan, Jharsuguda, Raipur, etc. leads in the production of Sponge Iron in India. Now, it is evaluated that the sponge iron production units operate at lower than 50% capacity. On the other hand India’s scrap metal imports have accomplished six million tons screening an improvement of 25% every year.

A key reform in the Indian scrap industry can be projected if the import of scrap metals would increase as per the survey.

Kindly share your opinion about the increase in import rate of scraps due to lower sponge Iron production.

Category : Metal

Tags : scrap metal, sponge iron, import scraps

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About Sangeetha Pillai

Stepping into this world on 24th August, I am the younger daughter of my parents.  I did my schooling at Sacred Heart Convent High School in Hubli (Karnataka). In a perplexity of deciding my higher studies I finally consoled my mind to go with Civil Engineering. Although my ac .... more info


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