December 2011 - SIMA

addition or transformation from coal based in futureas the process is comparatively greener.Steel scrap : Uncertainty in availability and the pricefluctuation is always a concern. Indigenouslyavailable volume is not sufficient and thus dependson imported scrap, the prices of which are linked withinternational trade price and longer supply cycle andthus often not viable compared with substitute likesponge iron which is available aplenty. However,near-to-the port areas like Punjab, Large portion ofMaharashtra consume scrap in higher proportion dueto freight advantage.Another important input for this industry is of coursethe electricity, cost and seasonal scarcity is equallyan important concern of this industry. However, largeplayers who are backward-integrated formanufacturing sponge iron for self use are equippingthemselves to coproduce excess power by wasteheat recovery from sponge iron kilns in case of coalbased process. Another common problem is lack ofavailability of quality infrastructure and logistics,including railway rakes, often off setting cost structureand that will definitely concern all stakeholders in thesteel industry and might affect the growth prospectof the industry by creating a stumbling block.Other factors, those could be related to technologyparity, as it would become demanding for complyingwith increasingly stricter environmental regulationsand compulsion for improvement in product qualityto some standard level to ensure production of qualitysteel through these popular electrical process andalso the threat of substitute raw material, like scrapwhich often destabilize the commercial viability, willalso remain as major challenging points for thesponge iron industry and so will be the InductionFurnace industry.STEEL MAKING WITH COAL BASED DRIPELLETS THROUGH IF ROUTE:-PELLET AS SUBSTITUTE OF IRON ORE LUMPSFOR DRI MAKING :-Iron Ore availability would invariably become tighterin future with the growing demand from fastexpanding steel industry. With that in view, businesspromoters finding great value in freely available ironore fines for effective utilization in steel making infuture. Considerable investment already committedand plan for putting up new furnaces with newtechnology like COREX, FINEX, HiSMELT etc. toutilize poor quality fines directly and large portion ofit going into setting up pelletization, beneficiation andsinter plants. For example, SAIL is putting up acapacity of 4.0 mil. MT pellet plant in Gua, Essar issetting up capacity of almost 10.0 mil. MT of pellet inOrissa and Hyderabad, JSW proposed to set up abeneficiation plant of 8.0 mil. MT capacity and pelletcapacity of 6.0 mil. MT at Salboni, Paschimbanga,Bhushan Power & Steel entered into technicalpartnership with a plan to set up pellet capacity of3.85 mil. MT, Monnet Ispat setting up capacity of 1.5mil. MT of pellet, Brhamani River Pellets will set upcapacity of 4.0 mil. MT and similar large volumecapacities are being planned by other players likeJSPL, NMDC and other medium Mine operators aswell. Thus, after beneficiation, palletized iron ore finesby providing quality raw material in big volume at anaffordable costing will definitely tide over theintermediate shortage situation. Hence, prospect ofpellet is emerging as a very important metallicsubstitute which needs lot more understanding,identifying further improvement aspects and usageprocedures.Economic viability of Pellet for sponge ironmaking – New trend in substitution:In the process of iron ore mining almost 60% finesare generated, out of which almost 20% is dust (-1mm), which generally goes waste or exported atsubstantially low prices. With a view to utilize thislow cost item cost-effectively pelletization units arecoming up in large scale ( more than 30 milliom MTcapacity expected in the next 3-4 years with a plannedoutlay of Rs. 80 billion) to agglomerate the dust intosized lumps having almost similar physical andchemical characteristics. Steep rise in the prices ofraw materials for DRI and pig iron production has ledto large scale switch over to pelletization process.Raw material for pelletization are of generally lowergrade iron ore dust with excessive tramp elements,which either exported or could pose adverse impacton the environment. Government policy of chargingadditional duty or banning exports of low grade ironDECEMBER-2011/15