World DRI production record

Archiv – According to data compiled by Midrex Technologies of North Carolina, U.S., world DRI production set a new record in 2003 with a total of 49.45 million tonnes – 10% up on the previous record set in 2002. According to data compiled by Midrex Technologies of North Carolina, U.S., world DRI production set a new record in 2003 with a total of 49.45 million tonnes – 10% up on the previous record set in 2002.
India was the world’s largest DRI producer last year on 7.7 million tonnes, with its gas-based production increasing 16% and its coal-based production growing 19%. Other leading producers included Venezuela on 6.9 million tonnes, as well as Mexico and Iran which both achieved an output of around 5.6 million tonnes.
The growth was driven by record prices for metallics and by the remarkable economic boom in China and in surrounding countries of South and East Asia, according to Midrex. For example, China was consuming 32% of the entire world supply of construction steels by the end of last year. Iron unit prices were pushed to their highest-ever levels in nominal terms, and their highest level in 30 years in real, inflation-adjusted terms. By March, notes Midrex, the benchmark No 1 HMS price in the U.S. was US$ 248.44 per gross ton compared to US$ 63.93 in November 2001.
Most of the growth in DRI production came through increased capacity utilisation rather than new starts. In fact, no new gas-based direct reduction plants came on-line in 2003, although ’a large number of small, rotary kiln-type, coal-based plants lacking pollution control equipment began operation in India’€™, reports Midrex. Among notable examples of increased use of existing capacity, Egypt made 2.9 million tonnes of DRI last year compared to its previous best of 2.5 million tonnes; Australian production exceeded 1.9 million tonnes and thereby shattered its existing annual output record of 1.4 million tonnes; and Malaysia produced 1.6 million tonnes last year compared to 1.1 million tonnes in 2002.
Mexico recovered from the effects of natural gas price fluctuations in 2001 and 2002 to produce its 5.6 million tonnes of DRI. Venezuelan production was badly hit by a nationwide general strike in the first two months of last year and yet still managed to equal its existing annual production best of 6.9 million tonnes.
Midrex expects new gas-based capacity to come on stream over the next few months and years. ‘€˜High metallics prices are driving new investment in ironmaking,’€™ it states. ‘€˜Already, a new Midrex plant has been announced in the United Arab Emirates (Hamil Steel) and another Midrex plant expansion has been contracted by OEMK in Russia.’€™
This year, Midrex expects ‘€˜moderate growth’€™ in DRI production ‘€˜until new capacity is contracted and commissioned’€™. Any near-term growth will have to come from improved capacity utilisation at existing plants, the company underlines.

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