December 2011 - SIMA

Plant Upgrades Reference ListPlant Country Modules Project Objective Start UpArcelorMittal LC 1 Mexico 1 Install CO removalReduce natural gas consumption by2system to module 1 20%; reduce plant emissions; 2007increase production capacityArcelorMittal LC 2 Mexico 1 Install CO removalReduce natural gas consumption by2system to module 2 20%; reduce plant emissions; 2009increase production capacityEssar Steel, Hazira India 1 Install HYTEMP Improve hot charging to EAFs from 2010System client’s existing Midrex DR plantsPT Krakatau Steel Indonesia Conversion to ZR Process Reduce gas consumption & increase 2012production from 1.35 to 1.90 MtpaWelspun Maxsteel India Complete plant equipment Permit simultaneous operation of both plants;for new ZR module capacity to reach 1.5 Mtpa 2012ConclusionsThe expected and significant growth of India’s steel sectorwill require increased amounts of high quality metalliccharge for steelmaking. Direct reduced iron willconsequently become even more important in the nation’sindustry development, and India will likely maintain itsplace as the world’s largest producer of DRI.Government support will be needed to enable a morewidespread and economical use of natural gas forindustrial applications such as DRI production, wherethe gas is used for its reducing properties for valueaddedproduction, instead of simply for combustion.Environmental repercussions arising from existingcoal-based DRI production will eventually see theseplants fall into disuse, and alternatives will need tobe developed that can provide quality DRI in a clean,economical manner.The options presented by Tenova HYL can be ideallysuited to the India steel situation. For small scaleDRI production using natural gas, the HYL Micro-Module is the smallest, cleanest and most economicalway to produce quality, high carbon DRI. For largerplants, not only is natural gas an option but ourEnergiron plants are also capable of using syngasfrom coal gasification plants to produce the samequality product. So whether coal or gas is theconsideration, Tenova HYL offers viable options forthe continued development of the Indian DRI industry.1http://www.indiaenergyportal.org/overview_detail.php2CIA World Factbook.Total Steel Demand and Required Level of Finished Steel Production(Alloy & Non-Alloy) For the 12th FY Plan Period(Figures in million tonnes)2011-12 2012-13 2013-14 2014-15 2015-16 2016-17Domestic Demand for Carbon Steel 66.5 73.3 80.8 89.1 98.3 108.3Domestic Demand for Alloy Steel 3.50 4.00 4.25 4.5 4.75 5.00Scenario 1: Total Domestic Demand for Steel 70.0 77.3 85.05 93.6 103.05 113.3Scenario 2: Total Demand for Steel includingExport Demand 66.3 75.3 84.6 94.1 105.1 115.3Imports (estimated) 7.0 6.0 5.5 5.5. 5.0 5.0Exports (estimated) 3.3 4.0 5.0 6.0 7.0 7.0Net Exports (-) 3.7 (-) 2.0 (-) 0.5 0.5 2.0 2.0(Source: Report of the Working Group on Steel Industry for the Twelth Five Year Plan, Ministry of Steel)DECEMBER-2011/30