E-Book, Englisch, 318 Seiten
ISBN: 978-0-12-803187-2
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Dilip Kumar has worked in many countries including Germany, Algeria, India, and Canada as Chief Engineer at Central Mine Planning and Design Institute (CMPDI), Ranchi, India. He worked in coal and mineral mining industry for 25 years. Dr. Kumar's research interests include both coal and phosphate rock mining and processing, steel metallurgy, mineral processing, mine economics, and mine management with special reference to integration of supply chain.
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Chapter 2 Latest Developments in the Iron and Steel Industry
Abstract
Although India is the fourth largest producer of steel in the world, the per capita consumption of steel in India is low. Much is required to increase production. India is the largest producer of direct- reduced iron (DRI). There are two routes of steel making: the blast furnace (BF)/basic oxygen furnace (BOF), which uses iron ore and coke as the basic mix as well as recycled steel. The other route is the electric arc furnace, where the input blend is iron ore, melting scrap, or a combination of both. Major steel producers are integrated steel plants; they follow the BF/BOF process. Hot metal produced from a BF is used as a principal raw material for the production of steel. Thus, BF technology has become the bastion of iron making for further improvement both on quantity and quality. Various techniques to reduce the consumption of coking coal have been elaborated. Keywords
intensity of use BF BOF EAF DRI ISP SWOT sintering agglomeration market dynamics Contents 2.1 Global Perspective 9 2.1.1 Steel Consumption and Economic Growth 9 2.1.2 Technology of Steel Making 13 2.1.3 Reuse and Recycling 16 2.1.4 Technical Efficiency of Iron and Steel Firms 23 2.2 Indian steel industry 24 2.2.1 Preamble 24 2.2.2 Milestones 25 2.2.3 Industry Structure and Trends 26 2.2.4 Optimum Level of Coal Ash Feed 26 2.2.5 SWOT Analysis 26 2.2.6 Calculation of Safety Stock: A Hypothetical Example 26 2.2.7 Reduction in the Consumption of Coking Coal 31 2.2.8 An Update on BF Iron Making 52 2.2.9 Supply of Raw Materials 55 2.2.10 Market Mechanism 57 2.1. Global Perspective
2.1.1. Steel Consumption and Economic Growth
Modern steel making involves primary and secondary steps. The primary step is feeding iron ore, coke, and limestone together into a blast furnace (BF) in which air is blasted through the bottom. The carbon-rich molten pig iron thus produced is passed into a basic oxygen furnace (BOF) where steel scrap and limestone are added to produce low-carbon steel. To produce 1 tonne of steel, about 2.8 tonnes of raw materials are required (Dhawan, 2008). Secondary steel making usually involves an electric arc furnace; the raw materials are scrap, direct-reduced iron (DRI), or pig iron for chemical balance. Some furnaces can melt almost 100% DRI; the product is also known as sponge iron. A little more than 1 tonne of scrap is needed to produce 1 tonne of recycled steel. India has been the largest producer of sponge iron in the world since 2002. Today, crude steel is produced mostly in BOFs using the modified LD process, which was first successfully implemented in the Austrian towns of Linz and Donawitz. About 72% of crude steel is produced globally through the BOF process. Steel consumption is considered to be a key factor for economic growth during the industrialization of a nation. The level of per capita consumption of steel is an important index of the socioeconomic status and standard of living of a country. Huh (2011) has shown that the steel industries in Korea, Japan, Germany, and China contribute more to the national economy than other industries. In these countries the engine of economic growth is the manufacturing industry; it is widely held that the manufacturing industry is stagnant in the USA. There are conflicting views regarding the relationship between steel consumption and economic growth. Steel consumption can result in the economic growth of a country during industrialization, the recent history of South Korea being a case in point. Steel-consuming industries have brought about the success of the steel industry and, as a result, contributed to the growth of Korea’s economy. As long as the economy sustains a higher growth rate, demand for steel in India will remain high. Thus, steel consumption will be directly related to growth in income. Yet, the study conducted by (Ghosh, 2006) indicates the absence of a long-term relationship between steel consumption and economic growth in India. Instead, India’s economic growth is due to the growing importance of the service sector, which constituted 55.6% of total GDP in 2011, as well as the high-tech industry. These sectors use little steel. The manufacturing sector has contributed relatively less to the Indian economy. All major industrial powers have been shaped by their steel industries in their initial stages of development. In the late nineteenth century, England and Germany were able to build their steel industries because of the indigenous availability of iron ore and coal. They became the first industrial powers in Europe; other European countries followed suit. Now, the scenario has changed, and many countries are maintaining their steel industry by importing raw materials. India has an advantage due to its domestic supply of raw materials. As a result of the huge industrial expansion program, the demand for steel in India is high. The per capita consumption of steel in India is only 57.5 kg as compared with 445.7 kg in China, as shown in Figure 2.1a. There is great potential for steel consumption to be raised in India such that it can catch up with other countries. Figure 2.1 (a) Per capita consumption of steel (kg) in 2012. (b) Top 10 steel producers in 2013 (Steel Statistical Yearbook 2014). The production figures of the top 10 steel-producing countries are shown in Figure 2.1b; India ranked fourth in 2013. Being an emerging economy, it has plans to accelerate the growth rate of production to meet the demands of the construction and infrastructure industries. 2.1.1.1. Intensity-of-use Hypothesis Models The intensity of use (IUt) is a simple model, which can be applied to make long-term forecasts for metal demand. IUt can be defined as apparent consumption of metal Dt in year t per capita GDPt value expressed in fixed prices (Redetzki and Tilton, 1990), and the relationship is shown in equation (2.1): Ut?=DtGDPt (2.1) Apparent steel consumption can be represented by the following expression: Apparent steel consumption Dt = Domestic production Pt - Exports Et + Imports It ± Inventory adjustments dPt In 1974 the International Iron and Steel Institute (IISI) conceptualized the steel intensity according to five stages of a country’s economic maturity: 1. Very low steel intensity before industrialization. 2. Industrialization due to increases in the investment and manufacturing sectors leads to a rapid rise in steel intensity. 3. The country is already industrialized and its steel intensity is leveling off. Economic growth leads to rapid growth in steel consumption for machinery and equipment, consumer durables, shipbuilding, railways, etc. Steel intensity accelerates. 4. The country has a well-established industrial infrastructure. Steel production and use intensity start to decline in this transition stage. 5. The country has saturated its industrial production. Service-based and sophisticated industries comprise a greater share of GDP. Steel intensity stabilizes. A typical steel intensity curve is shown in Figure 2.2a, where different countries are positioned indicating different phases of industrialization. Figure 2.2 (a) Steel intensity curve. (b) Estimated steel intensity-of-use curve for India (2001–2010). The steel intensity curve appears to be very simple; it can be plotted from available historical data. It includes the development of a country from agriculture to construction and manufacturing to services (Redetzki and Tilton, 1990). The relationship generally exhibits an inverted U-shaped curve. However, factors such as the influence of new technologies, substitution materials, and long-term price trends are not considered in the model (Wårell and Olsson, 2009). The inverted U-shaped curve will shift downward because of lower consumption of steel, as a result of new technology innovation. The steel intensity curve for India is shown in Figure 2.2b. Steel intensity decreases as GDP per capita income increases. Service industries play a major role in the Indian economy at the moment. To see the complete picture, it is necessary to analyze data for a period of 40–50 years. Three models (Wårell and Olsson, 2009) were used for...
