Scrap metal shortage boosts DRI production - IIMA

The growing shortage of high grade steel scrap is likely to lead to a significant increase in direct reduced iron (DRI) production over the next decade, according to a report from the International Metals Association (IIMA). Stuart Horner, Secretary General of the IIMA, outlined the possible prospects for the industry at the DRI World Congress held recently in Abu Dhabi.

Manufacturing in electric arc furnaces (EAFs) requires increased DRI to produce high quality steel, Horner said. This is also due to the presence of elements such as copper in the scrap metal. The DRI usage ratio in EAFs ovens has now reached 14 percent. However, the share of DRI will rise to 18 percent by 2025. Essentially, this means that global DRI use will grow from the current level of 80 million tons per year to 144 million tons per year in 2025.

The IIMA noted that scrap metal will remain the main raw material in the steelmaking process. However, steel scrap continues to be replaced by DRI in many countries around the world, especially in the Middle East and North Africa (MENA) Free Trade Agreement (NAFTA) region. A shortage of iron ore in India, which is the largest producer of DRI, could affect the growth in DRI use.

Preliminary data released by the World Steel Association shows global direct reduced iron (DRI) production during January of this year was 5.184 Mt, up 8 percent from 4.810 Mt in the same month. a year earlier.