Indian sponge iron production grows 8%; Expected to pass 75 MT by FY30
ECONOMY & POLICY

Indian sponge iron production grows 8%; Expected to pass 75 MT by FY30

India's production of direct reduced iron (DRI), commonly known as sponge iron, grew at a compound annual growth rate (CAGR) of 8% to reach 51.5 metric tonnes (MT) in FY 2024, up from 34.7 MT in FY 2019, outpacing the 5% growth in crude steel output, according to a report.

India, the world's largest DRI producer, is expected to see production exceed 75 MT by FY 2030. In FY 2024, small and mid-sized companies contributed 71% of the country's DRI output, while large companies accounted for the remaining 29%.

Demand for DRI is driven by long steel manufacturing, with long steel production rising from 51.5% of total steel production in FY 2019 to 54.8% in FY 2024 due to construction and infrastructure activities. However, the trend is expected to reverse over the next three years as flat steel production is anticipated to increase, with large players enhancing capacity through the blast furnace-blast oxygen furnace (BF-BOF) route. Despite this shift, the absolute production of long steel is expected to remain higher than that of flat steel.

India primarily produces sponge iron using the coal-based route (80%), with the remaining produced through the gas-based route. The country is self-sufficient in iron ore but imports 30-40% of its coal from countries like South Africa and Indonesia. Iron ore production stood at 277 MT in FY 2024 and is projected to grow at a CAGR of 7-9% over the next five years. Additionally, pellet production is expected to increase due to higher capacity and demand from the crude steel sector. Thermal coal supply has also been on the rise since FY 2024, with further growth expected from Coal India Ltd. (ET)

India's production of direct reduced iron (DRI), commonly known as sponge iron, grew at a compound annual growth rate (CAGR) of 8% to reach 51.5 metric tonnes (MT) in FY 2024, up from 34.7 MT in FY 2019, outpacing the 5% growth in crude steel output, according to a report. India, the world's largest DRI producer, is expected to see production exceed 75 MT by FY 2030. In FY 2024, small and mid-sized companies contributed 71% of the country's DRI output, while large companies accounted for the remaining 29%. Demand for DRI is driven by long steel manufacturing, with long steel production rising from 51.5% of total steel production in FY 2019 to 54.8% in FY 2024 due to construction and infrastructure activities. However, the trend is expected to reverse over the next three years as flat steel production is anticipated to increase, with large players enhancing capacity through the blast furnace-blast oxygen furnace (BF-BOF) route. Despite this shift, the absolute production of long steel is expected to remain higher than that of flat steel. India primarily produces sponge iron using the coal-based route (80%), with the remaining produced through the gas-based route. The country is self-sufficient in iron ore but imports 30-40% of its coal from countries like South Africa and Indonesia. Iron ore production stood at 277 MT in FY 2024 and is projected to grow at a CAGR of 7-9% over the next five years. Additionally, pellet production is expected to increase due to higher capacity and demand from the crude steel sector. Thermal coal supply has also been on the rise since FY 2024, with further growth expected from Coal India Ltd. (ET)

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000