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)

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

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