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Danieli
The long view
Metal Bulletin Research has been providing
a very detailed study of regional markets in
the Middle East and North Africa for the last
twelve years and in its latest report*
examines supply, demand and
consumption of steel products and also
gives a forecast for the next five years. Despite the immediate conflicts and political
In MBR’s view, the most stunning progress
will be made in steelmaking itself. It unrest in parts of the Middle East and North Africa,
expects crude steel output to double in the
Middle East to 50 million tonnes by 2018 and
there is a different story to tell about the region’s
to almost 18 million tonnes in North Africa steel industry, which is burgeoning. Metal Bulletin
(see graphs).
The capacity expansion needed for this Research analyses the long-term outlook
growth in production is from both
greenfield and brownfield sites. Moreover, a small steelmaking industry in Iraq by the to some extent will displace the region’s key
mills that have started up in 2012, such as at end of the forecast period. deficit, which is currently served by
Maghreb Steel in Morocco, ESI in UAE, as well Most of the investment will be in long imported billet.
as a re-start of Lisco in Libya, will contribute products and this reflects the consumption Sulb in Bahrain, for example, is building a
to higher production levels in the short pattern in the region, of which 75% is long 1 million tpy EAF plant that will supply its
term. In addition, MBR expects higher products. Nevertheless, one key trend is the own new 600,000 tpy section mill as well as
output in Iran as well as the development of backward integration into crude steel that supply 400,000 tpy of billet to its acquired
Million tonnes
Other pure re-rollers such as RAK Steel have 12
now exited the market. Its equipment was 10 30
re-located to Oman, where it will roll rebar at 8
Sharq Sohar and be integrated with that 20
6
company’s new 300,000 tpy EAF. Another
re-roller, Star Steel, has found it tough to 4
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compete in the rebar market, but has had 2
some success re-rolling light and medium 0 0
sections for the local market. (f) (f)
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Finally, Iranian billet imports halved in 2012 20
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due to problems in securing foreign currency, *Algeria, Morocco, Tunisia, Libya, Egypt, Sudan *Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi
but it also reflects backward investment by Source: MBR Arabia, Syria, UAE & Yemen Source: MBR
gas supply agreements, such as South Steel One of the strongest regions for growth has packaging, automotive as well as some light
in Saudi Arabia or United Steel in Kuwait, been in the Gulf Co-operation Council (GCC) industrial manufacturing, while Turkey and
have built scrap-based EAFs. Some of this market. High oil and gas prices have provided Iran produce a wider range of manufactured
has been secured locally, although a budgetary boost to governments. In turn, products.
increasingly imports will play a factor. Al they appear to have undertaken a political Flat products will see demand growth, but
Yamamah, Atoun Steel and Sulb in Saudi commitment to invest in infrastructure and to in MBR’s opinion this will be slower than for
Arabia and Tosyali in Algeria are all building diversify into manufacturing in what remain long products. MBR is forecasting average
scrap-fed EAFs. quite centrally-driven economies. This is annual demand growth of 5.8% out to 2018.
Moreover, even DRI-EAFs will increase their hugely steel-intensive and will underpin Iran will be a key drag on growth as it currently
proportion of scrap utilised. Rather than medium-term steel demand growth for at consumes a third of the regional total.
relying on 90-95% DRI and just utilising least the next 2-3 years, with Saudi Arabia the There are growth opportunities
internally-generated scrap, MBR believes key example. This is not only important for nevertheless. Tubular facilities such as Kuwait
that these mills may drop their DRI rates to rebar and structural sections, but also for Pipe Industries’ new LSAW mill are due
75% or so and supplement with scrap. For products such as wire rod. As an example, the on-stream, while there are a number of spiral
example, ESI is examining its flat product Omani government’s private investment linepipe projects in Iraq. Construction
expansion of 1.6 million tpy without adding group Takamul is building a 60,000 tpy products such as purlins, sandwich panels
a new DRI module and it appears that Sulb of galvanized wire plant in 2013 in conjunction and HVAC equipment are increasingly made
Bahrain may do the same as it adds a 1 with Singapore’s Global Steel Industries. locally and are likely to show significant
million tpy EAF in 2014. North African long product demand has growth.
Both trends will result in rising scrap been hit in the last couple of years by political Yet regional projects in the Middle East are
imports, but will be complemented by uncertainty in Tunisia and Egypt and the civil some way away with none confirmed. The
improved scrap collection chains that will war in Libya. While it may be too early for a furthest progressed is the ESI 1.5 million tpy
result in increased domestic scrap collection. definitive call, it is MBR’s view that long hot rolled coil project that is scheduled for
Nevertheless, this will lead to more product demand will return to these markets 2016-17. Al-Rajhi of Saudi Arabia has another
competition to secure scrap imports and to by 2013/14 and could accelerate later in the 1.5 million tpy project, but this will not be
secure raw materials domestically. Over the forecast period. A key imperative in these ready before 2018. Moreover, Turkish EAF mills
last few years, there has been an increase in economies is to provide housing for young are operating below capacity thanks to
scrap export bans, with Algeria, Saudi Arabia populations, while infrastructure investments compressed spreads between scrap and
and Morocco implementing them. There will will be a relatively simple way to generate finished products.
be more to come, in MBR’s opinion. employment growth. Both will be enormously
Merchant DRI/HBI therefore becomes an steel-intensive. Import implications
option for steelmakers. Flat product mills in An example of the astonishing growth rates The regional net deficit in long products has
Morocco and Turkey are buyers of merchant possible is the performance of Iraq. Imports of slipped in the last couple of years to around
DRI, as are regional long product EAFs such as rebar are expected to touch 2 million tonnes 4-5 million tpy, although this includes the net
South Steel. However, MBR sees some in 2012 for example – to the huge benefit of exporter Turkey shipping to Iraq and the GCC
constriction in supply here and consequently Turkish and Ukrainian suppliers. Structural region. With much of the investment going
mills may need to secure material from sections imports are also growing fast. While into long products, MBR believes that this
outside the region. Jindal will largely exit again this is subject to political uncertainty, deficit will be relatively stable looking
this market in 2013, as it brings its steel mill MBR believes that strong growth rates will forward. Rising capacity will also mean that
on line. MBR estimates that it will sell around remain in place for the near term. the inflows will shift more to North Africa and
1.5-1.7 million tonnes in 2012, although MBR Iran, however, is of some concern. At over 20 Iraq and away from Iran and the GCC area.
also believes that it will continue to sell a million tpy of finished steel consumption at On the other hand, the integration back into
more limited amount. its peak, MBR estimates that demand will fall crude steel production along with the poor
Qasco is also likely to reduce its sales from by more than 10% in 2012 and imports have economics for re-rollers means that the net
2013, as will ESI once it brings on its flat borne the brunt of this as tightening sanctions deficit for billet will drop sharply. Over
product mill around 2017. While Sulb will be have limited foreign exchange availability. We 2007-09, this net deficit was almost 10 million
selling some DRI from the second half of 2013, expect that imports will fall again. Meanwhile tpy. By the end of the forecast period,
it too is likely to exit sales after bringing on the development of the indigenous DRI however, MBR expects that this will more than
its second EAF in 2014. As a result, external industry remains well behind schedule and halve. Iran is likely to exit the slab import
suppliers such as Lebedinsky and Lisco will struggles to source equipment. market completely as well.
see increased opportunities. Despite this, MBR is forecasting an average In flat products, however, the lack of local
annual demand growth of 7.2% for regional supply growth combined with rising demand
Demand growth long product consumption out to 2018. will result in a widening deficit. Already a
Of course investment in steelmaking capacity Consumption will surpass 80 million tonnes significant 10 million tpy, MBR expects it to rise
in the region only makes sense if demand compared to an estimated 58 million tonnes to almost 14-15 million tpy by 2018. European,
growth is strong enough to justify local in 2012. Asian and CIS mills will target this market.
sourcing and if it is cost-effective. In terms of Approximately 25% of finished steel
demand, that is certainly the case. Even in demand is for flat products. The key *Metal Bulletin Research’s report The Five-Year
2011 and 2012, when consumption in certain consumers are tubular manufacturers and the Strategic Outlook for the Middle East & North
markets fell dramatically due to civil construction product industry, which African Steel Industry covers the following
disturbance and political uncertainty – between them account for over 80% of countries: Algeria, Bahrain, Egypt, Iran, Iraq,
Egypt, Libya, Tunisia, Syria – long product regional demand. There are a number of Israel, Kuwait, Lebanon, Libya, Morocco,
consumption in the region rose by 4.5% and smaller markets including shipbuilding, Oman, Qatar, Saudi Arabia, Sudan, Syria,
an estimated 5.0%, respectively. transformers, barrels and containers, Turkey, Tunisia, United Arab Emirates, Yemen.
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Markets stabilise,
constraints and have yet to materialise.
Traders and stockists in the GCC region still have
vivid memories of when their rebar inventories
plummeted in value from record highs of $1,450/
tonne in July 2008 to less than $450/tonne in
competition grows
December that year.
Numerous international rebar trading,
distribution and re-rolling companies were
forced to write off large inventories worth many
millions of US dollars. Some smaller companies
went out of business or focused on other
Steel demand in the Middle East has stabilised at products like sections.
a healthy level this year, but competition The events in 2008 have changed the
psychology of the rebar market in the Middle
between domestic steelmakers and semis and East from speculating about prices, generating
high stocks and intensive selling into the current
steel importers to satisfy it is fierce. The outlook situation of purchasing small tonnages
sporadically, on a hand-to-mouth basis, to
for 2013 is for more of the same, reports Stacy Irish avoid being caught out by an uncertain market.
Demand steadies
Long product demand from end-users has
remained scant throughout 2012 and buying
activity has been cautious. Some traders have
been struggling to stay in business and have
switched to trading other commodities since
their customers in the Middle East have reduced
their rebar purchasing volumes. They are buying
small tonnages of a few thousand tonnes to
serve their immediate needs instead of tens of
thousands of tonnes four years ago.
Rebar stockists have been keeping low-to-
medium inventories levels and they are more
interested in trying to liquidate their existing
stocks to generate cash flow, rather than
danieli
www.metalbulletin.com/mobile-app
$ /tonne
coil have steadily declined since April this year 650
(see graph). Competition between Turkish and
CIS exporters and domestic producers, such as 600
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encouraged their citizens to purchase steel made
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in the Middle East to prevent large volumes of *cfr main Gulf port Source: Metal Bulletin
imported material, which puts pressure on its
domestic prices.
Hilal Al-Tuwairqi, chairman of Saudi Arabian The company aims to increase production in all markets is not good. There is oversupply in
steel producer Al-Tuwairqi Holdings and former further to about 5.5 million tpy over the next Japan and China. The European market is
president of the Arab Iron & Steel Union, is urging three years. It now has the capacity to produce 1 showing no signs of improvements and it’s
governments in the GCC region to impose a 20% million tpy of jumbo and heavy sections from its unlikely to get better anytime soon,” said a trader
import tax on rebar imports to put an end to facility in Musaffah, Abu Dhabi. Production is sold in Dubai.
what he refers to as ‘dumping practices’. mainly to countries in the Middle East and North “The US and Canadian market is ticking along. I
Also, Saeed Al Romaithi, ceo from Emirates Africa (Mena) region. can’t see that there will be a big jump in demand
Steel, is working closely with the Abu Dhabi or prices in 2013. The only thing that might
government to impose customs duties on steel happen that will help the market is that there will
imports to the UAE. He wants an additional 5% I don’t think that 2013 will be any be more distributors, traders [speculators] that
customs duty on rebar imports to support will go out of business. It will calm down the
domestic steel producers in the UAE.
different to 2012. It will be a tough market and give it breathing space. There are too
The UAE government has an existing 5% year for billet and rebar producers many people fishing for business and they need
customs duty on imported rebar, which was and traders to be removed to regulate the market,” he
reinstated in February 2009. But it is not enough concluded.
to fend off the large import volumes from Turkey A second trader in Dubai agreed that the market
and the CIS, which have been cashing in on the Demand for heavy sections in Mena countries is will remain unchanged in 2013.
stable demand for construction steel in the now about 5.5 million tpy and is expected to “The first quarter of 2013 will stay as quiet as
region. increase to 8.5 million tpy in 2020, according to 2012. The second quarter of 2013 will show some
Emirates Steel adjusts its domestic rebar prices the company’s estimates. The heavy sections mill improvement. China has been dumping HRC to
on a month basis to compete with cheaper rebar was supplied by Italian plantmaker Danieli and the Middle East and Turkey has been selling large
imports from Turkish suppliers. The state-owned will be integrated with an existing 1.4 million tpy volumes of rebar to the Middle East. We are
company is offering rebar to domestic consumers meltshop and 1.6 million tpy direct reduced iron having a tough time,” said a source from a pipe
at 2,245 UAE dirhams ($611) per tonne ex works for (DRI) plant (see projects article). producer in the GCC area.
December production and shipment. Several market sources in the GCC region say that
Also, UAE re-roller Conares is offering rebar at Level outlook they are expecting the market to remain
2,225 UAE dirhams ($606) per tonne ex works for Steel demand in the Mena region is expected to unchanged in 2013.
December rolling. increase by 5.7% in 2012 – up after a 2% fall in 2011 “I don’t think that 2013 will be any different to
This compares with the latest Turkish rebar due political instability – and is expected to grow 2012. It will be a tough year for billet and rebar
import price of $595-605 per tonne cfr main Gulf by 8.4% in 2013, supported by government- producers and traders. The market will stay
Port for December shipment. Sales have been funded construction projects financed by oil and stagnant. I don’t think we will see any big price
few and far between due to sufficient stocks gas revenues, according to a joint paper by Frost & rises or falls and there will be no volatility, which
levels in the UAE. Sullivan and the World Steel Association. is not good for traders,” said a prominent UAE
Companies such as Emirates Steel have The report argues that regional production of based long products trader.
invested in increasing steel production capacity finished products is expected to reach about 85 “There will not be a great deal of demand.
and a diversification of products to serve the million tonnes by 2013, with crude steel Europe is not doing well and demand is weak
needs of its domestic market and to remain production projected at more than 50 million there. The USA has its problems and consumption
competitive against low-cost imported tonnes – up from 27.4 million tonnes in 2010. levels are unlikely to change any time soon. China
material. Despite the promising growth figures from is not showing any signs of cutting production
various industry reports and associations, traders, which will add to the oversupply problem. I don’t
Expansion planned stockists and distributors in the GCC region have a think there will be a great deal of excitement in
At the end of September Emirates Steel gloomy outlook for 2013. 2013,” he concluded.
completed the second stage of its $1.9 billion “Next year will be as dull as 2012, I’m optimistic
expansion plan, which pushed its total steel for 2014. I don’t think we’ll see an upswing in The author is senior correspondent for
production to 3.5 million tpy. demand in 2013. The overall economic situation Metal Bulletin’s sister publication Steel First
Danieli Headquarters
Turnkey plants Turnkey construction, 33042 Buttrio (Udine) Italy
and Systems Engineering Erection and Systems Engineering Tel (39) 0432.1958111
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Middle East Steel 2012
Project review
Egypt
Egypt is the home of Ezz Steel, the largest
independent steel producer in the Mena region
with a total capacity of 5.8 million tpy of
finished steel, including 3.5 million tpy of long
and 2.3 million tpy of flat-rolled products.
The company’s planned next stage of
investment is a 1.9 million tpy Energiron III DRI
module at its Ezz Flat Steel (EFS) plant, Ain
Sokhna, near Suez, to provide feedstock for both
SUEZ STEEL
SMS SIEMAG AG
Eduard-Schloemann-Strasse 4 Phone: +49 211 881-0 E-mail: communications@sms-siemag.com
40237 Düsseldorf, Germany Fax: +49 211 881-4902 Internet: www.sms-siemag.com
Middle East Steel 2012
Project review
Emirates Steel
Danieli
Emirates Steel’s (ESI’s) new conticaster produces beam blanks for the heavy sections mill Breakdown mill at ESI’s heavy section mill
supplied by Danieli, which also designed a 4,000 subsidiary of General Holding Corporation – has Demand for medium and heavy sections will
HP 120 tph scrap shredder for the steelmaker. subsequently pursued a policy of establishing be over 4 million tonnes this year in the Middle
The company has another 1 million tpy integrated DRI-fed mini-mills, and rolling a East, with the UAE and Saudi Arabia the biggest
mini-mill for Jeddah in the feasibility study widening range of products at its site in consumers, and demand for heavy sections in
phase. Mussafah. the GCC region is expected to double by 2015.
Sister company Rajhi Heavy Industry and The phase 1 expansion, inaugurated in 2009, Both of Emirates Steel’s DRI plants are now
India’s state-owned Rashriya Ispat Nigam (RINL, comprised a 1.6 million tpy HYL/Energiron DRI being upgraded from 1.6 million to 2.0 million
or Vizag Steel) are discussing the possibility of a plant, a 1.4 million tpy meltshop and rolling mills tpy, which should be completed in 2013. The
joint-venture 3 million tpy integrated DRI-fed for rebar (0.62 million tpy) and wire rod (0.48 corresponding meltshops are also being
steel mill to be built in Saudi Arabia. The million tpy). expanded from 1.4 million to 1.7 million tpy. The
$8 billion plant would take five years to build, The phase 2 expansion commissioned in March upgrades are being carried out by Danieli.
and produce long and flat-rolled products. 2011 consisted of another mini-mill of similar Without pausing for breath, Emirates Steel is
ArcelorMittal and Saudi Arabia’s Al Tanmiah size: a 1.6 million tpy Energiron DRI plant, now planning phase 3 of its expansion,
Industrial and Commercial Investment Co plan to feeding a Danieli meltshop consisting of a announced in September 2011: this will mark a
commission their joint venture 600,000 tpy 150-tonne FastArc™ EAF and a 5-strand move into flat-rolled products with a hot-rolled
seamless pipe plant in 2013. The $800 million FastCast™ caster for billet, blooms and beam coil mill, and a slab meltshop fed by another DRI
mill, based in Jubail Industrial City 2, will supply blanks. The first two expansion phases represent plant. The future production of plate is also
its oil, gas and petrochemicals industries. a $2.45 billion investment, giving Emirates Steel a envisaged. This investment would add about 1.6
nominal 3.2 million tpy of DRI capacity and 2.8 million tpy to the company’s existing 3 million
United Arab Emirates million tpy of steelmaking capacity, with 3 tpy of steelmaking capacity. While still in the
One of the fastest-growing operations in the million tpy of rolling capacity. planning stage, this next phase is likely to
region is Emirates Steel (ESI) of Abu Dhabi. The beam blanks from the second conticaster commission from 2014 onwards.
Starting out with a single 500,000 tpy rolling mill are now feeding a 1 million tpy heavy sections Emirates Steel’s growing output and range of
commissioned in 2001, the company – 100% mill which was commissioned in January 2012 products has increased its share of its domestic
owned by Abu Dhabi Basic Industries Corp, a – the first such rolling mill in the region. The market to 60%, the company stated last month,
blanks are reheated in a 250 tph walking beam with its steel output rising 33% year-on-year in
furnace. The $650 million Danieli heavy sections the first three quarters. Around 70% of its
mill produces parallel-flange beams, columns finished products are sold on the domestic
and sheet piles with web depths up to 1,016 mm market, with the rest exported.
and flange widths up to 419 mm, plus up to 430 Elsewhere in the UAE, Al Ghurair Steel, a
mm parallel-flange channels, 250 mm angles, producer of pickled and oiled hot-rolled,
750 mm U-sheet piles and 630 mm Z-sheet piles. cold-rolled and galvanized sheet and coil, is
The heavy sections mill comprises a single expanding its operations in Mussafah, Abu
reversing stand breakdown mill and an Dhabi, to double galvanizing capacity to
ultra-flexible reversing pre-finishing/finishing 400,000 tpy, and raise cold rolling capacity to the
Al Ghurair Steel
mill made up of three coupled universal stands. same level from 250,000 tpy. This expansion is
Auxiliary plant includes a gauge unit for expected to commission next year. The company
closed-loop control, cooling bed, in-line is owned 80% by the Al Ghurair Group and 20%
Capacities for value-added products such as straightener, cutting-to-length, automatic by Nippon Steel & Sumitomo Metal Corp of
galvanized coil are rising stacking and collection. Japan.
Hot DRI for increased EAF HBI with outstanding Modules operating more than Coal-based DRI, HBI &
production & environmental chemical & physical quality 8,000 hours annually with Hot DRI production via
benefits with multiple hot available capacity up to and COREX®/
DRI transport options 2.5 MTPY MIDREX®
installed and proven
While others boast of technical advancements, Midrex delivers real world results for the steel
industry. MIDREX® Plants provide energy efficiency and flexibility, from natural gas to various
options for using coal, including gasifiers, coke ovens or BOFs.
Steelmakers worldwide rely on Midrex.
Direct reduction is
tonne of steel; reduced electrode
consumption by 0.5-0.6 kg/tonne of steel;
and reduced EAF refractory consumption by
1.8-2.0 kg/tonne of steel.
Kobelco
The Jindal Shadeed 1.5 million tpy Midrex reduction plant in Sohar, Oman, was the first Hotlink® The Midrex process with Hotlink transfer of DRI
system for feeding hot DRI to an EAF when it started up last year to the EAF
This implies that the DRI licences for other Gcal/tonne, and electrical energy
Egyptian steelmakers which were annulled at DRI production* consumption was 25 kWh/tonne against a
the same time could also be re-awarded. One Country 2009 2010 2011 guaranteed 35 kWh/tonne.
of the projects was a 1.76 million tpy Midrex Egypt 2.91 2.86 2.97
plant for Egyptian Sponge Iron & Steel Co Iran 8.20 9.35 10.37 Oman first
(Esisco, owned by the Beshay group) in Sadat Libya 1.11 1.27 0.30 The first Hotlink® Midrex DRI plant was the
Oman - - 1.11
City. Another project, for a 1.95 million tpy 1.50 million tpy module at Jindal Shadeed in
Qatar 2.10 2.16 2.23
Danieli/Tenova HYL/Energiron plant for Suez Saudi Arabia 5.03 5.51 5.81 Oman, which commissioned at the end of
Steel in Attaka, had its licence re-awarded in UAE - 1.18 2.25 2010. The plant, with its adjacent steel plant
mid-year, and a Suez Steel spokesman World total 64.44 70.37 73.32 now being built, is situated at Sohar Port,
expects both the DRI plant and new meltshop *million tonnes. Includes HBI. Source: Midrex Technologies with a dedicated quay having a draft of 19
to start up early in 2013. The latter module is metres. This means that it can receive
reported to be complete, and training of Capesize vessels of 180,000 dwt, which the
personnel is under way. electric arc furnaces. They are now being company claims results in substantially
Another DRI plant which is just about to upgraded to 2 million tpy each, which should reduced costs of raw materials.
commission is the United Steel Company of be complete in 2013. A Capesize vessel can be discharged within
Bahrain’s 1.5 million tpy Midrex plant, which Cold DRI is stored in an open stockyard and five working days, and the raw material
will feed a meltshop with 0.8 million tpy transferred to the meltshops by means of belt handling and stacking system is designed to
heavy sections rolling mill. Nameplate conveyors. Hot DRI can be discharged at 700°C handle 3,600 tph. The discharge facility
capacities for DRI plants are often and sent directly to either the meltshop or comprises two ship unloaders, plus belt
conservative, and 51% owner Gulf United the cooler; the Energiron plant uses the conveyors and a stacker/reclaimer.
Steel Holding Company (Foulath) states that enclosed Hytemp® pneumatic transport for The raw material furnace charging facility is
the module will actually be capable of handling hot DRI, developed jointly by designed for a capacity of 400 tph, with
producing 1.8 million tpy. The plant has an Danieli and Tenova Hyl. weigh feeders, vibro screens, belt conveyors
adjacent source of iron ore pellets from the The direct reduction process uses a steam and hoppers.
Gulf Industrial Investment Company (GIIC), reformer to convert natural gas into the The Hotlink system delivers hot DRI at 650°C
the 11.0 million tpy pelletizing company hydrogen and carbon monoxide reducing by gravity feed to the EAF, in a fully sealed link
which is wholly owned by Foulath. agents, which reduce the iron oxide to (see diagram). The DRI can also be fed to a
(impure) iron inside the reactor. In the briquette machine for producing hot
Flexible facilities process, wet reformed gas is first dried in a briquetted iron, HBI. The capacity was
A modern example of the flexible DRI quench tower and then injected into the designed for a production rate of 187.5 tph,
modules now being built are the two circuit, where it joins the recycled gas coming allowing for 1.1 million tpy of hot DRI and 0.4
Energiron plants that started up at Emirates from the reactor. million tpy of HBI. The port loading facility
Steel, Abu Dhabi, in 2009 and 2011. These 1.6 The reducing gas is heated and sent to the can handle 850 tph of HBI, with a soft loading
million tpy modules can produce either cold reactor distribution ring. Oxygen injection is facility of 1,600 tph being built.
DRI or hot product charged directly to the provided between the heater and reactor in Shadeed points to various features of its
order to increase the gas carburization direct reduction plant which have been
potential when higher percentages of carbon designed for increased productivity and
– above 2.5% – are required by the product quality. Combustion air is preheated
meltshop. to 675°C and feed gas to 580°C. An oxygen
The top gas leaving the reactor is treated to injection system with ten injection nozzles
clean it and remove the water and carbon for the bustle reduction gas is used to
dioxide formed in the reactions. Its heat increase bustle gas temperature: this allows
content is recovered and delivered to the for increased productivity while maintaining
process gas heater. This treated gas, having product quality. An oxygen flow of up to
been cleaned of dust, is sent to a carbon 4,000 cu metres/h is employed. The gas
dioxide absorber where this gas is removed reformer consists of 16 bays with 30 tubes per
by a liquid absorber. This absorber also bay.
removes hydrogen sulphide, giving an almost Higher reduction temperatures are assisted
sulphur-free process gas and minimising by the on-site iron ore pellet coating system,
sulphur addition to the DRI. which coats the iron oxide pellets with lime
The gas leaving the absorber is free of solution, at a design rate of 1.5 kg/tonne of
oxidised components and has regained its iron ore. A coating of lime hydrate on the
reduction potential. It then rejoins the pellets allows a significant increase in
reformed gas and passes again through the reducing gas temperature, says Midrex, which
process gas heater, forming a closed loop. results in a production increase of up to 20%.
Shortly after commissioning, the plant was The DRI’s nominal specification is 93%
Tenova HYL
able to better most of its nameplate minimum metallization with 1.5% minimum
guaranteed parameters, says Danieli. It carbon, and a discharge temperature of
The second 1.6 million tpy Tenova HYL DRI achieved a 250 tph capacity, compared with a 650°C.
module at Emirates Steel in Abu Dhabi started guarantee of 200 tph. DRI metallization was Other plant which has been built as part of
up this year, and, along with the first identical above 94%, with carbon content above the greenfield steel complex includes an air
module, is already being expanded to produce 2.5%. Natural gas consumption was 2.45 separation plant and 4,800 cu metre/day
2.0 million tpy Gcal/tonne compared with a guaranteed 2.6 desalination plant.