Growth in global production of direct reduced iron (DRI) faltered in 2014 according to a report by processing system supplier, US-based Midrex. The outlook for DRI continues to be positive as demand increases in traditional and new markets, and as new and low cost energy sources become available for DRI production, the company says.

In the report monitored by Kallanish, Midrex says that DRI production in 2014 at 75.55 million tonnes fell slightly from 2013. “This was due to natural gas shortages and curtailments in India, and operational disruptions in other DRI producing regions as well general downturns in steel market conditions”, the company explains.

The outlook continues to be positive however as demand increases in traditional and new markets, and as new and low cost energy sources become available for DRI production, Midrex says. Production numbers should bounce back next year as new, recently commissioned, capacity ramps up toward full production. 

Within the past two years, plants have begun operation in Bahrain, Egypt, India, Iran, Pakistan and the USA.  These are steadily increasing production and are expected to make more in each of the ensuing years.  A large amount of additional DRI production capacity is under construction in Egypt, India, Russia, the USA and Venezuela, which also will contribute to growth.

The top producing nations in 2014 were India, Iran, Saudi Arabia, Mexico and Russia (see table). Venezuela, from a world-topping output level of 9mt in 2005 now produces only 1.7 million tonnes/year. Much of the problem in that country derives from inability to sustain operation of the iron ore pellet supply chain, beginning with the mines and continuing through the pellet plants, Midrex adds.

Source: Midrex Technologies