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Market Forecast of Direct Reduced Iron (Sponge Iron)

    According to statistics supplied by National Bureau o f Metallurgy , the output of electric steel has already been up to more than 1200 million tons of our country in 2008. The output of electric steel in our country is up to more than 100 million tons in 2007. Steel industry in China needs 200 million tons of scrap steel, direct reduced iron (sponge iron), iron and other solid metal charging this year. Because the proportion of continuous casting of our country has already risen to 85%. If accounted with continuous casting of 85% and die casting of 15%, the self reversal of scrap steel from steel industry is fewer than 15 million tons. Scrap steel which is supplied by society can not exceed 30 million tons (including dismantle ships). million tons of importation scrap steel, So the gap of scrap steel by normally smelting reaches more than 35 million tons. If mix direct reduced iron (sponge iron) according to 30% of the proportion, the gap part needs 10.5 million tons of direct reduced iron (sponge iron). Direct reduced iron (sponge iron) is still new in China, manufacturing of direct reduced iron (sponge iron) just starts in our country, a lot of steel factories are knowing it, and using it progressively, the special steel factories needs it even more. The demand of direct reduced iron (sponge iron) is bigger and bigger, annual total demand can be up to 10 million tons. China imported 1,300,000 tons of direct reduced iron (sponge iron) in 2002, and the import volume was up to 1,690,000 tons in 2003. imported 2,000,000 tons in 2004. imported 3,000,000 tons in 2006. imported 3,200,000 tons in 2007.The average price of 500 US dollars / ton.But the annual production capacity of direct reduced iron (sponge iron) is only 800,000 tons, the output of direct reduced iron (sponge iron) was only 300,000 tons in 2002, the output was 350,000 tons in 2003, and 400,000 tons in 2004,and 430,000 tons in 2005,and 500,000 tons in 2006,and 550,000 tons in 2007,and 600,000 tons in 2008, this is far from the demand. So the c apacity of market is very large. In order to accelerate the development of the steel industry of our country, and let our country to become the great power of steel, former Ministry of Metallurgical Industry spend a huge sum of money to introducing foreign advanced technology and capital equipments for building up the direct reduced iron company with annual output of 300000 tons in Tianjin Seamless Steel Tube Company, to accord with the electric arc furnace (with ultra high power) which has been built. Former Ministry of Metallurgical Industry held the first National Conference about Direct Reduced Iron (Sponge Iron) in Dengfeng, Shenyang on Mar, 2006. The seven National Conference about Direct Reduced Iron (Sponge Iron) in Zhang Jiajie on September, 2003. We have held 7 times of thematic conferences by the former vice-minister of Ministry of Metallurgical Industry. We discussed how to accelerate the paces of direct reduced iron (sponge iron)'s production, and be in line with international standards. The vice-minister Zhou ChuanDian gave an important speech on the conference. He required paying more attention to the manufacturing of direct reduced iron (sponge iron), Fulfill our responsibility and sense of urgency. We should support the enterprises to manufacture direct reduced iron (sponge iron), and improve its enthusiasm. The Metallurgical Bureau has already classified the direct reduced iron (sponge iron) as one of the three scientific and technological development items of " 15 ", National Planning Commission has already classified it as the investment orientation to supported.

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