dri & mini-mills - amm
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DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
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W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochure
World and US Productionof DRI and HBI
This white paper has been created in conjunction with and American Metal Market andMetal Bulletin Events’upcoming DRI and Mini-mills Conferencebeing held on September10-11, New Orleans, LA.
The data and trends examined in this paper, and many others, will be addressed byexpert speakers and panellists at the event.
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
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World Production of DRI and HBI (‘000 tonnes)90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
A burgeoning DRI market in North America has the potential to be an industry game changer, the shalegas revolution and the resultant affordable natural gas has put DRI production firmly back on the agenda.DRI offers unique opportunities for mini-mill steel makers to tap into the iron ore market and protect againstthe volatility of the steel scrap market.
DRI can open up new commercial avenues and streamline the steel making process both in terms ofefficiency and cost and finished product markets. This could be one of the most influential shifts in the steelindustry for decades and will have ramifications across the entire supply chain.
The below graphical representation outlines the continuing growth in DRI consumption worldwide, it is clearto see that DRI is growing in popularity and is being utilized by more and more steel makers each year.
Tota
l (Mt)
Year
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochure
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
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The shape of the DRI production curve is even more informative when viewed in comparison to worldcrude steel production. The effects of the financial crisis in 2009 were less severely felt in the DRIproduction statistics further enhancing the view that the cost and efficiency benefits of using DRI in steelmaking are even more important during periods of financial difficulty when steel makers’ profit marginsare particularly tight.
World Production of Crude Steel (‘000 tonnes)160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total (Mt)
Year
1997
1998
1999
2000
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochure
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
This figure graphically represents the crude steel production share of both primary BOF facilities andsecondary mini-mill based steel makers. The majority of steel is produced by mini-mills which indicates notonly the inherent environmental and feedstock advantages of EAFs but also represents the huge potentialmarket for DRI in the US. DRI will not necessarily increase the crude steel market share for mini-mills but it doesprovide mini-mill operators with the flexibility of feedstock and the opportunity to tap into the iron ore market.
Steel Production by Type in the U.S.
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2007
2008
2009
2010
2011
2012
Tota
l (Mt)
Year
Crude Total (Mt) BOF Total (Mt) EAF Total (Mt)
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Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochure
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochureNEXT
As the below graph contests EAF’s share of crude steel making has been on the rise in recent years and theforecast outlines how EAF steel making will overtake traditional BOF steelmaking routes by 2030. Globally thebalance between EAF and BOFs will become more similar to the current balance in the US (see next graph).The efficiency, feedstock flexibility and environmental advantages of EAFs make them a much moreattractive investment for future capacities, especially with new carbon emission laws and growing steelscrap reservoirs.
Global Steel Production by Type
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
2000
2005
2010
2015
2020
2025
2030
Year
Crude Steel Production by Blast Furnace Crude Steel Production by Electric Arc Furnace
697Mt
814Mt1167Mt
1229Mt1278Mt
1248Mt1282Mt
163Mt286Mt
348Mt
606Mt852Mt
1152Mt1388Mt
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochureNEXT
The shale gas revolution is the undoubted catalyst for US DRI production. The below figure outlines how DRIcapacities are likely to grow exponentially with reliably low natural gas prices, whilst natural gas prices staycompetitive DRI based steel production is likely to remain an attractive, cost effective option
Shale Gas and DRI Production
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
US Produc
tion of DRI (Mt)
Year
12
10
8
6
4
2
0
Gas Price (US$/m
mBtu
DRI production, Mt (LHS) Gas Prices, US$/mmBtu
Source: WSA, Wood Mackenzie Steel Market and Global Gas Service
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochureNEXT
The rise of EAF based steel making both in the US and globally is being driven by a combination of factors:
l Environmental – EAF based steel making generates significantly less carbonemissions than the traditional BOF route, both in actual production process andbecause they predominantly utilize and recycle ferrous scrap. As more carbonemission taxes and restrictions are being enforced by governments across theglobe, this factor will only grow in importance.
l Flexibility – The volatility of raw material prices and slackening of global steeldemand makes the flexibility of EAFs even more important. EAFs are considerablymore flexible than primary steel maker and can economically and efficientlyreduce their output and capacity according to market pressures.
l Feedstock – The traditional BF and BOF route are reliant on coking coal supplieswhich are beginning to tighten. EAFs do not have any coal requirements and aretherefore unaffected from the dwindling coking coal availability.
The Rise of EAFs
DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
This white paper has been created in conjunction with and American Metal Market and Metal BulletinEvents’ upcoming DRI and Mini-mills Conference being held on September 10-11, New Orleans, LA. Withover 120 delegates expected, this is an ideal opportunity to meet your customers and suppliers in theburgeoning market as well as hearing from the senior level decision makers at market leading companiesdiscuss the following:
l The growing role of DRI in the North American steel industryl Shale gas availability and its ramifications for manufacturing and steel makingl The applications and advantages of DRI in mini-mill operationslA detailed evaluation and comparison of the available DRI technologieslAn overview of potential DRI projects in the regionlDRI/HBI as a merchant productlDRI logistics – the safe handling and shipping of DRIlA comparison of ore based metallics and their useslComprehensive analysis of DR grade iron ore pellet availabilityl EAF technologies – how they are maximizing efficiencyl Burdening optimization and procurement strategies for mini-millslVertical integration and mitigating volatility through raw material control
Unless specified, all data is sourced from Metal Bulletin Research and presentations delivered at Metal Bulletin Events
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Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochure
DRI and Mini-mills Conference
Research Partner:Signature Sponsor: Gold Sponsor: Silver Sponsors:
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DRI &Mini-millsConferenceSeptember 10-11, 2013Royal Sonesta Hotel, New Orleans, LA
Home
World Production of DRI and HBI
World Production of Crude Steel
Steel Production by Type in the U.S.
Global Steel Production by Type
Shale Gas and DRI Production
The Rise of EAFs
DRI and Mini-mills Conference
Back Page
W: www.amm.com/events/minimills
T: +1 212 901 3828
Click here to view the brochure
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A Ten Year Strategic Outlook for the
Global Iron Ore Industry
New andUpdated
Part 1: A Ten Year Strategic Outlook for the Global Iron Ore Industry
Part 2: Dynamic Demand, Supply and Price Model for the Global Iron Ore Industry