world direct reduction statistics 2013

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WORLD DIRECT REDUCTION STATISTICS 2013 CONTENTS 2 World DRI Production 5 World DRI Production by Region/Year 6 World DRI Production Tables 8 Major Trade Routes for DRI Products 9 World DRI Shipments 10 World Direct Reduction Plants Audited by www.midrex.com 6.5.14

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Page 1: World direct reduction statistics 2013

World direct reduction statistics

2013

contents

2 World DRI Production

5 World DRI Production by Region/Year

6 World DRI Production tables

8 Major trade Routes for DRI Products

9 World DRI shipments

10 World Direct Reduction Plants

Audited by

www.midrex.com

6.5.14

Page 2: World direct reduction statistics 2013

2013 World dri Production by Process

2

total World Production: 75.2 Mt

table of contents

2011 2012 2013

MIDREX® 60.5% 61.2% 63.2%

HYL/Energiron 15.2% 14.8% 15.4%

Other Gas 0.7% 0.7% 0.2%

Coal-based 23.6% 23.3% 21.2%

Source: Midrex Technologies, Inc.

2013 World Direct Reduction statistics Page 2 sECOnD qUARTER 2014

< >

The world’s direct reduction industry continued

its solid growth setting a new record in 2013

with 75.2 million tons produced; this was an

increase of two million tons per year, or 2.8%

above the 2012 numbers. Worldwide, the DRI industry

has grown in eight of the past ten years. Output last year was

more than 85% greater than in 2001. Factors that had placed

a drag on growth in the preceding years continued, but were

overshadowed by the demand for direct reduced iron in many

areas.

The primary region of industry growth was the Middle

East/North Africa (MENA) region where more than five million

tons more DRI were made than in 2012. The Kingdom of

Bahrain entered the group of DRI producing nations as

the new 1.5 MPTY MIDREX® Plant at Hidd owned by SULB

began operation. Iran once again demonstrated major growth,

increasing output by nearly three million tons primarily via

the ramp-up of a number of recently commissioned modules.

Libya increased tonnage as industry there continued to rebuild

from the civil war. Elsewhere in the region, Oman made slightly

more that it had in 2012, and Saudi Arabia set a new record

for national DRI production as did the United Arab Emirates.

Altogether MENA made 32.4 million tons, which was 55% of

the total of natural gas fueled DRI.

Outside of MENA, additional growth was also seen in

Russia, which had a new national record production of 5.3

million tons.

The growth seen in 2013 was quite remarkable since two

key producing countries, India and Venezuela, saw a signifi-

cant decline in production. India fell to 17.8 million tons. This

was down from the all-time high that India had enjoyed only

three years earlier when it made 23.4 million tons in 2010. The

main reasons for the decline were the same difficulties that

have been seen in the past few years, which included lower

availability of domestic iron ore due to regulations and licens-

ing related to environmental requirements and extremely high

prices of natural gas. Regarding the latter problem, a number

of companies in India are building facilities to make DRI using

syngas produced from coal in place of natural gas. Two of

these facilities are expected to be commissioned in 2014.

Venezuela continued to struggle with DRI production

down 40% from 2012. This meant the country was down to

less than one-third of its maximum production in 2005. The

immediate reason is a shortage of iron oxide pellets to feed

the DR plants, but the underlying reason is lack of funds for

World dri output exceeds 75 Million tons:Growth continues as another record is set in 2013

6.5.14

© 2014 Midrex Technologies, Inc.

MIDRex® 63.2%

Coal-based 21.2%

HYL/Energiron 15.4%

Other Gas0.2%

Page 3: World direct reduction statistics 2013

3 table of contents

2013 World Direct Reduction statistics Page 3 sECOnD qUARTER 2014

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maintenance throughout the supply chain; mining, transporta-

tion, materials handling, pelletizing, ironmaking and infrastruc-

ture.

FoRces AFFectIng the InDustRYThe ore supply problem in India was the largest factor restricting

production. High prices of natural gas and difficulty in acquiring

gas were also problems. In contrast, steadily growing demand

as the world economy continues to slowly recover from the

financial crisis of 2008-2009 helped to further production. Shale

gas exploration in the USA and Canada has led to lower natural

gas pricing in North America encouraging the building of new

DR capacity. One plant has already begun commercial operation

and another project broke ground for construction in April of this

year. More facilities are expected to be contracted in the USA

over the next few years.

neW cAPAcItY AnD PlAnts unDeR constRuctIon

Midrex®

New modules begin operations Four new DR plants using MIDREX® Direct Reduction Technology began operation in 2013. Two are in Iran. These are South Kaveh Steel’s second module near Kish and the new module at Arfa Steel in Yazd province. In the Kingdom of

Bahrain, SULB’s CDRI/HDRI combo plant at Hidd began its first full year of operation as did the HDRI/CDRI combo plant at Tuwairqi Steel Mills in Karachi, Pakistan.

Under Construction Six modules are under construction in five countries; Egypt, India, Iran, Russia and the United States. They are slated for commissioning in 2014-2016 and have a combined capacity of 10.1 million tons per year. Two of these plants are MXCOL®

Plants using syngas produced from coal rather than natural gas are expected to be commissioned in India by end of 2014.

HYL/energiron New modules begin operations The announcement of commissioning of the new module at Nucor Louisiana in the United States was made at the end of 2013.

Under Construction Three modules are contracted or under construction in Egypt, India and Venezuela. They have a combined capacity of 5.2 million tons.

rotary Kiln Coal-based Production by rotary kiln modules, nearly all of which are in India, declined in 2013 to less than 16 million tons. This was down by over two million tons per year from the peak in 2010 of over 18 million tons.

6.5.14

The world dri industry is expected to grow quite considerably over the next few decades. About

16 million tons of dri capacity is currently under construction. even though production increases have only grown marginally (on average by a little less than 1.5 million tons per year over the past five years) Midrex believes that as new, larger scale plants come online, there will be increases of five million tons per year and more over the next decade. Midrex is forecasting that the current plants under con-

tract and construction will come on stream over the period 2014

through 2017. A conservative view of the situation is that some

of the plants/projects are in locations where it will be difficult

to maintain schedules as planned with economic and political

factors possibly slowing completion. In addition, some of these

plants will likely ramp up to capacity quite swiftly, but others

may take some time.

There are several factors influencing this growth both short and

long term.

It is expected that regional natural gas supplies will grow

at a more rapid rate than in previous years. The technology for

shale gas production has radically altered the supply/demand

picture in North America and this technology is quickly expand-

ing worldwide. With this said, industry demand and low natural

gas pricing within the USA will most likely lead to 2-3 more

facilities, representing 5-6 million tons of capacity being built in

North America by end of this decade.

In areas without access to low cost natural gas, other

technologies are being explored and implemented. Already in

progress for India are plants using syngas produced from coal

instead of natural gas for DRI production. In addition at least

one plant is exploring supplementing its natural gas supply with

coke oven gas (COG) to maximize existing resources and lessen

dependency on natural gas.

Furthermore, the understanding of DRI products and their

dri Production forecast

© 2014 Midrex Technologies, Inc.

Page 4: World direct reduction statistics 2013

total World Production: 59.1 Mt

2011 2012 2013

MIDREX® 80.0% 80.6% 80.4%

HYL/Energiron 20.0% 19.4% 19.6%

Source: Midrex Technologies, Inc.

MIDRex® 80.4%

HYL/Energiron 19.6%

2013 World shaft furnace Production by Process

‘90

59.1 Mt

MIDRex®

HYL/Energiron ‘13

4 table of contents

2013 World Direct Reduction statistics Page 4 sECOnD qUARTER 2014

< >

6.5.14

© 2014 Midrex Technologies, Inc.

usage is continuing to evolve. With this evolution new markets

are emerging.

The long-standing application of DRI has been as a charge

material for electric arc furnaces, but that is now making way for

a growing secondary market-the use of HBI in blast furnaces.

This was the explicit reason for the new 2.0 MTPY HBI plant cur-

rently being built in Texas by the voestalpine Group with half of

the HBI produced to be shipped to Europe for use specifically in

BF/BOF applications.

Lastly, ever looming for the steel industry, the movement to

monetize a penalty for CO2 generation is gathering momentum.

This will have widespread positive impact for DRI growth. The

primary way to reduce the steel industry’s footprint will be to

replace BF steelmaking with EAF steelmaking operations, which

in general generates 50% less CO2 emissions. In order for EAFs

to compete they will need a strong low residual metallic supply,

meaning the need for additional DRI or pig iron.

Interestingly enough, China is the world’s largest steel pro-

ducing entity; however, it has no current DRI industry. China is

also under considerable pressure by the Chinese government

to reduce its blast furnace capacity by 80 million tons by 2017

and replace capacity with newer, clean technologies and better

utilization of local resources such as coal. This could potentially

open a huge door for DRI production both within China and

outside of it.

Considering all these factors, Midrex expects worldwide

DRI production to reach 200 million tons per year around the

year2030.

Page 5: World direct reduction statistics 2013

2013 World dri Production by region (Mt)

World dri Production by Year (Mt)

5 table of contents

2013 World Direct Reduction statistics Page 5 sECOnD qUARTER 2014

2011 2012 2013

Middle East/north Africa 25.04 27.19 32.36

Asia/Oceania 25.36 22.58 20.54

Latin America 15.12 15.16 13.83(including Mexico and Carribbean)

CIs/Eastern Europe 5.20 5.24 5.33

sub-saharan Africa 1.41 1.57 1.41

north America 0.70 0.84 1.25(US & Canada)

Western Europe 0.38 0.56 0.50

Source: Midrex Technologies, Inc.

< >

Middleeast/

n. Africa

32.36

20.54

13.83

5.33

1.41 1.25 0.50

Asia/oceania

latinAmerica

(including Mexico & Carribbean)

cIs/eastern europe

sub-saharan

Africa

northAmerica

(Us & Canada)

Westerneurope

1970 0.79’71 0.95’72 1.39’73 1.90’74 2.72’75 2.81‘76 3.02‘77 3.52’78 5.00’79 6.64’80 7.14’81 7.92’82 7.28’83 7.90’84 9.34’85 11.17’86 12.53’87 13.52

’88 14.09’89 15.63’90 17.68’91 19.32’92 20.51’93 23.65’94 27.37’95 30.67’96 33.30’97 36.19‘98 36.96‘99 38.60‘00 43.78‘01 40.32‘02 45.08‘03 49.45’04 54.60’05 56.87

‘06 48.41 8.60 2.69 59.70‘07 55.79 8.34 2.99 67.12‘08 56.52 8.19 4.24 67.95‘09 52.54 6.93 4.86 64.33‘10 56.60 7.21 6.47 70.28‘11 59.41 7.60 6.20(e) 73.21‘12 59.51 7.90 5.73(e) 73.14‘13 62.80 6.17 6.25(e) 75.22

Year total Year total Year cdri Hbi Hdri total

Source: Midrex Technologies, Inc.

‘70

75.22 Mt

‘13

hDRIhBIcDRI

6.5.14

© 2014 Midrex Technologies, Inc.

Page 6: World direct reduction statistics 2013

6 table of contents

2013 World Direct Reduction statistics Page 6 sECOnD qUARTER 2014

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naMe ‘70-‘93 ‘94 ’95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02

latin america ARGEnTInA 15.23 1.27 1.33 1.42 1.50 1.54 0.99 1.42 1.28 1.46BRAZIL 5.16 0.22 0.30 0.34 0.32 0.34 0.40 0.42 0.43 0.36MEXICO 38.93 3.24 3.70 3.90 4.54 5.68 6.24 5.83 3.67 4.90PERU 0.59 0.02 0.003 0.02 0.12 0.11 0.05 0.08 0.07 0.03TRInIDAD & TOBAGO 6.16 0.94 1.05 1.07 1.24 1.14 1.30 1.53 2.31 2.32VEnEZUELA 39.64 4.71 4.72 5.34 5.36 5.06 5.05 6.69 6.38 6.89Middle east/n. africaBAHRAIn – – – – – – – – – –EGYPT 5.10 0.78 0.85 0.83 1.19 1.61 1.67 2.11 2.37 2.53IRAn 3.77 2.63 3.23 3.81 4.38 3.69 4.12 4.74 5.00 5.28LIBYA 3.16 0.85 0.97 0.83 0.99 1.01 1.33 1.50 1.09 1.17OMAn – – – – – – – – – –qATAR 7.41 0.60 0.63 0.64 0.57 0.71 0.67 0.62 0.73 0.75sAUDI ARABIA 12.60 2.11 2.13 2.30 2.11 2.27 2.36 3.09 2.88 3.29UAE – – – – – – – – – –asia/oceaniaAUsTRALIA – – – – – – 0.32 0.56 1.37 1.02CHInA – – – – – – 0.11 0.05 0.11 0.22InDIA 6.54 3.12 4.28 4.84 5.26 5.26 5.22 5.44 5.59 6.59InDOnEsIA 14.30 1.62 1.86 1.80 1.60 1.64 1.74 1.82 1.48 1.50MALAYsIA 5.37 0.99 1.09 1.48 1.72 0.91 0.96 1.26 1.12 1.08MYAnMAR 0.21 0.01 0.02 0.04 0.04 0.04 0.03 0.04 0.04 0.04PAkIsTAn – – – – – – – – – –north americaCAnADA 12.86 0.77 1.01 1.42 1.39 1.24 0.92 1.13 – 0.18Us 8.78 0.48 0.46 0.45 0.51 1.60 1.67 1.56 0.12 0.47cis/eastern europe RUssIA 12.63 1.71 1.68 1.50 1.73 1.55 1.88 1.92 2.51 2.91sub-saharan africanIGERIA 1.45 0.04 0.02 0.02 – – – – – –sOUTH AFRICA 8.35 0.98 0.95 0.90 1.09 1.05 1.16 1.53 1.56 1.55 Western europeGERMAnY 6.15 0.28 0.41 0.37 0.47 0.45 0.40 0.46 0.21 0.54other nations 0.47 – – – – – – – – –

World total 214.86 27.37 30.67 33.30 36.19 36.90 38.59 43.78 40.32 45.08

naMe ‘70-‘93 ‘94 ’95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02

MIDREX® 123.18 17.83 19.86 21.03 23.08 24.82 26.12 30.12 26.99 30.11HYL/Energiron 70.37 7.01 8.15 9.12 9.55 8.52 8.81 9.39 8.04 8.88Other shaft Furnace/Retort Processes 0.79 0.01 0.04 0.15 0.10 0.09 0.07 0.15 0.14 0.04Fluidized Bed Processes 4.96 0.42 0.45 0.44 0.48 0.40 0.66 0.96 1.93 1.63Rotary kiln, Coal-based 15.56 2.13 2.17 2.56 3.01 2.94 2.94 3.14 3.18 4.43Rotary Hearth, Coal-based – – – – – – – – – – World total 214.86 27.37 30.67 33.30 36.19 36.90 38.59 43.78 40.32 45.08

2013 World dri Production by region (Mt)

2013 World dri Production by Process (Mt)

Source: Midrex Technologies, Inc.

6.5.14

© 2014 Midrex Technologies, Inc.

Page 7: World direct reduction statistics 2013

7 table of contents

2013 World Direct Reduction statistics Page 7 sECOnD qUARTER 2014

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naMe ‘03 ‘04 ’05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13

latin america ARGEnTInA 1.74 1.74 1.83 1.95 1.81 1.86 0.81 1.57 1.68 1.61 1.54BRAZIL 0.41 0.44 0.43 0.38 0.36 0.30 0.01 – – – –MEXICO 5.62 6.54 5.98 6.17 6.26 6.01 4.15 5.37 5.85 5.59 6.13PERU 0.08 0.08 0.09 0.14 0.09 0.07 0.10 0.10 0.09 0.10 0.10TRInIDAD & TOBAGO 2.28 2.36 2.25 2.08 3.47 2.78 1.99 3.08 3.03 3.25 3.29VEnEZUELA 6.90 7.83 8.95 8.61 7.71 6.87 5.61 3.79 4.47 4.61 2.77Middle east/n. africaBAHRAIn – – – – – – – – – – 0.78EGYPT 2.87 3.02 2.90 3.10 2.79 2.64 2.91 2.86 2.97 2.84 3.17(e)IRAn 5.62 6.41 6.85 6.85 7.44 7.46 8.20 9.35 10.37 11.58 14.46LIBYA 1.34 1.58 1.65 1.63 1.64 1.57 1.11 1.27 0.30 0.51 0.95OMAn – – – – – – – – 1.11 1.46 1.47 qATAR 0.78 0.83 0.82 0.88 1.30 1.68 2.10 2.16 2.23 2.42 2.39sAUDI ARABIA 3.29 3.41 3.63 3.58 4.34 4.97 5.03 5.51 5.81 5.66 6.07UAE – – – – – – – 1.18 2.25 2.72 3.07asia/oceaniaAUsTRALIA 1.95 0.69 – – – – – – – – – CHInA 0.31 0.43 0.41 0.41 0.60 0.18 0.08 – – – – InDIA 7.67 9.37 12.04 14.74 19.06 21.20 22.03 23.42 21.97 20.05 17.77InDOnEsIA 1.23 1.47 1.27 1.20 1.32 1.21 1.12 1.27 1.23 0.52 0.68 MALAYsIA 1.60 1.68 1.38 1.54 1.84 1.94 2.30 2.39 2.16 2.01 2.03(e)MYAnMAR 0.04 0.04 – – – – – – – – –PAkIsTAn – – – – – – – – – – 0.06 north americaCAnADA 0.50 1.09 0.59 0.45 0.91 0.69 0.34 0.60 0.70 0.84 1.25Us 0.21 0.18 0.22 0.24 0.25 0.26 – – – – – cis/eastern europe RUssIA 2.91 3.14 3.34 3.28 3.41 4.56 4.67 4.79 5.20 5.24 5.33sub-saharan africanIGERIA – – – – 0.15 0.20 – – – – – sOUTH AFRICA 1.54 1.63 1.78 1.75 1.74 1.18 1.39 1.12 1.41 1.57 1.41Western europeGERMAnY 0.59 0.61 0.44 0.58 0.59 0.52 0.38 0.45 0.38 .56 0.50other nations 0.47 – – – – – – – – – –

World total 49.45 54.60 56.87 59.70 67.12 67.95 64.33 70.28 73.21 73.14 75.22

naMe ‘03 ‘04 ’05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13

MIDREX® 32.06 35.01 34.96 35.71 39.72 39.85 38.62 42.01 44.38 44.76 47.56HYL/Energiron 9.72 11.34 11.00 10.91 11.20 9.84 7.88 9.81 11.03 10.79 11.59 Other shaft Furnace/Retort Processes 0.04 0.04 – – – – – – – – –Fluidized Bed Processes 2.57 1.62 1.52 1.31 1.05 1.08 0.50 0.34 0.48 0.53 0.14Rotary kiln, Coal-based 5.04 6.41 9.17 11.53 14.90 16.92 17.33 18.12 17.32 17.06 15.93Rotary Hearth, Coal-based* – – 0.18 0.22 0.24 0.25 0.26 – – – –

World total 49.45 54.60 56.87 59.70 67.12 67.95 64.33 70.28 73.21 73.14 75.22

2013 World dri Production by region (Mt)

2013 World dri Production by Process (Mt)

Source: Midrex Technologies, Inc.

* Beginning in early 2009, the plant began feeding recovered wastes in addition to iron ore, therefore it no longer fits within the definition of DRI used by this report.

(e) Estimate

6.5.14

© 2014 Midrex Technologies, Inc.

Page 8: World direct reduction statistics 2013

Major trade routes for international trade of dri (Hbi and cdri)

8 table of contents

2013 World Direct Reduction statistics Page 8 sECOnD qUARTER 2014

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6.5.14

The map shows the major routes of international transport of

dri in 2013. The width of the lines indicates the amount of dri

that traveled over the individual routes.

Data for the map was taken from three sources: the Iron

and Steel Statistics Association (ISSB) in London, The Inter-

national Iron Metallics Association (IIMA) in Rotherham, UK,

and reports from individual operating DR plants. Data from

the ISSB originates with national export and import records;

for instance, from the US Customs Bureau. IIMA information

derives from a variety of sources. It should be stressed that

a significant portion of the export data does not match the

import data. In specific, reports from individual plants show

over two million tons of dispatches for which the destination is

unknown.

The arrows do not originate and terminate at specific coun-

tries. Rather, sums for dispatch and arrival were totaled by

region and the arrows flow from region to region. For instance,

the widest arrow which originates from the north coast of South

America shows DRI and HBI coming from the Caribbean (Ven-

ezuela plus Trinidad and Tobago) and being transported to North

America (Canada, the United States and Mexico). The regions

are: North America, Caribbean, South America, NW Europe (UK,

Scandinavia, Benelux, France, and Germany), Mediterranean

Europe (mostly Spain and Italy) and Turkey, Eastern Europe,

North Africa, the CIS nations, Arabian Gulf plus Oman, South

Asia, SE Asia, East Asia and Oceania (Indonesia and Malaysia).

tRenDsThe two major exporting nations, Russia and Trinidad both sus-

tained their high rates of shipment. Russia dispatched approxi-

mately 2.4 million tons to other countries. Trinidad and Tobago

sent a similar tonnage, about 2.4 million tons. The material

exported from Trinidad and Tobago is all CDRI.

Oman also continued to ship at a high rate, exporting

almost 1.5 million tons of HBI. In 2014, exports from Oman are

expected to decline markedly when the new EAF facility associ-

ated with the MIDREX® Plant begins operation.

In contrast to other regions, exports from Venezuela de-

clined. Whereas, Venezuela at its peak in 2005-2007 was ship-

ping nearly 3 million tons per year of HBI to numerous markets,

in 2013 shipments had fallen to a fraction of that. The most

notable drop was in shipments to the United States which were

running in excess of 1.8 million tons per year a decade earlier.

These had fallen to less than one-half million tons in 2013. The

decline is expected to continue in 2014 as the four HBI plants

that use pellets were unable to operate early in the year since

the pelletizing plant was not running. At the time of this writing

(April), it is expected the pelletizing plant will continue to be out

of commission at least until July.

The longer term outlook for shipments is positive. With two

new MIDREX® HBI Plants contracted, for LebGOK in Russia and

for voestalpine Texas in the USA, shipments will grow rapidly

when they are commissioned.

nOTE: Domestic and smaller trade routes are not shown.

© 2014 Midrex Technologies, Inc.

Page 9: World direct reduction statistics 2013

World dri shipments (Mt)

9 table of contents

2013 World Direct Reduction statistics Page 9 sECOnD qUARTER 2014

< >

Source: Midrex Technologies, Inc.

1970 0.004 –’71 0.04 –’72 0.08 –’73 0.13 –’74 0.26 –’75 0.34 –‘76 0.37 –‘77 0.32 –’78 0.28 0.11’79 0.66 0.12’80 0.81 0.25’81 0.83 0.25’82 0.80 0.18’83 0.59 0.36’84 0.83 0.39’85 0.71 0.61

’86 0.89 0.73’87 0.85 0.77’88 1.48 0.83’89 1.27 0.94’90 1.46 1.71’91 1.29 2.67‘92 1.45 2.71‘93 1.45 3.56’94 2.44 3.93’95 3.69 3.98’96 3.58 3.20’97 3.99 3.51’98 4.24 3.00’99 4.01 4.41’00 4.54 5.02’01 2.83 6.58

’02 4.85 6.45’03 4.63 7.63’04 4.26 6.82’05 6.76 7.12’06 7.81 6.75’07 10.82 6.24‘08 8.01 5.99‘09 8.50 5.38‘10 8.42 5.60‘11 7.97 6.06‘12 8.17 6.58‘13 8.56 5.62

Year cdri Hbi Year cdri Hbi Year cdri Hbi

1970 – 0.004’71 – 0.04 ’72 0.01 0.07’73 0.02 0.12’74 0.03 0.23’75 0.06 0.28‘76 0.10 0.26‘77 0.04 0.27’78 0.12 0.57’79 0.33 0.45’80 0.54 0.52’81 0.53 0.55’82 0.65 0.33’83 0.67 0.28’84 0.69 0.53’85 0.81 0.51

’86 0.99 0.63’87 0.95 0.67’88 1.08 1.23’89 1.34 0.87’90 1.79 1.38’91 2.25 1.71‘92 2.24 1.93‘93 2.90 2.11’94 3.46 2.91’95 3.76 3.92’96 3.40 3.50’97 3.81 3.80’98 4.22 3.11’99 5.45 3.00’00 6.66 2.90’01 7.59 1.82

’02 6.74 4.56’03 8.31 3.94’04 6.57 4.51’05 7.02 6.86’06 6.80 7.75’07 8.19 8.87‘08 6.41 7.59‘09 5.39 8.48‘10 6.61 7.42‘11 6.49 7.55‘12 8.48 6.27‘13 7.79 6.39

Year Water land Year Water land Year Water land

‘70

‘70

‘13

‘13

hBIcDRI

Waterland

6.5.14

note regarding land shipments: It is estimated that one-third of the DRI produced in rotary kilns in India is transported by truck to a nearby melting furnace. This tonnage is included in the figures given above.

© 2014 Midrex Technologies, Inc.

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2013 World Direct Reduction statistics Page 10 sECOnD qUARTER 2014

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Plant location capacity (Mt/y) Modules Product start-up status*

MidreX® ProcessArcelorMittal Hamburg Hamburg, Germany 0.40 1 CDRI ‘71 OArcelorMittal Montreal 1 Contrecoeur, quebec, Canada 0.40 1 CDRI ‘73 OTenarissiderca Campana, Argentina 0.40 1 CDRI ‘76 OArcelorMittal Montreal 2 Contrecoeur, quebec, Canada 0.60 1 CDRI ‘77 OsIDOR I Matanzas, Venezuela 0.35 1 CDRI ‘77 OAcindar Villa Constitucion, Argentina 0.60 1 CDRI ‘78 Oqatar steel I Mesaieed, qatar 0.40 1 CDRI ‘78 OsIDOR II Matanzas, Venezuela 1.29 3 CDRI ‘79 OArcelorMittal Point Lisas I & II Point Lisas, Trinidad & Tobago 0.84 2 CDRI ‘80/’82 OGlobal steel Holdings Warri, nigeria 1.02 2 CDRI ‘82 IHadeed A & B Al-Jubail, saudi Arabia 0.80 2 CDRI ‘82/’83 OOEMk I - IV stary Oskol, Russia 1.67 4 CDRI ‘83/’85/’85/’87 OAntara steel Mills Labuan Island, Malaysia 0.65 1 HBI ‘84 Okhouzestan steel Co. I - IV Ahwaz, Iran 1.84 4 CDRI ‘89/’90/’92/’01 OEZDk I El Dikheila, Egypt 0.72 1 CDRI ‘86 OLIsCO 1 & 2 Misurata, Libya 1.10 2 CDRI ‘89/’90 OEssar steel I & II Hazira, India 0.88 2 HBI/HDRI ‘90 IFMO Puerto Ordaz, Venezuela 1.00 1 HBI ‘90 OVEnPRECAR Matanzas, Venezuela 0.82 1 HBI ‘90 OEssar steel III Hazira, India 0.44 1 HBI/HDRI ‘92 IHadeed C Al-Jubail, saudi Arabia 0.65 1 CDRI ‘92 OMobarakeh steel A - E Mobarakeh, Iran 3.20 5 CDRI ‘92/’93/’94 OJsW Dolvi Works Raigad, India 1.00 1 CDRI ‘94 OEZDk II El Dikheila, Egypt 0.80 1 CDRI ‘97 OLIsCO 3 Misurata, Libya 0.65 1 HBI ‘97 OArcelorMittal Lázaro Cárdenas Lázaro Cárdenas, Mexico 1.20 1 CDRI ‘97 OCOMsIGUA Matanzas, Venezuela 1.00 1 HBI ‘98 O ArcelorMittal Point Lisas III Point Lisas, Trinidad & Tobago 1.36 1 CDRI ‘99 OArcelorMittal south Africa saldanha Bay, south Africa 0.80 1 CDRI ‘99 OEZDk III El Dikheila, Egypt 0.80 1 CDRI ’00 OEssar steel IV Hazira, India 1.00 1 HBI/HDRI ‘04 Inu-Iron Point Lisas, Trinidad & Tobago 1.60 1 CDRI ‘06 OEssar steel V Hazira, India 1.50 1 HBI/HDRI ‘06 OMobarakeh steel F Mobarakeh, Iran 0.80 1 CDRI ‘06 ODRIC I & II Dammam, saudi Arabia 1.00 2 CDRI ‘07 OHadeed E Al-Jubail, saudi Arabia 1.76 1 HDRI/CDRI ‘07 OLGOk II Gubkin, Russia 1.40 1 HBI ‘07 Oqatar steel II Mesaieed, qatar 1.50 1 CDRI/HBI ‘07 Okhouzestan steel V Ahwaz, Iran 0.80 1 CDRI ‘08 OLion DRI Banting, Malaysia 1.54 1 HDRI/HBI ‘08 OHOsCO I & II Bandar Abbas, Iran 1.65 2 CDRI ‘09/‘10 OEssar steel VI Hazira, India 1.50 1 CDRI ‘10 Okhorasan steel I khorasan (Mashad), Iran 0.80 1 CDRI ‘10 OJindal shadeed sohar, Oman 1.50 1 HDRI/HBI ‘11 O(Continued next page)

World direct reduction Plants status as of 4/30/14 Source: Midrex Technologies, Inc.

sHaft furnace tecHnologY

* status codes: o – operating I – Idle c– under contract or construction

note 1: This list does not include plants that are inoperable or that have been dismantled.note 2: This list only includes plants processing feed materials with total iron content of 60% or higher and producing DRI with metallization of 85% or higher.note 3: There are hundreds of small rotary kilns in India with annual capacities of 10,000-30,000 tons per year that are not included on this list. The total capacity of all rotary kilns in India is estimated to be 19.5 Mt/y.note 4: Only a representative sample of rotary kiln facilities larger than 50,000 tons per year are shown.

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Plant location capacity (Mt/y) Modules Product start-up status*

MidreX® Process (Continued)IGIsCO Ardakan (Yazd), Iran 0.80 1 CDRI ‘12 Okhorasan steel II khorasan (Mashad), Iran 0.80 1 CDRI ‘12 Osouth kaveh steel kish, Iran 1.86 2 CDRI ‘12/’13 O Tuwairqi steel Mills karachi, Pakistan 1.28 1 HDRI/CDRI ‘13 OsULB Hidd, Bahrain 1.50 1 HDRI/CDRI ‘13 OArfa steel Ardakan (Yazd), Iran 0.80 1 CDRI ‘13 OEsIsCO sadat City, Egypt 1.76 1 HDRI/CDRI ‘14 CJindal steel & Power Angul, India 1.80 1 HDRI/CDRI ‘14 C saba Bandar Abbas, Iran 1.50 1 CDRI ‘14 C JsW Projects Ltd. Toranagallu, karnataka, India 1.20 1 HDRI/CDRI ’14 Cvoestalpine Texas Corpus Christi, Texas, UsA 2.00 1 HBI ‘16 CLGOk III Gubkin, Russia 1.80 1 HBI ’16 C 63.13 76

HYl/energiron ProcessTernium 3M5 Monterrey, Mexico 0.50 1 CDRI ‘83 O ArcelorMittal Lázaro Cárdenas I Lázaro Cárdenas, Mexico 1.00 2 CDRI ‘88 O ArcelorMittal Lázaro Cárdenas II Lázaro Cárdenas, Mexico 1.00 2 CDRI ‘91 O Welspun Maxsteel Ltd. Raigad, India 0.75 1 HBI/CDRI ‘93 O PT krakatau steel Cilegon, Indonesia 1.35 2 CDRI ‘93 O khouzestan steel (AsCO) Ahwaz, Iran 1.03 3 CDRI ‘93 IPerwaja steel kemaman, Malaysia 1.20 2 CDRI ‘93 O Usiba salvador Bahia, Brazil 0.31 1 CDRI ‘94 I Ternium 2P5 Puebla, Mexico 0.61 1 CDRI ‘95 O Ternium 4M Monterrey, Mexico 0.68 1 HDRI ‘98 O Lebedinsky GOk Gubkin, Russia 0.90 1 HBI ‘99 O Hadeed D Al-Jubail, saudi Arabia 1.10 1 CDRI ‘99 O Briqven Matanzas, Venezuela 1.50 2 HBI ‘00 IWelspun Maxsteel Ltd. 2 Raigad, India 0.60 1 CDRI ‘07 O Emirates steel I (GHC) Abu Dhabi, UAE 1.60 1 HDRI ‘09 OGulf sponge Iron Abu Dhabi, UAE 0.20 1 CDRI ‘10 O Emirates steel II (GHC) Abu Dhabi, UAE 1.60 1 HDRI ‘11 O suez steel Egypt 1.95 1 HDRI/CDRI ‘13 O nucor steel Louisiana Convent, Louisiana, UsA 2.50 1 CDRI ‘13 O Ezz Rolling Mills Egypt 1.90 1 CDRI ‘14 C JsPL Raigarh, India 2.50 1 HDRI ‘15 C sidor Matanzas, Venezuela 0.80 1 CDRI ‘16 C 25.58 29

finMet ProcessOrinoco Iron Matanzas, Venezuela 2.20 4 HBI ’00 O

circored ProcessMittal - IsG Trinidad Point Lisas, Trinidad & Tobago 0.50 1 HBI ‘99 I

World direct reduction Plants status as of 4/30/14 Source: Midrex Technologies, Inc.

sHaft furnace tecHnologY

fluidized bed tecHnologY

* status codes: o – operating I – Idle c– under contract or construction

note 1: This list does not include plants that are inoperable or that have been dismantled.note 2: This list only includes plants processing feed materials with total iron content of 60% or higher and producing DRI with metallization of 85% or higher.note 3: There are hundreds of small rotary kilns in India with annual capacities of 10,000-30,000 tons per year that are not included on this list. The total capacity of all rotary kilns in India is estimated to be 19.5 Mt/y.note 4: Only a representative sample of rotary kiln facilities larger than 50,000 tons per year are shown.

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Plant location capacity (Mt/y) Modules Product start-up status*

fior ProcessOperaciones RDI Matanzas, Venezuela 0.40 1 HBI ‘76 I

sl/rn ProcessPiratini Charquedas, Brazil 0.06 1 CDRI ‘73 I sIIL Paloncha, India 0.06 2 CDRI ‘80/’85 O siderperu Chimbote, Peru 0.10 3 CDRI ‘80 IIsCOR Vanderbijlpark, south Africa 0.72 4 CDRI ‘84 OBihar sponge Iron, Ltd. Chandil, India 0.15 1 CDRI ‘89 OPrakash Industries Champa, India 0.40 2 CDRI ‘93/’96 Onova Iron & steel Bilaspur, India 0.15 1 CDRI ‘94 Osree Metallics keonjhar, India 0.06 3 CDRI ‘99/’00 OAshirwad Jamshedpur, India 0.05 2 CDRI ‘00 OVandana Global siltara, Raigarh, India 0.05 1 CDRI O 1.80 20jindal ProcessJindal steel & Power Raigarh, India 0.90 6 CDRI ‘93/’94/’95/’96/’00 OMonnet Ispat Raipur, India 0.30 2 CDRI ‘93/’98 ORexon strips Ltd. Via Lathikata, India 0.06 2 CDRI ‘93/’00 O 1.26 10drc Processscaw Metals I Germiston, south Africa 0.18 2 CDRI ‘83/’89 Oscaw Metals II Germiston, south Africa 0.15 1 CDRI ‘97 OTianjin Iron & steel Tianjin, China 0.30 2 CDRI ‘97 O 0.63 5 codir ProcessDunswart Benoni, south Africa 0.15 1 CDRI ‘73 Osunflag Bhandara, India 0.15 1 CDRI ‘89 OGoldstar Mallividu, India 0.22 2 CDRI ‘92 I 0.52 4sHenWu rHf ProcessTianjin Rockcheck Tianjin, China 0.50 1 CDRI ‘14 C

tisco ProcessTata sponge Iron, Ltd. keonjhar, Orissa, India 0.24 2 CDRI ‘86/‘98 OVallabh steels Ludhiana, Punjab, India 0.12 1 CDRI O 0.36 3 siil ProcessBellary steel & Alloys Bellary, karnataka, India 0.06 2 CDRI ‘92/’93 OHEG Borai, India 0.09 2 CDRI ‘92 Okumar Met. nalgonda, India 0.06 2 CDRI ‘93 ORaipur Alloys & steel Raipur, India 0.06 2 CDRI ‘93 OAceros Arequipa Pisco, Peru 0.08 2 CDRI ‘96 O 0.35 10

* status codes: o – operating I – Idle c– under contract or construction

World direct reduction Plants status as of 4/30/14 Source: Midrex Technologies, Inc.

note 1: This list does not include plants that are inoperable or that have been dismantled.note 2: This list only includes plants processing feed materials with total iron content of 60% or higher and producing DRI with metallization of 85% or higher.note 3: There are hundreds of small rotary kilns in India with annual capacities of 10,000-30,000 tons per year that are not included on this list. The total capacity of all rotary kilns in India is estimated to be 19.5 Mt/y.note 4: Only a representative sample of rotary kiln facilities larger than 50,000 tons per year are shown.

rotarY kiln tecHnologY

fluidized bed tecHnologY

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World direct reduction Plants status as of 4/30/14 Source: Midrex Technologies, Inc.

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Plant location capacity (Mt/y) Modules Product start-up status*

osil ProcessOsIL keonjhar, Orissa, India 0.10 1 CDRI ‘83 OLloyd’s Metals & Eng. Ghugus, India 0.15 1 CDRI ‘95 O 0.25 2daV ProcessDavsteel Cullinan, south Africa 0.04 1 CDRI ‘85 O

bgriMM ProcessArcelorMittal south Africa Vanderbijlpark, south Africa 0.30 2 CDRI ‘09 O

otHerMahalaxmi TMT Bars Wardha, Maharashtra India 0.24 1 CDRI ‘11 OBMM Ispat Ltd Danapura, Hospet, karnataka, India 0.73 CDRI Osarda Energy and Minerals, Ltd. siltara, Raipur, India 0.36 CDRI OGodawari Power and Ispat siltara, Raipur, India 0.5 CDRI Onalwa steel and Power Ltd. Raigarh, Chhattisgarh, India 0.18 CDRI OJanki Corp., Ltd. sidiginamola, Bellary, karnataka 0.18 CDRI OAndhunik Metaliks, Ltd. Chadrihariharpur, Orissa, India 0.3 CDRI Oshyam sEL Ltd. West Bengal and Odisha, India 0.8 CDRI Oshri Bajrang Power and Ispat Raipur, India 0.21 CDRI OGallantt Metal, Ltd. kutch, Gujarat, India 0.2 CDRI Osks Ispat, Ltd. Raipur, Chhattisgarh, India 0.27 CDRI O

iron dYnaMics ProcessIron Dynamics** Butler, In, UsA 0.50 1 CDRI ‘98 O

* status codes: o – operating I – Idle c– under contract or construction

** Beginning in early 2009, the plant began feeding recovered wastes in addition to iron ore, therefore no longer fits within the definition of DRI used by this report.

note 1: This list does not include plants that are inoperable or that have been dismantled.note 2: This list only includes plants processing feed materials with total iron content of 60% or higher and producing DRI with metallization of 85% or higher.note 3: There are hundreds of small rotary kilns in India with annual capacities of 10,000-30,000 tons per year that are not included on this list. The total capacity of all rotary kilns in India is estimated to be 19.5 Mt/y.note 4: Only a representative sample of rotary kiln facilities larger than 50,000 tons per year are shown.

rotarY kiln tecHnologY

rotarY HeartH furnace tecHnologY

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<

2013 WORLD DIRECT REDUCTION STATISTICS is compiled by

Midrex Technologies, Inc., Charlotte, North Carolina, USA. The

publication is posted annually on the Midrex web site.

Midrex Technologies, Inc. compiles world DRI production data on

an annual basis as a service to industry.

Direct reduced iron (DRI) is a high quality metallic product

produced from iron ore that is used as a feedstock in electric

arc furnaces, blast furnaces and other iron and steelmaking

applications. Hot briquetted iron (HBI) is a compacted form of DRI

designed for ease of shipping, handling, and storage.

Midrex Technologies, Inc. is an international process engineering

and technology company that provides global process technol-

ogy solutions to various industries and is principally known for

the MIDREX® Direct Reduction Process that converts iron ore into

a high-purity DRI or HBI for use in steelmaking, ironmaking, and

foundry applications. Midrex continues to develop new technolo-

gies relating to its traditional iron and steel roots.

The following organizations supplied or assisted in collecting data for this issue of 2013 WORLD DIRECT REDUCTION STATISTICS:

Sponge Iron Manufacturers Association – IndiaWorld Steel Association – BelgiumInternational Iron Metallics Association – UKSouth East Asia Iron and Steel Association – MalaysiaIron and Steel Statistics Bureau – UKKobe Steel Ltd. – JapanAll Individual MIDREX® Direct Reduction PlantsOther Direct Reduction Plants

MIDREX® is a registered trademark of Kobe Steel, Ltd. MXCOL® is a registered trademark of Kobe Steel Ltd.COREX® is a registered trademark of Siemens VAI Metals Technologies GmbH, Austria

For updates check www.midrex.comFor more information or general comments, please e-mail: [email protected]

World Steel Dynamics (WSD) has audited Midrex’s collection and preparation process of the “2013 World Direct Reduction Statistics”, i.e. “The Booklet”. It is our observation that at the present, Midrex receives inputs from all over the world from practically every known direct reduction producer either directly or indirectly through partner organizations. Midrex invites all producers to participate directly. In instances where plant information is not available directly from producers, Midrex deduces that information from publicly available data. WSD has reviewed the data collection and preparation procedures and can confirm the documentation substan-tiates the methodology and accuracy of the data to be published in The Booklet for the world direct reduction industry in 2013.

Audited byEnglewood Cliffs, new Jersey, U.s.A.May, 2014

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© 2014 Midrex Technologies, Inc.