IC 8583 Effects Of Direct Reduction Upon Mineral Supply Requirements For Iron And Steel Production

The technologies of contemporary iron and steel production and of direct reduction processes have been studied to identify and estimate the potential effects of direct reduction on mineral consumption and the problems raised thereby for the Nation's mineral supply to the iron and steel industry. Contemporary patterns of mineral raw material and energy consumption were determined from a study of the 1964-70 period. Major changes were observed in requirements for 14 of 20 principal commodities. Average practice in 1970 was compared to best practice to estimate the potential effects of implementing existing technology without recourse to direct reduction. Potential effects of direct reduction were estimated by comparing the mineral requirements for 95 percent reduced pellets with 1970 best practice technology for two cases of use: (I) complete substitution for hematite pellets in blast furnace burdens, and (11) partial substitution (40 percent) for scrap in electric furnace steel charges. Effects upon mineral supplies are described; important collateral factors are analyzed, and the principal metallurgical, industrial, and environmental consequences of implementing direct reduction are discussed. Major effects of direct reduction on the domestic steel industry and its mineral supply system are foreseeable. Direct reduction will (1) create a large demand for low-gangue iron ore; (2) relieve the dependence of the steel industry on coking coal, and (3) permit great increases in furnace productivity, both in blast furnace ironmaking and electric arc furnace steelmaking.