The Importance of Steel & Iron Industry in Development

The Importance of Steel & Iron Industry in Development

Published Date: 21 December, 2023
Updated On: 07 June, 2024

Try to imagine our modern world without tall skyscrapers, malls, transportation, and almost every other invention. Impossible, right? It’s all thanks to the availability of iron and steel. That’s the extent to which the Iron and Steel industry has penetrated the world of construction. So much so that the volume of steel consumption is now seen as a marker of development. For any nation to develop its iron and steel industry needs to continuously grow. India occupies a dominant space in the global market of steel production with its large reserves and manufacturing capacity. Such that in:

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  • In 2019, India was the second-largest producer of steel with 111.2 million tonnes.
  • By 2022, it is projected that crude steel production in India will increase by 18%. 
  • This is made possible because of the easy availability of raw materials used in the manufacturing of iron and Steel – namely Iron Ore and coal.
  • These raw materials are treated in iron and steel plants which are situated in Jamshedpur, Durgapur, Rourkela, Bokaro, Jharkhand, and Chattisgarh.
  • These steel plants are strategically located close to mines where rich deposits of coal and iron ore are found.
  • Iron Ore is processed into many variants, such as pig iron, cast iron, white iron, grey iron, and so on. 

One such variant is Sponge Iron.  Sponge Iron Industry In India, Sponge Iron is also known as Direct Reduced Iron (DRI). This Direct Reduction is another way of making iron. In this method, Iron Ore, in the forms of pellets or lumps, is reduced with natural gas or coal-based technology to metallic iron. Sponge Iron is formed in this way. Though this raw material is not useful by itself, it is integral to the production of steel. In India, Sponge Iron is highly valued and: 

  • India is currently the largest producer of sponge iron in the world.
  • The entire coal-based route accounts for 79% of sponge iron production. Meaning that most plants and mills are involved in the large-scale production of sponge iron.
  • The overall production capacity of Sponge Iron has also increased to 49.6 mt. 

Sponge Iron has emerged as an important raw material in the production of steel. The reason is the reduced availability of expensive melting scrap. This scrap was used in the induction and electric arc furnaces in the production of steel. Now, Sponge Iron is the dominant raw material used. Apart from that, there are many other benefits of using sponge iron in steel production. Some of these are: Sponge Iron is an improved alternative to steel scrap.

  • It has a low sulphur substance. Due to this, during the DRI process, even poor quality coal can be used for iron making.
  • The other important use of Sponge Iron is that of a coolant in LD converters. 
  • Sponge iron also acts as feed material in mini steel plants to fabricate steel. 

Elevating Sponge Iron Manufacturing in India – Sree Metaliks Limited

Sree Metaliks Limited, a leading sponge manufacturer in India, was established in 1995. Since then, they have created an integrated mining set-up and 2 manufacturing units in Keonjhar, Odisha. As with all their production plants, the sponge iron plant in Barbil is set up with advanced technology. Sree Metaliks Limited has always aimed to be a dependable partner to industries. It is this vision that has helped them become one of the biggest sponge iron companies in India. The team at Sree Metaliks Limited comprises experienced professionals and experts. Sree Metaliks Limited makes ample investments not just in resources but also through the manufacturing process. As a sponge iron plant manufacturer in India, they believe that India’s dominance in Sponge Iron production needs to consistently grow. They aim to be a large contributor to this growth. Head to Sree Metaliks Limited to procure high-quality sponge iron at cost-effective rates.