The Importance of Steel & Iron Industry in Development

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Growth and Evolution of Iron and Steel Industry in India

The importance of iron and steel industry in India remains hidden from none. This industry has evolved significantly. It began with the establishment of Tata Iron and Steel Company (TISCO) in 1907 in Jamshedpur. This industry has shown substantial growth during the 1950s and 1960s. The Five-Year Plans have significantly contributed to the growth of this industry as these plans focussed on self-reliance and industrialisation. Presently, India has become the second-largest steel producer in the world. The country has a production capacity exceeding 100 million tons per annum. India’s steel and iron industry has a growing focus on innovation and sustainability. Also, it boasts a robust supply chain.

• 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. 

Definition of Sponge Iron and It’s Evolution in India

Sponge iron is a high-quality iron product formed by the direct reduction of iron ore in the solid state. It is also known as direct reduced iron (DRI). The reduction process involves removing oxygen from iron ore using reducing gasses derived from natural gas or coal. This method does not require melting, unlike traditional blast furnace methods.

The evolution of sponge iron production in India began in the late 20th century, driven by the need to utilize abundant domestic iron ore reserves and mitigate dependency on imported scrap steel. The first sponge iron plant in India was established in 1980 at Paloncha, Andhra Pradesh, by Sponge Iron India Limited (SIIL). This marked the beginning of the industry's growth, characterized by technological advancements and increasing capacity.

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.

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. 

Why Are Iron and Steel Industry Important for Growth and Development?

The importance of the iron and steel industry can never be neglected for the economic growth and development of a nation. It plays a foundational role in numerous sectors. This is because the steel and iron industries are a key driver of industrialisation. They supply essential materials for infrastructure, construction, manufacturing and transportation. The strength and versatility of steel and iron make them crucial for building skyscrapers, railways, bridges and even machinery. It is why the steel and iron industry is important.

Reading above must have given you an idea of why is the iron and steel industry important. However, there is much more to it. The industry generates a large pool of employment opportunities. Their direct and indirect employment opportunities foster reliable economic stability and also enhance living standards. The high demand for raw materials stimulates the growth in logistics, mining and energy industries.

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.

For more information, please reach out to us at: Sales@sreemetaliks.com