ABSTRACT
Steel uses three kinds of metallic materials: iron ore, which is used in blast furnaces of large scale steel plants using the oxygen route; directly reduced iron (DRI), which is iron ore freed from its oxides in solid state; and steel scrap. The last two mentioned are used in electric furnaces. The issue of DRI versus steel scrap becomes important, in terms of investments into the future; while scrap is largely the domain of traders, DRI needs to be mined, beneficiated and manufactured and involves long-term investments. The DRI industry in India operates with a large base of smaller producers. India is caught between integrated steel producers and the smaller electric furnaces once more, through the issue of raw materials. The Japanese style of operations has revealed that raw material security is no longer a matter of owning captive mines, but intelligently combining investments, technology and trade in iron ore.
