Sponge iron makers urges steel min to ensure raw material supply

The Steel Ministry today assured sponge iron producers that steps would be taken to address their concerns as the industry pitched for ensuring availability of non-coking coal and checking rising prices of iron ore.

Steel Minister Chaudhary Birender Singh at a conference here said that steps will be taken to address the concerns of the sponge iron industry.

Without elaborating on the steps, he stressed that the ministry has always taken action required in a particular situation.

Sponge iron producers are facing issues like interrupted supply of raw materials and high prices of iron ore, Sponge Iron Manufacturers Association (SIMA) Executive Director Deependra Kashiva said on the sidelines of India International DRI Summit here.

The industry urged the steel ministry to ensure availability non-coking coal and check rising prices of iron ore, he said.

"We have told the minister the issues being faced by sponge iron manufactures in India. Iron ore is coming at very high rates. Iron ore rate varies from state to state and non coking coal which is very much available in the country is being imported from countries like South Africa to run the units. The non coking coal is being diverted to power plants," Kashiva said.

Sponge iron or direct reduced iron (DRI) is used in producing semi-finished steel items, ingots and billets, which are further used to make various finished steel items. Iron ore and non-coking coal are main raw materials used to produce sponge iron.

The minister noted that India's sponge iron production has grown 25 per cent to 28.5 million tonnes in last four financial years, he said.

"The National Steel Policy 2017 lays out an ambitious growth path for India's sponge iron industry. Sponge Iron production is anticipated to reach 80 million tonnes by 2030-31," the minister said.

While acknowledging that the sponge iron industry plays an important role in providing employment, Singh said that "gas-based plants have been facing challenges like non availability of gas. These issues have been also taken up by the ministry.

I am sure in the coming years, gas availability will improve further. By 2031, share of gas based capacity is expected to grow to about 30 per cent.