Kobe Steel creates new steelmaking technology

Japanese steelmaker Kobe Steel, along with US steelmaker Steel Dynamics Inc. and iron ore producer Cleveland-Cliffs, have developed an experimental technique to make high-grade steel products at minimal costs. Kobe Steel will reportedly build an experimental mill in Minnesota in order to sell the steelmaking technique to other companies. The new technology will make steel from iron-ore pellets placed on a rotating furnace, rather than a blast furnace or electric furnace. The technique is expected to reduce material costs by one-third of those for a blast furnace by using low-grade coal and iron ore, though analysts have speculated that the steel will not be as high-grade as steel made with blast furnace technology. The Minnesota plant, the construction of which has yet to be confirmed by the involved companies, is expected to produce 500'000 nt per year and could be in operation as early as 2008.