India’s production of direct reduction iron (DRI), commonly known as sponge iron, registered a compound annual growth rate (CAGR) of eight percent to 51.5 million mt in the fiscal year 2023-24, from 34.7 million mt in the fiscal year 2018-19, according to rating agency Crisil on Wednesday, September 18. According to its report, India, the largest producer of DRI, will reach production of 75 million mt by the fiscal year 2029-30.
Crisil said that the bulk of DRI production in 2023-24 or about 71 percent was accounted for by small producers, while the balance was produced by large mills.
The demand for DRI was derived from long steel production, with 54.8 percent of it going into making long steel products in 2023-24, from 51.5 percent in 2018-19, according to the report. According to the report, DRI production mainly depended on raw materials such as iron ore fines or pellets, coal and natural gas, while in India 80 percent was through the coal-based route and the balance through natural gas.