India's challenge in terms of iron ore is shifting from securing sufficient supplies to securing the right quality of ore needed for expansion and lower emissions in the steel industry, a report of the Institute of Energy Economics and Financial Analysis (IEEFA) said on Wednesday, August 12.
As iron ore imports become more important for India, the type of ore it sources could influence steelmaking technology choices and long-term dependence on imported coking coal, the report said.
With global supplies increasingly producing premium direct reduction grade feedstock and green iron, India should evaluate future iron ore sourcing through the lens of technology, energy security and industrial competitiveness and not simply cost, IEEFA said.
Beyond Australia, Brazil is well positioned to benefit from India's shift towards lower emission steelmaking, given its abundant high grade iron ore resources and growing production base of direct reduction feedstocks, it said.
If conventional blast furnace-grade ore dominates future imports, it could entrench investment in blast furnace-basic oxygen furnace (BF-BOF) steelmaking and extend India's dependence on imported coking coal, of which the country already imports around 85 percent.
It is estimated that about 57 percent of India's announced capacity under development remains BF-BOF based. Greater availability of premium direct reduction (DR)-grade feedstocks, by contrast, could support a gradual expansion of DRI using natural gas, coal-derived syngas, and, over time, green hydrogen, the report said.
