International process engineering and technology company, Midrex Technologies, forecasts that even with significant
production increases in direct reduced iron (DRI), there will continue to be pressure on
scrap supplies across the world. According to Midrex plant sales manager Harry Gaines, the
scrap requirements of worldwide EAF producers will increase by 125 million tons from 2005 to 2015, while the DRI share in EAF charge is expected to rise from 13.5% in 2005 to 17.5% in 2015.
Looking at the EAF metallics balance, Midrex predicts that by 2010 EAF
production will account for 34% of total world steel
production and that the metallics requirement will reach 490 million tons. By 2015, the EAF share of steel
production is expected to reach 36.2%, with metallics requirements increasing to 578 million tons. On the other hand, world
scrap supplies are expected to increase to 368.5 million tons in 2010 and to 432 million tons in 2015.
Gaines added that, with the tremendous increase in steel and metallics prices since 2004, Midrex has experienced unprecedented demand for MIDREX plants. He said the company currently has over 13 million tons of capacity under
construction or contracted for around the world. The most significant aspect of this new capacity, according to Mr Gaines, is the predominance of hot discharge, hot transport, and hot charging options as steelmakers go after energy savings and productivity.
Harry Gaines concludes that the economic growth in the
Middle East and North
Africa regions will continue to cause an increase in the demand for steel via EAF
production, and that most EAF metallics will be DRI from natural gas-based plants in those regions.