Worldwide direct reduced iron output boosted in 2002

Worldwide direct reduced iron output boosted in 2002

Direct reduced iron production in 2002 increased by 12% over 2001 and reached 45 million mts. The data is compiled by Midrex Corp., a DRI and HBI producer. The company itself produced 66.6% of total DRI output last year. Remaining output was produced by HYL processes and other various gas and coal based processes. According to Midrex, the rise in the DRI production in 2002 can be based on enormous growth in Asia and particularly China, raising prices of iron units together with common grade scrap price hikes experienced in Pacific Rim markets, the significantly increased production volumes in India and recovery seen in Canada, Mexico and the US with the effect of the sudden rise of natural gas prices in 2001. Midrex forecasts the increase in DRI production to continue moderately in 2003 as well, as prices remain stable.