The Hindu Business Line : SAIL changes blast furnace mix to beat coal shortage

In an effort to reduce the over-dependence on imported coking coal and still continue with the high level of hot metal production, top-level SAIL management has decided to change the mix in the blast furnace charging in the next few days.

According to sources, SAIL headquarters have allowed the four integrated steel plants (located in Bhilai, Bokaro, Rourkela and Durgapur) to reduce iron ore charging in the blast furnaces and replace it with sponge iron, which is a near-finished iron.

All the four plants were suffering from a shortage of imported coking coal. As a result, hot metal production in these units have been affected. However, with the steel industry still enjoying a bull run, SAIL could hardly afford any fall in the hot metal production.

According to the new strategy, the four plants will reduce the charging of iron ore lumps in the blast furnace and use instead sponge iron. Sources said individual plants had already procured sponge iron from the local market.

Bhilai Steel Plant has already purchased 1,000 tonnes of sponge iron and is in the process of building up its sponge-iron stock. Rourkela Steel Plant has placed an order for 30,000 tonnes of sponge iron.

Bokaro Steel Plant sources confirmed the development on the introduction of sponge iron. However, till the stocks reach the plant, sources said, Bokaro has started charging iron scrap in the blast furnace.

Durgapur Steel Plant sources said that the matter was still under consideration. "It is possible technically, but we will have to consider the cost aspect. Even if we go ahead, we will start only on an experimental basis", sources said.

Technical experts said that the ferrous content in iron ore is 62-63 per cent but in sponge iron it is 80-81 per cent. Though it is costlier, metal extraction from sponge iron will be higher than from iron ore.

It may be noted that for the last two months a leading private sector steel producer is using sponge iron in the blast furnace and the move has yielded good results for the company.

Meanwhile, imported coking coal shortage has forced steel plants to increase the intake of domestic coal. For example, Bhilai Steel Plant's ratio of imported coking coal with domestic coal was 80:20. The current ratio is 60:40. Similarly, for Rourkela Steel Plant it changed from 50:50 to 24:76 in favour domestic coal.

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