Economic analysis of transportation directly reduced iron (DRI) through ship

Directly reduced iron (DRI) is a major source of iron units in cases of low scrape availability and/or hot metal. Its main advantage is it is low content of phosphorus and sulphur. Removal of phosphorus and sulphur demands high energy consumption in steel making process.

With fast depleting sources of cooking coal, the availability of hot metal will decrease in the coming years. Also, scrap availability is already on the declining trend. Hence, DRI is going to be the main source of iron units in the future, especially in electric arc furnace (EAF steel making).

The disadvantage of DRI usages lies in it is high reactivity. Freshly produced DRI possesses high susceptibility to oxidation whenever it comes in contact with air. The generated heat in the oxidation reaction increases the tendency to oxidation, thereby, starting a short of chain reaction and ultimately leading to the burning of DRI. This phenomenon makes storage and handling of DRI a concern.

The problem caused loss of one cargo in Delta steel company, Nigeria. The authors of this dissertation were given the responsibility to work out the solution in the minimum possible time for implementing it to the next shipments. It is heartening that the problem could be successfully solved and implemented in the next shipments in November ‘06. Hence, after above work implementation of the recommendations for a $45 risk/ton of DRI, only $1 is to be spent for protection against the risk.