2004 Another Record Year for DRI

Global production of direct reduced iron (DRI) increased 10 percent in 2004 over the year before, according to DRI equipment maker Midrex Technologies Inc., Charlotte, N.C.

Some 54.6 million tons of DRI was produced in 2004, according to Midrex, up from 49.5 million tons in 2003. It marked the third straight year of production increases following a down year in 2001.

The increase was largely due to increased production at existing plants, with only one new DRI plant coming online in 2004 (a Midrex plant in India).

India is a global leader in DRI production growth, jumping from 5.6 million tons produced in 2001 to nearly 9.4 million tons last year.

All global regions reported gains in production last year, including global DRI leader Latin America, which went from 17 million tons produced in 2003 to 19 million tons produced last year.

“The force driving these production increases was a dramatic increase in the value and price of metallic iron, especially iron that is low in residual metals,” states a Midrex write-up accompanying its “2004 World Direct Reduction Statistics” publication. The publication cites American Metal Market pricing of #1 HMS factory bundles as jumping from $92.50 per ton in December of 2001 to $463 per ton in November of 2004.