Emerging steel markets and their impact on

coking coal and coke.

Dr. Kalyan Sen

CFRI

The buoyancy in Indian steel market is a combination of demand for exports, mainly to China and a positive outlook in certain sectors.

This will lead to increased demand of good quality coking coal and Low ash metallurgical (LAM) coke.

India Govt. thrust on infrastructure projects, lower interest rates, booming economy: The steel production is expected to grow at rapid pace.

Part II 3

Projected demand

0

10

20

30

40

50

60

70

80

2000 2010 2020

yearMet coke Coking coal

• By 2011-12 India would require 31 million tonnes (mt)

• 12.5 mt produced & consumed by main producers

• 18.5 mt will be required by secondary steel producers out of which 14 mt need to be produced by Merchant coke producers.

Estimated Demand of Met Coke

What are the supply sources ?

31 mt of coke is equivalent to ~ 44 mt of washed coking coal !!

Fuel supply chain

Existing trend (2002-03)

· Import of coke 2.245mt

· Import of coking coal 12.947 mt

· Washery Cleans ~ 8 mt

Fuel supply chain

Future projection (2011-12)

·Import of coke 4.5mt

·Washery cleans ~ 8 mt (The output of the existing washeries is likely to decline)

· Import of coking coal 30 mt ?

Considering steep increase in price of both coke & coking coal and their availability, the situation is rather gloomy

Constraints of price & availability

Coke imports in india were 2,782mt in 02-03 out of which 89% was from China..

Coke price rise

Explosion in coke demand in China Large rise in Chinese coke production costs Gradual erosion of coke capacity out side of China

The rise in coke price coupled with its unavailability has become the biggest challenge confronting the secondary sector pig iron industry

Coking coal having good coking properties, low sulphur and ash contents has become world wide a costly and rare commodity.

Additional global sources for long term availability

China & USA- envisaged increased production will mostly be consumed by the respective countries.

Indonesia - a meagre amount may be available

Russia - a lot , but requires major infrastructural investment

Scope for utilsation of Indigenous Scope for utilsation of Indigenous resourcesresources

Area for Improvement

Quality Quantity Cost Culture

Optimisation

84.0%13.0%

3.0%

Prime coking

LVC

MVC

HVCSemi-coking

19%

50%

15%

11%6%

Indian Coal Scenario:Total Coal Reserves 246 Bt

Non-coking

Coking

Others

Inferior

grade 68%

GSI, Jan.2004

Imperatives for enhancing washed coal production

• Renovation & modernisation of existing washeries to maximise the output at desired quality; with further deterioration of feed quality the washery output, in the absence of drastic modernisation programme , is going to decline.

• Installation of fine coal treatment plant to treat the ‘waste’ slurries & the freshly generated fines to produce Cleans in the ash range 10-14%.

• Installation of new washeries to treat the Low Volatile NLW coals (LVC coal, if prepared judiciously, has the potentiality to offer excellent quality coke)

• by increasing the capacity of washed coal production, adoption of innovative coke making technology and PCI route.

• by utilising abundantly available non-coking coal through adoptation of alternate routes of steel making

The challenge of minimising the import dependency on desired fuel can be met

Characteristics of LVC(NLW)Characteristics of LVC(NLW)

High raw coal ash 35-45%

High Maturity Ro = 1.3

Low volatile matter content 15-20%

High Inertinite content (60-70%)

Poor washability potential

Beneficiation in existing washeries

2-product circuit

About 70-75% with 40-45% ash with no

market outlet

Beneficiation in existing washeries

3-product circuit

LVCC requires disposal of 20% as reject

50% middling with 41% ash (outlet ?)

Coals of western Jharia Coals of western Jharia coalfields need a different coalfields need a different beneficiation strategybeneficiation strategy

INTEGRATED MULTI-STREAM INTEGRATED MULTI-STREAM

BENEFICIATIONBENEFICIATION

4-Product Circuit4-Product Circuit

Cleans (25-30%), 17-18% ash

Cleans II (18-20%), 22-28% ash

Middlings (20-22%), 34% ash

Rejects (28-30%), 60-65% ash

Suggested beneficiation Suggested beneficiation scheme:scheme:

Coal crushed to a nominal top size of 100/75 mm

and screened at lower size, 25/20/13 mm

Coarser fraction ( oversize) treated in washing unit

to produce POWER COAL (~ 34% ash)

Finer fraction (undersize) deep beneficiated for

metallurgical coal of ash 17-18%

Combined rejects (ash 50-55%) sent to FBC boilers

Judicious beneficiation Judicious beneficiation of available coal is a of available coal is a

necessity necessity

For a typical SR - process,For a typical SR - process,

Beneficiation strategyBeneficiation strategy

Category ICategory I:

Non-coking coal (ash 30-40%)

Cleans

75-80% (ash 25%)

Reject (ash 60-65%)

(FBC boiler)

Jigging

Category IIICategory III: LVC coal (ash > 35%)

Beneficiation strategy Beneficiation strategy …...…...

3-pdt Jig 4-pdt washing User

Yld% (A%) Yld% (A%)

Total Cls --- 24-27 (17-18) Steel

Jig Cleans 50 (22-24) -- Corex

Cleans II --- 18-20 (25-30) Corex**

Middling 20-22 (34) 20-22 (33-35) Power

Reject 28-30 (60-65) 25-30 (55-65) FBC

Part II 22

Thank YouThank You

Scope for utilsation of Indigenous Scope for utilsation of Indigenous resourcesresources

Area for Improvement

Quality Quantity CostCulture

Optimisation