RE Steel Scrap Slag-FinalR4-28092018
RE Steel Scrap Slag-FinalR4-28092018
RE Steel Scrap Slag-FinalR4-28092018
On
Resource Efficiency in Steel Sector
Through
Recycling of Scrap & Slag
Contents
Executive Summary ........................................................................................................................ 4
1.0 Background ............................................................................................................................. 12
2.0 Steel Demand & Supply Scenario ................................................................................... 17
2.1 Global Demand and Supply .......................................................................................... 17
2.2 India’s Future Demand ................................................................................................. 18
3.0 Steel Manufacturing ......................................................................................................... 22
3.1 Steel Manufacturing Alternatives ................................................................................ 22
3.2 Major Indian Steel Producers ....................................................................................... 23
3.3 Steel Production Processes .......................................................................................... 24
Blast Furnace (BF)–Basic Oxygen Furnace (BOF): .................................................................. 24
Electric Arc Furnace: .............................................................................................................. 25
Induction furnace (IF): ........................................................................................................... 25
3.4 Alternate Technologies ................................................................................................. 25
Corex:..................................................................................................................................... 26
Direct Reduced Iron (DRI): ..................................................................................................... 26
4.0 Steel Scrap & Life Cycle..................................................................................................... 28
4.1 Scrap Definition & Classification .................................................................................. 28
4.2 ITC/HSIC Code Classification ......................................................................................... 30
4.3 Global Steel Scrap scenario .......................................................................................... 31
4.4 Indian Scenario ............................................................................................................. 33
4.5 Sorting and Preparation of Steel Scrap ....................................................................... 34
4.6 Justification/Rationale for Steel Recycling ........................................................................ 37
4.7 Current Practice ............................................................................................................ 40
4.8 Need for Change ........................................................................................................... 40
4.9 Opportunities for Employment Creation ..................................................................... 40
4.10 Training for scrap recycling jobs ....................................................................................... 41
4.11 Independent metal scrap collectors............................................................................. 41
4.12 Scrap Industry and Investment Opportunity ............................................................... 42
5.0 Recycling of Steel Slag ...................................................................................................... 43
5.1 Slag Classification................................................................................................................ 43
Blast Furnace Slag .................................................................................................................. 44
LD or Steel Slag: ..................................................................................................................... 45
2
5.2 Slag Generation................................................................................................................... 45
5.3 Slag Properties and Utilization ........................................................................................... 47
Utilization as aggregates ....................................................................................................... 49
Utilization in agriculture ........................................................................................................ 50
6.0 Strategy for Recycling ...................................................................................................... 53
6.1 Need for Recycling Policy ............................................................................................. 56
6.2 Challenges in Recycling ................................................................................................. 57
6.3 Benefits of Developing the Steel Scrap Processing Sector .......................................... 58
6.4 Regulatory Needs .......................................................................................................... 59
6.5 Standards and BIS ......................................................................................................... 60
6.6 Capacity Building .......................................................................................................... 60
6.7 Regional Distribution .................................................................................................... 61
6.8 Vehicle Scrapping Policy ............................................................................................... 62
6.9 Environmental Threats and Suggested Measures .................................................... 62
7.0 Implementation Frame-work ........................................................................................... 64
7.1 Integrated Steel Recycling & Slag Utilization approach .................................................... 64
7.2 State Government’s Role.............................................................................................. 64
7.3 Implementation Agency & Its Role .................................................................................... 65
Action Agenda- Central agency ..................................................................................................... 67
Action Agenda : Steel Scrap Recycling........................................................................................... 68
Action Agenda : Recycling of Steel Slag ......................................................................................... 70
8.0 Research & Development ....................................................................................................... 72
8.1 Need for R&D in Steel Scrap Recycling .............................................................................. 72
8.2 R&D in Steel Slag Utilization............................................................................................... 72
8.3 Role of Academic Institution .............................................................................................. 73
9.0 Conclusions & Recommendations .................................................................................... 74
9.1 Steel Scrap Recycling ................................................................................................... 74
9.2 Steel Slag Utilization ................................................................................................... 75
References..................................................................................................................................... 77
3
Executive Summary
4
projects is expected to contribute to a more sustainable & economic growth
besides opening new avenues for employment.
This document exclusively deals with the need of resource efficiency in the
steel sector, adoption of which shall help in improving performance in the
field of energy, environment and efficiency in the sector besides making
industry globally competitive. Steel is an alloy of iron and carbon, and other
alloying elements, which, because of its wide range of properties and low
cost, is one of the most important material in the modern world used for
innumerable applications, e.g. buildings, infrastructure, transport,
household appliances, automobiles, ships, machines, defence etc. Indian
steel industry is the third largest steel producers in the world and going by
production trend in 2018, is likely to emerge as the second largest producer
soon. The Indian steel industry enjoys huge advantage of high grade iron ore
and coal reserves but technological interventions are required to make
effective utilization of the same to become globally competitive.
Today, the Indian steel industry contributes around 2% of the country’s GDP
and employs about 25 lakh people directly or indirectly. However, the per
capita steel consumption in India is much below the world average but
increasing continuously. The per capita steel consumption is likely to be
increased from existing level of 68 kg to 160-180 kg by 2030-31. To ensure
sustainable development of the steel sector and to meet continuously
growing demand of steel from the domestic sources, National Steel Policy
2017 (NSP-2017) has been issued. This will require increasing steelmaking
capacity from present level of 125 million tons per annum (MTPA) to 300
MTPA by 2030-31. The ccreation of additional capacity for fulfilling the
anticipated demand will require significant capital investment of about Rs.
10 lakh Crore by 2030-31 and will also increase employment in the range of
5
36 Lakhs by 2030-31 from the current level of 25 Lakhs i.e around 1 million
additional work-forces through direct & indirect opportunities.
Humans are using
The increased demand of steel will mainly technology in ways that are
be driven by the new initiatives taken by affecting nature adversely.
the Government of India in various sectors The cost of doing so is
like Infrastructure, Housing, Transport, heavy. For the future of
Capital Equipment & product mankind, we do not have to
struggle against nature but
manufacturing , Defence, Aviation etc
find a symbiotic path with
under schemes like Make in India , Smart
it.
City, Affordable Housing for all etc., The Hon’ble Prime Minister Sh.
choice of technology for this level of Narendra Modi at World
production will require careful Government Summit in
consideration for effective and efficient Dubai, 11th Feb 2018
utilization of domestic resources with
minimum damage to environment.
Steelmaking process are generally classified under two heads, namely, Blast
Furnace-Basic Oxygen Furnace (BF-BOF) route and Electric Arc Furnace (EAF)
and /or Induction Furnace (IF) route. The BF-BOF route (primary sector)
caters to around 45% of India’s steelmaking capacity, while the remaining
55% is processed through the EAF and IF route, mostly in MSME sector
(called as secondary or mini steel sector). The main raw material for steel
making are Iron Ore and / or Steel Scrap. However, use of intermediate
product called sponge iron, mainly in EAF/IF route, is very common and have
been adopted widely. Today, India is the largest producer of sponge/direct
reduced iron (DRI).
Steel scrap is a recyclable material left- over from steel manufacture or
fabrication or at end of life of the product. Recycling is the process of
converting such material into reusable new material. Steel scrap is
essentially of three types:
▪ home/in-house scrap which is generated inside the steel plant and
recycled in steelmaking,
6
▪ new scrap or prompt scrap which is generated during processing of
steel product at customers end, such as forming of auto components,
machining of tools, fabrication of structures/equipment, processing of
white goods etc. These are collected and used in the MSME or
secondary sector.
▪ The third type is known as end of life cycle scrap or obsolete scrap.
A huge reserve of obsolete scrap is available which, if properly utilized, will
lead to significant availability of scrap in the country and will boost the
growth of steel manufacturing through MSME (secondary sector). However,
in absence of any organized system, India is forced to import nearly 6-7
million TPA of steel scrap leading to drainage of large amount of foreign
exchange. There is a need of clear cut guidelines to be issued in the form of
policy so that the MSME sector can grow meeting all environmental norms
and adopting the best available technologies for sustainable development.
Recycling of one ton of scrap saves 1.1 ton of iron ore, 06-0.7 T of coking coal
and around 0.2-0.3 T of fluxes. Besides, specific energy consumption is also
reduced drastically as the requirement of energy for production of steel
through primary and secondary
routes is 14 MJ/Kg and 11.7 MJ/
Kg respectively. Thus, it leads to
Recycling of one ton of scrap saves
savings in energy by 16-17%. It
1.1 ton of iron ore, 06-0.7 T of
also reduces the water
coking coal and around 0.2-0.3 T of
consumption and GHG emission
fluxes. Specific energy consumption
by 40% and 58% respectively.
for production of steel through
Thus, the use of scrap as a main
primary and secondary routes is 14
source of raw material for steel
MJ/Kg and 11.7 MJ/ Kg respectively.
making enhance the
Thus, it leads to savings in energy by
sustainability of the steel sector
16-17%. It also reduces the water
and also results into significant
consumption and GHG emission by
conservation of natural
40% and 58% respectively.
resources.
7
Global ferrous scrap availability stood at ~775 MT in 2017, out of which 630
MT were recycled by the steel and foundry casting industries. As per World
Scrap Association (WSA) estimates, global ferrous scrap availability will reach
1 billion tons by 2030. Scrap consumption is driven by the price differential
between scrap and hot metal, and tend to correlate closely with the prices
of iron ore and coking coal. Steelmakers make trade-off based on this input
prices as well as the global trends in terms of availability and demand of
ferrous scrap.
The potential for revenue generation in steel scrap industry is of the order of
Rs. 2000 crore/ million ton per annum of steel scrap processed. This will
require skilling people in new trades as well as bringing focus on new
innovative ideas / researches in the MSME sector. Some of the institutes
such as National Institute of Secondary Steel technology (NISST), Biju Patnaik
National Steel Institute (BPNSI) etc may fulfill this gap by formulating the
courses needed for the steel scrap recycling sector.
The need of a policy to scrap the vehicles older than 15-20 years is also being
discussed but formal policy is yet to be announced. This is mainly because
old vehicles are considered as fuel inefficient and found to be one of the main
source of pollution and CO2 emission in the cities. If implemented, this will
lead to generation of additional 20-25 MT of additional scrap in the next five
years or so. This may require numbers of auto shredding and scrap recycling
plants in the country. MSTC Limited and Mahindra Accelo are already setting
up India’s first vehicle shredder of 1.2 lakh TPA capacity. It is reported that
the major steel player viz Tata Steel is also planning a similar unit in
9
Gurugram, Haryana to tap this additional source of scrap, mostly
automobiles and white goods in National Capital Region.
During steel making, all the unwanted elements present in the raw materials
are removed as “Slag” by use of various fluxes so that maximum recovery of
Iron is ensured. Iron & steel making processes thus generate huge amount
of slag which is basically a non-metallic product consisting of calcium
silicates and ferrites, combined with fused oxides of iron, aluminum,
manganese, magnesium, calcium, phosphorous etc. Iron making slags,
known as Blast Furnace ( BF) slag are predominantly utilized in the cement
making, but the steel making slags, both from BOF ( also called as LD
Converter) as well as EAF/IF furnaces have limited usages. Thus, a major
portion is dumped in open areas which occupy a large area in any plant.
Sustainable use of slag shall contribute to natural resource saving and CO2
emission reduction and also provide ecological advantage.
Steel slags are partially consumed at steelworks itself but has other
applications also like in cement, as road / highways, building material,
fertilizer, and as waste in landfills. However in India, the importance of steel
slag utilization is yet to be fully realized and implemented. There is an urgent
need to utilize this by-product effectively by promoting researches as well as
adopting already proven technologies.
This strategy paper discuss the opportunities and strategies needed for
effective utilization of steel scrap and slag in a cost effective manner i.e
Resource Efficiency to improve sustainability of the sector as well as to
promote the concept of circular economy . Action agenda also has been
suggested to implement the measures required to make scrap recycling and
steel slag utilization a sustainable, energy efficient and environment friendly
sector.
11
1.0 Background
Steel is one of the most important material in the modern world and is used
for innumerable applications right from safety pins to bridges, transmission
towers, automobiles, defence etc. Historically, all nations during their
industrialization phase have been backed by a strong domestic steel
industry. The crude steel production in India has increased considerably in
the last 5 years reaching to highest ever production of 103 million tons in
2017-18 against 81.694 million tons in 2013-14. 1
India is the third largest steel producers in the world, and on-going
production trend in 2018, is likely to emerge as the second largest producer
soon, surpassing Japan. Today, the Indian steel industry contributes
approximately 2% to the country’s GDP and employs about 25 lakh people,
directly or indirectly. The contribution of alloy steel industry and stainless
steel industry is also significant and it is contributing both in meeting
domestic requirement as well as exporting the special steel and products to
numbers of countries. Today, India is the second largest stainless steel
producer in the world but lacking in meeting domestic requirement of special
steels for sectors like automobile, electrical, aviation, capital equipment etc
and thus a large amount of such special steels are being imported.
1
Annual Statistics 2017-18 -JPC
12
The Indian steel industry enjoys advantage of availability of high grade iron
ore but non availability of adequate quantity and quality of coking coal is one
of the main reason of its non-competitiveness. Although, India is having large
reserve of coking coal but due to mining issues and lack of technological
expertise / availability of suitable technology for coal washing, most of the
requirement is met by import. In addition, India is having a strong MSME
sector, highly trained manpower and a relatively low labour cost which can
boost growth of the steel sector in future. There are numbers of other factors
such as significant increase in Government’s spending on infrastructure and
manufacturing sector, increase in per capita income, ease of doing business
, human resources for steel sector which had necessitated formulation of
the new National Steel Policy 2017 (NSP2017) to leverage the full potential
of growing domestic demand for economic growth.
In 2017-18, nearly 47 million tons of steel was produced by BOF route and
around 56 million tons by EAF/IF route i.e MSME sector (Secondary / Mini)
13
has contributed around 55%of the total steel production in the country2. A
large portion of input metal used by this segment comprises of steel scrap
from different sources, in addition to sponge iron / directly reduced iron
(DRI) produced from iron ore using non-coking coal. In order to move
towards greener technologies, most of the developed countries are
switching over to scrap based steel production instead of iron ore based
production. In Indian context, the
importance of MSME sector becomes very
significant as the generation of scrap is A sustainable circular
economy is one in which
likely to be increased significantly and society reduces the burden
utilization of the same in making steel will on nature by ensuring
resources remain in use for
help in minimizing greenhouse gas emission as long as possible. Once the
as well as conservation of natural resources. maximum value has been
Thus, during ramp up of steelmaking extracted, the resources are
then recovered and reused,
capacity to 300 MTPA by 2030-31, steel remanufactured, or recycled
scrap requirement is poised to be increased to create new products.
Society’s needs for things
significantly. This strategy paper aims to such as food, housing,
provide general guidelines for scrap transportation and energy,
generation and processing, keeping in view can be met without the
production of waste.
the huge untapped resources available in Steel is fundamental to the
the country in the form of “obsolete scrap”. circular economy. Not only
can steel products be reused
and remanufactured, steel is
Globally, steel containers, cans, also a permanent material
which can be recycled over
automobiles, appliances and construction and over again without losing
materials contribute the major chunk of its properties.
recycled materials. Steel doesn’t lose its
World Steel Association
inherent physical properties during
recycling process. The recycling process
drastically reduces the energy, additives & fluxes requirement compared to
its production from iron ore. Basic Oxygen Furnace (BOF) steelmaking also
uses approximately 15-20% recycled steel but the same is mainly “home
2
Annual Statistics 2017-18-JPC
14
scrap” generated during processing of crude steel into the finished products.
EAF/If route supported by downstream refining process consumes most of
the scrap in addition to DRI. The Quality of steelmaking through EAF/IF
route depends on quality and quantity of recycled steel and DRI and may
steel may contain slightly higher residual elements, depending on the scrap
used. But now a days, large technological advances have been made and
almost similar quality of steel as of BOF is produced by EAF/IF route also.
Thus, the steel produces by EAF/IF route is being widely accepted in various
applications, such as automobile & engineering industry, structural, beams,
rebars and other products.
Iron & steel making processes generate slag, quantity of which depends upon
the input raw material quality and process requirements. Based on
production data of crude steel and pig iron, it is observed that in 2017-18,
nearly 27 million ton of BF slag, 8 million Tons of BOF slag, 2.5 million tons of
EAF slag and around 1-1.5 million tons of IF slag was generated. Blast
Furnace slag is predominantly utilized in the cement making and more than
85% of the same is being used. There are some plants which are not having
easy access to the cement plants and thus finding it difficult to make 100%
utilization of the same. But, looking into the availability of limestone and
trend to replace more limestone with BF slag, most of the slags will find
effective uses as an alternate raw material for cement industry. The same is
not applicable for the steel slag whether produced by BoF/LD route or EAF/
IF route. Although, some quantity is being used in road construction but
majority is used in land filling / dumped in the plant and thus not finding
much economical usages. In order to achieve a sustainable steel production,
it is essential that higher volume of steel slag, to be generated with increasing
steel production in the country, is beneficially utilized and fully consumed in
an environmentally friendly manner. Sustainable use of slag shall contribute
to the conservation of natural resource and reduction in CO2 emission
besides ecological advantage due to less storage requirement. The need for
saving natural resources and energy makes it essential to enhance reuse of
steel slag in various by-products form. Extensive researches are being made
15
globally and new techniques / applications are getting developed for
effective utilization of steel slag and turning the same into valuable products.
Globally, Steel slag is used in multiple ways e.g. as a raw material for cement
manufacture, a road base course material, concrete, soil amelioration in
agriculture etc. However in India, the importance of steel slag utilization is
yet to be fully realized and implemented.
Achieving full potential of Resource Efficiency in steel sector w.r.t steel scrap
processing and slag utilization in India would require significant innovation
efforts ranging from the adoption of latest technology and equipment,
logistic support, new business models etc. This cannot be achieved by
incremental evolution within the existing systems. It will require rather
holistic and possibly radical change of the existing production and
consumption systems. To support the transition to a Resource Efficiency
w.r.t. steel scrap processing and steel slag utilization, a coherent policy
framework and major policy innovation will be needed which can address all
technical and non-technical issues including financing, capacity building,
supply chain management etc.
This strategy paper highlights the steel scrap and steel slag scenario in India.
Recommendations have been made to implement the measures required to
make scrap recycling and slag utilization a sustainable, energy efficient and
environment friendly sector and to set parameters for sustainable
development of the same.
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2.0 Steel Demand & Supply Scenario
2.1 Global Demand and Supply
Steel is a critical industry worldwide, and steel products are a heavily traded
commodity. In recent years, market changes, shifts in import and export
levels, and weakness in the global demand for steel have negatively
impacted steel industries across the world. Along with shifting trade
patterns, world benchmark steel prices were trending downward .Although,
steel industry had faced major challenges from 2011 to 2014 due to multiple
reasons, 2015 was also a period of decline for the steel industry, as weak
global demand caused declines in other indicators. The positive sign of
improvement started towards late 2015 and still continuing.
3
World Steel Association
17
Table –2.1: World Crude Steel Production vs. Consumption3
The combination of weaker Chinese demand and large gap between current
production and available capacity may lead to higher exports from China
during 2018 and beyond. As per the 13th Five Year Plan for its steel industry
released by the Chinese government, by 2020, the government expects
apparent demand in China to decline to 650-700 MT vs production of 750-
800 MT. This suggests the government expects steel exports to remain flat
at current levels of about 100 MTPA.
Demand in Japan, South Korea, EU, USA is expected to remain stable in the
near future. Thus, there may not be much increased in steel consumption in
these countries and the demand may grow only from the developing
countries.
2.2 India’s Future Demand
The past three years have been challenging for the domestic steel industry
on account of a global supply glut. During this period, global prices declined
by approximately 35%. Imports of finished steel in 2014-15 increased by 71%
and another 26% in 2015-16 y-o-y. The sector also saw significant financial
stress, with NPAs amounting to 37% of loan outstanding as on March 2016.
18
In spite of all constraints, steel
production and consumption continued India’s steel production
grew 6.2% y-o-y to 101 MT
to grow and per capita consumption
in 2017 in line with the
has increased from 47 Kg in 2007 to in ongoing expansion in steel
excess of 65 Kg in 2017 as shown below making capacities and
in Table 2.2. Overall economic growth, ramping of production by
and more specifically accelerated spend steel majors such as, SAIL,
in infrastructure sector including roads, TATA Steel and JSW. This
led to India becoming the
railways and ship building, anticipated
second largest steel
growth in defence sector and the
producer in the world in the
automobile sector are expected to first quarter of 2018,
create significant demand for steel in surpassing Japan. During
the country. In addition to this, 2017, steel consumption
favourable demographics, grew by around 5.2%.
improvement in various socio-
economic indicators, increasing penetration of steel in rural areas, and
increased usage of steel in bridges, crash barriers are also expected to
contribute positively to steel demand. The focus on the Make in India
initiative is overall expected to give a fresh boost to steel consumption.
19
2017 101.0 87.20 65.2
20
Table – 2.3: Stainless Steel Production and Consumption in India
21
3.0 Steel Manufacturing
3.1 Steel Manufacturing Alternatives
Steelmaking can be classified under two heads, namely, BF-BOF (Blast
Furnace – Basic Oxygen Furnace) route and Electric / Induction Furnace route
route. BF-BOF route Iron Ore as primary source of raw material where as in
EAF/IF route the raw materials are Steel scrap, Sponge Iron and to some
extent Pig Iron. The installed capacity and production from different route in
2017-18 in million tons was as follows4:
Route Installed Capacity, MT Production, MT
Iron/ DRI
BF 80.556 73.744
DRI 49.617 30.511
Crude Steel
BOF 55.267 47.489
EAF 40.242 26.421
IF 42.466 29.221
BF-BOF remains the main route in countries where the required raw
materials are available. Production of high-end flat products (for automotive,
Oil & Gas, Lifting & Excavation segments etc.) is more convenient through
this route. Historically, as countries have matured, share of EAF has
increased, due to environmental concerns. As the demand of steel is
increasing continuously in India, it is expected that EAF contribution shall
4
Annual Statistics 2017-18-JPC
22
remain in the same ratio but the installed capacity shall increase
considerably.
Broadly there are two types of producers in India, namely, major steel
producers and MSME (secondary/mini) steel producers. Integrated/ major
steel plants have facilities to convert iron ore into hot metal and further
process the hot metal into steel. The liquid steel is cast into slabs, billets and
blooms and these are further processed into finished products such as hot
rolled coil, cold rolled coil, structural, wire rods, rails, bars etc. Currently the
major integrated steel players in India include SAIL, Tata Steel, JSW, RINL,
JSPL, Essar Steel, Bhushan Steel Ltd ( recently taken over by Tata steel).,
Bhushan Steel & Power Ltd. etc. The capacity of each plant of major players
is in excess of 1 million and at several location it is having upto 12 million
tons at single location.
23
Fig 1: Overview of Steel Making in India
Most of the major steel producers operate through the BF-BOF route. Blast
furnaces convert iron ore into hot metal (when further processed in liquid
stage to steel) or pig iron (when solidified). The fuel used in the BF is coke,
which has a dual role: it provides the required thermal energy and also acts
as a reducer. Product of BF contains high amount of carbon, silicon and other
impurities. The hot metal from BF is transferred into a BOF vessel where its
carbon, silicon and other impurities are oxidized or removed through slag
separation. Main inputs in BF are iron ore, sinter/pellet and coke. Further,
natural gas can be injected as a supplement fuel in BF operation, to reduce
the consumption of coke. It reduces NOx, SOx and CO2 emissions and
improves productivity of BF.
BOF normally uses oxygen in the process along with lime, limestone and
dolomite. The liquid steel produced is further refined (called secondary
refining), if required, and cast into ingots, slabs, blooms or billets.
24
Continuous casting, introduced in Indian integrated steel plants in early 80s,
has gradually replaced traditional ingot casting route, and today almost 90%
of the steel is continuously cast into slabs/ blooms/ billets, leading to
significant savings in cost and energy.
Industrial EAFs vary in size from small units of 4-5 ton capacity used to as
large as furnaces of 250 ton capacity. Some of the producer’s hve modified
their furnaces to a new design called New Oxygen Electric Arc Furnaces,
where advantage of oxygen lancing is utilized to increase the productivity
and reduce the energy consumption. The power required to melt a ton of
steel in EAF is approximately 440 KWh. The furnace can be operated with
100% scrap as input metal along with lime and dolomite, which are slag
formers. This greatly reduces the energy required to make steel when
compared with primary steelmaking using iron ore. EAFs are extremely
flexible and if required hot metal from BF or direct reduced iron can be used
as furnace feed.
25
uses Iron Ore as main raw materials, but non availability of natural gas/
alternate gas has impeded the growth of such technologies.
Corex:
The DRI process of producing steel is intrinsically more energy efficient than
BF route because it operates at lower temperature. The DRI units are either
coal based or gas based. The energy efficiency of coal based plants are lower
than gas based plants and the emission level is significantly higher. Currently,
India produces approximately 60% of steel through scrap and DRI, which help
in reducing emission level compared to BF-BOF route. Natural gas is utilized
as reductant in gas based DRI plants.
The main product of BOF/EAF /IF are steel but during production several by-
products (or waste) and flue gases are also produced. The flue gases are
properly treated for recovery of heat energy and thus the same is not
covered in this strategic resource efficiency document. However, other by-
product viz Slag (excluding by-product of coke making plants) has been
covered separately in this document in Chapter 5.0.
26
It is expected that the stringent environmental requirement and continuous
pressure on reduction of CO2 emission to avert climate change may lead to
development of cleaner technologies in time to come. However, based on
the present projections, it is expected that the share of EAF shall increase
considerably as can be seen from Figure-2.0 below:
5
Source: Tata steel
27
4.0 Steel Scrap & Life Cycle
28
Name of the Company 2009-10 2010-11 2011-12 2012-13 2013-14
Tata Steel 400 410 440 550 610
RINL 230 230 230 210 245
Essar Steel 450 450 490 505 410
JSW 690 830 870 980 1150
JSPL 125 125 240 230 175
BSPL 30 35 40 50 65
Bhushan Steel Ltd. 20 70 65 70 70
Total 2845 3360 3515 3700 3985
Table 4.2 : Year wise Consumption of Steel Scrap by ISPs during 2009-10 to 2013-14.
‘000 tonnes
Old scrap, also known as obsolete scrap, is the steel that has been discarded
when steel products (e.g. automobiles, appliances, machinery, buildings,
29
bridges, ships, cans, railway coaches and wagons etc.) have served their
useful life. Old machinery and equipment are auctioned by railways, defence,
port authorities etc. The first option of buyers of such equipment and
machineries are to recondition them and sell at higher price. The second
option is to dismantle them and sell as spare parts for maintenance of
equipment in use. The third and last option is selling as metal scrap. Similarly
old vehicles need to be scrapped after completion of its service life. However,
in India, after serving the life in large cities, such vehicles are usually
relocated to Tier–II and Tier-III cities and small towns where demand for such
vehicles exists. Presently, no policy exists towards scrapping of vehicles and
this needs immediate attention of Govt. of India as older the vehicles, greater
is the pollution level. Old scrap is often contaminated, depending on its origin
and the collection systems. Since the old scrap is the material that has been
in use for years, chemical composition and physical characteristics are not
usually well known. It is also often mixed with other trash. Due to these
reasons, old scrap is not easy to recycle. It requires cleaning, sorting, removal
of coatings, and other preparation like pressing, crushing, shearing,
shredding etc. Prior to use. Obsolete scrap may contain radiation source
with associated environmental and health risks. These low intensity
radioactive sources may trickle into scrap from wastes disposed by research
laboratories, scientific gauges, industries, hospitals etc. Although, adequate
safeguards have been made at port handling imported scrap to ensure
detection of radioactive material in imported ferrous scrap but the similar
measures shall be required for the scrap processing industry also.
After more than a decade of consistent growth, global demand for steel
scrap started declining in 2014. This was due to both the slowdown in overall
steel demand and a drop in the global Global ferrous scrap
production share of the EAF route – the availability stood at about
primary destination for scrap – in 750 million tons in 2017,
steelmaking. While steel production grew out of which 630 million
4.3 percent per year since 2000, scrap tons were recycled by the
steel and foundry casting
annual growth has averaged 3.1 percent.
industries. As per estimates
The slower global growth of steel scrap was of WSA, global ferrous
also due to a large extent to China’s rising scrap availability is
share of the global steelmaking sector. In expected to reach 1 billion
2000, China accounted for 15 percent of tons in 2030 and 1.3 billion
global crude steel production, while in 2017 tons in 2050, growing more
it represented almost 50 percent. Over the than 500 million tons within
the next 30 years
past two decades, China has dominated
both steel demand and production. As a developing economy, it has limited
domestic supply of obsolete scrap. Additionally, with most of the installed
assets using BOF technology, China has largely relied on primary raw
materials – namely iron ore and coking coal. As the country’s share of global
steel production grew, its low dependence on scrap pushed down scrap’s
overall share in global steel production from 40 percent in 2000 to 34 percent
in 2015.
It is expected that the share of EAF will increase over the next 20 years due
to China’s large-scale adoption of the EAF-route, consequent to closure of its
obsolete plants owing to poor quality and environmental considerations.
31
Based on the world steel recycling in figures 2012-2016 report, the scrap /
crude steel production ratio in 2015 is as given in the following Table 4.3:
Global ferrous scrap availability stood at about 750 million tons in 2017, out
of which 630 million tons were recycled by the steel and foundry casting
industries. As per estimates of WSA, global ferrous scrap availability is
expected to reach 1 billion tons in 2030 and 1.3 billion tons in 2050, growing
more than 500 million tons within the next 30 years.
Current global ferrous scrap consumption is ~580 MTPA with EU, China, USA
and Japan driving half of the world scrap consumption. Scrap consumption
in China has increased to ~19% in 2017.
Scrap consumption is also driven by the price differential between scrap and
the hot metal. Scrap prices tend to correlate closely with the prices of iron
ore and coking coal used {to produce hot metal (pig iron)} as scrap is
essentially a substitute for them. Steelmakers make trade-offs based on
these inputs’ relative prices.
32
In US, around 65% of its steel production is through recycled scrap. In Europe,
more than 90% of used steel products are recycled to produce new steel.
About 40% of crude steel within EU27 is produced by the scrap + EAF route.
There is a potential to increase gradually this rate up to 50% in the next 20
years due to larger available quantities and better control of scrap qualities.
Scrap usage in Vietnam is also increasing. In first three months of 2018,
Vietnam imported 1.31 million tons of scrap, up 68.7% year on year basis. It
imported a total of 4.74 million tons of ferrous scrap in 2017, up 21.5% from
3.9 million tons a year earlier.
Table 4.4 : Projected Demand Availability Gap of Steel Scrap 2013-14 to 2021-22
(Thousand Tonnes)
2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021-
2013-14
Year 15 16 17 18 19 20 21 22
(Actual) (P) (P) (P) (P) (P) (P) (P) (P)
A. Projected Demand
ISPs 3,735 3,996 4,276 4,576 4,896 5,239 5,605 5,998 6,417
EAF Units 856 899 944 991 1,040 1,092 1,147 1,204 1,265
IF Units 13,994 15,184 16,474 17,874 19,394 21,042 22,831 24,772 26,877
Secondary
Re-rollers
(Long 1,945 2,052 2,165 2,284 2,410 2,543 2,682 2,830 2,986
Products)
Iron & Steel
8,341 8,841 9,372 9,934 10,530 11,162 11,832 12,541 13,294
Foundries
SS Industry 2,828 2,997 3,177 3,368 3,570 3,784 4,011 4,252 4,507
Total 31,699 33,969 36,408 39,027 41,840 44,862 48,108 51,597 55,346
Demand
B. Projected Availability
Home Scrap 10,047 10,733 11,469 12,259 12,858 13,769 14,748 15,801 16,932
33
New Scrap 8,759 9,423 10,143 10,924 11,772 12,694 13,697 14,788 15,976
Old Scrap 8,054 8,577 9,134 9,727 10,359 11,033 11,749 12,513 13,326
Total
26,860 28,733 30,746 32,910 34,989 37,496 40,194 43,102 46,234
Availability
C. Demand
Availability 4,839 5,236 5,662 6,117 6,851 7,366 7,914 8,495 9,112
Gap (A-B)
It may be seen that the gap between steel scrap demand and availability is
likely to increase from about 5 MT presently to about 9 MT by 2021-22.
During this period, the total availability will rise from ~27 MT to ~46 MT as
shown in Figure-4. It shows that the projected trend of domestic demand of
steel scrap till 2030 is likely to increase at the rate of 4-6% whereas the
availability may grow at a rate of 6-8% and thus the import may continue to
reduce.
34
sustainable mode. The cycle envisaged for circular economy in steel sector is
depicted in Figure 5.
It shows the circular economic cycle right from raw material i.e mining , steel
production and utilization , scrap generation, and finally recycling of these
finished products back to steel manufacturing after its life cycle.
The steps involved in managing and transporting scrap efficiently before
actual melting are referred to as Scrap Processing. The large number of
sources and forms of steel scrap requires the use of numerous scrap sorting
and preparation processes to remove the contaminants and/or recover
other valuable materials (i.e. non-ferrous metals) and sizing/compacting
prior to entering the steelmaking process.
Home scrap hardly need any preparation except that the larger pieces of the
scrap may have to be cut to make the size suitable for its charging in the
steelmaking furnace. Same is also true for substantial quantity of the new
scrap. However some of the new scrap may need processing. The
35
methodology to be adopted for collecting and processing in an organized
manner is shown in Figure 6.
36
store and transport. Shearing machines are used to shear or cut metal scrap
which is large or bulky in size, to make the scrap ready for directly feeding
the furnaces or to remove any unwanted fittings or other parts from the
scrap metal not accepted by the shredder. Shredding means tearing and
fragmenting huge volume of scrap into smaller portions. Briquetting is used
for scrap metal which is in the form of small chips or turnings. A briquetting
machine extracts extra fluid from the scrap and converts them into
briquettes which can be then easily transported and fed in the melting unit.
Several steel products are being used with coating of other metal on them,
e.g. galvanized sheets, tin plate etc. Steel scrap generated from such coated
products is stripped of the coating material before it is processed in the
steelmaking furnaces. There are currently a number of processes used in
industry for de-coating of the steel scrap viz., dezincing, detinning, de-
copperization (later not very common).
37
moves from developing economy towards developed economy, it will
witness a steady increase in availability of obsolete scrap from products
completing their end of life cycle in various industries and sectors. Similar to
China, the availability of scrap in India will also see a sharp increase primarily
from “obsolete scrap”. Concurrently, with “Make in India” program, the
country will also see a steady rise in manufacturing and increased availability
of prompt scrap. This will lead to a higher growth trajectory of steel
production through the EAF route as compared to the conventional BOF
route. Further to meet the stringent environmental norms w.r.t energy and
carbon foot print as per Paris Agreement on Climate Change, use of EAF /IF
may increase over BF/BOF route.
Adopting the philosophy for maximizing scrap processing shall result help in
the following:
❑ Adopting principle of 6R’s i.e Reduce, Reuse, Recycle, Recover,
Redesign and Remanufacture and thus improving global
competitiveness
❑ Reduction in the energy intensity / ton of steel aims to fulfil
commitment in COP21
❑ Optimum utilization of Natural resources
❑ Focus on recovery of energy (heat, gas)
❑ Adoption of Energy efficient & Environmental friendly
technologies
❑ Benchmarking of secondary / MSME and prioritization of
investments
❑ Moving towards Zero Discharge Zero Waste and Zero Harm
regime
In addition to above, making steel from scrap conserves iron ore, coal and
limestone. As per the World Steel Association, the integrated steelmaking
route based on the BF-BOF, uses about 1,400 kg of iron ore, 800 kg of coal,
300 kg of limestone, and 120 kg of recycled steel to produce 1,000 kg of crude
steel. EAF route, on average, uses 880 kg of recycled steel combined with
varying amounts of other sources (DRI/HBI, hot metal), 16 kg of coal and 64
38
kg of limestone, to produce 1,000 kg of crude steel. On an average,
production of 1 ton of steel from scrap conserves an estimated 1,030 kg of
iron ore, 580 kg of coal, and 50 kg of limestone. Steel scrap recycling also
saves the energy.
39
4.7 Current Practice
Home scrap is normally utilized in the in-house melting units, though some
of the scrap which can be rolled, is sold as re-rollable scrap to Re-rolling Mills.
New scrap, generated by automobile, auto ancillary industry, white goods,
household appliances, steel fabricators, construction sector, tube makers
etc., is normally sold by the generating units to actual end users. Old scrap is
handled through small traders, who in term depend on Kabaddis, who go
door to door for collecting the scrap. Various institutions often auction the
obsolete scrap which is also collected by small traders.
40
Steel scrap recycling involves a range of activities, such as scrap collecting,
transporting, sorting, logistics, etc. Recycling companies will have to employ
workers to deal with every of these activities separately. Figure 8 shows the
value chain created through use of steel scrap in secondary steel sector.
41
their business. They may be useful in collecting steel scrap from local
Kabadies, cities, towns, rural areas etc. and providing to big processors.
Steel Ministry is targeting an increase in the usage of steel scrap. A new scrap
policy need to formulated to address all the issues from local scrap collectors
to processing centers including role of OEM, Government and other
department / ministries . A policy to scrap vehicles which are more than 15-
20 years old is also need to be framed. Auto-shredding and vehicle-recycling
plants are being established. Scrap-based steel production capacity is
expected to be increased. Around 30-40 million tonnes more steel is
expected to be produced from scrap by 2030. Obsolete scrap from old
vehicles will comprise a major chunk of the additional scrap, in view of the
fact that roughly 20- 25 MT of scrap will be generated.
MSTC and Indian conglomerate Mahindra Accelo are establishing India’s first
vehicle shredder, with a capacity of 100,000-300,000 tpy of vehicles. It will
generate the shredded-grade scrap which India currently has to import from
Europe and the United States. Tata Steel’s is also planning to set up a scrap
processing units in Gurgaon to tap the high consumption of automobiles and
white goods in the National Capital Region. These initiatives provide a good
opportunity for investment in India's quest to become self-sufficient in
ferrous scrap.
42
5.0 Recycling of Steel Slag
5.1 Slag Classification
43
cement industry. The slags produced through different routes can be
classified as follows:
Air cooled BF slag (ACBFS): Molten BFS is allowed to flow from the blast
furnace into open air pits located beside the furnaces where the material is
quenched with water applied by sprays to facilitate cooling. Alternatively,
molten slag is dumped in the open yard where it is allowed to cool naturally.
Once sufficiently cooled, it results in a crystalline, rock-like air-cooled slag
and is referred to as rock slag. ACBFS is dug and transported to a nearby
crushing and screening (aggregate) plant, where it is processed into
aggregates. However open air cooling requires large areas of land. On the
other hand, land availability is getting scarce day by day and pollution control
board also has been impressing upon to avoid dumping of slag in open land.
Physical properties of air cooled blast furnace slag (ACBFS) by and large
matches with other natural rock materials used as coarse & fine aggregate
and hence, it can be and is used as substitute to natural aggregates in all
types of roads. Granulated ground BF slag is also used as substitute to natural
sand for use in civil construction. In addition, BF Slag is also used in
embankment, land fill etc.
44
LD or Steel Slag:
Basic oxygen steelmaking (BOF), also known as Linz–Donawitz Steel making
slag is cooled in a cooling yard by air cooling and moderate water sprinkling.
However, this method requires a considerable amount of time to cool the
hot slag down to a workable temperature and demands the allocation of a
spacious land / yard which is also discouraged by authorities like MoEF&CC/
CPCB etc. For operational safety, a number of more efficient cooling
processes have been put into practical use. They include:
➢ Air granulation process, whereby a high pressure air is blown onto the
molten slag to solidify and granulate the slag while it is being cooled.
➢ ISC(Instantaneous slag chill ) process, whereby the hot slag is first
poured into a steel box for accelerated cooling/solidification and then
subjected to water sprinkling and immersion cooling;
➢ Water granulation, whereby the molten slag is poured into a special
drum and cooled rapidly by sprinkling water over the slag.
45
Figure 9: Typical Slag generation and utilization
In addition to the slag, dust and sludge is also generated in various process,
quantity of the varies from place to place depending upon the technology
adopted. The average generation of slag, sludge and dust from various
process route on global basis are shown in figure 10 below:
Most of the steel producers are taking steps to control the generation of
slag and has achieved significant improvement in the past but majority of
the units are yet to achieve benchmark performance.
The typical chemical analysis of BF, BOF and EAF slag is as follows:
Steel Slag (LD) % 45-48 13-16 5-10 <5 15-17 1-3 1-3
The composition of steel slag varies with the furnace type, steel grades and
pre-treatment method. However, the main constituent remains SiO2, CaO,
47
Fe2O3, FeO, Al2O3, MgO, MnO and P2O5 . In steel slag the most important
mineral phases are dicalcium silicate (C2S), tricalcium silicate (C3S), RO phase
(CaO – FeO – MnO - MgO solid solution), tetra-calcium aluminoferrite (C4AF),
olivine (fayalite (Fe2SiO4), few have kirschsteinite (CaFeSiO4) compositions),
merwinite and free lime .
BOF slag also contains free lime which expand in contact with moisture/
water. This restricts its use in various applications. Thus , the steelmaking
slag is subjected to the ageing treatment process, namely, normal ageing
treatment, (whereby the hydration reaction is allowed to take place by
natural rainfall on the yard), and accelerated ageing treatment / steam
ageing treatment, (whereby the hydration reaction is induced to complete in
6
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48
a shorter period of time). It is imperative that the free lime content in steel
slag from BOF and EAF is brought down to acceptable levels for use of steel
slag as aggregate in civil construction. Currently, integrated steel plants in
India are planning installation of such facility for weathering.
Steel slag is also traditionally used in road construction, in Rail Ballast, as Soil
stabilizer (Silica and phosphorous supplement), as performance improver in
cement making, Raw material in clinker manufacture replacing lime stones.
In BOF slags major phases present are dicalcium ferrite, calcium aluminate,
wustite, dicalcium silicate, tricalcium silicate, free CaO and MgO etc. EAF
slag, due to lower lime content, is stable and can be used in ashphalt.
Secondary steel refining slag dis-integrates into a powder due to instability
of its constituents, causing dust emission. There is an additional use of steel
slag which is being explored widely across the globe, mainly for
supplementing soil nutrients as well as soil remediation of acidic soil.
Miscellaneous uses of steel slags and limitation are as follows:
Utilization as aggregates
49
The reason for volumetric expansion and structural instability of steel slag in
construction is the presence of free lime (CaO) and magnesium oxide (MgO)
in its mineralogy, which form low density hydroxides in the presence of
water. The hydroxides react with atmospheric CO2 and form carbonates,
with increase in volume. The swelling nature of steel slag is undesirable in
civil engineering application.
Some of the steel plants have already installed facilities for artificial ageing
so that free lime can be bound quickly. Process has been developed
accelerating the steel slag ageing process using steam. Steam percolates
through the minute pores in the slag lumps and hydrates the expansive free
lime and MgO phases, making them stable.
Utilization in agriculture
In India, about more than 35 million Ha of land is affected by acidity. Low
cost additives are needed which can improve soil health and reduce cost of
farming. Steel slag for reclamation of acidic mine land is an excellent use for
this material. Application rates to neutralize total potential acidity of mine
50
land are high and reapplication of lime may not be technically or
economically feasible. It has been studied that, steel slags were as effective
as limestone in neutralizing. Germination was successful in all treatments
with limestone and slag.
Steel slag can be used for amending acid soils for soil neutralization and as
source of growing agents. It can improve soil structure and reduce frungal
infection. Silicates in slag minerals are useful for plant nutrition and soil
quality. Silicates provide beneficial effect on plant health and soil structure,
increase the phosphorus mobility in the soil and the efficiency of phosphate
fertilization.
Steel LD slag can also be used in fertilizers for agricultural applications. The
efforts have been made in Tata steel
that LD slag after grinding to 300
mesh, can be used as a soil
conditioner in paddy field, tea By undertaking planned
gardens etc. Nippon KokanKk research in agricultural on
Corporation (NKK) in Japan has use of slag based fertilizers
and by products,
developed a process to produce eco-
dependency on imported
friendly slow release potassium
fertilizers like NPK or Potash
silicate fertilizer from the slag which is or Phosphate can be
generated during the desiliconisation minimized by using slag as it
process of hot metal at steel mill. is or after mixing with sugar
Some studies shows that according to industry waste (press mud or
soil type and agricultural use by spent wash), cow dunk or
animal waste generated
adding a concentration of LD slag
from Gobar Dhan Yojna or by
between 1.5 and 5.0t/ha, it is possible mixing with some of the
to achieve increase in soil pH and minerals like Glauconite,
improve the soil quality and also recently discovered in Uttar
productivity. The experimental works Pradesh
were carried out using pulverized LD
slag for growing different vegetables and crops like tomato, potato, onion,
spinach and wheat in acidic soil. Steel slag contains fertilizer components
51
CaO, SiO2, and MgO. In addition to these three components, it also contains
components such as FeO, MnO, and P2O5, so it has been used for a broad
range of agricultural purposes
Studies were carried out by some of the Indian Agricultural Universities like
Orissa University of Agriculture and Technology, Bhubaneshwar, in the
laboratory as well as in the field for assessing use of BOF slag as acid soil
ameliorant. On site trials showed higher yield of crops and decrease in acidity
of soil. However, impact of heavy metals like chromium could not be
established.
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(https://www.ieindia.org).
52
6.0 Strategy for Recycling
53
prevailing import duties, absence of regulatory frameworks, need for skilled
manpower, land acquisition and state of art facilities.
With good iron ore availability in India, manufacturers may favor hot metal
based technologies for creating new capacity over scrap based technology,
if desired scrap quality, quantity, and easy availability is not assured.
With proper guidelines and regulation, the scrap recycling industry has huge
potential to benefit the economy. Unlike coking coal, which is largely
imported, scrap recycling would feed domestic economic activity. Higher
scrap usage will help building a cleaner economy. Future policies may be
more stringent for polluting coke making plants, sinter plants, and blast
furnaces, and provide further incentives for choosing EAF over BOF.
However, most of the electricity that powers EAF plants currently comes
from coal burning, which is also harmful to the environment. Perhaps the
biggest challenge for the scrap industry lies in our ability and willingness to
make the EAF technology easy to adopt and operate. Enhancing proportion
54
of EAF will require slower capacity enhancement of BOF and enhanced
investments in EAF capacity. EAF mills have higher production flexibility and
have typically lower maintenance capex. However BOF based plants could
apply new technologies to increase the amount scrap used in the converter
by injecting additional thermal or chemical energy into the furnace. As more
investment shifts to either EAF or an increase of scrap use in BOF, the scrap
industry will benefit from the increase in demand.
The recycling industry itself will need to be more efficient. Most of the scrap
will continue to be concentrated around big cities, providing large volumes
of material within a short radius. Scrap companies will need to plan higher
operational efficiency through more sophisticated technology, higher labor
productivity, and more streamlined logistics. Figure 13 shows the current
and the proposed road map starting from scrap collection to steel
production. The interventions required at different stages namely, scrap
collection, aggregation, logistics, and creation of scrap processing centers
and finally steel production through EAF route is outlined. As operating costs
come down and revenues grow, the threshold price for economical scrap
collection shall drop, putting the scrap industry in a better position to
compete with iron ore and coking coal based plants.
Figure 13: Current and proposed road map for scrap collection, processing and steel
production
55
6.1 Need for Recycling Policy
National Steel Policy 2017 projects 300 MT crude steel capacity by 2030-31.
There has been a gradual emergence of scrap-DRI based electric steel making
in India, and in 2016, IF and EAF routes together accounted for around 57%
of crude steel production in the country. Scrap is an important feed material
for EAF/IF based steelmaking. However, due to wide-scale adoption of
continuous casting technology in steel plants and un-organized recycling of
scrap in the country, the domestic availability of good quality scrap is limited
and the country has to resort to imports. Import of scrap is also associated
with risks of volatility in global prices as well as forex rates.
56
Scrap processing units would need to be located strategically to optimize
transportation cost of input and output material and achieve cost
competitiveness with respect to global prices which also exhibit fluctuating
trend.
6.2 Challenges in Recycling
Following challenges, which adversely impact the areas of scrap metal
supply, industry growth, pollution, quality, safety, revenue and transparency
in different steps of steel scrap recycling, necessitate having a
comprehensive recycling policy:
1. Generation
2. Collection/Processing
3. Usage
4. Disposal
58
7. Establishing mechanism such as e-auctions, defined payment
systems for monitoring and regulating the metals recycling sector
in India across the value chain.
6.4 Regulatory Needs
Regulations are essential for steel scrap recycling industry to ensure that the
steel scrap is free from hazardous material, inflammable or explosive, dirt or
pollutants which may contain or emit dangerous substances, chemicals
waste classified as hazardous, radioactive material, carcinogenic substances,
sulphur etc. Steel scrap should also be free from non-metallic materials like
dirt, glass, concrete, and insulation, combustible non-metallic material such
as wood, grease, oil, other lubricants, plastic, rubber, fabric and organic
substances. Restriction is also required for contents of non-ferrous metals
like copper, brass, aluminum, lead, chromium, nickel, cobalt etc. There has
to be guidelines about maximum weight of scrap pieces for suitability in
handling and charging.
All scrap that come for processing should be subjected to required quality
checks. After processing, indicative chemical analysis should be known, and
existence of contaminants or hazardous elements must be determined for
quality, safety and regulatory compliance.
59
6.5 Standards and BIS
Ferrous scrap is sorted and processed into various grades for recycling. Broad
grading of scrap as per BIS 2549: 1994 (Code for Classification of Processed
Ferrous Scrap) is as follows:
• Shredded scrap
• Heavy Melting Scrap (HMS) No. 1
• Heavy Melting Scrap (HMS) No. 2
• Light Melting Scrap – Bundles
• Re-rollable scrap
• Turnings and borings
• Iron Scrap
• Stainless steel Scrap
Specifications exists for steel scrap specifying type (heavy melting scrap,
shredded, steel turnings), composition restriction etc. in other countries also
(e.g. EU-27 Steel Scrap Specification). Some companies have their own
specification for procurement of steel scrap (e.g., Scrap Specification,
Slovakia Steel Mills a.s., ArcelorMittal Dofasco Hamilton Scrap Specification
etc.)
6.6 Capacity Building
60
and which should be free from trace and tramp elements, while other grades
can be produced in secondary sector utilizing mainly steel scrap, the
availability of which shall continue to increase in the country.
There is need for skill development for scrap recycling, energy audits
efficiency, quality control, and other associated areas in the secondary steel
industry. Biju Patnaik National Institute of Steel (BPNIS) was earlier
envisaged for undertaking special courses related with Iron & Steel Industry
but the same is yet to start such courses. Although, large numbers of
initiatives were taken by NISST in the past and encouraged secondary sectors
to adopt energy efficient and environmental friendly technologies with
support from UNDP but more focus may have to be accorded on skill
development and specialized training that may be required for this emerging
sector. In addition, some new Centre of Excellence have been created in
various IITs for steel technology and these centres can also promote higher
level of research as well as to meet any future specialized requirement of
human resource. Similarly, some centre of excellence for waste management
in steel industry may be helpful in addressing the issues of technology gap
required for this new but important sector so that zero waste concept can
be adopted.
This may require wider consultation with existing institutes as well as long
term need planning so that such institutes may undertake long term
researches also to meet future requirement of the sector. The courses may
cover degree/diploma courses and training modules for theoretical and
practical knowledge, especially considering the jobs dealing with state-of-
the-art equipment, short term specialized refresher courses, utilizing
expertise available in-house, industry and academic institutes.
6.7 Regional Distribution
As steel scrap is generated all over the country (though volume may vary
from state to state), there is a need to create designated zones and areas for
recycling of steel in the major industrial areas or on the outskirts of major
61
cities where large generation of steel scrap is expected. Setting-up of steel
shredding facility needs to be encouraged.
63
7.0 Implementation Frame-work
As both the new opportunities i.e steel recycling and slag utilization may
require some local rules and monitoring mechanism, role of the state
governments shall be very crucial. In the case of slag utilization in agriculture,
state government and research bodies may have to work with farmers also
so that myths, if any can be removed and suitable recommendation
depending upon the soil requirement can be made available to the farmers.
To monitor adherence to safety and environment related measures in steel
64
scrap and steel slag collection and processing may require new guidelines.
For making these sectors more organized, concerned operators have to
follow applicable guidelines, laws and rules framed by the central as well as
the State Government.
Further, logistics may be one of the main challenge for safe and cost effective
system for inbound unprocessed products/scrap and outbound processed
scraps to the melting shops. Thus, scrapping centres (Collection cum
dismantling centre and recycling centre) need to be supported by adequate
logistic facility and hence the State Government intervention / role will be
important in identifying areas for setting up such centers as per respective
industrial policy of the state. The implementation of effective logistic
framework shall prevent pilferage and facilitate containerized transport in
an environment friendly manner taking into consideration of the local
societal issues.
65
globe. It will have regular interaction with the all the stake holders for
overcoming difficulties including with the states. It will also facilitate in
adoption of latest technology and equipment for efficient recycling
operations and encouraging R&D work in the relevant areas by engaging
institutes of repute in the country as well as abroad. The suggested action
plans are given in action agenda below.
66
Action Agenda- Central agency
67
Action Agenda : Steel Scrap Recycling
68
for further work
on Resource
Efficiency,
Identification of
R&D/academic
institutes for
undertaking
R&D on
Resource
Efficiency
69
Action Agenda : Recycling of Steel Slag
70
efficient
utilization
71
8.0 Research & Development
72
8.3 Role of Academic Institution
Academic institution undertake research programs for developing process
technology to preferentially remove undesirable elements from steel melt
while melting steel for a particular grade in EAF/IF. Some element may be
useful to enhance specific attribute in steel grade being produced, while it
may be harmful and undesirable in some other grade. Some fundamental
research may be required to address the issues of different types of scraps
generated from various sources.
73
9.0 Conclusions & Recommendations
In the short term import of ferrous scrap will continue as it will take some
time for India to bring on the steel scrap processing plants. For steel output
to grow according to the plan, India’s EAF output will have to rise by at least
16.85 million tpy, which can actually be achieved by full utilization of the
existing EAF and induction furnace capacities. The utilization rate in 2016
was 74%. If existing mills raise their capacities, they will need more scrap and
therefore will have to turn to more imports.
Scrap requirement by Indian EAFs can be reduced if direct reduced iron (DRI)
is available and can be economically utilized. Many Indian induction furnaces
have used 75-80% DRI in the steelmaking charge.
74
Indian steel makers in MSME (secondary) sectors shall require greater supply
of good quality scrap. Generally it will be economic and less polluting to
consume scrap nearer to places where it is generated. Therefore Scrap
Processing Units need to be set up near the centers/clusters of scrap
consumers (i.e. EAF/IF Plants).
75
3. BOF slag contains Ca, S, Fe, Si, P, Mg etc. which may be useful for plant
growth. It is useful for acidic soils as it gives pH around 8 when mixed
with water. Calcium helps in formation of fertile soil and improves
disease resistance. It also helps in absorption of other nutrients by
roots. Sulphur is required for amino acids, proteins etc. Iron is essential
for plants’ growth. Silica helps in improving the growth and stress
defense mechanism of plants. Phosphorus is a vital component in the
process of converting sun’s energy into food, fibre and oil. Tata steel
has demonstrated the use of BOF slag as soil conditioner.
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References
1. Strategy Paper on Steel Recycling in India, Tata Steel
2. MECON’s Comments of ‘Strategy Paper on Steel Recycling in India’.
3. MSTC’s Comments of ‘Strategy Paper on Steel Recycling in India’.
4. Guidelines for identification and control of safety and health hazards
in scrap metal recycling, Occupational Safety and Health
Administration, U.S. Department of Labor, OSHA 3348-05, 2008
5. Proposal for minimum environmental standards in the scrap metal
industry, Published by Environment Protection Authority Sydney,
Australia
6. The growing importance of steel scrap in China,
7. McKinsey & Company Metals and Mining Report March 2017
8. Scrap Specifications Circular 2016, Institute of Scrap Recyclinfg
Industries, Inc.
9. Indian Metals & Mining Report, EY-Indian Chamber of Commerce, July
2018
10. Resource and Energy Quarterly, World Steel Association, January
2018.
11. EU-27 Steel Scrap Specification
12. Scrap Specification, Slovakia Steel Mills a.s.
13. Arcelor Mittal Dofasco Hamilton Scrap Specification
14. P. Kumar, D. Satish Kumar, Marutiram K and SMR Prasad, Waste
Management Research, Jan. 2014
15. Evaluation Report of Steel Slag Aggregate, CRRI
16. User guidelines for Waste and Byproduct Materials in Pavement
Construction – Steel Slag, US Dept. of Transportation - Federal
Highway Administration, Publication Number: FHWA-RD-97-148
17. TA Branca and V Colla, Possible Uses of Steelmaking Slags in
Agriculture: An Overview, Material Recycling
18. Indian Mineral Year Book, IBM, Slag-Iron &Steel; August 2017
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