As you know, iron ore is the main material in the steel production chain. Many different shapes of iron ore are used in the production of steel and In fact, 98% of the iron ore mined in the world is used for steel production. In the automotive and construction industries, the main consumer sector is steel. Therefore, the demand for steel in these industries is influenced by the demand and price of iron ore. Iron ore production stage The blast furnace needs 1.75 tons of iron ore, 750 kg of coal and finally 250 kg of iron ore to produce one ton of iron and consumes about 4.5 tons of air. The air temperature in the center of the steelmaking furnace reaches 1600 degrees Celsius. There are different methods for the production process, among these methods we can mention the blast furnace. Replacement for iron ore In fact, there are no substitutes for iron ore, but there are substitutes for its main consumer, steel. Among other things, it competes fiercely with other metals such as aluminum, which are increasingly used in industries such as car manufacturing. In addition, plastic and glass are substitutes for steel in container production. From another point of view, it can be said that metals such as aluminum require a large part of the electricity consumption in production, so steel consumption is more common.
Again, a limited amount of scrap iron was recovered, but more steel than any other metal was recovered. Although steel is also produced from scrap recycling, it is currently not enough in total. production of iron ore In 2009, world iron ore production reached 1.0691 billion 150 million tons, a decrease of 2.3% from 2008. Production declines in the United States and Europe have already occurred, with iron ore production in the United States falling by 28.2% and Europe by 11, 4%. Major producers of iron ore It can be said to be the most important source of iron ore in Australia. Then China and Brazil became second in iron ore production. Other iron ore producers include Russia and the United States. In 2009, Australia's total iron ore production was about 393 million tonnes and 0.9 million tons. After that, China was the second largest producer with 340 million tons and 900,000 tons. However, the difference between Australia and China is that Australia's product is exported, while China consumes all of its product. Because it is the largest steel producer in the world and has one of the largest markets for iron ore consumption.
Iron ore import and export Currently, China can be said to be the largest steel producer in the world. Around 44% of the world's production takes place in this country. In addition, China produces and imports iron ore to meet its needs. China is the world's second-largest producer of iron ore and the largest importer. In 2010, China's total imports were 619 million tons, a decrease of 1.5% from 2009. However, it should be noted that in 2009, iron ore imports increased by 41.5%. China is the world's largest iron ore consumer, with a demand of 800 million tons. Much of China's demand is supplied by Australia and Brazil, while India imports only 25% of China's. iron ore consumption As you know, China is the largest consumer of iron ore in the world's steel industry. In fact, about 98% of the world's iron ore production is used by this country. Therefore, it can be said that steel production determines the demand for iron ore. Therefore, steel production shows demand for iron ore. In the costs of steel production, it can be said that iron ore and coal account for 75% of the costs. Currently, Asia is still the largest steel producer, with China and India being the largest steel producers in Asia. In these countries, the amount of infrastructure activity is high, so the price of steel in these countries is higher than in other countries. Because these two countries have a lot of infrastructure activity and their steel needs are greater. Although countries like India have relatively high economic growth, the path of economic growth needs to change for this upward trend to continue for a long time so that the demand for industries such as automobile manufacturing becomes stronger. In the past, the price of iron ore was negotiated by major mining companies and steel producers, and the negotiated price was a price index for the entire steel industry in the world, but recently this annual mechanism has been priced by systematic short-term data and globally. The big three mining companies no longer have annual contracts.
Many mining companies in Australia and Brazil have turned to short-term contracts. In India, where prices are mostly cash, some large suppliers have shown a desire to use the Metal Bulletin or Platts price index. Iron ore price volatility Iron ore prices have been rising since January 2009, when the Steel Index price index for 62% pure iron ore rose from $70 per dry ton CFR China at $190. As demand increases, supply decreases as a contributing factor to this upward trend. Since the price of iron ore is set in US dollars according to the international price index, changes in the exchange rate of the US dollar will also affect the price of iron ore. If the Indian rupee appreciates against the US dollar, the rupee-denominated iron ore price will fall, and conversely, if the rupee depreciates, the rupee-denominated iron ore price will rise. Future prospects for iron ore China imported 58 million tons and 80,000 tons of iron ore in December, the highest level in the previous nine months. On the other hand, Karnataka has banned Indian iron ore exports, 23 illegal mines in Odisha have ceased operations and rising transport charges have increased costs. Overall, iron ore prices are expected to rise as there are positive signs on the supply and demand front. On the supply side, atmospheric factors and demand areas also influence China. There are of course also risks associated with rising prices. If an increase in the price of steel products reduces demand, it will also affect the price of iron ore.
iron used in the production of steel
Iron is one of the most common elements on earth which is used in the production of steel and by-products of steel. Almost all man-made structures contain at least some iron. In general, iron is one of the oldest metals, first being used in decorative objects at least 3500 years ago. Pure iron is a soft gray metal. Although iron is a common element, pure iron is almost never found in nature. The only pure iron found in nature is found in falling meteorites. Typically, iron metal is found as a combination of iron with other elements found in nature. Iron oxide is one of the most common iron compounds. These minerals are called iron ore and are used to make steel. Iron ore is converted into different types of iron through several processes. One of the most common processes is to use blast furnaces to produce pig iron, which contains about 92-94% iron and 3-5% carbon and small amounts of other elements. Pig iron has limited uses and is usually manipulated to transform it into various steel alloys with unique properties by reducing the carbon content and adding other elements such as manganese and nickel. In the next phase, the produced steel goes through various forming operations and sections, including: steel pipes, iron sheets, etc.
Modern iron production involves heating iron ore with coke and limestone in blast furnaces at temperatures ranging from 392°F (200°C) at the top to 3,632°F (2,000°C) at the bottom. Some blast furnaces are as tall as 15 stories and can produce 2,400 tons of iron per day. Inside a blast furnace, many chemical reactions take place. One of them involves the reaction between coke (almost pure carbon) and oxygen to form carbon monoxide. This carbon monoxide then reacts with the iron ore to form pure iron and carbon dioxide. Limestone is added to the reaction mixture to remove impurities from the iron ore. The product of this reaction, called slag, consists mainly of calcium silicate. The iron formed in the blast furnace is found in molten form, called pig iron, which can be discharged from the tail of the furnace. The use of pig iron for commercial and industrial purposes has not been very successful because the material made from pig iron is very brittle and objects made from it are prone to breaking. In 1760, inventors were looking for ways to harden pig iron. These methods include regenerating pig iron and then burning the carbon mixed with the product. The most successful early device to achieve this was the Bessemer converter, named after British inventor Henry Bessemer (1983–1989).
In the Bessemer converter, a stream of hot air is blown into the molten iron. This process results in the formation of stronger iron and cast iron. When additional elements such as manganese and chromium are added to the converter, a new product called steel is formed, which gives steel its unique properties. Iron powders and flakes are more important than other metal powders or alloys when it comes to industrial applications. The use of iron in industry as a surface protective coating for cutting tools or for a wide range of high purity iron powders makes it one of the most popular metallurgical products. As one of the most reliable iron powder manufacturers, it produces high-purity electrolytic iron powders to meet the strict requirements of industrial applications, paving the way for high-quality products. Iron is the most widely used metal in the automotive industry. Galvanized sheets, alloy, and carbon have come together so that this metal can be used in different ways to design cars that are completely luxurious and durable. Various components of the vehicles we use, such as the chassis, roof, brakes, wheels, engine, and exhaust, are made of steel, although more than one type of steel is used in car manufacturing. Perhaps the biggest advantage of using steel is that it is available in different qualities, which makes the body light. Although iron is rarely used in body structures today because of its susceptibility to rust, it is commonly used in automobile engine structures because of its ease of manufacture and its good performance in terms of heat resistance. Ferrous metal is also dimensionally stable, meaning it does not deform when heated, and designers do not have to pay extra for how ferrous metal behaves during casting, whereas other metals, such as aluminum, react at high temperatures.
Inspection and quality control of scrap All scrap metal collected from or imported into China, after inspection and quality control, enters the smelter and enters the production cycle. Inspection and quality control of scrap is very important in relation to various factors and is one of the fundamental points in this field. When discussing the quality control and inspection of scrap metal, their grading and grading is also done. In other words, we have different qualities depending on the quality of the scrap. According to relevant experts, the steel scrap used for iron and steel production in Iran is not graded A and its quality is similar to sponge iron. Poor quality control of scrap or neglect of its condition can affect the properties and quality of the steel, e.g. if the scrap is collected with spurs and slag, during the melting phase, the amount of slag and energy used to melt, separate, and refine the steel increase, so the waste must be collected cleanly. Reasons and benefits of using scrap metal Since the steel production industry requires a lot of energy to produce steel, measures to reduce the energy consumption of these units are very important. Therefore, one of the main advantages of using steel scrap and steel scrap in steel production units is to reduce energy consumption and costs, and finally, the use of steel scrap will be more economical for plants with smelting facilities. Compared to sponge iron, less power is used to melt scrap and the price is higher. Quantitatively, the price of scrap is 10-15% higher than that of sponge iron, while in Iran there is a high demand for scrap and scrap and low supply, but the prices of scrap are currently low.