Global supply of DRI and HBI will gradually suppl – Metinvest CEO

Global supply of direct reduced iron (DRI), hot briquetted iron (HBI) and pig iron will gradually increase. This was stated by the General Director of Metinvest Group, Yuriy Ryzhenkov, during the Siderweb 2024 forum held on September 26 in Vicenza (Italy).

Currently, the key technologies for the production of green steel are based on electrosteel industry, where the main raw material is scarce scrap. But an alternative option is to mix the scrap with other metal components such as HBI, DRI or cast iron.

According to the CEO of Metinvest, there is currently a growing demand for equipment for processing low-quality scrap into a clean product in order to reduce the shortage of high-grade raw materials. At the same time, if earlier such equipment was not in demand among collectors, now it is becoming more and more common for steel producers who use it before the start of smelting.

«This trend is spreading all over the world, it is a global demand. Certainly, the availability of DRI, HBI or pig iron will eventually increase. As for scrap, it is currently under temporary pressure, but it will become more affordable in the future,» said Ryzhenkov.

Metinvest plans to build a steel plant in Italy together with Danieli, which will combine efficiency, quality and environmental friendliness. Production will be provided with raw materials from the company’s Kryvyi Rih GZK, so the possibility of building a DRI/HBI plant in Ukraine is being considered.

The initial idea was to start a rolling mill that would use slabs from Azovstal to produce coils in Italy. However, after the destruction of the Mariupol plant by the Russians, the project was transformed into a full-fledged metallurgical plant.

The company hopes to finalize the software and land deals for the Italian plant within the next few months. Construction is planned to begin after the financing structure is agreed upon.

As GMK Center reported earlier, the company continues to work on attracting financing for the project in Piombino. According to the plan, the plant will produce 2.7 million tons of steel per year. Its total value is €2.5 billion, and the amount of loan funds is at least 70%.