More than 100 blast furnaces in China have reached a pellet proportion of 20% in their feed with several mills aiming to lift pellet usage to 30% of furnace burden over the next few years, as strict emissions standards encourage the use of more direct-charge material to make steel.
Steel companies such as Shougang Jingtang, Wuhan Steel and Angang had set a target of 50% pellet use in their furnace feed during 2016-20, 13th five-year plan. Shougang Jingtang has an ambitious plan of eventually making steel in its BFs only through pellet use.
A survey of more than 100 pellet producers showed an annual capacity use of 76.3% of the total 260 mtpa pellet capacity in China. Rotary kiln accounts for 110 mtpa, or 42.3%, of the total pelletizing capacity while shaft furnace accounts for the rest of capacity.
A key driver for increased pellet use, especially by BFs, is Beijing’s mandate to enforce ultra-low emissions norms in most mills by 2025. The timetable is for 60% mills in major steelmaking regions, such as north China, to adopt ultra-low emissions norms by end of this year and 80% mills in China to adopt these norms by end of 2025.
Chinese mills are now aiming to increase the capacity of pelletizing equipment and set up plants with 2mtpa-plus capacity and increase the Fe grade of pellet produced in China to include more DRI pellet and 65pc Fe plus material, and reduce impurities in domestically-produced pellets.
The survey threw up the following data on pelletizing in various parts of China:
1. North China
Production capacity in this region is about 60 mtpa, taking up 23% of the total capacity across the nation. The capacity of rotary kiln is 42.2 mtpa and the shaft furnace accounts for 33.7 mtpa. Most of the plants are owned by steel mills, though there are a couple of independent pellet plants in Hebei’s Chengde area. In Shanxi province, the production capacity is 14.2 mtpa, with shaft furnaces taking up 5.3 mtpa. Independent pellet producers that did not meet standards have been phased out across north China.
2. Northeast region
The production capacity of Liaoning province is 22.4 mtpa, with a rotary kiln taking up 17.2 mtpa, or 76.79% of the total. Most are under steel mills and some independent plants are located in Chaoyang district. The capacity in another province Jilin is 4.4 mtpa, with rotary kiln taking up 2.4 mtpa.
3. East China
The pellet plants in Shandong province are mainly divided into three types: independent plants, affiliated to steel mills and mine-controlled plants. Those operating under steel mills are generally producing for their own use while mine-owned plants sell pellet in Hebei and Shandong provinces; In Jiangsu province, there are plants under steel mills and large-scale independent plants, with the latter supplying to mills along the Yangtze river.
4. Central-South China
The total capacity in Henan province is around 4.6 mtpa, with rotary kiln taking up 3 mtpa. Most are affiliates to mills and there are a few independent plants as well. The total capacity in Hubei is 7.5 mtpa, with rotary kiln taking up 6.7 mtpa with most being affiliates to mills or mines.
5. Southwest region
The total capacity in Sichuan province is about 9.5 mtpa, and most capacities are owned by private, independent pellet producers. Besides, there are two plants under steel mills. Due to the relocation of steel mills on environmental concerns, pellet output has fallen. After relocation, some mills chose to buy pellets from merchant producers. Total pellet capacity in Yunnan province is 4.2 mtpa, which is all into the rotary kiln process. The pellet grade generally ranges from 55-60% because of low-quality raw materials.
6. Northwest region
Total capacity is estimated at about 7millioin tons, with the rotary kiln taking up 4.4 mtpa.
Leave a Reply