The event "Evolution of Raw Material Requirements by 2030: DRI," held in Mandi-Gobindgarh, Punjab, was part of a nationwide conference series organized by BigMint to address regional challenges in India's steel value chain. The Northern edition focused on raw material scarcity, logistics, and the competitive advantages of Punjab, such as investor-friendly policies, lower land costs, and power tariffs. It highlighted Punjab’s strategic role in India's steel economy, from traditional Loha Mandi markets to modern steel mills, and examined the impact of GST regulations on the competitiveness of finished long steel products. A key discussion point was the need to optimize the scrap-to-Direct Reduced Iron (DRI) ratio in the face of rising DRI capacity and the importance of scrap import routes, particularly via Kandla port, in regional supply chains.

Quesrow Research & Strategy Co. participated actively, with Christi S Mathai moderating a panel discussion on the future evolution of raw material requirements. The panel emphasized that India's steel production is expected to grow significantly by 2030, increasing demand for DRI. Currently, Northern India relies heavily on scrap (about 77% in FY24), but this dependence exposes steelmakers to global price volatility. Therefore, DRI is seen as a stabilizing alternative, especially as the price gap between DRI and scrap widens. Pellet use in DRI production is forecasted to rise to 61 million tonnes by FY30, necessitating expansion in beneficiation and pelletizing facilities. Environmental regulations and domestic scrap supply constraints are also pushing mills toward greater DRI use.

Key takeaways include the strategic diversification of raw material sources, with DRI becoming critical in scrap-dependent regions. The growth of pelletization and beneficiation infrastructure is essential to support the rising DRI capacity, projected to reach 85-90 million tonnes by 2030. Additionally, the DRI market opportunity is expanding, particularly for independent suppliers catering to electric arc furnace and induction furnace units. The future of DRI capacity and usage will depend heavily on supportive government policies concerning iron ore access, plant clearances, and environmental norms.