The steelmaking raw materials market is being reshaped by EAF expansion. Learn how the hot briquetted iron production market is scaling up to meet demand from integrated and mini mills.

The global steel industry is adding electric arc furnace (EAF) capacity at a rapid pace. In the United States, new EAF mini-mills are being built by Nucor, Steel Dynamics, and others. In Europe, several integrated steelmakers are planning to replace blast furnaces with EAFs. This expansion requires a corresponding increase in high-quality iron feedstock. The steelmaking raw materials market for EAFs is turning to HBI. The hot briquetted iron production market is scaling up, with new plants and expansions announced globally. This article examines the production technologies, project pipeline, and challenges of HBI manufacturing.

The DRI Production Process: MIDREX and ENERIRON

Most DRI/HBI is produced using the MIDREX process (owned by Midrex Technologies, a subsidiary of Kobe Steel) or the ENERIRON process (a joint venture of Tenova and Danieli). Both processes use a shaft furnace:

1. Iron ore pellets or lump are fed into the top of the shaft furnace.

2. Reducing gas (H2 and CO) is injected at the bottom and flows upward.

3. The ore descends through the furnace, undergoing reduction.

4. Direct reduced iron exits at the bottom, at high temperature (700-800°C).

5. Hot DRI is either directly charged to an adjacent EAF, or sent to a briquetting press to produce HBI.

The reducing gas is typically produced by reforming natural gas (steam methane reforming or autothermal reforming). However, the MIDREX and ENERIRON processes are "hydrogen-ready": they can accept up to 100% hydrogen in the reducing gas mix.

Hot Briquetting Process

Hot DRI exits the shaft furnace at 650-700°C. It is fed into a briquetting machine (compactor) through a screw feeder to maintain pressure and prevent oxygen ingress. The briquetting rolls have pockets (pillow-shaped, oval, or hexagonal) that form the briquettes. Pressure (typically 100-150 tons per linear inch of roll width) forces the hot, soft DRI into the pockets, creating a dense briquette. The briquettes are then cooled on a vibrating conveyor or a rotary cooler, often with water spray (indirect cooling) to reduce temperature to below 100°C for safe handling. The hot briquetted iron production market uses specialized equipment from Koppern, Maschinenfabrik Köppern, and other suppliers.

Key HBI Production Facilities

Major HBI plants (capacity >1 million tons per year) include:

• Nucor Louisiana, USA: 2.5 Mtpa (MIDREX).

• Cleveland-Cliffs Toledo, USA: 2.0 Mtpa (MIDREX).

• Cleveland-Cliffs (formerly AK Steel) Rockport, USA: 1.6 Mtpa (MIDREX).

• Metalloinvest Lebedinsky, Russia: 2.0 Mtpa (MIDREX).

• Metalloinvest Mikhailovsky, Russia: 1.2 Mtpa (MIDREX).

• Vale Direct Reduction Plant, Brazil: 2.5 Mtpa (MIDREX).

• Bahrain Steel (Foulath), Bahrain: 2.5 Mtpa (MIDREX).

• Emirates Steel, UAE: 3.2 Mtpa (MIDREX).

• Qatar Steel, Qatar: 1.8 Mtpa (MIDREX).

Many more plants produce DRI (without briquetting) for local EAFs.

New Build Projects: The HBI Wave

The hot briquetted iron production market has a significant project pipeline:

• Nucor West Virginia, USA: New EAF and DRI/HBI plant (announced).

• Steel Dynamics Texas, USA: DRI/HBI plant.

• Cleveland-Cliffs direct reduction, Location TBD: New plant.

• HYBRIT (SSAB, LKAB, Vattenfall), Sweden: Demonstration-scale HBI using hydrogen.

• SALCOS (Salzgitter), Germany: Low-CO2 DRI/HBI.

• ArcelorMittal DRI plants in France and Germany.

• Jindal Steel and Power, India: New DRI/HBI capacity.

• Chinese DRI/HBI projects (though slower to develop).

Total announced new DRI/HBI capacity exceeds 50 million tons per year by 2035.

Hydrogen-Ready Design

New HBI plants are being built as "hydrogen-ready." That means:

• The reforming section can be modified or bypassed to use hydrogen directly.

• The shaft furnace can operate with a high-H2 reducing gas.

• The gas handling system can handle the different properties of H2 (lighter, higher flame speed, requires special seals).

• The plant can be integrated with an electrolyzer for on-site hydrogen production.

The hot briquetted iron production market is positioning for the hydrogen economy.

Production Costs and Competitiveness

The cost to produce HBI varies by location:

• Middle East: Low-cost natural gas ($2-3/MMBtu) gives a significant advantage. Production cost ~$200-250/ton.

• United States: Moderate gas prices ($3-5/MMBtu) and high-grade iron ore pellets. Production cost ~$250-300/ton.

• Russia/Ukraine: Very low gas (historically) but geopolitical risk. Production cost ~$200-250/ton.

• Europe: High gas prices ($8-15/MMBtu) make HBI production uneconomical with natural gas; will require green hydrogen.

Transport costs add $20-60/ton depending on distance and shipping route. The steelmaking raw materials market sees a cost curve for delivered HBI.

Carbon Footprint of HBI Production

The emission intensity of HBI production depends on the reducing gas:

• Natural gas MIDREX: 0.5-0.7 tons CO2 per ton HBI.

• Natural gas with carbon capture: 0.2-0.3 tons CO2 per ton (if 90% capture).

• 100% green hydrogen: 0.0 tons CO2 per ton (if renewable power).

• Coal-based DRI (India, small plants): 1.5-2.0 tons CO2 per ton (much higher).

The hot briquetted iron production market is moving toward lower-carbon processes, driven by regulation and customer demand.

Raw Material Quality: Iron Ore Pellets

DRI/HBI requires high-quality iron ore pellets: high Fe (67%+), low gangue (SiO2+Al2O3 <3%), low P, low S, high reducibility. Not all iron ore is suitable. The main pellet suppliers for DRI/HBI are:

• Vale (Brazil): Direct reduction pellets.

• Cliffs (US, Canada): DR-grade pellets from Minnesota and Quebec.

• LKAB (Sweden): DR-grade pellets.

• Metalloinvest (Russia): DR-grade pellets.

• BHP, Rio Tinto, FMG (Australia): Limited DR-grade pellet production, but developing.

The steelmaking raw materials market for DR-grade pellets is tight and growing tighter, as more DRI plants come online.

Operational Challenges

HBI production is not without technical challenges:

• Gas quality: Natural gas composition varies; must be adjusted.

• Ore reducibility: Some ores are harder to reduce than others.

• Sticking: Poor quality pellets can stick together in the shaft furnace, causing blockages.

• Briquetting: Roll wear, briquette breakage, and cooling issues.

• Reoxidation: HBI must be stored and handled properly to avoid rusting (it is not completely inert).

The hot briquetted iron production market has accumulated significant operating experience to overcome these issues.

Future Outlook: The EAF-HBI Symbiosis

The expansion of EAF steelmaking and the hot briquetted iron production market are mutually reinforcing. More EAFs create demand for HBI; more HBI production enables EAFs to produce higher-quality steel. This symbiosis will reshape the steel industry. By 2035, HBI may account for 15-20% of EAF metallic feed, up from <10% today. The steelmaking raw materials market for iron will be more diverse and sustainable. Get the latest hot briquetted iron production market forecasts and project updates here.

Gain a competitive edge with insightful market reports:

antiscalants/scale inhibitors market

oilfield scale inhibitor market

china air operated double diaphragm pumps market

apac atmospheric water generator market