Steel in India
Two Ways to Make Steel
Steel is made in blast furnaces from iron ore and coking coal, or in electric furnaces from scrap and sponge iron, and each route has different costs and emissions.
There are two main routes, and India uses both.
Blast furnace route
Iron ore, coking coal and limestone go into a blast furnace to produce molten iron, which is then converted to steel. This route suits very large plants making high-quality flat steel, and it emits a lot of carbon.
Electric route
Electric arc and induction furnaces melt scrap or sponge iron using electricity. They are cheaper to set up and can be small.
India’s mix
Many smaller Indian producers use the electric route with sponge iron made from ore and coal or gas, giving the sector a wide range of plant sizes.
Why it matters
The route decides which raw materials and energy a company depends on, and how exposed it is to carbon costs.
When scrap is cheap, electric furnaces gain an edge; when it is scarce, ore-based plants do better.
Costs and emissions differ a lot by route.
- Blast furnaces use ore and coking coal.
- Electric furnaces melt scrap or sponge iron.
- India uses both routes.
- The route sets cost and emissions.
No recording for this one yet - EconReader can read it aloud for you.