Steel made using DRI requires significantly less fuel, in that a traditional blast furnace is not needed.[3] Direct reduction processes were developed to overcome the difficulties of conventional blast furnaces.The initial capital investment and operating costs of direct reduction plants are lower than integrated steel plants and are more suitable for developing countries where supplies of high grade coking coal are limited, but where steel scrap is generally available for recycling.Factors that help make DRI economical: Direct reduced iron is highly susceptible to oxidation and rusting if left unprotected, and is normally quickly processed further to steel.This makes for an energy-efficient feedstock for specialty steel manufacturers which used to rely upon scrap metal.
Production of direct-reduced iron and breakdown by process