Ferrous products; obtained by direct reduction of iron ore, in lumps, pellets or similar forms

HS code 720310 covers ferrous products obtained through the direct reduction of iron ore. This process is a crucial step in the steel production industry, as it transforms raw iron ore into a more refined and concentrated form that can be further processed into various steel products. The direct reduction of iron ore is an important part of the global steel supply chain, providing a reliable source of high-quality raw material for steel manufacturers worldwide.

The production of ferrous products under HS code 720310 involves the direct reduction of iron ore, typically using natural gas or coal as the reducing agent. In this process, the iron ore is heated in a controlled environment, where the oxygen is removed from the ore, leaving behind a concentrated iron product in the form of lumps, pellets, or similar shapes. This direct reduction method is more energy-efficient and environmentally friendly compared to traditional blast furnace techniques, making it an increasingly popular choice for steel producers.

The main inputs required for the production of ferrous products under HS code 720310 include iron ore, reducing agents (such as natural gas or coal), and specialized equipment for the direct reduction process. Iron ore is the primary raw material, and its quality and composition can significantly impact the efficiency and output of the direct reduction process. Additionally, the availability and cost of the reducing agents are crucial factors in the economic viability of this industry.

The primary output of HS code 720310 is a concentrated, high-quality form of iron that can be used as a feedstock for steel production. These ferrous products are often consumed by manufacturers under 720711 Semifinished products of iron or non-alloy steel, 720810 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, and 720918 Flat-rolled products of stainless steel, of a width of 600 mm or more, hot-rolled, among other steel-related HS codes. The direct reduction of iron ore provides a reliable and efficient source of raw material for the broader steel industry.