The world is getting flatter through internet, mobile phone technology, relatively low cost travel, massive outsourcing of manufacturing to China and the transfer of company backroom operations to India. In the iron and steel industry, however, things will remain relatively the same with slow gradual improvements in technology; only the geographic location of plants may change over time. Or will it? The blast furnace smelting process has remained largely unchanged since 1828 when James Neilson came up with the idea of preheated air being delivered to the tuyeres. Likewise, oxygen steelmaking that takes molten iron from such blast furnaces has remained conceptually unchanged since Sir Henry Bessemer invented an air-based system in 1856. These two processes are the core of integrated steel mills that we know today. Typically such mills consist of coke ovens, sinter plant, blast furnace, oxygen steelmaking, continuous caster, rolling mills and metal coating lines._x000D_
In the intervening 150 years the only real disruptive technology to the integrated steel mill has been the minimill. Based on the use of the electric arc furnace (EAF), in conjunction with a continuous caster and rolling mill, the term minimill is used because steel products are produced at down to one-tenth the scale required for economic operation of an integrated mill, with the EAF producing molten steel using largely scrap steel as its feed, as against transforming coal to coke (coke ovens), iron ore, coke and limestone into molten iron (blast furnace) and molten iron to steel (oxygen steelmaking)._x000D_
There are, however, a number of technologies in development that may cause a paradigm shift in the way steel products are produced and perhaps push the evolution of the minimill as a disruptive technology. Two examples are direct iron smelting, where iron is produced in a matter of seconds by injection of ironmaking feed materials into a molten bath, and thin strip casting, where molten steel is cast into 2 mm strip or less, in similar time. Both have Australian connections. A leading iron smelting technology is the HIsmelt process, which has its first commercial application at Kwinana, Western Australia, where a joint venture of international parties, consisting of Rio Tinto and the Nucor, Mitsubishi and Shougang corporations, are in the stage of ramping up commercial production. The leading strip casting technology is the Castrip process that arose from development work done by then BHP Steel, with IHI of Japan, at Port Kembla, New South Wales in the 1990s. Nucor followed this work up, building the first commercial plant for the technology at its Crawfordsville site in Indiana in 2001 and has recently announced an intention to build a second plant in the USA._x000D_
While both technologies are only into the early stages of commercialisation they are likely to change the face of iron and steelmaking as we know it over the next 20 years. This paper elaborates on the technology of the two processes, why they could change the face of the iron and steel industry forever, what might drive the rapid change and what the changes may look like._x000D_
FORMAL CITATION:Farr, I W, 2006. Fundamental technology change in the iron and steel industry, in Proceedings New Leaders' 2006, pp 35-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).