material consumed in other use e.g. blast furnaces) material used for rerolling and in iron foundries, which in recent years has amounted to an additional 5%. The size of future anticipated output raises the in-evitable and serious problem of supplying two different steelmaking processes using, basically, two different raw materials. The iron ore requirements of Spain's ironworks are met as to 85/90% by the domestic mining industry, although in spite of the existing reserves and the efforts being made to increase their output, it will be necessary to import increasing amounts of rich ores. Coking coal needs are met as to about 60% by domestic production, and it is also likely that the coking coal imports will increase progressively. The third essential raw material is scrap, of which Spain has in recent years had to import increasing tonnages. If we consider that steelworks' and rolling mills' own arisings range from 21/23% of the raw steel output; that the scrap generated by consuming industries has been put by the EEC Commission at 13.5 to 14.0% of actual steel consumption (ingot equivalent), as the average of several years in the various countries of the Community; and that the salvage and collection of so-called old scrap may be as high as 14% of the raw steel actually consumed the same year, we see that, in the most favourable case, the total scrap generated in a self-sufficient country, (i.e. one that neither imports nor exports any steel rolled products), would be about 44/46% of the raw steel produced. Bearing in mind that imports and exports, different in each country, alter this equilibrium, the potential resources of scrap vary also, according to its external trade in rolled products. In the light of the indices of specific consumption given by the iron and steel industry, and of scrap generation and collection, Spain will have to procure from external sources between 200/250kg. of scrap per ton of steel made. This figure will tend to increase as the output of continuously cast steel is bigger. In accordance with this estimate, 3 to 3.5m. tons of steel scrap and/or prereduced pellets will have to be imported in 1975, and 4 to 4.5m. tons in 1980. It is well known that the major scrap exporting country in the world is the USA, whose exports in recent years have ranged from 5.3 to 8.3m. tpy, of which variable amounts were taken by Western Europe 0.4m. tons in 1966, 2.9m. tons in 1967, lm. tons in 1968, and 2m. tons in 1969. Spain took 0.3m. tons, lm. tons, and 1.1m. tons in 1968, 1969 and 1970. It is notable that during these last two years 80% of Spanish scrap imports came from the USA. It does not seem likely that there will be any short term changes in the USA's policy as to the export of this material, although the possibility of restricting or even stopping it has been mentioned. In view of the considerable increase in Spanish consumption likely in future years and the uncertain prospects of a regular supply, not to mention the great variability and progressive price increase of scrap from this source, it is evident that Spain must find, with great urgency, alternative and complementary sources of materials with very high metallic Fe content, suitable for partial replacement of the scrap charged to the arc furnaces. Attention should be directed towards the direct re-duction processes for rich ores with low gangue con-tent, in lump or pellet form, which are subsequently reduced in furnaces of various types, using as fuel and reducing agent fuels available in the country, such as non-coking coal, anthracite, lignite and fuel-oil. There are various processes that are already past the development stage, with several plants in service or under construction with capacities of up to 300/400,000 tpy each. It has been forecast that in 1975 world out-put of pre-reduced material will be around 10m. tons. Commercial scale trials made in furnaces of various sizes and power ratings, including some UHP, have shown the advantages from an operating and metallurgi-cal point of view to be derived from the partial replace-ment of scrap by prereduced iron. There are several steelworks in the world which regularly charge high percentages of sponge iron, and some use it almost 100%. It has been shown that in certain cases pro-ductivity increases of up to 40/45% are possible, without significantly affecting the consumption of electricity, electrodes and refractories. As far as Spain is concerned, it should be mentioned that Cenim and its associated Technical Steelmaking Committee, con-scious of the importance of this new development, are giving great attention to it, and have already carried out a preliminary research programme in a pilot plant set up for this purpose. Preliminary production cost estimates in Spain using domestic raw materials show that pellets could be produced at about $40/50 per ton substantially less than imported scrap. Bearing in mind that there is no natural gas in Spain, and the volume of the country's future require-ments, an initial unit of 300,000 to 400,000 tpy, able to be expanded with other units and based on the use of solid reducing agents, seems appropriate. The advantages of producing prereduced pellets in Spain would be as follows: 20/25% of arc furnace raw materials would be substituted for imports;' productivity of electric arcs could be raised, so as to reduce by one-third the number of new furnaces required to reach N. v. wants GRINDINGS bearing Ni - Cr - Co or W Wilhelminakade 2-G, Rotterdam - 20 Tel.: 27.79.30 Telex: 21689 & 21602 14 MB MONTHLY