The raw materials required for the Iron and steel industry are | Mains

The raw materials required for the Iron and steel industry are bulky and thus transportation would be expensive therefore, traditionally the iron and steel industries world over were located close to the sites of raw material.

Today, these industries are located away from the sources of raw material as well.

Reasons:

1. Depletion of iron and coal: As the iron and coal deposits depleted, the need for imported coal and iron increased. This made the industries shift to the coastal region. These factories depended on the imported coal and iron and lowered the cost of transport from factory to port.

Example: Visakhapatnam Plant located near Visakhapatnam port.

2. Technology: New technologies available for making steel reduced the full factor of coal mines.

Example: Essar Steel India Ltd.- Hazira, Gujarat

3. Open Hearth System: Industries began using scrap steel and this reduced dependency on mines. Even natural gas can now be used as fuel.

4. Electric Smelters: These used less energy and oxygen converter process and hence such mini steel plants could be located away from mines and near the cities.

5. Recycling Industries: The mini steel plants located near the cities used scrap iron/waste iron to make finished products. Hence, they could move away from iron mines.

With changing times, iron and steel industries adopted their ways to settle up near the areas where their demand for raw materials were timely met and it was more financially viable to function.