– Vol.37 No.4 – www.steeltimesint.com No.4 – Vol.37 May/June 2013 2013 May/June NEWS MARKETS AUTOMATION CONFERENCE REPORTS REPORTS CONFERENCE MARKETS AUTOMATION NEWS
STI MAY JUNE SMALLSPINE_Layout 1 5/16/13 3:14 PM Page 1 Page PM 3:14 5/16/13 1 SMALLSPINE_Layout JUNE MAY STI STEEL TIMES INTERNATIONAL – May/June 2013 – Vol.37 No.4 contents may june_Contents_STI_Mar10 5/17/13 2:32 PM Page 3
May/June 2013 Contents Vol.37/No.4
May/June 2013 – Vol.37 No.4 – www.steeltimesint.com Front cover image NEWS MARKETS AUTOMATION CONFERENCE REPORTS courtesy of Tenova
EDITORIAL Editor Tim Smith PhD, CEng, MIM Tel: +44 (0) 1737 855154 [email protected]
Production Editor Annie Baker
SALES International Sales Manager Markets – Page 14 Markets – Page 20 Paul Rossage [email protected] Tel: +44 (0) 1737 855116 Area Sales Manager Anne Considine [email protected] Tel: +44 (0) 1737 855139 Sales Director Ken Clark [email protected] Tel: +44 (0) 1737 855117 Marketing Executive Annie O’Brien [email protected] Tel: +44 (0) 1737 855012 Advertisement Production Martin Lawrence [email protected]
SUBSCRIPTION Elizabeth Barford Company profile – Page 36 Refractories – Page 39 Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 News Email [email protected] News – Mothballing of Florange’s liquid phase 2 Steel Times International is published eight Statistics & Events – Crude steel output for Q1 up 2.3% 6 times a year and is available on subscription. Annual subscription: UK £155.00 USA Update – US Steel posts Q1 losses amid declining prices 8 Other countries: £222.00 Latin America Update – Brazil’s charcoal intergrated mills 10 2 years subscription: UK £279.00 China Update – Why adoption of high-strength rebar in China has been postponed 12 Other countries: £399.60 ) Single copy (inc postage): £35.00 Email: [email protected] Markets Clean steel - High performance with reduced environmental impact 14 Demand for energy tubulars to develop USA shales 17 Published by: Quartz Business Media Ltd, Deep-drawing perforated metal for automotive grilles 20 Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England. Steel eliminates weight gap with aluminium car bodies 22 Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 Automation www.steeltimesint.com
Steel Times International (USPS No: 020-958) is published Centralised PLC operation of Reheating Furnace charging mechanism at Durgapur Steel, India 23 monthly except Feb, May, July, Dec by Quartz Business Dedicated warehouse management in the metals industry 26 Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid Concentration measurement in pickling baths 27 at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA Others 17318-0437. Russian and CIS Industrial Metals Summit in Moscow 28 Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK Stainless steel forum ventures into strategic minerals 33 ©Quartz Business Media Ltd 2013 Interpipe manages a new concept of steelmaking in Ukraine 36 Improved supply of cooling water to Outokumpu AvestaPolarit 38 Improved insulating linings for industrial furnaces 39
History: The grocer who became an ironfounder to keep the chapel warm 40
FEATURE ON THE WEB www.steeltimesint.com Continuous casting: Improving thermo-mechanical rigidity of caster rolls in continuous casting machines ISSN 0143-7798
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News in Brief World News www.steeltimesint.com
Chinese may reach 742Mt in 2013 China’s crude steel output is expect- Mothballing of Florange’s liquid ed to reach 742Mt this year, up 4.7% from last year, with the growth rate increasing 1.1% over phase the rate in 2012. Apparent con- sumption of crude steel is projected The mothballing of hot metal pro- R&D for reduced CO2 to increase 6.1% y-o-y to 718Mt, up duction at ArcelorMittal’s emissions 6.1%. Accordingly, China will con- Florange plant in Northern France One of the Florange blast fur- tinue to see a steel glut in 2013. is scheduled to begin in late April naces was to have been converted to May and should be completed to a demonstration plant for com- Baosteel to Buy 25% Stake in by the end of June 2013. mercial proving of blast furnace Russian Mechel Mining for Mothballing includes the stoppage top gas recycling (TGR) devel- USD1.25bn of the hot stoves, as well as stop- oped by the ULCOS consortium. Baosteel Group is reportedly in talks ping steelmaking while securing Despite the cancellation or post- with Russia’s coal and steel group the plant’s potential to restart. CEO Lakshmi Mittal ponement of this implementation Mechel over buying a 25% stake in The mothballing is compatible ArcelorMittal reaffirms its com- Mechel’s mining sector for possibly with the agreement reached with mitment to contribute up to €13M US$1.25bn. the French government. towards financing of a research The entire unit sector be valued at 206 of the 629 employees programme into CO2 reduction. US$5bn while the blocking stake is impacted by the mothballing of A detailed industrial roadmap, reportedly worth US$1.25bn. Florange’s liquid phase have established in coordination with Mechel is one of the leading Russian already left the company, the the French government, will be companies and its business includes majority of them having retired. A submitted at the next four segments: mining, steel, fer- total of 301 people have been ‘Commission de suivi’ on April 22, roalloy and power. moved to activities other than the 2013. Source: China Metals liquid phase and 122 are still e-mail [email protected] assigned to the liquid phase. Slab production Solutions for each of them will With the closure of hot metal pro- US steel market optimistic have to be found through negotia- duction at Florange, the concen- The American Institute for tions with the employees’ repre- tration of slab casting at International Steel (AIIS) says, in its sentatives. Dunkerque has already reduced April newsletter, that they believe The social aspect of the cost of production and that the underlying demand for ArcelorMittal Atlantique and improved competitiveness, vital in steel in the USA in the major steel Lorraine’s industrial and commer- pickling and rolling mills will be the current challenging environ- demand sectors such as automotive, cial project will be implemented on redeployed in the downstream ment. energy and, increasingly, construc- a voluntary basis, without layoffs. lines. Therefore, the plant’s work- ArcelorMittal stands by the tion, continues to be strong. In the Florange’s hot and cold rolling force will remain stable. industrial and economic logic of case of construction, the market is mills and its tinning line remain in As part of its commitment, its project for ArcelorMittal improving, but uncertainty contin- operation and will be used to their ArcelorMittal has launched a Atlantique and Lorraine, as it ues to burden the economy as it full capacities by reorganising €180M investment programme for addresses the structural overca- enters the second quarter. packaging steel production activi- the Florange plant. This invest- pacity of slab production in ties to develop synergies between ment has already begun, with Europe. ArcelorMittal’s current Wusteel’s IO Project in Liberia to Florenge and the Basse-Indre sites €55M invested to ensure the via- production capacity in Europe, Start Operation in H1 by developing production speciali- bility of the coke plant and sustain including the improved utilisation Wuhan Iron and Steel Group sations at both plants. the development plan for high of existing operations, is sufficient (Wusteel) announced that its iron Basse-Indre’s operates two tin- width Usibor®. Florange is now to meet medium-term steel ore mining project in Liberia, West ning lines which will be used to full the only plant in the world capable demand. African is expected to come on capacity as well as those at of producing high-strength Even if demand increases by 3% stream in the first half of this year. Florenge. Usibor® and Alusi®, in wide strip a year from 2014 onwards, by The iron ore project is jointly set up All employees affected by the giving the site a greater advantage 2018 it will still be around 15% by the China-Africa Development temporary idling of Basse-Indre’s within the automotive market. below 2007 levels. fund and Wusteel which holds a 60 % stake. The deposit has proven iron ore reserves of 1.31bnt and potential reserves of 2.785bnt. Source: China Metals Tangsteel takes 10% stake in Duferco e-mail [email protected] Tangshan Iron and Steel Group we had no idea about specific been at least 17 anti-dumping ISO standard launched for CO2 Co, or Tangsteel, has acquired a international clients of our prod- cases against Chinese steel produc- monitoring 10% stake in Swiss- based Duferco ucts and their feedback. Now our ing companies since the beginning The World Steel Association (world- International Trade Holdings, the products will be on a more interna- of 2012. MIIT statistics showed steel) welcomes the publication of an world’s largest steel trader. The tional platform with the support losses in the steel industry in 2012 ISO standard that defines a calcula- move was jointly announced from Duferco.” in China reached RMB 28.9bn tion method of carbon dioxide emis- 10 April. The volume of steel traded by ($4.61bn) in 2012. sion intensity from iron and steel pro- The two companies also signed a Duferco was more than 16Mt in Exports were essential in using duction. The standard is based on structured steel prepayment agree- 2012, which ranked it first as a the excess capacity in China’s steel the CO2 data collection methodology ment worth US$1.2bn which will trader worldwide. Production of industry but the low price strategy that has been used for the past five help Tangsteel expand in the over- Tangsteel was more than 18Mt last of Chinese companies made them years in the steel industry. seas market and avoid internation- year. The two companies started targets of antidumping investiga- al trade issues. “Cooperation with working with each other in 2009, tions, said Wang Dayong, secre- Duferco brings us not only product leading to 67kt of steel exported tary-general of Metallurgical For expansion of these stories and orders but also advanced concepts from Tangsteel in the early years Industry Association of Hebei. other news visit. in market, corporate culture and and then over 1Mt last year. www.steeltimesint.com management skills,” said Yu Yong, According to figures from the Source: China Metals president of Tangsteel. “In the past Ministry of Commerce, there have e-mail [email protected]
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www.steeltimesint.com World News News in Brief
Latin America can meet its Overcapacity hinders prices in current steel demand The Latin American Steel industry faces two fundamental challenges: global longs market the attractiveness of its markets to exporters in the context of global IREPAS, the long products trade more complicated and putting issue under the current very unsta- overcapacity, and the low average association, says another month pressure on manufacturers. ble market circumstances. steel consumption in the region. has passed (April) in which On the other hand, there is no During the biannual Board Meeting demand in the global long products problem on the supply side in the Outlook for May of the Latin American steel associa- steel market has failed to show the global ferrous scrap market. The market situation in general is tion, Alacero, held in Buenos Aires, awaited recovery. The volume of However, demand for scrap is also very difficult as the market is look- presided over by Mr Benjamin business has significantly declined lower due to reduced steel produc- ing for a new direction and is Baptista, President of Alacero, the in the overall global marketplace, tion, as steel producers continue to probably heading towards a new directors of the associated compa- even though volumes are either adjust production levels to market baseline. nies analysed these challenges and unchanged or have increased in conditions. Consequently, further Market circumstances will con- the perspectives for the regional some regions. production cuts put a lot of pres- tinue to be tough, and the outlook industry. Prices in the Far Eastern market sure on scrap prices, helping steel still does not look very bright in To read more visit http://www.steel- are somewhat lower due to the producers to protect their margins, the short term. Consumers are try- timesint.com/news/view/latin-ameri- increase in Chinese output and if they have any. ing to forecast the second half of ca-can-meet-its-current-steel- supply. The situation in Europe has In contrast to the EU market, 2013 but still see clouds on the demand not improved yet, and the market is business in some regions is still rel- horizon. After a long-standing low still struggling because of very low atively good. The Middle Eastern and flat market trend, we may see Maanshan Steel to invest in demand. Political issues continue markets are also doing fine, mainly some improvements during the energy saving projects to hamper any potential improve- the Arabian Gulf markets and final quarter of the year. Maanshan Iron and Steel Co says it ment in the MENA market, and more specifically Saudi Arabia and IREPAS is a global association of would invest RMB 100M ($15.9bn) recent protective measures Qatar. Here, competition in the producers and exporters of long in energy saving projects this year imposed by countries like Egypt market is still very strong, while steel products. It was founded by despite operational losses. The com- and Morocco only rub salt into the some market players seem to have Celsa and Gerdau 30 years ago to pany said it was poised to upgrade wound. Supply in the US market already given up. Some steel pro- develop understanding between facilities to deal with waste water even improved last month whereas ducers are capitalizing on their producers, traders and consumers and gas and carry out flue gas demand has not increased, result- advantages in terms of raw materi- around the world. Its biannual con- desulphurisation of its 135MW ing in a further decrease in prices. al costs. But in general, the focus is ference this year will be held in power generation units this year. Low demand and price competi- mainly on securing new orders Istanbul, 22-24 September The steelmaker has invested a total tion are making the situation even rather than on the competition www.steelorbis.com/current-events/ of RMB 4.28bn in environmental protection projects since 2006, said the company. Source: China Metals Kobe-USS Pro-Tec jv starts CAL e-mail [email protected] Kobe Steel Ltd and United States sacrificing collision safety. These rapid gas jet cooling system, which Nucor reports slowing results Steel Corporation (USS) started a trends are accelerating demand for enables it to process the wide for Q1 2013 new continuous annealing line high-strength steel sheet for auto- range of cold-rolled high-strength Nucor Corporation (NYSE: NUE) (CAL) at their joint venture, Pro- mobiles. steel currently used in the automo- reports consolidated net earnings of Tec coating company to process Kobe Steel and USS’s equal bile industry. The new line will be $84.8M, or $0.26 per diluted share, high-strength steel sheet for auto- partnership joint venture has been able to make next-generation high- for Q1 of 2013, down 41.5% on mobiles. supplying automakers in North strength steel products with out- the same period 2012 when net Based in Leipsic, Ohio, USA, America since 1993 with hot- standing formability. A major prod- earnings reached $145.1M, or Pro-Tec commissioned the contin- dipped galvanized steel sheet, uct is steel sheet with a tensile $0.46 per diluted share. The result uous annealing line on May 13. which contributes to reducing the strength of 590MPa. was also down 38% of the net earn- Annual production capacity of weight of the car underbody or The line will be capable of pro- ings of $136.9M, or $0.43 per dilut- the line is 500k short tons. ‘platform.’ Pro-Tec’s two lines have ducing ultra-high-strength steels of ed share, in Q4 2012. The average age of US automo- an annual production capacity of tensile strength 780MPa, 980MPa biles is now 10 years and new car 1Mston. and even higher. These steel prod- Overcapacity hinders prices in sales in the USA have made a The new continuous annealing ucts also help decrease fuel con- global longs strong recovery in recent years, line will add a further 500k stons sumption by reducing the weight IREPAS, the long products trade reaching about 14.5 million units capacity of advanced high-strength of cars and help lower greenhouse association, says another month has in 2012. Car sales are projected to steel sheet. The combined capacity gas emissions. passed (April) in which demand in continue rising to over 15M units of 1.5M stons/y makes Pro-Tec one Approximately $400M has been the global long products steel mar- in 2013. More stringent CAFE of the world’s largest facilities pro- invested in the CAL. Product: ket has failed to show the awaited (corporate average fuel economy) ducing high-end steel sheet prod- Cold-rolled high strength steel recovery. The volume of business has standards are increasing the need ucts for the automotive industry. sheet for automotive use (tensile significantly declined in the overall for automakers to make lighter The continuous annealing line is strength of 590 MPa and higher) global marketplace, even though cars. Advanced high-strength steel equipped with both advanced Source of substrate coils: U. S. volumes are either unchanged or reduces vehicle weight without water quench equipment and a Steel have increased in some regions. Outokumpu reviews VDM business Stainless steel producer considering how best to drive con- VDM is a global leader in the mar- Outokumpu, headquartered in tinued growth and profitability for ket for corrosion and heat resistant Finland has started a strategic the business, within or outside of high-performance materials, such For expansion of these stories and review of its high performance Outokumpu. as nickel, titanium and zirconium other news visit. alloys VDM business unit. Outokumpu acquired VDM as alloys and serves a wide range of www.steeltimesint.com The company is evaluating its part of the acquisition of Inoxum customers in the aerospace, ener- strategic options for VDM and from ThyssenKrupp Steel in 2012. gy, chemical and other industries.
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Chinese steel companies Ansteel’s Australian or financial reports JV starts 26 of China’s listed steelmakers debt increased 37.5% to RMB 14.05Mt of cokemaking outdated that have released annual reports 2.97bn ($477.7bn) in 2012. capacity. The iron ore mining joint venture for 2012 together lost RMB China’s property cooling polices It is an arduous task to solve the between China’s Anshan Steel and 4.99bn (US$802.6M) last year and high crude steel output country’s excess steel capacities. Australia’s Gindalbie Metals Ltd compared to profits of RMB weighed on the steel market. In With the weather turning warmer, started operating on 9 April. 16.37bn ($2.633bn) for 2011. 2013, China aims to eliminate demand for steels from down- Called Karara Mining, the proj- Receivables of the 26 steelmakers 2.63Mt of outdated capacity in the stream sectors is expected to ramp ect is expected to have an annual rose 31.5% to RMB 28.91bn iron making industry, far below last up, say analysts. production capacity of 21Mt of ($4.65bn) by April 21 this year. year’s 10Mt of ironmaking, Source: China Metals magnetite ore and 8Mt of iron Their provisions set aside for bad 7.81Mt of steelmaking and e-mail [email protected] concentrate. Ansteel’s share of production will mainly be provided to its iron and steel base in Bayuquan, an economic develop- Emirates Steel expansion 3rd phase ment zone in Yingkou City, north- east China’s Liaoning Province. Emirates Steel’s third expansion accompanying harbour were inau- (US$2.45bn) on the two earlier The Karara mine is located in will be built in the new Khalifa gurated last year, and are key to expansions located at Mussaffah, Western Australia and is the coun- Industrial Zone (Kizad), and the Abu Dhabi’s efforts to diversify its Abu Dhabi completed last year. try’s second largest source of mag- company will be the second tenant economy away from hydrocarbons. Emirates Steel presently has a netite, with proven reserves of of the new hub near Abu Dhabi. Kizad’s only other large tenant production capacity of 5.5Mt, 2.4bnt. It has been jointly exploit- The project will move ahead as so far is Emirates Aluminium making it one of the region's ed by Ansteel and Gindalbie since soon as the Abu Dhabi (Emal), which started operations largest producers. the end of 2009, according to the Government grants the steelmaker even before the zone was complet- With industrialisation high on agreement signed by the two com- the gas allocation for the energy- ed. It is hoped that large-scale pro- the list of government priorities, panies in September 2007. intensive facility, which will ducers such as Emal and Emirates Emirates Steel’s chief executive, Ansteel Mining, a subsidiary of increase the company’s output by Steel will attract downstream Mr Al Rumaithi is confident the Ansteel Group, recently almost a third. industries that turn the basic met- Phase 3 expansion will be allocat- announced its operational targets But Abu Dhabi is grappling with als into more complex products. ed its gas supply. for the period of 2016-2020, say- a shortage of natural gas, the prime State-owned Emirates Steel Emirates Steel will grow sales ing that it expected to produce feedstock for power plants in the issued a tender for the steel mill in between 3.5 and 4.5% this year on 107Mt of iron ore and 29Mt of Arabian Gulf, as runaway con- September 2011. According to the the back of an active regional con- iron ore concentrate each year dur- sumption of electricity is exhaust- Middle East Economic Digest struction sector, according to the ing the period. ing domestic gas supplies. The (Meed), the Italian contractor chief executive. The company also said that Government is developing uncon- Danieli submitted the lowest bid The company’s biggest markets business operations related to the ventional gas fields, and is turning for the construction of the facility lie in the UAE and Saudi Arabia. iron ore production were expected towards liquefied natural gas the following June, and is the pre- Qatar’s anticipated Fifa World to contribute 30% of total annual (LNG) imports to avoid a short- ferred bidder for the plant's con- Cup construction boom is yet to revenue. fall. The Shah sour gas project will struction. Danieli has been the come into full swing, commented Source: China Metals come online next year, and LNG main contractor for the initial Mr Al Rumaithi. “We expect the e-mail [email protected] will be imported from a floating phase and each of the two further peak to be around 2015-16. terminal in Fujairah from 2015. expansion phases. Emirates Steel signed an iron The Emirates steel plant will Emirates Steel produces iron as ore supply deal with Sweden’s bring a significant boost to the DRI in gas based shaft furnaces for LKAB last month, and further Hebei I&S pre- Khalifa Industrial Zone, known as its electric arc furnaces and has agreements could be tied up soon. dicts Q1 profit Kizad. The huge zone and its already invested Dh9bn Source: ‘The National’, Abu Dhabi down 70-90% Hebei Iron and Steel Corp expects ArcelorMittal Usibor-AS patent net profit for Q1 2013 to drop 70- 90% from a year earlier to In defense of its patent rights, rolled steel with a Ultimate Tensile ages in the case, and the company RMB 84M or RMB 107.87M ArcelorMittal filed complaints Strength of 1000MPa or higher will seek an entry of injunction, (US$13.5M - $17.35M). before the District Court of after hot forming. The patent does prohibiting AK and SNA from fur- The company said in a filing to Delaware on April 16 to demon- not expire until July 9, 2019. ther sale of infringing steel. the stock exchange that China’s strate that AK Steel, Severstal In addition to patent protection Infringement of ArcelorMittal’s steel market remains in a severe North America (SNA) and SNA’s in the United States, counterpart Usibor®-AS patent by other steel- glut and saw fierce competition in coating partner, Wheeling- Usibor®-AS patents in Canada, makers places the entire supply Q1. Meanwhile, prices of steel Nisshin, have infringed its many European countries, Brazil chain at significant risk for financial products were much weaker than Usibor® aluminum silicon coated and Japan cover the production, and reputational consequences. those of raw materials, leading to products patent (Usibor®-AS) by import and/or sale of steel, steel Usibor®-AS, an aluminum pre- the sharp decline in profits. selling steel grades protected parts and vehicles containing the coated hot rolled or cold rolled Net profit for the first quarter of under the Usibor®-AS patent to Usibor®-AS steel technology. steel, is an important product in 2012 amounted to RMB 359.57M automakers and their supply Additionally, the importation into ArcelorMittal’s portfolio of auto- ($57.8M). The company said in a chains. the United States of steel, steel motive steel solutions. Usibor®- preliminary report that net profit The decision follows the United parts or vehicles containing the AS, often used in anti-intrusion for 2012 was projected to plunge States Patent and Trademark infringing steel may also be sub- and safety cage components, con- 92.09% compared to 2011 to RMB Office’s reissuance of patent ject to legal action. tributes to a significant weight sav- 109M ($17.53M), while operating RE44 153 on April 16, 2013, cov- If the court rules in ings for the final part, compared revenue in 2012 amounted to ering the domestic production of ArcelorMittal’s favour, AK and to standard high yield strength RMB 111.6bn ($17.95bn), down Usibor®-AS as a hot rolled or cold SNA will be held liable for dam- steel. 16.28% year on year.
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www.steeltimesint.com News and Statistics Events Diary
June Crude steel output for Q1 up 2.3% 9-11 19th International iron ore Symposium In the first three months of 2013, pared to March 2012. decline in output for March. Munich, Germany global output of crude steel was Of this, China produced Turkey’s production for March http://www.metalbulletin.com/Event 388.69Mt, up 2.3% in Q1 2013 66.3Mt, up by 6.6% compared to 2013 was 3.0Mt, down -4.6% com- Details/0/5585/19th-International- compared with Q1 2012. Asia pro- March 2012. Elsewhere in Asia, pared to March 2012. Iron-Ore-Symposium.html duced 259.8Mt of crude steel, an Japan produced 9.4Mt, up 1.3% The US produced 7.3Mt of increase of 6.4% over the first quar- compared to the same month last crude steel, down -8.4% on March 10-12 9th International & 6th ter of 2012. The EU produced year. South Korea’s production 2012. Russia produced 6.0Mt of European Rolling Conference 41.5Mt of crude steel Q1 2013, was 5.7Mt, down -7.0% from crude steel, a decrease of -2.8% Venice, Italy down -5.4% compared to the same March 2012. compared to March last year. www.aimnet.it/rolling2013.htm quarter of 2012. North America’s In the EU, Germany produced Ukraine produced 2.9 Mt, -2.9% crude steel production in the first 3.8Mt of crude steel in March less than March 2012. 11-13 Harry Brearley Centenary three months of 2013 was 29.7Mt, a 2013, a decrease of -2.2% on In Latin America, Brazil pro- Conference and Exhibition decrease of -5.7% compared to the March 2012. Italy’s production duced 2.9Mt of crude steel in Sheffield, UK first quarter of 2012. Total global was 2.2Mt, down -18.4%, Spain March, a decrease of -7.6% com- [email protected] or output was 388.69Mt, up 2.3% in produced 1.3Mt, -2.3% lower than pared to March 2012. [email protected] Q1 2013 compared with Q1 2012. March 2012, France produced The crude steel capacity utilisa- In March 2013, crude steel pro- 1.3Mt, a decrease of -9.6% on tion ratio for the 63 countries in 9-11 19th International iron ore duction for the 63 countries March 2012. UK produced March 2013 slid to 79.4% from Symposium reporting to the World Steel 1.025Mt, up 53.4% on a year earli- 80.5% in February 2013. Munich, Germany Association (worldsteel) was er and was the only major steel- Compared to March 2012, it is - www.steeltimesint.com/events/view/ 135Mt, an increase of 1.0% com- maker in the EU27 not to show a 2.1% lower. 19th-international-iron-ore-sympo- sium To download a country by country output visit: www.worldsteel.org/statistics/crude-steel-production.html 10-12 9th International & 6th European Rolling Conference Venice, Italy Weakness in NAFTA Markets www.aimnet.it/rolling2013.htm 11-13 Harry Brearley Centenary Steel exports from USA declined markets,” said David Phelps, presi- that small export market for US- Conference and Exhibition 3.8% in February 2013 compared to dent, AIIS. made steel. We would expect that University of Sheffield, Sheffield, UK January according to government For the year-to-date data through given the lag in orders to actual www.steeltimesint.com/events/view/ data. “Weakness in NAFTA mar- February, steel exports have export shipments, it will take some harry-brearley-centenary-conference- kets showed up powerfully in the declined 14.5% “The stalled eco- more months before the data show and-exhibition February data, with the decline to nomic recovery in North America, improvements however. We are our NAFTA partners more than the along with the serious problems fac- hopeful that exports will improve as 14 – 16 Historical Metallurgy total decline for the month. ing our European trading partners we move into the summer months,” Society 50th Anniversary Increases in exports to the much have put a damper on steel exports concluded Phelps. Conference smaller markets in the rest of the so far this year. While we expect the Total Steel exports in February London, UK Western Hemisphere, along with a US market to improve later and 2013 were 1.036M short tons com- www.steeltimesint.com/events/view/ slight improvement in exports to Asia to regain momentum, there is pared to 1.077Mston in January historical-metallurgy-society-50th- Europe and Africa offset some of little expectation at this point that 2013, a 3.8% decrease, and a 14.4% anniversary-conference the large decline experienced in European markets will become decrease to 2.114Mston compared exports to North American healthy in 2013, limiting exports to to February 2012. 16 – 18 14th Guangzhou International Metal & Metallurgy Exhibition Guangzhou, China US steel market optimistic Ten shows in one www.steeltimesint.com/events/view/ The American Institute for strengthening on improved order- The optimistic view however, is 14th-guangzhou-international- International Steel (AIIS) says, in its ing. Long products appear to be on not the only view of some econo- metal-metallurgy-exhibition April newsletter, that they believe a slight improving trend, except for mists. that the underlying demand for steel structurals, although it is too soon There are those who believe that 17 – 19 28th Steel Success in the USA in the major steel to know whether the trend will the market is on the precipice of Strategies New York demand sectors such as automotive, hold and gain momentum. With another recession and point to the New York, USA energy and, increasingly, construc- improved demand in construction fact that while unemployment www.metalbulletin.com/EventDetails tion, continues to be strong. In the and as winter weather finally leaves decreased in March to 7.6%, this is /0/5610/Steel-Success-Strategies- case of construction, the market is the East Coast and Midwest, there overwhelmed by the fact that only XXVIII.html improving, but uncertainty contin- is some reason for optimism for 88000 jobs were created in the ues to burden the economy as it construction related products. month and nearly 500 000 workers 23-27 New developments in enters the second quarter. With lead times for domestic left the job market completely, Advanced High Strength Sheet The steel market is consistent shipments short, there is little rea- reducing the labour market partici- Steels with the stalled economy. Domestic son for service centres and distrib- pation rate to just over 63% and so Vail, Colorado, USA industry shipments, along with utors to hold much inventory. creating the small drop in the http://aist.org/conf/13_advanced_hig imports, are down in the first two However, an optimistic scenario unemployment rate. h_strength_steels.htm months of 2013. Lead times for expects demand in those sectors In addition, they fear that the domestic mills are short – some that remain strong begin to show paltry growth of just 0.4% that the 25-28 Metallurgy Litmash 2013 buyers are reporting receiving hot increased momentum, there will be economy posted in Q4 of 2012 as Moscow, Russia rolled sheet in as little as two to a rush to buy, pushing prices up well as the increased costs associat- www.metallurgy-tube-russia.com three weeks from order. Flat rolled and lengthening lead times. This ed with ‘Obamacare’ and regulato- prices have stagnated so far this optimistic scenario will also create ry over-reach by the federal govern- VISIT. www.steeltimesint.com year, except for some recent a better environment for import ment will dampen demand and For a full listing reports for plate, which seems to be ordering. push the US back into recession.
6 – May/June 2013 – Steel Times International www.steeltimesint.com USA_Layout 1 5/16/13 3:16 PM Page 1
USA Update
US Steel posts Q1 losses amid declining prices
US Steel’s domestic operations saw a loss in Q1 2013 as steel demand from automotive and oil & gas fell pushing prices down, but its European operations made a small profit. The industry once again called for action to prevent dumping on US shores. By Manik Mehta, New York*
PITTSBURGH-based US Steel Corp posted ing, tubular pipe and other oil-field requisites China is prohibited, Gibson has been arguing. losses for the first quarter 2013 amid declining used in drilling operations in states such as The US steel industry also gets backing from steel selling prices despite demand from the North Dakota, Te xas and other places. trade unions that call for fair trade practices. domestic car and energy industries that had Indeed, pundits expect the energy sector to Indeed, Tom Conway, vice president of the driven steel consumption up since the econom- generate strong demand for steel in the future United Steelworkers has called on the admin- ic downturn four years ago. as the nation’s energy infrastructure develops. istration to address the issue of China’s under- But now even the energy and car markets are There is no definite indication of the extent of valued currency, and also offer incentives to showing signs of a slowdown, making steel demand for steel used in the fracking opera- encourage companies to manufacture in the manufacturers turn to the residential and com- tions in the country, but suppliers of steel in United States. mercial construction sector to generate greater some states such as Ohio say that they are wit- But Dave Phelps, the president of the demand for their business. nessing a surge in domestic orders, a trend also American Institute for International Steel, has US Steel reported a loss of $73M in Q1, but noticed among foreign producers. been arguing that the US buys foreign steel an improvement on the loss for the same peri- because there is demand in the country. Many od a year-earlier which amounted to $ 219M. Po litical focus on steel of the imported products are not adequately This was mainly attributed to a $399M loss Trade groups want to play a pro-active role in available or manufactured in the United States. incurred on the sale of its plant in one of its representing the steel industry in the future; It was thus a question of supply and demand, Eastern European plants, US Steel Serbia. indeed, politicians and business leaders say they according to Phelps. But company executives anticipate that the want to help shape the US administration’s poli- second quarter will provide a ‘near break-even’ cies in regard to the manufacturing sector as Fo rd bags automotive award point. well as international trade relations. For the US The Steel Market Development Institute, affil- American steel companies have felt the pain steel industry, the challenge lies on the interna- iated to the American Iron and Steel Institute, of declining prices which, as in the case of hot- tional trade front, where they would like to conferred the annual Automotive Excellence rolled steel coil, have fallen some 8% down to check the burgeoning steel imports of the past. Award on the Ford Motor Company’s Ford $590 a short ton, forcing steel companies to Republican Pete Visclosky, (Merrillville Fusion design team for its innovative use of give discounts and other incentives to cus- Indiana), a supporter of legislation on imposing advanced high-strength steel in the 2013 Ford tomers in an effort to retain market share. countervailing duties on imports from countries Fusion’s body structure and closures. Depressed prices and a 4% decline in ship- engaged in what is described as ‘currency The 2013 Ford Fusion features the world’s ments contributed to an overall 11% drop in manipulation’ – a reference to China which has first hydro-formed steel tubes in the B-pillars US Steel’s sales, down to $ 4.6bn in the first often been accused of undervaluing its curren- (between front and rear doors). According to three months of the year. cy – has been calling for “forceful and com- Shawn Morgans, Ford’s body structures techni- The rebound in the car industry and the pelling action” on trade. The steel industry cal leader and global core manager, hydro- boom in the shale-gas industry, which uses steel laments that China’s currency remains artificial- forming provides major benefits to the Fusion’s for drills, pipes and tubes, cushioned many ly undervalued, thus attracting Chinese design, including increased structural perform- steel companies’ otherwise rough landing. imports. Visclosky has been saying that it is ance, improved material utilization, part con- But US Steel’s ‘silver lining’ appeared in the important for the administration to respond solidation, improved tolerance and process form of the company’s good performance in faster with trade remedies. Steel, though gener- control, material gauge changes without modi- Europe where it posted a $38M profit, sharply ally profitable right now, would remain under fying the forming die, as well as reduced weight, contrasting with a $34M loss in Q1 a year earli- “great competitive pressures”, according to costs and tooling investment. Ron Krupitzer, er. However, US analysts contend that the sec- Visclosky. the vice president (automotive market, SMDI), ond quarter results in Europe may not be as Thomas Gibson, the CEO of the American said that its pioneering use of hydro-forming ‘rosy’ as in the first quarter as costs for raw Iron and Steel Institute, acknowledged the contributed to the vehicle’s improved side- materials, particularly iron ore, continue to rise. ‘good support’ the industry had received from impact performance, mass reduction and roof Commenting on the second quarter outlook, the Department of Commerce and others strength. The Automotive Excellence Award John Surma, US Steel’s CEO, said that results involved in trade relations with the administra- recognises individuals or teams of car-produc- for the company’s tubular segment were pro- tion, but wanted to see ‘more support’ from the ing companies, suppliers or the academic circles jected to be “comparable with the first quarter; White House for the steel industry. who embrace innovation and significantly con- however, we expect lower results from our flat- A number of steel companies have been call- tribute to the advancement of steel in the auto- rolled and European segments”. ing for countervailing and antidumping duty motive industry. The North American flat-rolled market con- laws to check unfair trade practices, alleging ditions for the second quarter will be compara- that supplying countries evade duty by re-rout- Arkansas mulling subsidy for mill ble to the first quarter, the company expects an ing products through other countries. His The state of Arkansas is considering providing operating loss for its flat-rolled segment, prima- group has called for passage of the $125M in state financing for a $1.1bn steel rily, because of higher operating costs which are ‘ENFORCE’ Act in Congress to allow domes- plant – this endeavour is likely to test the extent projected as a result of higher repair and main- tic industries to petition customs to investigate to which politicians are prepared to go in pro- tenance costs, coupled with higher natural gas companies. Many steel experts in the USA viding state subsidy for companies particularly costs though lower raw-material costs. predict that China, with a production capacity when the economy is still weak. that is much larger than that of the United But the funding, mooted in January by Oil & Gas to the rescue States, would try to dispose much of its exces- Democratic Governor Mike Beebe, encoun- But the uncertainties facing the nation’s steel sive steel production in the US market. The tered opposition following concerns over the industry could be mitigated because of the US steel industry often complains of the idio- tight state finances and the existing glut in the boom in the oil and gas industry which is gen- syncrasy of China’s steel industry: There the steel market. Opponents point out that several erating demand for specialty-steel products. steel industry expects – and gets – substantial steel mills in the US have closed down, and The decline in orders in recent years could be government help. On the other hand, majori- ThyssenKrupp’s Alabama plant which has been checked with rising demand for down-hole cas- ty foreign ownership of steel companies in put up for sale, has yet to find a buyer. ᔢ
*STI New York correspondent
8 – May/June 2013 – Steel Times International www.steeltimesint.com LA_Layout 1 5/20/13 11:49 AM Page 1
LA Update Brazil’s charcoal integrated mills
Brazil is now the only country worldwide using charcoal blast furnaces. However, far from being considered obsolete technology, the country commissioned more of these mini-blast furnaces since 2006 as a means of meeting a shortage of scrap for EAF minimills. By Germano Mendes de Paula*
THE use of charcoal as a reducing agent in the charcoal integrated mills has actually strength- the previous two experiences, Votorantim’s blast furnace is today exclusive to the Brazilian ened with new mini-blast furnaces being com- product range consists of carbon long steel steel industry. The country’s steel production missioned as recently as 2012. products. In 2012, the company started-up a based on charcoal can be segmented in two The Juiz de Fora mill (formerly Mendes Jr), charcoal blast furnace in Curvelo (State of types: a) 157 charcoal blast furnaces that located in the State of Minas Gerais, part of Minas Gerais), with a capacity of 120kt/y, belong to roughly 85 independent pig iron pro- ArcelorMittal, was designed as a typical min- aimed at supplying pig iron to its minimills. ducers (usually termed as ‘guseiros’) who pro- imill. However, production was unbalanced, as However, because this blast furnace is not duced 5.825Mt in 2011, and b) eight charcoal the capacity of the rolling mill was higher than located within the steelworks, neither Barra blast furnace integrated mills − the focus of the melt shop. This situation arose from the Mansa, nor Resende, are considered as charcoal this article – see Table 1. start as the plan was to meet some of its billet integrated mills. It is interesting to discuss the rationale for needs from Açominas, which was under con- Vallourec & Sumitomo Brazil (VSB) is a the persistence of the charcoal integrated mill struction at the same time. Mendes Jr was com- greenfield project that came into operation in route in Brazil, as it is no longer used elsewhere. missioned in 1984 and Açominas in 1986. More 2011-2012. Located at Jeceaba (State of Minas Until the early 2000s, charcoal blast furnaces than a decade later, Mendes Jr was purchased Gerais), it produces seamless tubes. It has its remained in just three countries: Brazil, by ArcelorMittal while Açominas was bought by own pelletizing plant (1.36Mt/y capacity), blast Argentina, and Paraguay. In Argentina, the sole Gerdau. In this new context, the Juiz de Fora furnaces (600kt/y), melt shop (1Mt/y) and rolling charcoal integrated mill, Altos Hornos Zapla mill received investments to increase its hot mill (600kt/y). Its EAF is the first in Latin stopped its blast furnaces at this time and, since metal capacity to 1.0Mt/y in order to reach a America to use the Consteel preheating of scrap 2001, has been operating as a minimill making balance with the rolling mill capacity. system. Aware of the difficulty of obtaining scrap steel in an electric arc furnace. In Paraguay, as it The Juiz de Fora plant produces carbon long in quantity and quality, and featuring its own iron was recently examined in this column (STI, products (rebar and wire rod, in particular) ore mine, the company decided to build two April 2012, p. 12), Acepar interrupted all its that, in accordance to the international experi- blast furnaces. Although they were designed to activities in February 2013, including the blast ence, could easily be made by melting scrap in use both coke and charcoal, the company opted furnaces, steel shop and rolling mill. Therefore, a minimill. However, partly due to operational for start operation using charcoal. Brazil remains, at least temporarily, as the only improvements related to the use of liquid pig Based on these four investigated experiences, country to operate charcoal integrated mills. iron in the EAF (a reduction in tap to tap time it can be concluded that, unlike the rest of the The crude steel installed capacity of the and a lowering of power consumption) but world, steel production based on charcoal pig Brazilian steel industry is currently 48.4Mt/y. mainly because of the lack of scrap within iron is showing dynamism in Brazil. According to the author’s estimates, this is dis- Brazil, the company decided to build two char- For ArcelorMittal and Votorantim, the con- tributed between: coke integrated mills coal blast furnaces, with a combined capacity of struction of their blast furnaces took place after (33.8Mt/y), EAF minimills (9.7Mt/y) and char- 360kt/y. These started up in 2006. Thus, Juiz de their investments in steelmaking and rolling. This coal integrated mills (4.8Mt/y). Fora became a partial charcoal integrated mill. reveals that the reason was they had to adapt to In 2012, the utilisation rate of capacity aver- Sinobras started activities in 2008 in Marabá the scarcity of obsolescence scrap supplies. In aged 73% for both coke and charcoal integrat- (State of Pará), with a 300kt/y mill – focused on contrast, Sinobras and VSB were both conceived ed mills and 66% for the minimills. carbon long steel products. It has two charcoal as charcoal integrated mills from the start. All current participants in the Brazilian car- blast furnaces, with a combined capacity of The main conclusion to be stressed can be bon long steel market (Gerdau, ArcelorMittal, 311kt/y. These were not new but purchased summarised as follows: due to the notorious Votorantim, Sinobras and Ciafal/Cisam) have from Simara in 2006. Sinobras started life as a scarcity of obsolescence scrap in the country, charcoal blast furnaces. The other steel compa- large distributor of steel products and acquired some Brazilian steelmakers reached an unusual nies that use such furnaces are Aperam South the blast furnaces and later added a melt shop solution in the modern global steel industry – America (formerly Acesita), V & M do Brasil, and a rolling mill to supply its own needs. the capability to produce 8% of its pig iron from and Vallourec & Sumitomo Tubos do Brasil Votorantim has two mini-mills, one located in charcoal. The recovery of scrap is related to steel (VSB). While Aperam is dedicated to the spe- Barra Mansa and the other in Resende, both in consumption with 15-20 years delay before cial flat steel market, the others specialise in the State of Rio de Janeiro. The first of these recovery. Brazil’s use of finished steel 20 years seamless tubes. started to produce pig iron in a charcoal blast ago in 1993 was just 10.56Mt (1.7% of global It can be argued that the persistence of the furnace in 1937 and steel, via the Siemens- consumption) and 15 years ago in 1998 charcoal integrated mill in Brazil may be associ- Martin open hearth process, in 1944. In the 14.48Mt (2.1% of global). For 2011 and 2012, ated with its historical relevance. Sabará, which late-1960s, it commissioned a BOF steel shop. finished steel use was 25.0Mt, which, while rep- in 1925 was the first integrated mill in South Moreover, in 1986, it brought on stream a melt resenting nearly 58% of regional use, was only America, was the first to use a charcoal blast shop, replacing the old equipment, and con- 1.8% of world consumption. This causes a short- furnace. Later Monlevade (commissioned in verted production into a 800kt/y minimill. age of available scrap for recovery and hence the 1937) and Barra Mansa (also in 1937) built The Resende’s minimill, which has 1.02Mt/y need for pig iron will endure for the coming charcoal furnaces. Sabará and Monlevade capacity, went into operation in 2009. Similar to years. belonged to Belgo-Mineira, which was merged into Arcelor, now ArcelorMittal. Barra Mansa continues to be controlled by the Votorantim Company Steelmill State Previous BF group since its beginning. name capacity (kt/y) Whereas the prominence of these three mills Aperam South America Timóteo Minas Gerais Acesita 700 in the development phase of the Brazilian steel ArcelorMittal Juiz de Fora Minas Gerais Mendes Jr. 360 industry is uncontested, Sabará no longer pro- Cisam Pará de Minas Minas Gerais 156 duces steel, Monlevade’s small charcoal blast Gerdau Barão de Cocais Minas Gerais Cimetal 330 furnaces were shut down and substituted by a Gerdau Divinópolis Minas Gerais Pains 430 medium-size coke blast furnace and Barra Sinobras Marabá Pará Simara 311 Mansa was transformed into an EAF minimill. Vallourec & Sumitomo (VSB) Jeceaba Minas Gerais 600 While some remaining charcoal integrated mills V&M do Brasil Belo Horizonte Minas Gerais Mannesmann 650 have been in operation for several decades (such as Aperam and V & M do Brasil), it is cru- Table 1 Brazilian charcoal integrated mills cial to highlight that, because of the invest- ments carried out since 2006, the relevance of *Professor in Economics, Federal University of Uberlândia, Brazil. email [email protected]
10 – May/June 2013 – Steel Times International www.steeltimesint.com China_Layout 1 5/17/13 2:10 PM Page 1
CHINA Update Why adoption of high-strength rebar in China has been postponed
The Chinese government’s attempts to prevent the use of lower strength rebar has proved difficult with the date of implementation now extended by a year to the close of 2013. By Shi Lili*
THERE have been constant calls to end pro- Although the use of high-strength steel rebar At present, monthly output of HRB335 is duction of the lower strength rebar ‘HRB335’ has been increasing in recent years, the growth approximately 4Mt, a capacity which cannot be for use in the construction industry in China. in its application is slow and is still lagging eliminated in a short time unless forced to do so Indeed, the Ministry of Industry and behind international levels. Higher strength by the government. There is around 10Mt of Information Technology (MIIT) had decreed HRB400 accounts for around 40% of demand steel rebar stockpiled, out of which 3Mt is that it should no longer be certified for use in compared with 60% for HRB335. In compari- HRB335, according to ‘Fubao Iron & Steel construction from 1st May. son, high-strength steel rebar is more widely Information’. Due to the gloomy real estate Although such policies were made out of used in developed countries where the propor- industry, it will be difficult to consume this rational analysis, its implementation was tion can be as high as 70-80%. By 2011, rebar stockpile in a short time. fraught with major difficulties which fell into a of over 400MPa accounted for 48.3% of the It is expected that large steel mills that pro- vicious cycle of being unable to eliminate the total rolled of which 39.8% was 400MPa duce high value added products will have backward capacities producing this 335Mpa strength, 8.1% was 500MPa, and just 0.4% greater advantage while small privately owned strength rebar. 600MPa bar. companies may be strongly attacked by this new The government’s attempt to stop the pro- At present, there are 356 companies in China round of tide. Because steel rebar production at duction HRB335 completely, which accounts that are able to produce hot rolled rebar, of Hebei Iron & Steel, Sha-Steel and other large for some 60% of all rebar produced, met strong which 289 are able to produce 400MPa high- steel mills is large, they are not greatly affected resistance from the market. strength rebar and 60 are able to produce by this decree since they can quickly shift 500MPa. Although most of the steel mills in capacity to HRB400 production. HRB335 takes 60% of the market China are equipped to generate high-strength Backward capacities cannot easily be elimi- China’s Ministry of Industry and Information steel rebar, some construction projects still turn nated because most steel mills to not have any Technology announced the ‘Regulations as to to HRB335. Therefore, there is still a market impetus to produce HRB400 despite the use of Production and Operation for Iron & Steel demand for such material and it is difficult to HRB335 and HPB235 being banned in build- Industry’ in 2012 which detailed obsolete eliminate its use completely. ing designs. But since the sales price tends to be capacity to be eliminated which included mills 100 to 200 Yuan per tonne ($16 to $32/t) lower producing products such as HPB235 (hot- Practicality of eliminating HRB335 than the higher strength grades, builders prefer rolled plain steel bar), HRB335 (hot-rolled Compared to HRB335, HRB400 and HBB500 to use HRB335 and steel mills therefore have a ribbed steel bar) and hot rolled silicon steel have superior properties in terms of strength, higher profit margin. sheet. This regulation is aimed at raising the energy saving and safety. Their use also saves Thus, despite the government wanting to quality standards for newly formed steel mills. around 14% of the rebar normally required if eliminate the production of lower strength rebar Also unapproved capacities will also be placed HRB335 is used. Iron ore, coke and electric most steel mills and construction companies under government investigation. The aim is to power will accordingly be saved and the emis- choose to ignore this policy for profit. Including stop the production of backward products for sion of CO2, waste gas, and dust reduced. Plus, plant depreciation, at present, steel mills actual- environmental and safety reasons. from the perspective of safety, HRB400 will ly make a loss of 40 to 50 Yuan a tonne ($6.4 – Steel reinforcing bars are designated into four enhance the general quality of construction. to $8/t) when producing rebar. grades based on their mechanical properties, The government had originally aimed to ban But many steel companies which have closed among which HRB400 and HBB500 are high- the use of HRB335 by the end of 2012, but this rebar mills have opened larger ones elsewhere in strength steel bars. Compared with these, has still not been completed. It also aims to the country since none are prepared to lose mar- HPB235 and HRB335 have lower strengths increase the use of high-strength rebar to ket share once the market improves and they are and, because it requires more of this rebar to account for almost 80% of total rebar pro- building the new larger mills in readiness. match the strength of the higher strength rebars, duced, and almost 65% of construction steel Most steel mills are equipped with the tech- more raw materials are consumed during manu- used in a building by the end of 2015. nology to produce HRB400, but if all the facture and greater pollution is generated. But even this target will be hard to complete HRB335 production lines are closed steel com- According to China United Steel, its based on the condition of China’s steel sector. panies would have to invest heavily in technol- HPB235 production in 2011 only accounted This year China’s Ministry of Development and ogy and equipment upgrade, which could not for 17.5% of total rebar output and this figure Reform reiterated that the production and sale be carried out by small or medium sized steel was tending to shrink with fewer steel mills of HPB235 and HRB335 was no longer permit- mills in a short time. commissioning such capacities. But HRB335 ted since February this year. Also the downstream users have to upgrade took over 50% of the total market share In practice, as early as 2002, China designat- their steel rebar processing machines which also in 2012. ed HRB400 as the major rebar to be used for all involves high expense. Therefore, HRB335 will The date by which HRB335 production is to industries. Yet by 2010, HRB400 and even retain a significant market share for some time be eliminated was recently delayed to the end higher strength rebar accounted for only about and could not be completely eliminated with of 2013. 30% of all the rebar consumed. ease. ᔢ
*STI correspondent in China
Chinese exports up 19% in first quarter 2013 China exported 14.43Mt of rolled steel prod- The weak local demand, for its part, has that breaks even. ucts in Q1 2013, an increase of 18.8% on the resulted in meagre imports of steel products. However, they will face tougher export mar- 12.14Mt exported in the same period 2012. Local producers habitually treat exporting as a kets in 2013 as increasingly their traditional Exports are being driven by the sluggish local ‘safety valve’ to dump their extra output, and export destinations are filing anti-dumping market rather than external demand. most of them are willing to export at any price cases to the WTO.
12 – May/June 2013 – Steel Times International www.steeltimesint.com marketing_Layout 1 5/21/13 8:29 AM Page 1
Markets
Increased degassing time and additional proprietary processes take place in the ladle furnace Clean steel – High performance with reduced environmental impact By careful control at the melting and ladle refining stages of steelmaking Ovako Steel has developed a steel of reduced inclusion content and in which any inclusions remaining are of exceptionally small size resulting in isotropic properties in which the fatigue strength is enhanced in all directions of testing. The properties are comparable to steels refined by VAR remelting. By Patrik Ölund*
IMPROVEMENT of steel quality is a constant- there is a requirement to evaluate larger areas between different quality classes and different ly ongoing process as more complex designs of the microstructure in order to obtain statisti- heats. What the assessment techniques facili- and weight saving demands are combined with cally significant numbers. Optical microscopy tate is both greater detectability of non-metallic high mechanical and fatigue strength. Normally for micro inclusion assessment and Blue macro inclusions and also enables testing of a signifi- rolled steel has lower properties in the direction samples for macro inclusion assessment as cant volume of the steel and not just a moder- transverse to the direction of rolling, a property defined by ISO 3763 do not give sufficient ate area of a prepared surface. A comparison of known as anisotropy. But to achieve high load information. So the research team invested the traditional surface based methods, com- capability requirements the transverse proper- much time and effort in developing suitable pared to the ultrasonic volume techniques is ties have to be improved. alternative testing techniques settling on shown in Tables 1 and Table 2 respectively. Research at Ovako Steel in Sweden lead to immersion ultrasonics Fig 1. In Table 2 the corresponding number of Blue what, today, the Company call ‘IQ-Steel’ stand- 10MHz immersion ultrasonic test units are Fracture and ASTM E45 samples has been esti- ing for ‘Isotropic Quality’. The development of used for determination of macro size inclusions mated by translating volume into areas estimat- this required the ability to accurately measure and 80MHz for micro sized. These are much ing that a layer 0.01mm thick is assessed with the number and size of non-metallic inclusions more sensitive, allowing better discrimination the conventional area methods. Ultrasonic test- within the metal matrix and develop improved ing is carried out at two frequencies, 10MHz initial melting and ladle refinement techniques ISO 3763 ASTM E 45 for macro inclusions and 80MHz for micro to produce low alloy air melt steels which can Blue fracture inclusions. The results from the 10MHz ultra- compete with re-melt steels in terms of fatigue Feature Macro inclusions Micro inclusions sonic testing are expressed as the number of strength, high cleanness and a consistent Detected Length > 1.0mm Diameter > 2μm defects per volume unit exceeding a certain flat microstructure. Amount of material ~3000mm2 ~450mm2 bottom hole (FBH) equivalent. The 80MHz A significant factor in the process is that this Investigated test is evaluated by plotting the accumulated clean steel is produced without the customary Dimension covered Area Area number of defects versus defect size. The slope requirement of re-melting, which not only and its point of intersection with the y-axis reduces the environmental impact of lower Table 1 Detection limits and amount of describe the inclusion population. For inclu- energy use and the associated generation of material assessed by ISO 3763 Blue Fracture sions smaller than the 25μm size limit CO2, but in key applications of high and cyclic method and by ASTM E45 detectable by ultra sonics a scanning electron stress such as wind turbine bearings and diesel microscope with automatic feature analysis is injectors in cars, trucks and ships. Indeed, by Ovako Ovako used (Fig 2). using IQ Steel it has been possible to reduce 10MHz 80Mhz UST diesel consumption by approximately 1 Minimum Feature Macro inclusions Micro inclusions IQ-steelmaking litre/100km. For cars alone it is possible to cal- Detected FBH >0.120 FBH >25μm Based on the ingot cast process route, used for culate that CO2 emissions have been reduced Amount of material ~1 500 000mm3 ~450mm3 the production of highly demanding bearing by over 80Mt over the past 10 years. To put that Investigated (~50 000 BFT) (~300 E45) quality (BQ) steels, of which Ovako is a leading into context, the whole of Sweden emits Dimension covered Volume Volume producer, the IQ-process addresses: approximately 50Mt CO2 a year. FBH Flat bottom hole; BFT Blue Fracture Test • Melting practice in the electric arc furnace (EAF); Measuring inclusions Table 2 Detection limits and amount of – By careful selection of scrap and raw However, as the number of non-metallic inclu- material assessed using Ovako ultrasonic materials. sions of critical size to properties is reduced tests at 10MHz and 80MHz • Refining practice in the ladle furnace;
*Head of Group Research & Development, Ovako Steel, Sweden
14 – May/June 2013 – Steel Times International www.steeltimesint.com marketing_Layout 1 5/21/13 8:29 AM Page 2
Markets
1200 700 HV
1000 600 HV Intrinsic fatigue limit
500 HV 800 400 HV 600
400
200
Local stress at inclusion [MPa] 0 0 20 40 60 80 100 Critical defect size [μm] OVAKO 100μm EHT = 20.00kV Signal A = RBSD Oxide Carbide Ti (C,N) Mag=500x WD = 8mm Aperture size = 30.00μm
Fig 1 Immersion ultrasonic testing to evalu- Fig 3 Micrograph of inclusions in conven- Fig 5 Relationship between local stress at ate inclusions in a volume of steel tional steel in rolling direction inclusion tip and inclusion size
Rolling direction
Globular oxide Deformable sulphide
Oxide stringer
OVAKO Signal A = RBSD μ EHT = 20.00kV Mag=500x 100 m WD = 8mm Aperture size = 30.00μm
Fig 2 Scanning electron microscopy with Fig 4 Micrograph of inclusions in IQ-Steel in Fig 6 Illustration of inclusions in a conven- automatic feature analysis for detection of rolling direction tional steel showing elongation and align- inclusions smaller than 25 m ment in the rolling direction
– Increased desulphurisation to a maximum Influence of inclusions It is possible, using current analytical tech- S content of 20ppm, It is well established that the intrinsic fatigue niques, to collect data on a material’s morphol- – Increased degassing time, limit of steel increases with the strength or ogy, chemical composition and the position of – Additional proprietary process added. hardness of the steel by a factor of approxi- inclusions. This data can be used to calculate • Ingot casting; mately 1.6. the probability of finding inclusions of a certain – Protected teeming using argon shrouding. However, as the strength of the steel increas- size. Using the empirical relationship estab- • Soaking; es, the value of this factor is increasingly low- lished in Fig 5, it is then possible to convert the – Increased soaking time for improved ered compared to the intrinsic strength limit. inclusion size into the stress required to cause a homogenisation. This is the result of material defects, such as fatigue failure. • Billet production; inclusions, acting as stress raisers and promot- Using this methodology, analysis of sulphide – Increased crop-off mass to reduce ing initiation of fatigue cracks. inclusions in a 100m3 volume of high sulphur segregation and to minimize number of In rotating beam fatigue tests, inclusions 50CrMo4 steel, loaded in the direction of macro inclusions. found at the sites where fatigue initiated were rolling, shows a 5% failure rate at a stress of analysed for chemical composition, size and 800MPa, which increases to a 50% failure The improvement in isotropy is illustrated by location. The results were used to construct the (fatigue limit) at a stress of 1300MPa. When the micrographs in Figs 3 and 4. Both show empirical curves shown in Fig 5. These show the loading is transverse to the rolling direction, sections in the rolling (longitudinal) direction. that higher strength steels are affected more by 5% will fail at a stress of just 200MPa and a The number of elongated inclusions is drastical- the presence of inclusions than are lower 50% failure rate will occur at just 350MPa. ly reduced when the IQ-process is applied. strength steels. A steel with an moderate intrin- While steel of very high cleanness and with a sic strength of 640MPa (400HV hardness) will Isotropic quality process consistent microstructure and high resistance to not show any further improvement in fatigue This ability to quantify the inclusion population fatigue and impact is produced by advanced re- strength once oxide inclusions are less than in standard steels has enabled Ovako to make melting techniques, the lengthy and complex 20μm in length. But for higher strength steels, dramatic improvements in the steelmaking processes involved; decarburisation, vacuum there is much greater potential to improve and process and to introduce new processes that are induction melting and vacuum arc re-melting, get closer to the steel’s intrinsic strength. For a capable of producing steels that can match re- are expensive and availability of such material is steel with an intrinsic strength of 1120MPa (700 melt quality. often limited. HV) the critical inclusion size below which there The IQ (Isotropic Quality) process is based However, advances in ladle metallurgy and is no improvement in fatigue life is just 6μm. on Ovako's standard ingot casting process for testing procedures now make it possible to pro- the production of bearing quality steel. It has duce low alloy, air-melt steels which can com- Loading direction and volume two key objectives – to improve structural pete with re-melt steels in terms of fatigue However, conventional steel is normally fatigue properties and to produce a more strength. And with fatigue accounting for anisotropic, so its fatigue strength will vary isotropic steel. around 90% of all mechanical service failures, depending on the direction of the loading axis. The key differences in the process are in the the potential benefits are considerable. This is exaggerated by the rolling process, dur- selection of scrap and raw materials; increased It is the fact that the process produces such a ing which inclusions are crushed and elongated desulphurisation (down to 20ppm); increased clean steel that is the key. What this means is in the direction of rolling Fig 6. The loaded vol- degassing time; the use of argon shrouding dur- that the steel has the cleanliness of re-melted ume also influences the likelihood of finding an ing ingot casting; increased soaking time to steel, while not having all the environmental inclusion of critical size, so a large volume improve homogenisation; and greater crop-off impact associated with secondary melting in loaded transverse to the rolling direction has a mass in billet production to reduce segregation order to achieve an extremely clean final steel. much higher probability of failure Fig 7. and minimise the number of macro inclusions.
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Loading direction and volume Rotating beam fatigue of 35mm bar heat treated to 53HRC Longitudinal Transverse 1100 VAR 1050 IQ 1000 950 900 Large volume 850 800
Fatigue limit [Mpa] Fatigue 750 700 300M 528Q Errors bars shows 95% confidence limits Small volume
Fig 7 Influence of material volume on likeli- Fig 9 Comparing similar steel alloys, VAR hood of including an inclusion of critical re-melted and produced as IQ Steel, the size to cause early fatigue failure fatigue limits are almost identical
tudinally and transversely to the initial rolling 1.0E+00 direction. Ovako standard Ovako IQ While the IQ processed steel showed virtual- 1.0E-01
2 ly no difference in fatigue limit between the longitudinal and transverse samples, the con- 1.0E-02 ventional steel could only achieve half the fatigue limit when loaded in the transverse 1.0E-03 direction. Selection of suitable clean steel produced via 1.0E-04 Number per mm advanced ladle technology offers the desired fatigue strength for use in demanding applica- 1.0E-05 5-10 10-15 15-20 20-25 25-30 30-35 35-40 tions. When making material selection for use in, Size range, μm for example, wind turbine applications, detailed knowledge, not only of the magnitude of the applied stress, but also in loading direction and loaded volume, are particularly important. Fig 8 The number of inclusions below 4μm in an IQ Steel is greater than in convention- Applications ally produced steel, but the number of large IQ-Steel is used in an increasingly wide range of inclusions is smaller applications such as automotive, marine, renew- able energy, mining, etc. Fig 10 shows a selec- The IQ process does not remove the oxide tion of products made from Ovako IQ-Steel. inclusions but, based on the influence of inclu- IQ Steel’s capability to withstand high load- sion size on fatigue, creates a much finer distri- ing in all directions means it finds extensive use bution. In fact, the number of inclusions below in offshore wind turbines for bearings, compo- 4μm is higher than in conventionally produced nents and fixings. Due to the very nature of the steel Fig 8. But inclusions that are 4μm or offshore installations operational conditions are smaller require a very high stress to cause a extremely demanding with the turbines having fatigue failure – probably close to the intrinsic to cope with high, multidirectional transient strength of the steel itself. loads as wind speed and direction change. In rotating beam fatigue tests, the fatigue life Repairs are extremely expensive at sea, in addi- of IQ-processed steel was found to increase by tion to the loss of energy generated. Thus, the a factor of 10 over conventionally processed use of materials in construction that can with- steel. And, when compared to a grade 300M stand high loading in all directions is essential. steel produced through vacuum arc re-melting Research and development is already at an (VAR) the fatigue limit measured and the size advanced stage on a number of other applica- of inclusions that initiated fatigue failures were tions where resources can be saved, such as the almost identical Fig 9. production of gears, hydraulic components and To measure improvements in isotropy, con- rock drills. ventionally produced 50CrMo4 steel was com- pared to an IQ processed variant. In each case Contact billets were cross-rolled into plate from which Oy Ovako Ab, Kanalvagen 18, 19461 Upplands Vasby, Sweden samples were machined, orientated both longi- Tel +46 8 622 1300 web www.ovako.com
Fig 10 A selection of products which are made from Ovako IQ-Steel
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Demand for OCTG to develop USA shales
The ‘dash for gas’ in the United States has boosted demand for oil country tubular goods (OCTG) in recent years as new drilling techniques have enabled the vast reservoirs of gas trapped deep below the surface within shale deposits to be exploited. By Myra Pinkham*
WHILE still one of steel’s strongest end-use 2011 2012 % YTD 2013 Table 1 US Energy markets in the United States, oil country tubu- change % Change Pipe Market (Million lar goods (OCTG) had somewhat of a slow short tons) start this year but could come back to last year’s OCTG 6.1 7.0 14.4 -13.8 volumes, or at least close, by the end of the year Line Pipe 3.9 4.8 23.8 2.20 (Table 2). Source: www.aie.gov The market showing the most promise has been demand for premium and semi-premium connections, which has been bolstered by Company Parent Capacity Investment Location Table 2 Announced drilling in more challenging environments such location k stons/y US $M planned new OCTG as horizontal drilling in the nation’s oil and nat- mills ural gas shale plays. “The strength in the premi- Benteler Steel Tube Austria 250 900 Caddo, La um connections market, which has helped Borusan Mannesmann(1) Turkey 300 150 Baytown, Tx OCTG producers to add some value to their Prolamsa Group Mexico 300 120 Bryan Tx products, is one big reason that OCTG prices Tenaris Argentina 600 1500 Bay City, Tx have remained steady this year,” observes Paul Tianjin Pipe (Group) China 500 1000 Gregory, Tx Vivian, a partner at Ballwin, Mo,-based ‘Preston (1) Plus line pipe Pipe Report’. While there is still good demand for drilling, diameter. The project is also expected to pro- Pa, especially with the increased importance of especially of liquids (oil and natural gas liq- vide incremental productivity increases at its both oil and natural gas shale plays. uids), Kurt Minnich, a partner with Spear & Fairfield tubular heat treating operations as the Minnich explains that a culmination of a Associates, the publisher of ‘Pipe Logix’, Tulsa, smaller end of the Fairfield production range number of technologies, most notably horizon- Okla., says; “But there also has been good sup- will now be produced at Lorain, which is strate- tal drilling and hydraulic fracturing (or frack- ply, which has kept prices soft for the last six to gically located to serve the steelmaker’s growing ing), have allowed energy companies to unlock nine months.” customer base operating in the Marcellus and the resources in the unconventional shale plays, That supply is due to both a combination of Utica shale plays, John Surma, US Steel’s chair- which were not that productive previously. This an increases in imports and additions to domes- man and CEO recently told analysts when has caused somewhat of a disconnect between tic production capacity. announcing the company’s first quarter earn- the number of wells drilled and OCTG con- According to Gregg Eisenberg, president and ings. sumption, as, he says, with horizontal drilling chief executive officer of Boomerang Tube In addition, Vallourec is currently ramping up there is less of a footprint above ground with LCC, Chesterfield, Mo, OCTG demand had its $650M, 500k ston/y small diameter pipe the same reservoir exposure. That means more been quite strong in the first half of 2012, but rolling mill in Youngstown, Ohio, with its finish- feet drilled (and therefore OCTG consumed) due to “a crushing number of imports”, coupled ing lines expected to be commissioned in the per well. with the higher efficiency of the drill rigs using second quarter of this year. Buddy Brewer, CEO of Borusan new drilling technologies, has resulted in ener- This is in addition to new premium connec- Mannesmann, observes that horizontal drilling gy companies ‘burning through’ their annual tions capacity coming on-stream. US Steel says has increased by about 21% since the beginning budgets earlier than had been anticipated, so that anticipation that the increase in demand of 2011 while other types of drillings only the rate that pipe distributors were buying for unconventional oil and natural gas drilling – increased by about 11% in that timeframe. OCTG slowed in the second half of last year. including the more demanding horizontal According to Baker Hughes Inc Houston, Domestic OCTG supply is also rising with as drilling – will continue to bolster demand for 61.9% of the active wells at the beginning of much as 2.5M short tons of new capacity premium and semi-premium pipe connections, May were being drilled horizontally compared expected to come on-stream in the next four to or joints, was one reason the company has with 58.9% a year earlier. five years, Minnich estimates. entered into its Patriot Premium Services joint Eisenberg notes that it had been anticipated This includes expansions of existing facilities venture with Butch Gilliam Enterprises LLC that the number of active drill rigs operating in as well as a number of new pipe mills that either that is to include a new facility in Midland, the United States would be up by 150 rigs in have already been built or are planned. “A num- Texas. Other expansions are: Evraz North the first quarter of this year, but that did not ber of new companies have been drawn to the America is doubling the capacity of its premium happen. Actually the number of rigs operating market,” Vivian says, including some foreign threading line at Evraz Red Deer in Alberta, in the United States is relatively flat compared producers who either just see a lot of opportu- Canada; Vallourec’s VAM USA is doublings its with the end of 2012 and is down 10.2% year nities having a foothold in the US market or see research and development capacity at its VAM on year. it as a way to avoid possible trade restrictions. Connection Technology Center in Houston; Even with the current slow start, with “It will make for an interesting market, espe- TMK Ipsco is boosting its premium connec- demand down 13.8% year to date following a cially if demand doesn’t pick up appreciably”, tions output in Odessa, Texas, as well as start- 14.4% increase in 2012, Plummer predicts that Vivian says. ing up a new threading plant in Edmonton, OCTG consumption in the USA could be up Some of the more recent foreign companies Alberta; TPCO will be bringing on connections about 5% year on year given widespread antici- to announce plans to build pipe mills in the capacity at its new Gregory mill; and Nippon pation that demand will pick up in the second United States are summarised in Table 2. Steel & Sumitomo Metals Corp plan to make half. capital investment in the Houston mill that it It all, however, depends on what happens Expansions recently acquired from China’s WSP. with the domestic and global economy and United States Steel, headquartered in Generally, the number of active drill rigs was prices for both oil and natural gas. Vivian says Pittsburgh Pa, recently announced that it will considered to be a good gauge for the strength that energy prices tend to have both a cause be expanding the production capabilities of its of the OCTG market, although over the years it and effect impact upon the market. No 4 seamless hot mill at its Lorain tubular has become a less precise measurement, It is the pricing situation that has caused the operations, increasing its size range from a max- according to Christopher Plummer, managing proportion of rigs drilling for oil versus natural imum of 4.78 inches to just over 6 inches outer director of Metal Strategies Inc, West Chester, gas to flip flop from 85% drilling for natural gas
*US correspondent
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prior to the economic downturn to 20% doing which could affect fuel economy. Also there is a Imports of OCTG so currently. lack of natural gas infrastructure to fill up the With OCTG imports, while down from peaks Aided by the cold spring, natural gas prices trucks. last year, still high, especially from South Korea, have come back somewhat, rising 40% year on there is concern as to how much domestic year to about $4 per MMBtu, which Eisenberg DRI revival OCTG will benefit from improvements in the says could be high enough for some natural gas Low natural gas prices has resulted in a revival market. German Cura, managing director of drilling to become profitable again. While still in the domestic direct reduced iron market. North American operations for Tenaris told relatively low, especially compared with 2008 Plummer notes that the domestic DRI projects analysts during that company’s recent earning prices, when it averaged $6 per MMBtu, that went on line ten to fifteen years ago had all conference call that South Korea, which export- Minnich says it is quite an improvement from gone bankrupt, but that now with most compa- ed just short of 800 stons of pipe last year, con- the $2 per MMBtu levels early in 2012. nies feeling that natural gas will remain relative- tinues to affect the market. “The best reason for the correction in gas ly low priced and stable, it has made the build- While OCTG imports to USA were down prices is gas prices,” he says. “When natural gas ing of DRI plants more feasible. He says that 18.2% year on year in March, according to pre- prices fell we saw demand (for OCTG) pick not only is Nucor Corp, Charlotte, NC, build- liminary US Census Bureau data, they were up back up,”, adding that generally the $4 level is ing a DRI plant in Louisiana and is expected to 17.9% compared with February and import seen as the ‘magical’ or equilibrium point. announce a second phase of that facility, but license applications indicate that they will be up Below that the cost of drilling is questioned. also voestalpine steel is building a DRI plant in another 7.8% in April. This is why it is expected Above that it displeases consumers. Oil prices, Corpus Christi, Texas. the domestic producers are still expected to file meanwhile, have remained relatively high and a trade case. fairly steady in a $90 to $100 per barrel range. Gas exports “They just want the conditions to get riper With the recent low prices natural gas has There is also expected to be a push to export before filing the case,” Vivian explains. been increasingly used as a swing factor in liquefied natural gas. “Big dollars are being Eisenberg says it is the combination of the power plants, especially given environmental invested on facilities to export natural gas,” oversupplied market and aggressively priced concerns with coal, Plummer observes. Eisenberg says, but many of these projects have imports that has resulted in attempts by the It is also being considered as an alternative been held up both because of environmental mills to raise OCTG prices to fail. He, howev- fuel for heavy trucks, although that is not really pressures and resistance to the export of natu- er, expects prices to eventually increase – most taking off given that equipment allowing trucks ral gas by certain large consumers, including likely next year. “Producers can’t keep operat- to use natural gas is heavier than that for diesel, Nucor and Alcoa Inc. ing at these price levels,” he maintains. Deep-drawing perforated metal
DURING the deep-drawing process to form Engine bonnets for commercial vehicles con- Solvaro created the grill with the required air sheet, perforated metal behaves differently to tain apertures to enable additional air to flow permeability of 80% using cold-rolled steel solid sheet. This is primarily due to the fact that into the engine compartment. These apertures sheet of thickness 1.0 to 1.5mm perforated with perforated metal demonstrates different flow require a grill to be fitted to prevent dust and hexagonal holes (Fig 1). behaviour. Solvaro manufactures industrial debris in the air and debris being drawn into the To achieve the three recesses required in a components and has extensive experience in engine compartment. close row, specialists had to precisely adjusted this field. This experience was most recently put To make the grill, the sheet metal is first per- the hydraulic presses to accommodate the to the test when an Italian builder of agriculture forated with a network of holes while it is still behaviour of the metal. The draw speed, draw and construction vehicles commissioned the flat, prior to forming into the required shape. radius and other forces had to be mastered. The company to produce an air grille to fit into the As such metal has already been subjected to deep-drawing process is carried out in several bonnets of its vehicles. major stress to cut the grid of holes, its materi- steps using tools developed in-house. Deep-drawing is a common method of form- al characteristics will have changed due to work A primer and powder-coated finish was ing flat metal sheet into three-dimensional hardening. added after drawing and cleaning (Fig 2). The components. The deep-drawing process creates At Solvaro, technology and production teams precise outer contours meeting the installation a hollow body through a combination of work daily with the process of deep-drawing. dimensions enabled immediate positioning in stretching and compression by ‘drawing’ Most recently, they demonstrated their skills for the bonnet. (pulling) the sheet between a punch and die. MAP SpA, an Italian manufacturer producing The body of a beverage can or the bowl of a radiator bonnets for agricultural and construc- kitchen sink are examples of deep drawn com- tion machinery. The bonnets are equipped with Contact ponents made from solid sheet. The benefits air and anti-contaminant grilles. The basic Solvaro, c/o Beaufort 8 GmbH, Kriegsbergstrasse 34, include a more visually appealing product and requirements of these grills are air permeability, 70174 Stuttgart, Germany. potential savings through, for example, reduced a filter function and stability. The challenge is Tel +49 (0)711 2577 320, Fax +49 (0)711 2577 389, material consumption. creating appealing design. e-mail [email protected], www.solvaro.com
Fig 2 The bonnet with grills in place
Fig 1 Deep drawn grill in sheet perfo- rated with hexago- nal holes
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Steel eliminates weight gap with aluminium car bodies
Optimised selection of advanced high 400 strength steels and component design in a2mac1 (database) the automotive body has achieved a 39% ULSAB-AVC Ref 350 weight saving compared to the use of ULSAB-AVC FSV conventional steels, a saving sufficient to Aluminum Jaguar XK challenge the weight saving achieved in 300 Multi-material an all-aluminium body. Audi TT 2011 250 FSV THE latest in a continuing series of research studies strongly suggest that steel auto body structures in the near future can be as light- 200 weight as today’s aluminium bodies, while Lotus Venza study
meeting all crash performance standards and at Body structure mass (actual) (kg) Audi A2 Super light car comparable cost of current steel structures. 150 The studies also address critical manufactur- ing challenges, showing that car makers can form and fabricate sophisticated steel designs, 100 thus accelerating implementation of this tech- 200 250 300 350 400 nology into production vehicles. Body structure mass (regression analysis prediction) (kg)
Electric vehicles Predicted body structure mass vs Actual (kg) Source Autosteel Partnership & US Steel Corp Developed by a consortium of 18 major steel producers across the globe working together strates, also contributes to lower total green- within WorldAutoSteel (a division of the World house gas emissions over the entire vehicle life Steel Association), the FutureSteelVehicle cycle, compared to higher cost, more energy- (FSV) has been conceived to meet the require- intensive low- density materials. Through this ments of the electric car which requires even advantage in lower total life cycle emissions, the greater savings in body weight than internal use of steel is consistent with a growing move- combustion driven cars because of the weight ment toward regulations that take into account all of the batteries they need to carry. sources of emissions, not only those from the The previous design of the vehicle-use phase but also in the initial manufac- FutureSteelVehicle (FSV) achieved a weight ture of the vehicle and its end-of life recyclability. saving of 35% compared with a similar sized The FSV programme optimised AHSS body body using conventional steels. By further refin- structures for four proposed models for the ing this design the steel industry’s most recent years 2015-2020: studies boost the mass savings to 39%, com- Steel grades selected for FSV battery electric − a battery electric vehicle (BEV) pared to a baseline steel body structure carrying vehicle − a plug-in hybrid electric (PHEV) an internal combustion engine, adjusted for a A-/ B-Class vehicles; battery-electric powertrain and year 2020 regu- sheet and also crash optimisation. It resulted −a PHEV and latory requirements. from continuing development of the Multi- − a fuel cell (FCEV) C-/D-Class vehicles. The optimised FSV body using Advanced Disciplinary Optimization (MDO) process that High-Strength Steel (AHSS) would weigh just enabled the ‘Nature’s Way’ design used in the Internal combustion 176.8kg, putting steel on par with today’s alu- FSV and solved the remaining forming issues While the FutureSteelVehicle’s development is minium production designs. An industry data- presented by the FSV’s unique front rail struc- focused is on electrified powertrains, the design base of current production vehicles (A2mac1) ture. The resulting optimised shapes and com- and material advancements are equally applica- shows these light-weight, AHSS body struc- ponent configurations often mimic Nature’s ble for any type of automobile. The FSV pro- tures, designed to carry heavier electrified pow- own design proficiency, which allows engineers gramme employs more advanced steels and ertrains, fall in line with the lightest internal- to place specific materials precisely in the struc- steel technologies in its portfolio and conse- combustion-engine aluminium vehicles, and are ture to most efficiently meet structural and quently adds to the tool sets of automotive on par with other concepts featuring multi- strength requirements for managing vehicle engineers around the world. It uses more than material solutions. The study results show that loads. Through this optimisation in design the 20 new AHSS grades, representing materials by incorporating FSV technology, car makers very efficient, light-weight front rail design is expected to be commercially available in the can avoid pursuing more costly alternatives now a viable option for future production vehi- 2015 – 2020 horizon. involving competing materials and multi-mate- cles. Further, with the addition of the 3B The FSV material portfolio includes dual rial designs to achieve their goals. Forming Process, the optimisation software phase (DP), transformation-induced plasticity The two most recent studies; ‘FSV Final now fully comprises solutions to AHSS forma- (TRIP), twinning-induced plasticity (TWIP), Gauge Optimization’ optimised the FSV bility issues. complex phase (CP) and hot formed (HF) design, and ‘FSV Near-Term Front Intensive use of AHSS, as the FSV demon- steels, which reach into the GigaPascal strength Longitudinal Rail Shape’ devised an alternative levels and are the newest in steel technology geometry for the front rails. The former led to offered by the global industry. These steels an additional mass reduction of 11.6kg, com- WorldAutoSteel answer the call of automakers for stronger, pared to the initial FSV design, bringing the formable steels needed for lighter structures total weight savings to 39%. The latter validates The automotive group of the World Steel that meet increasingly stringent crash require- two different, but comparable, front rail Association comprises 18 major global steel ments. They are evidence of steel’s continual designs, expanding the range of solutions avail- producers from around the world. self-reinvention to meet automotive design able to car makers in the near term. WorldAutoSteel’s mission is to advance and challenges. The first study following the announcement communicate steel’s unique ability to meet the Steel’s design flexibility enables the best use of the FSV in May 2011 was designated ‘3B’ automotive industry’s needs and challenges in of the award-winning, state-of-the-future design (Draw Bead, Blank Geometry and Binder a sustainable and environmentally responsible optimisation process that develops non-intuitive Pressure) and addressed the forming of AHSS way. solutions for structural performance.
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Centralised PLC operation of Reheating Furnace charging mechanism at Durgapur Steel, India
A PLC and remote I/O control network provides centralised monitoring of all the devices controlling the charging and discharging of a reheat furnace at Durgapur Steel Plant, and has achieved a 65% drop in unscheduled mill stops arising from electrical problems. By *A Prasad, *V Kumar, **KK Thakur, *PA Aneesh, **S K Bhagat, *S Singh, *S Ilangovan, *B A Prasad, *S Majumdar, *BK Prasad & **AK Aich
A CENTRALIZED PLC based monitoring and they are packed and bound into neat bundles account. Following this analysis a new automa- control system has been conceived, designed and sent to the dispatch bay. tion system was designed and implemented and implemented to monitor and control the Charging billets to the reheating furnace is with the following features: charging and discharging mechanism for a carried out via a Billet Separating Skid, • Comprehensive monitoring and control of reheating furnace at Durgapur Steel Plant, as Charging Table and Ram Charger. Movement the CVDC drives and solenoids at the dis well as the motor and mill oil lubrication system inside the furnace is by means of a cross push- charge side of the furnace and for feeding bil- and the solenoids which feed billet to the entry er and discharge from the furnace is by Push- let to the mill. stand of the mill. Out rolls and Pull-Out rolls. Six drives operate • Instantaneous display of status for equip- The automation system is hosted by an this transport system and they are all constant ment (75 items) by means of four display Ethernet network which connects various voltage direct current (CVDC) drives. In the boards and two HMI stations at strategic nodes consisting of the PLC, Remote I/O, original design, relay logic based control of sole- locations. Programming Terminals and Human Machine noids was used at the discharge side of the fur- • An Open Network based PLC & Remote Interface (HMI) stations. The system also nace to feed the billet to the first mill stand. I/O including signal interface for the existing includes four annunciation display boards to Any breakdown in any of these mechanisms mill electrics and process parameters. report the status of different parts of the fur- results in mill stoppage and can result in a cob- nace area placed at strategic locations. ble in the mill. As originally designed, all the PLC & network Implementation involved extensive interfac- mechanisms in the furnace charging area were The system configuration with two PLCs and ing with existing field equipment and their out- controlled by relay logic based systems and the networking scheme is shown in Fig 1. This put signals which required detailed field engi- there were frequent breakdowns. An analysis of indicates the connections between each node neering and erection work. the root cause of any failure took some time as and the locations of the various display boards With the installation of the new system, infor- the old control system was not ‘user friendly’ and HMI screens. mation regarding the status of equipment and and lacked any alarm or fault annunciation The control network is built around two the control mechanism for the reheating fur- nace charging area is instantaneously available CP & 4 at all strategic places to enable co-ordinate DB DB Fig 1 Automation HMI operation and control. The system also provides network for con- OD RI/O OD the status of important utilities across the shop CP & 3 PLC & Networking trol of charging such as the lubrication systems for the mill and and discharging DB Scheme motor area. DB billet at the reheat The result is a reduction in controllable OD RI/O RI/O furnace delays as well as an improvement in overall per- CP & 2 DB formance of the mill. CP = Control Pulpit; RI/O Full commissioned took place in November OD RI/O Communication network DB = Display Board; Mill oil cellar 2011 since when delays caused by electrical prob- CP & 1 OD = Operator/ lems in the reheating furnace area have been Control Desk; MHI/Prog reduced by 65.5% on a monthly average basis. R I/O = Remote The Merchant Mill at Durgapur Steel Plant PLC Prog PLC Shift (o) input/output takes billets of size 100mm x 100mm and pro- Fce solenoid Furnace CVDC room Motor control room duces plain round bars and ribbed TMT bars of various diameters from 12 to 28mm. Billet from mechanism and online diagnostic facilities. PLCs, seven remote I/O nodes and two HMI the continuous casting plant are transported to The reliability of the six CVDC drives in the stations. The interconnection between the the reheat furnace which is equipped with side furnace area needed to be improved as any nodes uses Transmission Control Protocol charging and discharging activated by a ram breakdown results in complete halting of pro- (TCP) and Internet Protocol (IP) (TCP/IP) charger. After reheating followed by discharging duction. Also it was proposed to improve the linked through CAT6 Ethernet cable. Each from the furnace the billet is delivered to the Mean Time to Repair (MTTR) and Mean Time node has an adequate number of input and out- mill via a pinch roll followed by the roughing, between Failures (MTBF) of the equipment in put (I/O) modules, which are digital and/or intermediate and finishing stands. The rough- the furnace area. analogue to interface all the required signals ing mill consists of seven stands, the intermedi- To address these issues, a centralized from the field devices as required for the partic- ate mill of four stands and the finishing mill has Programmable Logic Controller (PLC) and ular application. Cold redundant communica- two stands. In between the 7th & 8th roughing remote I/O (Input/Output) based monitoring tion media has also been laid between all nodes and intermediate stands a crop or cobble shear and control system was conceived, designed and so that, in case of any abnormalities/disconnec- is located which is used for cutting the front installed for control of the furnace mechanisms tion/ network failure, redundant media can be end of each bar prior to its entry into the inter- and of the load (voltage) of the furnace charging connected to the system and breakdowns min- mediate stands. On exiting the finishing stands drives, motor oil cellar, mill oil cellar, and all the imised. All networking accessories in the system the bar passes through three ‘Thermax’ car- solenoids mechanism at the furnace exit side. are of industrial grade to ensure the operation riages where high strength thermal mechanical of the network is reliable. transformed (TMT) bars are produced, tem- System design pered by intense cooling. Finally, a rotary shear An in-depth study of the existing system was Field I/O Interface cuts the rods into the required length to be carried out and, to meet operational require- The entire system was required to interface accommodated on the cooling bed. After cool- ments, safety interlocks, interfacing of existing with a large number of inputs and output sig- ing the bars are cut by the bar shear and sent to equipment with any new system and many nals arising from the existing device electronics. automatic bundling/binding machines where other parameters of the mill were taken into Very detailed design work was necessary to for-
*Authors with RDCIS (Research & Development Centre for Iron & Steel), SAIL, India. **Author with Durgapur Steel Plant, SAIL, India e-mail [email protected]
www.steeltimesint.com Steel Times International – May/June 2013 – 23 automation kumar_Layout 1 5/16/13 3:29 PM Page 2
Automation
Fig 2 Examples of panels installed in the Fig 3 LED illuminated display panels driven Fig 4 Examples of the HMI mimic screens network by the PLC
mulate the complete I/O listing before com- 7 backbone for integrated automation and a mencement of other activities. Input signals for 5.96 shop-wide management information system all the field control devices have been taken 6 (MIS) by providing open industrial network protected by proper isolation. Outputs have architecture based on TCP/IP protocol. been interfaced through appropriate relays. For 5 The new control system has resulted in a
interfacing analogue signals, appropriate signal 4 reduction of delays in the furnace area due to isolators have been used. Signal interfacing electrical faults by around 65.5% on a monthly work involved extensive cable laying and termi- 3 average basis. With the old system electrical Delay nation and cable protection. Examples of the 2.057 (Hrs) delays averaged 5.96 hours a month which has 2 various panels are provided in Fig 2. Monthly average delay (hrs) dropped to average 2.057 hours a month with
1 the new network PLC controlled system (Fig 5). Display boards & HMI Status monitoring is achieved by means of dis- 0 Conclusions play boards and HMI screens. Before Nov 2011 Nov 2011 onwards In shops such as long product rolling mills and Display panels were designed and built using continuous processing lines, controls systems LED illuminated annunciation. These were Fig 5 A 65% reduction in delays due to elec- and their electrics are distributed over a large installed at key locations to provide an instanta- trical faults resulted from the introduction area. In such shops a centralised monitoring neous overview of the status of equipment and of the new PLC controlled network and control system that gives instantaneous other information (Fig 3). The LEDs are driv- information about equipment status and opera- en by the PLCs output at a maximum value of ing mill-shop shutdowns. Erection of all the tion at strategic locations is an important asset 0.5A per channel and through interposing PLC/RIO (Remote input/output) and Display to improve the overall performance by reducing relays. The design of the display units and their Boards panels, the laying and termination of a the mean down time and improving the coordi- component mounting and wiring was carried large number of signal cables and interfacing to nation of operations between the various oper- out with ease of accessibility in mind for later field instruments through relays and converters ator pulpits. maintenance. for more than 900 I/Os was achieved without A PLC and Remote I/O control system Such display units have been installed in the disrupting mill production. Around 1.5km of enables reliable implementation of such a dis- Motor Room, Furnace CVDC room, Electrical communication cable was laid to establish the tributed architecture and cascaded operation. Shift Office and motor Oil Cellar. The design high speed communication backbone to the TCP/IP is a standard open network protocol of each display unit has been customised to various locations. used today for interfacing industrial equipment depict the status of signals from equipment The remote I/O nodes were configured for to enable wider access of information. Plant required by the individual operator to carry out communication with the PLC. A PLC applica- wide information systems are considered a coordinated operation of the mill. tion program was developed for the overall con- necessity in today’s scenario. The success of Two HMI stations are installed, one in the trol for the two PLCs, as well as the seven implementation of such a systems also depends PLC room inside the motor room and the other remote input/output (RIO) nodes, four display on the availability of information from lower lev- in Control Pulpitt No 4 (Fig 1). These can dis- units and two HMI stations. els of automation hierarchy. Implemen-tation of play of large amount of information with regard the monitoring system based on a PLC con- to the plant mechanisms and provide archiving Results trolled network not only enabled interfacing with of data. The HMI is also used for development, The new automation system ran satisfactorily several existing systems but has also provided a maintenance and provides an interface with the during its integrated trial period. The response backbone for integrated MES in the future. existing local area network (LAN) backbone of of the system was found to be much faster than the plant thus providing wider access to data that of the earlier and more reliable. Acknowledgements and its interface. Screen shots of the HMI sys- Communication between the different nodes The task force members are grateful to the management of tem are shown in Fig 4. within the network was satisfactory. The num- SAIL for providing this opportunity and continuous support ber of cables linking field devices to the control for executing the project successfully. Special acknowledg- Communication with existing signal pulpit and from the CVDC motor room were ments are due to all the people of the Merchant Mill, points greatly reduced as the new system runs on a Durgapur Steel Plant, Durgapur for supporting the project A requirement was that existing signals from network so only one communication cable is since concept to commissioning for maintaining quality and the devices on the furnace and mill be accessed required between the nodes thus eliminating timely execution of the project. The taskforce express sincere remotely on the new system to provide cen- cable maintenance. In addition, the response of thanks to all those who have directly or indirectly supported tralised monitoring and control. Relay boards locally placed I/Os is much more satisfactory the project. are used to interface the existing signals from for the operational requirement of the mer- devices in the field with the new PLC system. chant mill. All the solenoids at the furnace exit Bibliography These relay boards are fabricated based on the area are operated through the new system acti- ‘Automated monitoring and diagnostics of metallurgical number of signals required to be interfaced vated by a 24V DC control voltage. This has plants and rolling mills, Jorg Deckers, Olaf N Jepson, from the existing panels using a Siemens relay. resulted in simplified control circuits. Any Siegfried Latzel, MPT International 5/2002 Accordingly, eleven relay boards, each with a change in control philosophy can be easily 1. Project Completion Report for RDCIS SAIL project No. different number of relays, were mounted in achieved through soft logic in place of the ear- 35:47:62 various location to interface with the signals lier complex hard wired relay based control cir- 2. Project Completion Report for RDCIS SAIL project No. from existing devices. cuits which were difficult to maintain, modify 59:68:34 and troubleshoot. 3. Technical literature of various makes of PLC, Display etc: Erection & commissioning The system has been designed such that enabled understanding of the various commercial products Erection and commissioning involved meticu- future expansion and modification can be easi- available and formulation of the system design and equip- lous planning and execution so as to use exist- ly implemented. Also the system provides a ment specifications as per specific application requirement.
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Automation
Dedicated warehouse management in the metals industry
A technical warehouse management system ‘TWMS/metals’ controls and visualizes trans- port and storage activities in the metals industry from continuous casting through to the ship- ment of the finished products. It optimizes the use of storage capacities across various ware- houses or even plant-wide, ensuring that the means of transport, such as cranes or cross transfer systems, are efficiently used. TWMS/metals from 3tn has been in opera- tion at the ThyssenKrupp Steel Service Centre in Krefeld, Germany, since 2010. About 400kt/y of quality-steel coils are slit or cut to length at the service centre located in the Krefeld Rhine port. In two warehouses connected by two trans- fer cars, the system manages all transport and storage activities from the receipt of the coils delivered by truck or ship to the timely delivery of coils to the four slitting lines and one cut-to- length line. It operates according to the sched- uling data provided by the higher-level SAP Fig 1 TWMS/metals system. manages and visual- A central element of TWMS/metals is the izes transport and visualization of the warehouses in real time as storage activities near-reality 3D views. In the crane cabins, the from the unloading current warehouse situation is displayed as seen of the inland vessels by the crane operator. Arrows guide the crane (left) through to the operators from one position to the next, while delivery of the coils all information they need for processing an to the slitting and order is being displayed. cut-to-length lines A three-dimensional view is also implement- ed on the client terminals in the offices. The users can move freely about this display and view the warehouse from any perspective. If they want to know where a certain coil is, they can zoom in on it from the overall view. According to Hendrik Bodenstein, MD of Fig. 2 The crane the logistics service providers Becker & Co − operator sees the part of the ThyssenKrupp group − and opera- coils from a perpen- tors of the TKS warehouse in Krefeld, the sys- dicular perspective tem offers numerous benefits: It helps to opti- in three dimensions mally manage all warehouse activities; It enables target-oriented storage and efficient use of the available storage space; It optimizes Thorsten Tönjes, one of the two Managing it is able to cope with these challenging condi- crane movements, avoids unnecessary shifting Directors of 3tn, sees great potential for the tions typical of steel service centres.” operations – and therefore the associated risk technical warehouse management system in 3tn developed TWMS/metals specifically for of damaging any stored material – and speeds steel service centres: “Whereas initially we the metals industry. The system is preconfigured up the transport activities in general. implemented TWMS/metals mainly in rolling for all products, means of transport and ware- In addition to these benefits, it creates trans- mills, for example at Hoesch Hohenlimburg, house arrangements common in this industry. In parency as it makes all information readily avail- Salzgitter Flachstahl, Tata Steel and one direction, it communicates with ERP and able and all activities intuitively. ThyssenKrupp Steel, we are now receiving more MES systems and, in the other with the basic All this results in the optimal storage of prod- inquiries from steel service centres. Product automation systems and the sensor equipment. ucts, provides short transfer times, makes effi- variety is much greater and lot sizes are much cient use of personnel and transport, reduces smaller in steel service centres (than in mills). Contact damage due to improper storage, and creates This makes it even more critical to have in place 3tn Industriesoftware GmbH, Rhenus Platz 3, 59439 Holzwickede, safer working conditions. Moreover, the system an efficient and reliable management system for Germany reduces the effort of tracing a consignment vir- all storage and transport activities. The system Tel +49.2301.91261-0 Fax +49.2301.91261-11 tually to zero. implemented in Krefeld has demonstrated that www.3tn.de Press Hardened sheet for automotive components THE market for press hardened components in automotive construction Ebner have supplied a hotPHASE furnace to a pressing company in is expanding rapidly. The Volkswagen VW Golf 7, for example, has 28% north-west Germany which supplies VW with the pressed components of its sheet components made of high strength press hardened steels to for the Golf 7. enable thinner gauges and hence reduced weight to be achieved in the In February, Volkswagen was reported to be dropping aluminium from body, so reducing fuel consumption and hence CO2 emissions. plans to replace steel body parts. Instead, VW is using new high strength Using press hardened steels has helped achieve a 100kg weight saving steels to make the cars lighter and to comply with strict emissions rules. in the Golf 7 compared with the 1997 model Golf 4. www.ebner.cc
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Conference report
Russian and CIS Industrial Metals Summit in Moscow
Adam Smith Conferences (UK) held its 18th Annual Russian and CIS Metals Summit in Moscow on the 12-14 February 2013. Starting in London in1992, it is now the longest-running event for metals executives from Russia, Ukraine and Kazakhstan and attracts a strong presence of international investors and experts. A report by Alexander Gurov*
THE CIS Metals Summit, is the only confer- also brings together speakers from Russian and EU debt crisis. The forward outlook remains ence in Russia covering both precious and CIS leading metallurgical companies: MMK, uncertain but the World Steel Association industrial metals, and so provides a unique plat- NLMK, Severstal, Mechel, OMK, Norilsk (worldsteel) has forecast global growth in form to meet, under one roof, CEOs, produc- Nickel, UMMC, Russian copper company, etc. apparent demand in 2013 of 3.1%. The regions ers, traders, end-users, financiers and policy- seeing the largest growth will be Africa and makers to discuss the current state and fore- Global view & its impact on CIS South America. The 27 countries of the casts of the Russian & CIS metals sector. The focus of the first session was the global econ- European Union will have the lowest growth. The annual three day conference in Moscow omy and its impact on the Russian and CIS met- Longer term, global crude steel production is devoted day 1 to the 7th annual Russian and als industry. Aleksei Mojarov, Economic Affairs forecast to continue to grow but at a slower CIS Precious Metals Summit which covered Officer from UNCTAD moderated the session. rate. EU apparent steel demand has fallen by key CIS and international gold miners and dis- Richard White, CEO of UK based Iron and almost 6%. Raw materials and steel mill prod- cussed expansion strategies in Russia and the Steel Statistics Bureau (ISSB), presented the uct prices appear to have bottomed and most CIS. The following two days addressed the global situation with a focus on steel. According prices are rising. Table 1 presents the top ten Industrial Metals Summit with the focus on to ISSB statistics, world crude steel production steel producing nations in 2012. Russian and CIS steel, the mining sectors, and, remains strong with 2012 output setting a new Global crude steel capacity utilization rate this year, the non-ferrous metals markets of alu- record of 1.548bnt (15% above the pre-reces- over the past two year averaged 78%, well minium, copper, nickel and zinc. sion peak in 2007). The annual growth rate now below the 85% generally recognised to be need- More than 200 delegates attended during the at +1.2% has slowed significantly relative to the ed to be profitable. Major regional steel trade three-days and some 50 presentations were past two years which saw growth of 7% and flows are presented in Fig 2 and the top ten made in a dozen sessions as well as panel 16%, respectively. Global growth was driven world steel exporters are listed in Table 2. debates covering the global and CIS metals mainly by China which in the past four years Vladimir Terlovoy, Director of the Metal markets. The list of speakers included high level accounted for 45–47% of global steel produc- Expert Consulting, expanded on the outlook managers from global analytical and consulting tion (Fig 1) and according to forecasts will con- for the global market for steel paying greater companies, including Platts, ISSB, CRU and tinue this tendency. Major threats to global pro- attention to CIS countries and China. He McKinsey, as well as UNCTAD, Dupont and duction include: global overcapacity, slowing noted that China’s crude steel output rose 3.1% Steel Times International. The Metals Summit Chinese growth, the US debt ceiling and the to 716.54Mt in 2012 – an increase of 21.5Mt
2012: 15% above 2007
2017: 18% above 2012
2017: 36% above 2007
Fig 1 Global crude steel production grows mainly under the drive by China Source: worldsteel and ISSB Fig 2 Major regional trade in steel in 2012 Source: ISSB
*Steel Times International representative in Russia
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Conference report
Million tonnes The Second session of the day was chaired by % change % change % change Alexander Gurov, Russian representative of Country 2007 2009 2011 2012 2012 v 11 2012 v 09 2012 v 07 Steel Times International, and covered steel and non-ferrous metals key projects. China 489.7 577.1 694.8 716.5 +3 +24 +46 Ekaterina Golovanova, head of Marketing EU27 210.2 139.3 177.7 169.4 -5 +22 -19 Planning at Severstal spoke on steel consump- Japan 120.2 87.5 107.6 107.2 0 +23 -11 tion in Russia which was rapidly recovering USA 98.1 58.2 86.4 88.6 +3 +52 -10 after the crisis. Apparent steel consumption in India 53.5 63.5 73.6 76.7 +4 +21 +43 Russia in 2012 was 42Mt, including 25Mt to the Russia 72.4 60.0 68.9 70.6 +3 +18 -2 construction and metals markets, 10Mt to the South Korea 51.5 48.6 68.5 69.3 +1 +43 +35 pipe industry, 5Mt for machine-building and Turkey 25.8 25.3 34.1 35.9 +5 +42 +39 2Mt for automobile production. In 2012 auto- Brazil 33.8 26.5 35.2 34.7 -2 +31 +3 mobile production in Russia reached 1 926 000 Ukraine 42.8 29.9 35.3 32.9 -7 +10 -23 units of which 1 296 000 were foreign brands Other 149.1 119.2 147.1 146.0 -1 +22 -2 and 630 000 Russian models. The foreign cars World total 1347.0 1235.1 1529.2 1547.8 +1 +25 +15 in comparison with Russian models use less World exc China 857.3 658.0 834.4 831.3 0 +26 -3 metal and so weigh less through the use of thin- ner gauge high strength steel (HSS & AHSS Table 1 World‘s top ten steel producing nations in 2012 Source: worldsteel such as Dual Phase, TRIP, complex-phase steel) and have improved safety standards. Russian over 2011, but almost half of this growth in pro- In 2014, in connection with the commissioning steel producers are now able to supply these duction was due to net exports increasing of new EAFs (at Severstal at Balakovo, NLMK HSS and AHSS to the domestic market. (exports increase ~7Mt while imports decrease at Kaluga and UMMC at Tyumen) with a total Andrey Boyko, Commercial Director B2B by ~2Mt). Growth of apparent steel consump- crude steel capacity of 3.65Mt/y, the potential Centre, Russia’s largest operator of e-com- tion in China was less than 2% in 2012. scrap demand will grow by 2.9Mt a year. The merce founded in 2002 spoke on leadership The Russian steel market is one of the most potential scrap need for Russia will reach about development and the launching of e-commerce dynamic in the CIS (Table 3) with consumption 35Mt/y, which is the maximum scrap collection systems for corporate customers, including up 5% in 2012, imports up 7% and exports up achieved in the country so far. Russian metallurgical companies. 10%. Consumption of steel products used in Ciaran Roe, Associate Editor, Metals Group construction were the most rapid to grow. Platts presented the Russian scrap market post Raw materials Ukraine, the second largest steel market in CIS, Russia joining WTO last year. According to The Session on raw material markets was mod- showed an overall decrease in consumption in Platts scrap exports increased in 2012 signifi- erated by Aleksei Mojarov, Project Manager of 2012 of -5.3% (Table 4). In Kazakhstan, cantly, up 15.7%. with 2.3Mt exported to the Trust Fund on Iron Ore Information UNC- despite double-digit growth in recent years, Turkey in 2012. Russia’s accession into the TAD and he also presented an overview of the steel consumption has not yet returned to the WTO means its scrap export duties are to be global market for iron ore based on the recent pre-crisis level: in 2012 consumption was 14% lowered from the current 15% (or not less than UNCTAD report ‘The Iron Ore Market 2011- less than in 2007 but grew 15.8% in 2012 over €15/t) to 5% (or not less than €5/t). The reduc- 2013’ (e-mail: [email protected]). 2011 (Table 5) . tion will be phased over five years with 2.5% The world iron ore market continues to grow Aleksander Sidorin, Purchasing Director being shaved off each year to 2017. after the recovery from the recession in 2009 OMK Steel (Russia) spoke on key tendencies in and reached 1.9225bnt in 2011, about a 4.7% the scrap market in Russia. In 2012, scrap sup- Position 2011 2012 % change increase on 2010. Output increased in most ply to Russian metallurgical companies amount- 2012 2012 regions and countries except in Europe (includ- ed to 21Mt, a decrease of 5Mt from the record on 2011 ing CIS) where production stagnated. Among level of 2007. After the 2008 crisis, the share of 1 China 44.4 51.2 15 the major producers output increased 12.7% in scrap exports doubled from 10% to 20%. In 2 Japan 40.3 41.1 2 Australia, 5.1% in Brazil and 2.1% in China. In 2012, the volume of scrap purchases by Russian 3EU27* 36.2 37.9 5 2011, international iron ore trade reached a mills increased significantly with new steel 4 S Korea 28.0 29.4 5 new record level of 1.1550bnt, up 7.9%. The capacity put into operation in Russia since 5 Russia 24.6 26.5 8 increase was the result of higher demand main- 2007. New EAFs were started at OMK 6 Ukraine 25.8 24.0 -7 ly from China while most other countries saw (1.2Mt/y), TMK (two EAF 1.0Mt/y each), 7Turkey* 16.7 18.4 10 trade levels similar to 2010. Rostov (0.8Mt/y), Amurmetall (1.15Mt/y), 8USA* 12.5 13.0 4 Iron ore prices continued on an upward Yartsevo (0.23Mt/y), Asha (1.0Mt/y), Izhstal 9 Taiwan* 10.3 10.3 0 trend as Chinese demand recovered and (0.3Mt/y) and others. 10 Brazil 10.7 9.6 -10 domestic Chinese iron ore producers were NLMK and NTMK converter shops were *estimated data for 2012 EU excludes internal trade unable to keep up with demand. In 2011 increased in capacity by 3.3Mt/y and 0.4Mt/y, respectively. Increased demand for scrap Table 2 World‘s top Change Change totalled 5.5Mt/y. The potential demand for ten steel exporters 2010 2011 2012 11/10 in % 12/11 in % scrap in Russian in 2013 is estimated at 32Mt. in 2012 Source: ISSB Long products 13853 16196 17562 16.9 8.4 Rebar 5091 6561 7814 28.9 19.1 Wire rod 1962 2070 2229 5.5 7.7 Sweden export Round bars 2677 2665 2558 -0.4 -4.0 Russia 22mt export Sections 3262 3910 4046 19.9 3.5 27mt Canada Europe inc Japan Rails 860 990 916 15.0 -7.5 export 34mt CIS import import 139mt China 130mt USA import Africa and South Korea export 11mt Middle East inc 696mt import Flat products 19817 21927 22316 10.6 1.8 Turkey 63mt import India Taiwan HR coil 7490 8659 8823 15.6 1.9 21mt export import 21mt 78mt Plate 4955 4794 4138 -3.3 -13.7 West Africa Brazil export export 14mt CR coil 3180 3532 3758 11.1 6.4 317mt Other Coated products 4192 4942 5596 17.9 13.2 import 23mt Australia South Africa Other export export export 52mt 438mt Tubes & pipes 9744 10548 9244 8.3 -12.4 78mt Seamless 2717 2962 3121 9.0 5.3
Export Large diameter 3533 3494 1759 -1.1 -49.7 Import Welded 3494 4092 4364 17.1 6.6
Fig 3 World iron ore demand and supply is about 1.071bnt which Table 3 Russian apparent consumption of steel rolled products in leaves a deficit of 22Mt Source: Renaissance Capital estimates 2012 (kt) Source: Metal Expert Consulting
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Conference report
Change Change Change Change 2010 2011 2012 11/10 in % 12/11 in % 2010 2011 2012 11/10 in % 12/11 in %
Long products 2537 2779 2776 9.5 -0.1 Long products 879 966 1139 9.9 17.9 Rebar 636 731 793 15.0 8.4 Rebar 399 506 651 26.9 28.7 Wire rod 537 509 459 -5.3 -9.9 Wire rod 36 44 49 22.4 11.9 Round bars 536 597 585 11.3 -2.0 Round bars 95 113 102 18.6 -9.8 Sections 680 775 767 14.0 -1.1 Sections 241 220 207 -8.6 -5.9 Rails 148 166 173 12.4 4.1 Rails 101 77 123 -24.2 60.0
Flat products 3465 4233 3863 22.1 -8.7 Flat products 744 856 970 15.0 13.3 HR coil 1464 1713 1607 17.0 -6.2 HR coil 325 375 403 15.4 7.3 Plate 947 1327 1078 40.1 -18.7 Plate 92 124 130 35.1 5.2 CR coil 440 480 450 9.0 -6.2 CR coil 65 73 105 12.4 43.7 Coated products 614 713 728 16.2 2.0 Coated products 257 265 327 3.1 23.3
Total 6002 7011 6639 16.8 -5.3 Total 1623 1822 2109 12.3 15.8
Table 4 Ukrainian apparent consumption of steel rolled products in Table 5 Kazakhstan apparent consumption of steel rolled products 2012 (kt) Source: Metal Expert Consulting in 2012 (kt) Source: Metal Expert Consulting
China’s ore imports were 686.7Mt and the Russia’s and Ukraine’s rising steel trade with McKinsey Energy Efficiency in Steel and Prof country accounted for 60.1% of total world iron Tu r k e y. Leonid Shevelev, Chief Scientist, CNII ore imports. During 2012, prices have Kazuo Fujisawa, General Manager Corporate (Chermet Research Institute) presented some remained more or less constant, at a level Planning JFE Steel Corporation (Japan) pre- methods of improving energy efficiency in which, although high from a historical point of sented the paper ‘Outlook of the Asian Steel Russian metallurgical plants. view, just allows high cost ore producers, main- Industry China, Japan and South Korea’. Vladimir Dyachenko, Head of Science, ly in China, to break even. Konstantin Kuzovkov, Associate Principal Norilsk Nickel presented company’s innova- With almost all iron ore producers and steel McKinsey said that exports from China will tions and Mike Kozlov, Solutions Architect, mills having abandoned the benchmark pricing slow, but India and South-East Asia will Dupont talking on sustainable approach to system there is widespread confusion about increase the trend. Developed Asia is a techno- operations risk management. prices. As for published prices, there are three logical leader and South-East Asia is planning competing price indices (Metal Bulletin, Platts ambitious capacity expansion – a threat for Financial risk management and TSI). Other prices are published on an China and Japan as demand for imported steel The final session covered financing, risk man- informal basis. Hedging opportunities for iron falls in these markets. agement and investment strategies in metallur- ore are growing. In May 2012, two physical iron Ksenia Karpman, Steel Consultant, CRU gy. Chaired by Arseniy Glazkov, Marketing ore trading platforms, the China Beijing Group analysed Chinese steel demand. Political Director, MICEX (Moscow Stock Exchange) International Mining Exchange (CBMX) and transition in China may end some uncertainties, heard bankers discuss how to satisfy the long- GlobalOre started their operations. The full and be more influential in the longer run. An term servicing needs of a cyclical, capital-inten- effects of the new pricing mechanisms are still economic upturn will not take us back to the sive and asset-based metals industry. unclear but it is unlikely that the new models previous growth levels since China’s economy is According to Aleksandr Gareev, Head, will have any major effect on prices. It is how- in a transition to longer term sustainable Metals & Mining, Gazprombank, in 2012 ever evident that price volatility will increase growth, which is less steel intensive. Production Russia showed a fall in the financing of the compared to the previous system, where prices and capacity growth will also slow, but overca- Russian metallurgical sector for the first time were set once a year. pacity will remain for several years, meaning since 2009. Gazprombank is the third largest The three largest mining companies, Vale, continued low prices and mill margins. Net bank in Russia in terms of total assets and equi- Rio Tinto and BHP Billiton together supply exports will be around 30Mt/y. Due to the high ty. The Bank’s principal business areas are cor- 34.7% of world ore production. Vale (of Brazil) and rising marginal costs of mining, Chinese porate banking, retail banking, investment remains the world’s largest iron ore producer at imports of iron ore and coking coal will contin- banking and depositary services. 323Mt, Rio Tinto has grown by 8Mt to reach a ue to rise. Opportunities exist for Russian raw Boris Krasnojenov, Director Metals and market share of 9.6% and BHP Billiton materials exporters as a result. Mining Research Renaissance Capital said the increased production by 24Mt to reach 173Mt Mansour Yazdizadeh, Deputy Managing selling price of steel has rallied across all regions or 8.8% of the market. Measured by the per- Director in Sales & Marketing, Esfahan Steel supported by the increasing price of raw mate- centage of global seaborne trade, the share of talking spoke about the Iranian steel and iron rials. He noted positive dynamics in coking coal each of these leading ore exporters increase ore market. According to him Iran will stop and ferrous scrap in 1st Q2013. Low-volatile compared to their totals of ore production: Vale importing billet and continue to export long hard coking coal prices bouncing back from alone controls 24.9% of the world market for products but will still import flats. The export $140/t to $170-175/t, FOB. The positive seaborne iron ore trade and these three largest of iron ore and scrap will be limited by the dynamics in the ferrous and carbon sector was companies together control 57.3%. export duty. Iran has a plan to launch some not driven by the developed world as the rally New iron ore mining capacity taken into cokemaking capacity and build DRI plants. was led by China. operation since May 2011 totalled125Mt. As of Gorkem Bolaca, Director, Tat Metal Flat Ivan Polyakov, Chairman, Russia Hong Kong May 2012, the total project pipeline contained Steel Mill and Ersun Ozdemirel, Export Association and Barry Ehrlich, Senior Analyst, 796Mt of new production capacity to come on Manager, Borcelik presented topics on interna- Alfa Bank presented topics on the best sources stream up to 2015. Of this total, 28% of the tional and regional steel trade with a focus to for financing. projects are to be found in Oceania (Australia), Turkey and China. Before closing the conference industry lead- 15% in Latin America, 14% in Africa, 20% in ers’ debated crucial issues in a frank discussion Europe, 10% in North America and 12% in Innovations & investments moderated by Rodrik Cave, Director, Russia & Asia. It was estimated that iron ore use will Session 6 addressing cutting-edge technologies CIS, CRU Group. increase from 1922Mt in 2011 to about and operational efficiency was chaired by 2000Mt in 2012 and 2080Mt in 2013. Mikhail Filonov, MISIS. Aleksandr Starchenko, Director for Energy, NLMK said that end-user Contact Steel export markets electricity cost in Russia today is about the same Adam Smith Institute, 9 Northburgh Street, A special focus on China and East Asia was level of 7-8 UScent/kWh as it is in the USA and London EC1V 0AH, UK made by six speakers in the session on Export EU. This lowers the competitive strength of Tel +44 (0)207 566 0992 Fax +44 (0)207 505 0079 markets, which was again moderated by Russian metals producers and there is a need to email [email protected] Alexander Gurov, Russian representative Steel introduce energy savings projects. www.asi-conferences.com Times International. The topics also covered Sergey Kiselev, Associate Principal, www.RussianMetalsSummit.com www.cismetals.com
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Stainless steel
Stainless steel forum ventures into strategic minerals
The 2013 Annual Forum of the British Full Year Change (%) First 9-months Change (%) Stainless Steel Association extended its Region 2010 2011 2011 2012 usual remit of addressing production and consumption issues of stainless steel this W Europe & Africa 7.878 7.878 0.0 5980 6.024 0.7 Central & E Europe 0.340 0.391 15.2 0.307 0.274 -10.6 year to include a challenging presenta- The Americas 2.609 2.486 -4.7 1.929 1.824 -5.5 tion on measures being taken to safe- Asia (Excl China) 9.011 8.770 -2.7 6.593 6.583 -0.2 guard supplies of strategic materials vital China 11.256 12.592 11.9 10.575 11.407 7.9 to the modern electronic economy. World Total 31.094 32.116 3.3 25.384 26.112 2.9 Source: ISSF
Table 1 Stainless crude steel production (Mt)
THE annul forum and luncheon of the British Commenting on prices, Alistair Ramsey said Looking to the future, Mr Ramsey said the Stainless Steel Association (BSSA) took place these had recovered somewhat but remained short term price gains may only be temporary as in its regular venue at the Cutlers’ Hall in subdued compared with early 2011. The price a decline in the surcharge occurs as the price of Sheffield on 21 March. of cold rolled 304 strip in USA and Europe had nickel continues to fall and output from China The Forum heard two presentations, one by declined from US$4500/t in April 2011 to a low continues to exceed demand. However, any fall Alistair Ramsey, Head of Research for Metal of ~$3100 (in Europe –31%) and ~$2900 (in in price will partly be alleviated by an increase Bulletin (and formerly of CRU), who spoke on USA -35%) by January 2013. The price in in demand (Fig 2). the market outlook for stainless steel, and the March recovered to around $3200 in both other by Susanne Baker, Senior Climate and regions. Prices in Asia remained lower through- Security of resources Environmental Policy Advisor for the UK out this period declining from ~$3100 in Susanne Baker, Senior Climate and Manufacturers organisation (EEF) who spoke March 2011 to ~$2750 in March 2012 passing Environmental Policy Advisor for the UK on actions needed to ensure the security of sup- through a low of ~$2550 in August 2012. Manufacturers organisation (EEF) addressed ply of critical materials such as rare earth The alloy surcharge was partly the reason for the security of supply of key minerals, although elements (REE) and key alloying elements for this price trend but also a drop in demand dur- surprisingly did not address the key nickel and steels. ing 2012 occurred as industrial output faltered, chrome required for stainless steel. Chromite Addressing stainless steel markets first, Metal particularly in Italy, but also in UK and even ore has a limited distribution throughout the Bulletin estimates global crude stainless pro- Germany, although the index of output here world with main production being in South duction in 2012 to be around 35.2Mt, up 4.5% remained positive except for a dip around Africa (39%) India (16%), Kazakhstan (15%) on 2011. Much of this growth is the result of August 2012. However, since October 2012 Zimbabwe (5%), Finland (4%) Iran (4%) and accelerated growth in China in the final quarter some signs of recovery in output have been Brazil (2%) with several other countries pro- 2012. seen leading to some increase in the base price ducing the remainder of less than 10% of world The official figures published by the of stainless steel. production. In 2008, about 22Mt of chromite International Stainless Steel Forum (ISSF) (a In China, prices have fallen even more, the ore were produced. division of the World Steel Association) were ex-warehouse price for Taigang 304 CR strip In contrast, nickel deposits are more widely only available for the first three quarters of fell 10% in 2012, from ~RMB 20200/t ($3250) distributed. In 2011, Russia was the largest pro- 2012 at the time of the BSSA forum in March, in February 2012 to ~RMB 18200 ($2930) in ducer but major production also comes from but these indicate that again China has been February 2013, despite a short lived recovery Indonesia, the Philippines, Australia and the leading driver of stainless steel production, around September. The ex-works Taigang price Canada. China produced 80kt in 2011. In all, output growing 7.9% in the first three-quarters fares a little better falling ~9.5% from 14 countries produced 95% of the 1.8Mt of ore of 2012 to 11.4Mt, accounting for 44% of world RMB22000/t ($3538) in Feb 2011, but unlike mined in 2011. Estimated reserves are present- output. (Table 1). ex-warehouse has seen a recovery since ly 80Mt of which China has 3Mt. In 2012, C&E Europe saw a marked decline December to RMB 19900 ($3200). Susanne Baker concentrated more on ele- in output of -10.6% compared with a growth of Despite the low prices in China, output has ments such as cerium, gallium, germanium, indi- 15.2% between the full years 2010/11. In the continued to rise there in all grades of stainless um, lanthanum, yttrium: metals which are core Americas, a decline in output continued and steel (Fig 1). ingredients in the production of components for likewise in ‘other Asia’ (excluding China), but Despite a decline in output in the America’s, what we now consider to be everyday objects to a lower extent than the Americas. Output in consumption in USA has remained steady since such as energy saving lamps, solar cells, mobile Europe and Africa increased by just 0.7%. the start of 2011 at around 1.3Mt a year. phones, flat screen televisions, computers and
5.0 5,500 USA 4.5 300 5,000 400 Europe 4.0 4,500 200 Asia import 3.5 ISSF 200 4,000 3.0 3,500 2.5 2.0 3,000 prices, US$t 1.5 2,500 1.0 2,000 0.5 Forecast 1,500
0.0 Cold-rolled (CR) 304 2mm/2B sheet Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 08 09 10 11 12 13 Chinese stainless crude production, mt
Fig 1 Output of all grades of stainless in China rose 7.9% in the first Fig 2 Price volatility of cold rolled stainless strip since 2008 by 9-months 2012 Source: Metal Bulletin Research, CSS, ISSF region (US$/t) Source: Metal Bulletin Research
www.steeltimesint.com Steel Times International – May/June 2013 – 33 bssa_Layout 1 5/21/13 8:35 AM Page 2
Stainless steel
Endangered due to: Canada Russia ɁLimited amount on the planet. ɁBeing used in dispersive technologies. ɁRapid growth in use due to Ɂ Ɂ Cobalt Platinum Group Metals technology application. ɁMethod of obtaining is disproportionately India damaging to environment. ɁAvailability a goepolitical issue (political Ɂ Graphite instability). ɁLack of recycling – technial and/or infrastructure
Japan Ɂ Indium USA Ɂ Beryllium
Mexico China Ɂ Antimony Ɂ Fluorspar Ɂ Beryllium Ɂ Fluorspar Ɂ Brazil Gallium Ɂ Graphite Ɂ Niobium Ɂ Germanium Ɂ Tantalum Ɂ Indium * Lanthanide series Ɂ Magnesium ** Actinide series Ɂ Rare earths Ɂ Tungsten South Africa Democratic Republic of Congo Rwanda Ɂ Platinum Group Metals Ɂ Cobalt Ɂ Tantalu Serious threat in Rising threat from Limited availability Abundant Formed by Insufficient Ɂ Tantalum next 100 years increasing use future risk to supply element radioactive decay information
Fig 3 Geographic distribution of sources of strategic minerals Fig 4 Periodic table illustrating scarcity of strategic materials Source: Baker EEF Source: Royal Society of Chemistry, UK
Domestic Antimony material Berryllium Mechanical equipment; GVA: £12bn extraction Biomass [Mt] Metals; GVA: £14.2bn 360Mt Exports (inc Minerals and metals [Mt] Cobalt Electrical equipment and domestic exports of Other [Mt] appliances; GVA: £5.9bn recyclate) 80Mt Fluospar Recycling [Mt] Electronics & ICT; GVA: £10.8bn Other: Gallium Landfill [Mt] 315Mt Road transport; GVA: £9.3bn EfW [Mt] Germanium Imports Chemicals; GVA: £11.5bn Household [Mt] 125Mt Graphite C&I [Mt] Rubber platics & glass; GVA: £9.2bn Indium CD&E [Mt] Construction material; GVA: £7.2bn Domestic Magnesium Domestic Other final consumer goods; GVA: £6.3bn material material Niobium input consumption Landfill: 60Mt Pharmaceuticals; GVA: £7.6bn 600Mt 520 Mt EfW: 5Mt EU14 critical raw materials PGMs Other:35Mt Refining; GVA: £2.8bn Rare earths Beverages; GVA: £4.5bn Tantalum Waste Recycling: 115Mt Tungsten Aircraft, shipbuilding & trains; GVA: £8.5bn 205Mt
0% 20% 40% 60% 80% 100%
Fig 5 Uses and Gross Value Added (GVA) contribution to UK econo- Fig 6 Sankey diagram illustrating lack of closed circuit recycling in my of 14 strategic minerals Source: Baker EEF UK Source: Baker EEF
other technically sophisticated products. – Eu – red colour in TV; used for ~50 years; diagram to illustrate the flow of resources The EU, she said, is becoming increasingly – Nd – permanent magnets; used for ~27 through the UK economy. dependent on ‘critical’ raw materials concen- years; Although emphasis has been placed on the trated in a small number of countries (Fig 3). – Sm – permanent magnets; used for over 30 strategic need for rare earth elements, in the This comes with the potential for countries to years; longer term, there are concerns about a much impose restrictions to secure resources for their – Ce – three-way catalytic converters broader range of materials and resources: own economies and promote their own indus- (automotive exhaust) – used for ~30 years. water, agriculture land, palm oil, aggregates, tries. Combined with Europe’s heavy reliance fish, gold, magnesium and phosphorus, for on imports of raw materials, both primary and While recycling is a means of recovering example. secondary (ie ferrous and nonferrous scrap), some of these key elements the United Nations Governments are responding: this poses significant risks to supply security for Environment Programme (UNEP) Ɂ Germany: Promote domestic exploration, the future. International Resource Panel identified global technology partnerships with producer coun- A combination of geopolitical pressures and recycling rates of less than 1% for a range of tries, diversifying suppliers, focus on material demographic changes are already starting to critical metals. efficiency, recovery and recycling and politi- exert some pressure such as the restriction of In many cases technologies exist to recover cal support to German companies. R&D into exports of REEs by China which presently and recycle critical metals to purity levels resource efficiency and substitution and an accounts for 95% of global production. required for re-use, although for some of those early warning system for global mineral eco- The Royal Society of Chemistry has pro- metals and minerals which have only relatively nomic developments. duced a Periodic Table highlighting current recently become widely used recycling tech- material risks (Fig 4). nologies are still quite new with limited com- Ɂ US: Identification and prioritisation of criti- An EU report; ‘Critical raw materials for the mercial application. cal materials, bilaterals and international dia- EU’ has identified 14 raw materials and metal The main barrier to recovery is the dispersal logues, data collection and dissemination. groups, of specific and immediate concern for of a very large number of components contain- R&D into recycling, design for recycling, the European Union countries. Their impor- ing such metals often in very small quantities in resource efficiency. Focus on rare earth sub- tance to the UK economy in terms of Gross such items as electrical and electronic equip- stitution in magnets, motor design, batteries Value Added in manufactured goods and their ment. Also there is the difficulty of establishing and photovoltaic. Loans, incentives and tax uses are presented in Fig 5. the commercial value of recycling given the credits for technology development. For some of these substitution or partial sub- practical difficulties of collection and separa- stitution is possible but others not so: tion of high value metals. Ɂ Japan: Stockpiling, loan guarantees for high In UK, of 600Mt of minerals and metals risk mineral projects, funding for internation- Ɂ Partial substitution: extracted and imported into UK each year, al exploration, research into substitution. – Pr for Nd in NdFeB magnets; about 80Mt of ‘waste’ is sent abroad for treat- – Y for high temperature superalloys – used for ment, 100Mt goes to landfill or incineration Ɂ Netherlands: Government-industry coopera- ~30 years. Al, Cr, could be used instead of Y. and 115Mt is recovered for re-use. Thus a ‘lin- tion through the M2i institute, seeking new ear’ model exists rather than the closed loop supplies, closing cycles and alternatives, Ɂ No substitution to date required for sustainability. Fig 6 uses a Sankey R&D in substitution and recycling.
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Stainless steel
Ɂ China: Taxes and quotas on REE exports, – Companies involved in resource extraction resources ‘away’. These companies need to prohibit foreign mining of REE; production will increasingly see opportunities in resource move into re-processing these materials and quotas, R&D into rare earth separation tech- recovery. dominate future supply with their reverse logis- niques and metallurgy. – Manufacturers could move away from just tics expertise. This requires recycling compa- Ɂ South Korea: Financial support for Korean manufacturing products to managing prod- nies to work with OEMs right from the design firms at overseas mines, Free Trade uct cycles. For example, at British Gypsum’s stage to improve the recovery and quality of Agreements with resource-rich nations, site in Leicestershire, driven by new landfill recycled material at end of life. stockpiling, R&D into recycling, design for controls, the company now operates a closed recyclability and substitution. loop process. It mines gypsum near to the This requires a huge shift in thinking: site, makes it into plasterboard, sells it, recov- – from plant/product to whole life cycle; The UK has been slow in reacting allocating ers old waste plasterboard, brings it back to – from unit operation to whole system; just £200k for R&D into substitution of materi- site, grinds it up and reincorporates this – from process and product to service. als. However, in March 2012 ‘The Resource ‘waste’ into new plasterboard. Security Action Plan’ was developed as a joint In response the UK’s EEF has: Defra (UK’s Department for Environment, Companies may thus have to manage – Convened and chair the Material Security Food and Rural Affairs) and BIS (UK’s changes in the way consumers and customers Working Group to recommend policy actions Department for Business, Innovation & Skills) fulfil their needs away from simple disposable to improve access to resources for manufac- document. consumerism. In practice this means a move turing. This commits UK government to improve the away from selling products to selling the func- – Calling for an Office of Resource functioning of the waste electrical and electron- tionality of products ie selling services. This Management to coordinate activity across ic equipment programme, collect better data on trend is already happening – although arguable government and enhance focus on this issue. the flow of materials in WEEE (EU Waste it is driven by the need to be competitive and – Is calling for changes to encourage more Electronics and Electrical Equipment directive) being able to distinguish ones products in a domestic recycling of materials, raise aware- around the UK economy, launch a new competitive market place. ness of material security issues and improve resources dashboard to help companies get their The classic example is Rolls Royce. They no incentives for resource efficiency; and hands on the information they need to assess longer sell jet engines, they sell ‘power by the – Is an observer to the Circular Economy Task resource risks and an innovation challenge. hour’. They retain ownership of the asset Force. The EEF’s own report looking at man- A consortium of businesses, convened by the throughout its entire life and the emphasis is ufacturing in a circular economy will be pub- Green Alliance, is also considering mechanisms instead placed firmly on resource efficiency. lished later this year. ᔢ to help organisations address resource opportu- Financially they have made it work. Alongside nities and concerns. This has been very much an impressive growth in revenues, they are now focused on efforts in looking at ways to encour- generating more from their services business Contacts age a ‘circular’ economy in which future supply than from sales of their original equipment. BSSA www.bssa.org.uk/ e-mail [email protected] chains will incorporate feedback loops and be At the end of the supply chain, increasingly Metal Bulletin Research much better at separating biological and techni- waste management companies are realising that Tel +44 (0)20 7827 6487 www.metalbulletinresearch.com cal materials. This requires that: they are throwing far too much valuable EEF www.eef.org.uk/default.htm Tel 020 7654 1690
On the web Improving thermo-mechanical rigidity of caster rolls in continuous casting machines
A mathematical model has been developed to predict the deflection of caster rolls – and hence the resulting internal quality of cast slab – under various conditions of temperature, roll material and ceramic insulating coating on the roll. It predicts the mini- mum thickness of coating required and shows that while cast-iron rolls require a thicker coating than steel the resulting deflection is less. By M O El-Bealy*
THE concept of thermo-mechanical rigidity of slab and results in a decrease in roll deflection face temperature of the roll. caster rolls has been developed to optimise and surface wear. The model predications also resistance to thermo-mechanical and friction show that improving roll mechanical properties • The maximum deflection of the roll and stresses in continuous casting machines. The increases roll performance and life. friction energy depends significantly on the idea behind this concept is to maximise the roll This new approach has the aim of maximising surface temperature and type of material of resistance against the various stresses by using the thermo-mechanical rigidity of caster rolls the roll. two approaches. One is by minimising the heat and employs two-dimensional (2-D) mathemat- flow from the cast steel slab to the roll by insu- ical models to simulate the surface temperature • The thermo-mechanical rigidity of the roll lating the roll surface with a ceramic layer. The of the slab and the heat transferred to the cast- and the minimum required thickness of the other is to improve the mechanical properties er rolls as well as to optimise the thickness and insulating coating on the roll surface of the roll material. thermal conductivity of the insulating ceramic depend significantly on the insulating prop- A mathematical model of thermal, solidifica- surface layer on the roll. The main conclusions erties of the ceramic coating and on the tion, stress analysis and cooling conditions has drawn from the investigation are: mechanical properties of the roll material. ᔢ been developed based on earlier approaches. The model predicts that increasing the insulat- • A ceramic insulting coating on the roll sur ing layer thickness or decreasing its thermal face has a significant effect on reducing conductivity decreases the peak surface tem- heat transfer in the contact region between Follow the link www.steeltimesint.com/features perature of the roll at the contact area with the the roll and slab and thus reduces the sur to the full article.
The author is Companies Chair of Materials Processing & Technology, MTC-Egypt, CTU-Germany, KTH-Sweden, MIT-USA & Sweden Branch: Royal Institute of Technology e-mail [email protected]
www.steeltimesint.com Steel Times International – May/June 2013 – 35 interpipe profile_Layout 1 5/16/13 3:32 PM Page 1
Company profile
The artifical ‘Sun’ Artwork created by Danish artist Olafur Eliasson
Interpipe manages a new concept of steelmaking in Ukraine
It is not so much the technology – but the attitude to steelmaking which marks out Interpipe’s new minimill as a paradigm shift in steelmaking in the Ukraine.
DECADES after most of the world phased out future to 2Mt/y, and provision has been made hearth furnaces which had previously supplied open-hearth (Siemens Martin) steelmaking first on CCM 1 to add a sixth strand. 500kt/y had been closed and the fourth was introduced to the industry in 1862 (soon after Although work commenced in 2007, the closed in mid November. Bessemer launched his pneumatic converter financial crisis of 2008-9 delayed completion of The new EAF steelworks has sufficient technique) the Ukraine was still producing over the work such that the first hot metal was cast capacity to meet all of Interpipe’s steel needs a quarter (26.2%) of its 35.3Mt crude steel out- on January 17th 2012 and the first pipe rolled for railway wheel production and 90% of its put by this method in 2011 (Table 1). from billet on February 7th. needs for seamless pipe production (by 2014), Although the process had been improved By October 2012, three of the four open where previously they had to import billet for since its conception – largely by oxygen lancing 70% of pipe production (already meeting 100% to speed up the process which otherwise took Country Tonnes % Country of wheel production). upwards of eight hours to make steel, or by the (Mt) total introduction of twin hearths operated out of Ukraine 6.60 26.2 New culture of work phase replacing the recuperator used in the tra- Russia 6.68 9.7 The new steelworks employs around 500 peo- ditional process to preheat the air used in com- Other CIS 0.97 10.4 ple, selected from 4200 applicants and a further bustion – the technology remained inefficient India 1.00 1.4 200 work in supporting businesses. with low productivity, high energy demands and Other Asia 0.97 0.1 Dnepropetrovsk is a centre of metallurgical high levels of emissions. Latvia 0.90 100 industry in the Ukraine and consequently a Thus, pipe and railway wheel manufacturer, EU 0.87 0.5 high calibre of applicant was available to Interpipe decided in 2007 to replace its 500kt/y World 18.17 1.2 Interpipe. 69% of the workforce has a universi- open hearth capacity in Dnepropetrovsk with Source worldsteel ty degree and 327 employees have undergone electric arc steelmaking. Danieli was chosen as additional training, many at Danieli in Italy and the main technology contractor to build a new Table 1 Remaining Open Hearth Steelmaking BSE in Germany for on-plant training. The steelplant of 1.3Mt/y capacity comprising an capacity in 2011 average age of the workforce is 31 years. EAF, twin ladle station, double tank vacuum degassing station, two continuous casters (for Parameter Comment rounds), fume treatment and water treatment Total capacity 1.32Mt/y round billet & bloom facilities (Table 2). Unusually, they were also Investment US$ 700M tasked with making the steelworks a bright and EAF 160t tap (186t heat) Danieli FastArc AC split-shell attractive place to work and commissioned – Power 140MVA +10% with O2 & C injection HiREG digital electrode regulation artist Olafur Eliasson, a Danish-Icelandic artist – Tap-to-Tap 52.7 mins = 182t/h productivity known for his large scale public works, to pro- – Feedstock 100% scrap, or 80% scrap + pig or HBI vide murals and art installations throughout the – Consumption Elec Power 375kWh/t Nat Gas 4.3Nm3/t tapped steel Oxygen 38Nm3/t tapped steel works. One of the most striking of these is ‘The – Noise EAF within Doghouse 45dBa at night; 55dBa daytime at 800m Sun’ a large illuminated disc which can not only Ladle Station Twin station 160t 25MVA+20% be seen within the works but also by the resi- Degasser Double Tank 160t 4-stage steam ejector dents of Dnepropetrovsk where it shines across Fume Extraction 1.5Mnm3/h Emissions<10mg/Nm3 Main ID fans 3 x 1800kW the river Dnipro. Con-casters 12m rad 5 strand rounds 150-290mm by 6.0-11.7m Built alongside the existing four open-hearth CCM 1 Billet Max speed 3.4m/min 770kt/y EMS in mould furnaces and seamless-pipe mill, CCM2 Bloom 12m rad 4 strand rounds 385-470mm by 6.2-9.85m Niznedneprovsky Tube Rolling Plant (NTRP) is Max speed 0.68m/min 550kt/y EMS in mould separated from it by a 2m high wire fence, and has sufficient space to increase output in the Table 2 Summary of Interpipe’s new EAF plant at Dnepropetrovsk
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Company profile
The colourful changing rooms for the workforce The 160t tapping EAF located within a ‘doghouse’
Strict rules apply to everyone working on site required a 30m safe zone beneath it with build- ‘state-of-the-art’ technology available today, – no alcohol, no smoking and no mobile ings demolished in this zone. Interpipe’s new EAF minimill at phones. This is strictly enforced with each While the direct connection to the works is a Dnepropetrovsk is indeed impressive showing worker being required to change into fresh coal fired station, and therefore creates signifi- the way ahead for the Ukrainian steel industry. work clothes at the start of each shift, leaving all cant CO2 and other emissions, Ukraine’s over- The work’s management is pleased to wel- personal possessions in a locker . The colourful all power network emits considerably lower come the people of Dnepropetrovsk to visit the and smart overalls and boots are replaced with CO2 emissions than many countries. Ukraine’s plant and other steelmakers to prove that steel- clean ones after each 12 hour shift. power generating mix is 48% nuclear, 44% fos- making need not be a ‘black’ industry as in the Because of this marked change in the culture sil fuel and 7% hydro which, according to the past but is a ‘white’ industry for the future. ᔢ of the work-place, none of the former open- Carbon Monitoring for Action (CARMA) hearth workforce were considered for re- group, produces an average carbon footprint employment in the new steel plant. for power generation of 386kgCO2/MWh. This A four-fold increase in labour productivity compares favourably with such countries as About Interpipe compared with open-hearth steelmaking is China (865kg), India (803kg), USA (609kg) targeted. and Germany (612kg). Interpipe is a privately owned company in Ukraine specialising in the production of Green credentials Feedstock tube, pipe and railway wheels. In 2011, Interpipe was one of the top 15 com- The demand for scrap will nearly double to panies in Ukraine rated on environmentally 1.45Mt/y. To meet this increase Interpipe has It has five operating sites: friendly projects, according to ‘InvestGazeta’. completed the modernisation and expansion of – Interpipe NTRP at Dnepropetrovsk In 2009, the Company was the winner of the its scrap processing company, Interpipe (former OH steelmaking now closed); first Ukrainian Contest for corporate social Vtormet. Scrap is collected within Ukraine and – Interpipe NTRP at Dnepropetrovsk responsibility for environmental protection. stored under cover at the works to ensure it is (seamless pipe production and railway A reduction in energy input of 2.2 times com- dry and ice free in winter. A two-bucket charge wheel manufacture); pared with open-hearth steelmaking is targeted. is made to the EAF for each heat. – Interpipe Steel at Dnepropetrovsk (new The reduction in natural gas consumption will No scrap pre-heating is performed and the EAF steel plant commenced production be 60Nm3 a year, equivalent to the weekly con- conventional method of top charging employed January 2012); sumption of gas by the city of Dnepropetrovsk. requires the removal of the roof for each charge – Interpipe Niko Tube at Nikopol Emissions to the atmosphere are 2.5 times and hence loss of heat. Hence power consump- (Seamless oil country tubular goods – lower than from the open-hearth furnaces and a tion is not exceptional at 375kWh/t liquid steel OCTG) plant recirculating water system eliminates dis- at a tapping temperature of 1630ºC. – Interpipe NMPP at Novomoskowsk charge to the river Dnipro. No heat recovery is carried out on the flu-gas (Electro-welded pipe). An underground 330kV power line was laid ducting, conventional dilution with air being under the river Samara to connect the works to employed to lower the gas temperature suffi- Qualifications in markets the Pridneprovsk thermal power plant. This is ciently for safe entry to the bag-house. – Prequalified supplier for OMV company the largest such interconnection in Ukraine and A dedicated lime plant was supplied by (Austria) for oil & gas pipes; necessitated the building of a substation at the Cimprogetti of Italy and a new ‘over-the-fence’ – Qualified supplier to Bladt Industries steelworks. By laying the line underground, dis- oxygen plant owned by Messer meets the needs (Denmark) for pipe for wind turbine ruption to the population along the route was of the new steelplant. manufacture; minimised, an overhead line would have Although not employing all the available – Qualified by SKF for supply of cold and hot deformed pipe for bearing ring Continuously cast bloom and billet meet the quality requirements of previously ingot cast steel manufacture (ISO TS 16949:2002 & ISO 9001); – Approved by Belarus State Industrial Supervision Agency for corrosion resist- ant two-three layer coated pipe. – UKAS (UK) accreditation for the new VAM type threaded connectors for well- drilling pipe. – Deutsche Bahn accreditation for KLW brand railway wheels EN13 262 & EBN 918 277; – Wheel supplier to Ukrainian, Russian and Kazakhstan railways.
Contact Interpipe, 1A Pisarzhevskogo Street, Dnepropetrovsk, 49000, Ukraine Tel +380 56 60 06 www.interpipe.biz
www.steeltimesint.com Steel Times International – May/June 2013 – 37 services_Layout 1 5/20/13 12:30 PM Page 1
Services
Improved supply of cooling water to Outokumpu AvestaPolarit
As part of the investment to doubling output at Outokumpu’s Avesta works higher capacity cooling water supply was required for the reheat furnace and steckel mill.
COOLED, clean process water is vital to steel Water treatment production. This is well demonstrated by three plant installed at successful projects carried out over a four-year AvestaPolarit, period to provide critical water infrastructure Sweden for the hot strip mill of Outokumpu Stainless in Avesta, Sweden. AvestaPolarit, a leading producers of stainless steels in both standard and special grades required: – Expansion of the existing cooling plant and water treatment plant; – Expanded cooling capacity of the plant’s walking-beam furnace; and implemented electrical and SCADA installation with impure water from a nearby river and – Delivery and installation of three booster as part of a monitoring system. reduced the risk of pipe corrosion. Two cooling pumps and an improved system to control condensers replaced the existing single con- water flows. Scope of supply denser and were mounted on an elevated base The scope of the project was to meet the needs frame to facilitate service and maintenance. Tailored solutions for hot rolling and included the supply of cool- With the new system in place, the cooling Veolia Water Solutions & Technologies, located ing water to both the reheat furnace and the plant provides the walking beam furnace with in Sweden, organised, executed and managed steckel mill which produces coils weighing up to sufficient quality cooling water to meet its the project. The Company acted as consultant 30t in strip 2 to 13mm thick and of maximum needs. Improved cooling water, in turn, min- and engineer, providing a complete turn-key width 2m. The hot rolled coil is then sent for imises production losses caused by water too service. This consisted of everything from further processing to other mills in the hot to recirculate. developing the concept, completing the engi- Outokumpu Group. Target steel production neering design, constructing the treatment was set at 1Mt/y, a goal well within reach now Frequency-control plant, programming it and commissioning it. that the expanded water treatment plant is up A few months later, Veolia once more signed a The work was completed on time and within and running. contract with Outokumpu Stainless, this time budget and drew positive comments from those to implement an improved control system for involved in the project on the client side. Reheat furnace the water sprays on the Steckel mill rolls. In Autumn 2000, Veolia signed the contract Building on this success, Veolia signed a second Previously, the plant used three booster with Outokumpu Stainless to expand the cool- contract with Outokumpu Stainless in the pumps to provide cooling water through cool- ing plant and water treatment plant and to spring of 2004 to complete an expansion of the ing ramps. In a typical operation one of the ensure the pump station could achieve 95% cooling system for the plant’s walking beam fur- pumps ran continuously when rolling was in recirculation of pure water. The expansion was nace. The project’s goal was to ensure sufficient progress. None of the pumps had frequency part of the plant’s aim to double stainless steel cooling capacity and good quality cooling water. control to adjust the speed of the pumps. Such production. The original cooling capacity of the walking control would result in a more stable tempera- The original water treatment plant was beam furnace was designed for 7.85MW, with tures on the rolls, which has a positive effect on designed to supply water for the production of the inlet temperature of water on the original rolling.” 300kt/y of stainless steel, but the decision to condenser at 112ºC and an outlet temperature In addition, Outokumpu Stainless wanted a invest in increasing annual production capacity of 90ºC. pre-defined flow feeding water to the cooling to 600kt/y required a larger water treatment As with the hot strip mill cooling-plant pumps. And it wanted to try different flows facility. expansion, Veolia took on total project-manage- depending on the degree of roll cooling As project manager, Veolia not only executed ment duties – from idea conception to system required, so the need for an improved control numerous subcontracts but also purchased all delivery. system was critical to the production process. parts and equipment, oversaw delivery of stain- Key project elements included construction Veolia oversaw removal of the existing pump less steel DN15-DN800 piping and machinery and commissioning of cooling-media con- foundation and the concreting in of new founda- that included a new pre-separator, new sand fil- densers and installation of a ‘Filtomat’ auto- tions, the delivery of a new pump with frequen- ters and pumps, erected a cooling tower and matic filter, which avoided filling the system cy-converter drive and several adjusting valves. The replacement of worn piping with stainless steel piping up to DN500; and matching of new devices to the existing control system was also undertaken. Working closely with Outokumpu Stainless personnel, installations were carried out during planned maintenance stoppage, which helped minimise mill downtime. The results were impressive; better control of the cooling water to the rolls which contributes to their greater durability and service life; increased cooling capacity which helps boost productivity, and electrical power savings pro- vided by the frequency-controlled pump.
Illustration of the quality of recirculated plant water Contact www.veoliawaterst.com/
38 – May/June 2013 – Steel Times International www.steeltimesint.com morgan refractory_Layout 1 5/16/13 3:33 PM Page 1
Refractories
Improved insulating linings for furnaces
Installing insulating fibre board behind the hot face refractory is vital to reduce energy loss. Although the initial cost of traditionally used calcium silicate board is less than that of Morgan’s Superwool Plus Blok, its insulating performance is 15-20% lower meaning energy savings can pay for the difference within seven weeks of use. By D Barrington*
SELECTING the most effective insulation material for furnace applications is a key consid- eration and one that can deliver a major per- formance advantage and measurable commer- cial return. When the impact of thermal conduc- tivity on long-term cost and energy efficiency is taken into account, the benefits of an effective insulation material soon become apparent. A range of materials is available for the market, yet it can be difficult to understand the benefits of one material when compared to another. However, whatever insulation material is cho- sen, its key attribute should be low thermal con- ductivity, which will restrict the flow of heat from the furnace to the external environment. Heat loss from a high temperature source such as a furnace is dominated by infra-red radiation. This is blocked by the fibres con- Low bio persistent Superwool Plus Blok tained in a fibrous insulation material. The larg- offers superior insulating and mechanical Cutting calcium silicate board requires the er the number of fibres, the more effective the properties to calcium silicate board use of a respirator due to dust generation insulation will be. A superior insulation materi- al will therefore have the best possible fibre Recent tests carried out at the most common Cost of energy efficiency index and contain a minimal number of 'shot' operating temperatures for furnace back-up There are numerous reasons for companies to (unfiberised globular glass fibre) particles. board – between 600ºC and 800ºC – revealed prioritise the energy efficiency of their opera- Some materials on the market feature high shot that in the key area of thermal conductivity, the tions, including surcharges on energy bills, tax content and coarse fibres, neither of which are latest low bio persistent fibre-based board out- credits for energy-saving initiatives and beneficial for blocking high temperature ther- performed calcium silicate by an average of increased capital allowances for resourceful mal radiation. 20% at 600ºC and 15% at 800ºC. While calci- machinery investments. However, one of the When specifying insulating materials for use um silicate typically costs less than low bio per- quickest and most cost-effective ways of achiev- as back-up lining furnaces which have castable sistent fibre-based board, the increased heat ing savings is by fitting low bio persistent fibre- or brick forming the hot face, designers and losses and associated energy costs more than based boards in furnaces. specifiers must look beyond the initial purchase outweigh the lower initial purchase cost. Low bio persistent fibre-based boards almost cost of the insulating materials to ensure their The physical properties of the two materials always offer the most energy efficient solution. system will deliver optimum long-term per- should also be evaluated by specifiers. Calcium In recent testing, Morgan Thermal Ceramics formance and return on investment. The main silicate is brittle, making it prone to chipping, compared its Superwool Plus Blok® product options for these applications are typically calci- crumbling and breakage during transportation, against a leading brand of calcium silicate um silicate or low bio persistent fibre-based handling and stacking. These issues are made board, covering a surface of 380m2 with 80mm boards. Calcium silicate has been commercially worse during machining and installation. back-up insulation. available for more than 50 years, its high com- Calcium silicate also creates considerably greater Results showed that although calcium silicate pressive strength makes it well suited for such levels of dust than low bio persistent fibre-based typically has a lower purchase price, the differ- applications as kiln car bases. board when chopped, shaped or handled, which ence in cost will be repaid over the course of The compressive strength of calcium silicate potentially exposes operatives to the inhalation just seven weeks, due to the superior energy might seem like a key benefit, and while it can of a particulate. Dealing with this requires the efficiency of Superwool Plus Blok fibre mod- endure heavy loads, its lack of flexibility does use of appropriate respiratory protective equip- ules. When the energy-saving difference mean the material can be prone to cracking ment (RPE), which adds to the cost. between the two materials is considered over a when put under certain strains that are difficult 12-month period, the difference in cost is paid for the material to withstand. Fibre-based Water-resistant system back more than seven times. boards derive their strength from the interlink- A further key issue with these products is that Furthermore, in this comparison, Superwool ing of fibres during manufacture. The more of water absorption, as one installation option is Plus Blok fibre modules reduced CO2 emis- fibres that are available to link together, then to apply a castable material directly onto the sions by 190t a year compared with the calcium the greater the strength and durability of the back-up lining material. While low bio persist- silicate board. board. The advantages to a board with high ent fibre based board products are treated to be When these performance advantages are fibre count include easy installation and han- water repellent (hydrophobic), calcium silicate considered, alongside other factors such as ease dling, excellent strength and resistance to boards are highly water absorbent. This can of handling, on-site fabrication, operator satis- cracking. result in the castable becoming dry and not cur- faction and durability, it is clear that specifiers ing correctly. It can also result in water becom- are likely to reach a very different decision on Testing thermal conductivity ing trapped in the back-up lining, leading to material choice than specifying on initial pur- Low bio persistent fibre-based boards were possible material damage. Therefore, in addi- chase cost alone. introduced to the market in the mid 1990s. The tion to accelerating heat loss and requiring latest versions combine high-specification low more energy, the calcium silicate board will bio persistent fibres, fillers and organic binders. physically deteriorate and compromise the Contact These boards are engineered to maximise the effectiveness of the system, resulting in a short- Morgan Thermal Ceramics content of the low bio persistent fibres by er product lifespan and potentially unsafe work- Tebay Road, Bromborough, Wirral, Merseyside CH62 3PH, UK. reducing the size and amount of ‘shot’, and so ing conditions. Unlike calcium silicate, leading Tel +44 (0)151 334 4030 Fax +44 (0)151 334 1684 deliver significantly reduced thermal conductiv- low bio persistent fibre-based boards do not e-mail [email protected] ity offering enhanced energy-saving properties. require a water vapour barrier. www.morganthermalceramics.com
*General Manager, Morgan Thermal Ceramics UK
www.steeltimesint.com Steel Times International – May/June 2013 – 39 HISTORY may june_Layout 1 5/16/13 3:34 PM Page 1
History
The grocer who became an ironfounder to keep the chapel warm
By Harry Hodson* The moulding shop at Grundy’s Foundry in TyIdesley, WHEN John Grundy was not managing his Lancashire, UK Pic courtesy Wigan & Leigh Archives grocer’s shop on the high street of the busy Lancashire town of Tyldesley, he usually spent his time at his local chapel of worship. The congregation had long complained that the place was cold and draughty, and no one had experienced this more than he due to the hours he spent there. Being bit of a handyman, he decided to do something about it and cobbled together an iron stove and installed it in the chapel. This improved the situation and aroused further interest in his mind on how the stove could be improved to heat all the space in the chapel with greater efficiency. His stove (fed by coke) did not use heated water distributed by pipes, (right) Grundy warm air stove from Tyldesley Cemetery Chapel now on display in the Wigan as was the norm at the time, but instead hot air Pier Heritage Centre Museum Pic courtesy Hevac-Heritage was distributed through a series of cast iron pipes running beneath gratings in the floor. These pipes incorporated fins or gills which cre- Grundy, being an astute business man, had eyes After 1932 the works passed into the hands ated a much greater surface area to dissipate on other markets. of close relatives who installed new manage- the heat as the hot air passed through them. ment at the Tyldesley Foundry. This included Soon, the Wesleyan Lady Huntingdon Growing markets buying interests in the Blakewater Foundry in Chapel in the coal and cotton town of Tyldesley A high gantry in the moulding shop with a 10 Blackburn. Also, by this time, the firm was busy Lancashire, became the first public building to ton travelling hand powered crane allowed the meeting the growing demand for municipal benefit from this system. Word soon spread firm to accept orders for heavy castings from castings making grids, manhole covers, gratings, about the benefits of Grundy’s heating system the machine tool industry. A fitting shop and and gulleys. Grundy decided they were to have and he started to receive enquiries from pattern shop on two floors were powered by a slice of this lucrative market created by the churches and public buildings to see if he could line shafting driven by a large electric motor on inter wars house and road building boom. They provide them with efficient low cost heating. the lower floor. A drying oven for mould cores simplified their patterns and trained a semi Realising the potential of this, John Grundy heated by one of the firm’s own stoves attract- skilled workforce and used reclaimed green decided he would need a place to manufacture ed orders for drying ovens from other foundries sand for moulding which enabled them to com- his heating system to meet demand. In 1858 he to replace the open fires which usually caused pete successfully against mechanised shops acquired premises and began to recruit skilled scorching and uneven drying. which had developed by that time. foundry workers needed to make the cast iron The firm continued to prosper, and by the In 1950 the moulding shop was again extend- components of his heating apparatus. end of the 19th century Grundy heating appli- ed and another crane and loading bay was In 1858, South Lancashire was one of the ances had been supplied to churches, chapels, added to cope with the increased demand for forerunners of the Industrial Revolution; coal, and public buildings in many parts of the municipal castings. Things remained very much cotton, and engineering employed 90% of its British Isles. In 1907 the company published a the same for the next 20 years, but ageing direc- citizens. Presumably, Grundy recruited his book of testimonials − possibly to celebrate tors and shareholders, little investment, and skilled workers from the many foundries in the their 50 year jubilee. Among the references of sometimes bad industrial relations and prac- area that were servicing the collieries and cot- satisfied customers were letters from archbish- tices, all began to take their toll on the firm. ton mills. ops and high clergy, government ministers, and In 1974 John Grundy Ltd, ceased trading. John Grundy the grocer established his new even a letter from General Lord Kitchener. For a while, Grundy’s was taken over by Edgar business under the name of John Grundy Ltd, In 1914 John Grundy Ltd, came under Allen & Co Ltd of Sheffield, (who incidentally Ironfounders & Heating & Ventilating Government control and the company placed were the first foundry to use electric melting in Engineers. The business began to expand and on War Office and Admiralty lists to supply Britain in 1927), but this was an unsuccessful at his death in 1879, his son (also of the same castings for the duration of the war. The main venture and the works passed into a different name) took over ownership. objective of this was to increase the capacity of ownership for a short time again before com- By 1886 several different models of the stove the works for the war effort. A second cupola of plete closure and demolition. had been developed to suit different needs, and 5t/h capacity and an electric powered crane was However, The name of John Grundy Ltd, a number of patents had been secured. Also at added to the existing plant, together with an lives on. There are still a number of heating this time, the business had outgrown its prem- increased workforce. This doubled the capacity appliances in use, some of these are over a hun- ises and a new site was acquired. The site of the of the works. dred years old. The Grundy name can also still new foundry was adjacent to a railway siding By this time the Grundy family had moved to be seen on manhole covers on roadways and goods yard of a branch line of the LNWR a fashionable residence in London and opened throughout the British Isles. ᔢ railway. It was a wise choice indeed as most of an office and showroom at City Road with two Grundy’s stoves weighed several tons when smaller outlets also in the capital. A third gener- A history of the Grundy family, the works and completed, the heaviest single parts weighed ation of the family, Herbert Grundy, was now in numerous illustrations and plans of stoves can 15cwts (0.75 ton). Cathedrals, public buildings, control of the works. be seen on the website: and mansions were now among John Grundy’s Herbert Grundy was responsible for a num- www.hevac-heritage.org/victorian_engineers/ customers. ber of improvements to the original design of grundy/grundy.htm The new foundry was equipped with a cupo- the Grundy heaters. Among these were the la coke fired furnace for melting iron at the rate introduction of electric fans and the use of oil Enquiries for maintenance of a Grundy of 5 tons an hour. This was quite sufficient for as a fuel. He also secured several other patents heater can be made to G Fishwick Tel +44 keeping pace with his stove business but John for industrial equipment. (0)1204 695709.
The author is a former employee of John Grundy Ltd and has first-hand experience in the making of the stoves. Dedicated to the fond memories of W Jacques and E Jones. Foundry foremen.
40 – May/June 2013 – Steel Times International www.steeltimesint.com