11/10/14 10:10 AM November/December 2014 – Vol.38 No.8 – www.steeltimesint.com No.8 2014 – Vol.38 November/December WORLDSTEEL ANNUAL CONFERENCE WORLDSTEEL ANNUAL MINIMILLS COATINGS SPANISH EQUIPMENT MANUFACTURING EQUIPMENT SPANISH COATINGS MINIMILLS COVER nov dec.indd 1 STEEL TIMES INTERNATIONAL – November/December 2014 – Vol.38 No.8 CONTENTS NOVEMBER/DECEMBER 2014 1
Picture courtesy of MTAG November/December 2014 – Vol.38 No.8 – www.steeltimesint.com 2 MINIMILLS COATINGS SPANISH EQUIPMENT MANUFACTURING 17 Leader 4 STEEL TIMES INTERNATIONAL – November/December 2014 Vol.38 No.8 News The latest steel industry news from around the world 11
WORLDSTEEL ANNUAL CONFERENCE India update COVER nov dec.indd 1 11/10/14 10:10 AM Get started or else EDITORIAL Editor 12 Matthew Moggridge China update Tel: +44 (0) 1737 855151 [email protected] Exporting itself out of trouble
Consultant Editor Dr. Tim Smith PhD, CEng, MIM 21 25 Maintenance
Production Editor 15 Monitoring lubricant quality Annie Baker Minimills SALES International Sales Manager 17 Thinking big at Big River Steel Paul Rossage [email protected] Tel: +44 (0) 1737 855116 World steel conference Area Sales Manager 21 Aluminium attacks! Anne Considine [email protected] Tel: +44 (0) 1737 855139 25 Extremely challenging times Sales Director Ken Clark 29 [email protected] Coatings Tel: +44 (0) 1737 855117 29 Simulation studies in Hot Dip
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SUBSCRIPTION Elizabeth Barford Spanish steel Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 34 Siderex - Exporting steel and ser- Email [email protected] vices from Spain’s Basque region
Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £168.00 Other countries: £240.00 2 years subscription: UK £302.00 Other countries: £432.00 ) 34 Conference report Single copy (inc postage): £38.00 Email: [email protected] 39 The growing importance of DRI Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Perspectives Redhill, Surrey, RH1 1QX, England. Tel: +44 (0)1737 855000 42 ‘Steel cannot be beaten’ Fax: +44 (0)1737 855034 www.steeltimesint.com
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www.steeltimesint.com November/December 2014
Contents nov dec.indd 1 11/10/14 10:44 AM 2 LEADER All I want for Christmas is a ‘kill and win’ attitude
Christmas is ‘comin’ atcha’ and by that I between aluminium and steel for the mean the big countdown has started and automotive dollar is a high stakes contest, the shops will soon be full-to-bursting with Marcus told delegates that while the light aggravated shoppers looking for a last- metal boys are in an ebullient mood, the minute bargain. For me Christmas has been steel guys have been apprehensive and a big anti-climax ever since I was forced to mystified and, furthermore, have lacked substitute train sets and toy guns for socks, a ‘kill and win’ attitude in relation to shirts and drugstore cologne. I have a the growing presence of aluminium in problem with the festive build-up because it automotive. turns out that Christmas is just another day But the good news is that the aluminium – and one I have to spend with relatives. industry’s giggles will soon turn to grimaces The phrase ‘don’t believe the hype’ and Ducker Worldwide’s ‘grandioise springs to mind. It’s not so much Christmas forecasts’ will wither in the wind, like a but what precedes it in the shape of discarded Norwegian Spruce on a cold and television advertising and false bon homie. snowy mid-January afternoon. The steel industry has had its fair share of According to Marcus, the ‘soft panache’ hype when it comes to ‘the miracle metal’ surrounding the marketing of the new – or perhaps that should be ‘the Miracle F-150 truck has concealed the inherent Metal on 34th Street’ being as Yuletide is price and cost sensitivities of the light virtually upon us. metal. Christmas came early for delegates at In short, every dog has its day and where the 48th worldsteel conference in Moscow automotive is concerned, steel’s day is yet when Peter Marcus, managing partner to come, but it’s on the way – thanks to the Matthew Moggridge of World Steel Dynamics – now making continued development of advanced high Editor his second appearance in a Steel Times strength steels; the fact that weight savings International leader – dished out the best do not mean major MPG savings; and, let’s present the industry could hope for – but face it, aluminium ain’t cheap – but it’s [email protected] not before handing out the bad news. perfect for wrapping up the turkey before Notwithstanding the fact that the battle roasting it on Christmas morning.
Monocon International Refractories was founded 40 years ago and have since developed into a global market leader for slag control systems and lances as well as continuing to develop in the field of tundish lining systems and gunning materials. Part of Monocon’s success has been the development of a specialist engineering division that works in synergy with the refractory products so that they can offer customers unique products and services. They employ 120 and have a turnover of approximately £30 million and are based in South Yorkshire. They have recently made substantial investment in a new Technology Centre aimed at expanding product portfolio and enhancement of the current product range. UK & International Sales Manager Product Managers Competitive Salary + bonus + benefits package Competitive Salary + bonus + benefits package – South Yorkshire Reporting directly into the Chief Executive Officer, and as part of the The company is seeking to recruit a number of product specialists senior management team, the individual will develop and manage with a detailed knowledge of the steelmaking process. Of particular the sales strategy to increase business within existing and new interest will be candidates with hands-on experience of the customers through optimising and monitoring the performance application of refractory products that are used in either continuous of the sales team and agents. This may require recruiting sales casting or secondary steelmaking processes. personnel across Europe. Ideal candidates would need the following skills and experience: Ideally candidates should also meet the following criteria: • A refractory materials background • Graduate level or similar with strategic experience of running a • At least three years previous experience within the steel industry sales team • Be personable and able to work well individually or as part of • Previous experience of the steel production industry a team • Proven sales track record Ref 102 Ref 103 As a Global organisation, the company will offer an excellent salary package commensurate with the level of the appointment. If you have a desire to join this leader in refractories, please email a current CV along with salary details to [email protected]
November/December 2014 www.steeltimesint.com
Leader nov.indd 1 11/11/14 2:06 PM 4 NEWS IN BRIEF INDUSTRY NEWS
Russian steelmaker boosts mill capacity Improved operating rates NLMK Group has completed an upgrade of its continuous wide- strip hot-rolling Mill 2000. It now from Nucor mills has a capacity of 5.7Mt/yr of rolled steel. The upgrade is part of Strategy American steelmaker Nucor says ton over the same period last year in the third quarter, as compared 2017, which is all about increasing that the overall operating rates due to increased gas and electric- to the planned three-week outage operational efficiency. at its steel mills increased to 81% ity costs. at Nucor-Yamato Steel in the sec- during Q3 2014 compared with The average cost of scrap and ond quarter associated with our Chinese steelmaker joins 79% in Q2 and 78% in Q3 2013. scrap substitute used during Q3 US$115 million sheet piling capi- worldsteel The company claims that its steel 2014 was down 1% to US$379/ tal project.” Hebei Iron and Steel Group has mill utilisation rate increased to ton from US$384/ton in Q2 2014, The company said that ‘the joined the World Steel Association 78% during the first nine months but up 2% on the Q3 2013 price strongest markets for the steel and Yu Yong, the company’s of 2014 compared with 74% for of US$372/ton. mills continue to be manufactured chairman, is now a council member. the same period last year. “Overall operating performance goods, including energy and auto- Hebei’s membership became official The company claims that during at our steel mills segment for the motive’. at the 48th World Steel Association Q3 2014 its total steel mill energy third quarter was much improved The American steelmaker’s third conference in Moscow last month. costs increased by roughly US$1 compared to the second quarter quarter results were much im- per ton when compared with Q2 of 2014 due to increased profita- proved from the second quarter EU steel imports rise 2014 and Q3 of 2013. Energy bility in sheet, structural, bar and and imports remain at high levels, Third country steel imports into costs for the first nine months of plate steel,” said Nucor. “Struc- applying downward pressure on Europe rose in July and August the year increased by US$2 per tural steel had no major outages pricing. 2014, according to the latest EU customs statistics. Finished steel imports have risen 32% year-on-year compared with a 6% rise in Q1 and US revokes suspension deal a 33% rise in Q2. According to EUROFER, this means The US Department of Com- ing into this country under a deal ports has damaged the American that over the first eight months of merce’s decision to revoke an that no longer serves its intended steel industry and its workers. 2014 total steel imports rose 21%. outdated ‘suspension agreement’ purpose. On behalf of domestic “While we remain disappoint- Flat product imports grew 15% year- with Russia has been applauded steelmakers, we welcome Com- ed and surprised that the Depart- on-year while imports of increased by the AISI because it means that merce’s decision and are grateful ment of Commerce last month did by 49%. anti-dumping duties can now be for the support of the chairmen of not provide for full relief against imposed on imports of hot-rolled the Congressional Steel Caucus, as unfairly traded Turkish rebar im- Disappointing results for steel from Russia to the USA. well as Congressman Rick Craw- ports, we are encouraged that POSCO “This agreement, which was ford (R-AR), who have urged this today’s vote now clears the way There were disappointing Q3 2014 entered into 15 years ago, was action,” said Thomas J. Gibson, for import duties,” he said on 14 results for Korean steelmaker POSCO. designed for a different era and is president and CEO of AISI. October when ITC commissioners Net earnings were down 60.3% year- clearly no longer working. Our in- Gibson was also pleased with voted unanimously in favour of a on-year to KRW224 billion (US$0.22 dustry should not have to endure the decision of the International complaint brought by leading US- billion) on generated revenues injury from surging imports of Rus- Trade Commission (ITC) to recog- based steelmakers, including Nu- of KRW16,270 billion (US$15.9 sian hot-rolled steel that are com- nise that the surge in rebar im- cor and Gerdau. billion). The company’s crude steel production was up 6.7% year-on- year at 9.5Mt.
Indian steel production growth India’s steel production grew by 1.8% between January and September 2014 reaching 62.41mt, up from 61.27Mt over the same period in 2013. India is currently the world’s fourth largest steelmaker, according to figures released by worldsteel.
Italian PM visits steel plant After a protest rally against Italian prime minister Matteo Renzi’s labour reform plans in Rome, Mr Renzi met with steelworkers at ThyssenKrupp’s Italian stainless steel plant where 550 jobs are to be cut. The German steel giant wants to withdraw Siempelkamp, based in Krefeld, Germany, has been awarded the contract to upgrade three presses on the wheel line of Steel Authority of from stainless steel production and India Ltd’s Durgapur Steel plant. The project includes new electrical and hydraulic controls for all presses, the supply of new mechanical intends to sell the Italian plant. components and a new press frame for the plant’s 20MN dishing press. Siempelkamp is a specialist in engineering and manufacturing metal forming presses.
November/December 2014 www.steeltimesint.com
Industry News nov decReadMM.indd 1 11/11/14 12:35 PM INDUSTRY NEWS NEWS IN BRIEF 5
Intern killed at Nucor steel Tata Steel to sell Long plant Korey Ryan, an intern, has been killed in an accident at a Nucor steel plant Products Europe in Tuscaloosa County, Alabama, USA. Plate finishing operations at the mill Tata Steel is selling Long Products 6,500 employees, it currently pro- to concentrate its resources on strip were suspended and the company, Europe, the company’s long prod- duces around 3Mt and has the ca- products where the company has along with state and local agencies, ucts division, to The Klesch Group. pacity to produce up to 5Mt. greater cross-European production is trying to determine the cause of The aim is to complete the trans- Karl Koehler, chief executive of and technological synergies. the accident. action in the first half of 2015. Tata Steel’s European operations “We want to build a sustain- The steelmaker has signed a said, “We are making huge strides able business in the UK and fur- Gerdau engaged in Euro Memorandum of Understanding on our strategic journey to become ther develop our mainland Europe waste project with the company and intends to a premium, customer-centred steel business and we are committed to Gerdau’s research and development sell its long products division and company thanks to investment in providing the necessary leadership centre is actively engaged in a associated distribution activities. equipment, technology and cus- and financial resources to achieve European waste energy project. The According to Klesch, the agree- tomers, together with the sub- that,” Koehler added. aim is to see how waste energy in ment ‘covers several UK-based stantial contributions from our Founded in 1990 and headquar- large industrial systems can be used, assets including the steelworks at employees.” tered in Geneva, the Klesch Group taking into account the complete Scunthorpe, mills in Teesside and Koehler said that a process of is a global industrial commodities energy cycle, says a report by Basque Scotland, an engineering workshop due diligence would now be under- business specialising in the pro- Research. in Workington and a rail consultan- taken but added that ‘no assurance duction and trading of chemicals, cy in York, as well as other opera- can be given about the outcome’. metals and oil. Iran in negotiation with the tions in France and Germany’. “We will regularly engage with The company boasts revenue in Chinese Long Products Europe produc- our employees and other stake- excess of €5 billion, and employs Mehdi Karbasiyan, head of the es a wide range of standard and holders throughout this process, more than 2,000 people across 30 Iranian Mines and Mining Industries differentiated products including and we will consult with the trade global locations in over 17 coun- Development and Renovation sections, rails, wire rods, special union representatives and work tries. Organisation (IMIDRO) has said profiles and plates for the rail, yel- councils,” Koehler said. Klesch claims to specialise in that Iran plans to negotiate with low goods, energy and construc- According to Koehler the reason acquisitions based on forecasting China over its Miyaneh steel project, tion sectors. With approximately behind the sale is that Tata wants their future value. one of seven steel projects seeking foreign investment. Trade between the two countries is estimated to be Steelie winners announced worth US$45 billion. Iranian steel production rises The World Steel Association’s fifth The selection process for nom- All of the entries were judged Alloy steel production in Iran hit Steelie Award winners were an- inations varied between awards. by selected expert panels using 225kt for H1 2014, a rise of 17% nounced at the annual dinner of In most cases, nominations were agreed performance criteria ex- compared with 2013 figures, the 48th worldsteel conference in requested via the appropriate cept for Journalist of the Year and according to the Iranian Mines and Moscow early last month. membership committee and the Communicator of the Year, which Mining Industries Development and The trophies, known as Steelies, worldsteel extranet. were selected by direct vote. Renovation Organisation (IMIDRO). were awarded in seven categories Iran is the second biggest steel this year. producer in the Middle East next to ArcelorMittal’s Lakshmi Mittal receiving the award for Best Website from Dr.Wolfgang Eder, The categories and winners Turkey. were: CEO and chairman of Voestalpine • Steel Industry website of the US votes no to anti-dumping year: ArcelorMittal (http://corpo- The US International Trade rate.arcelormittal.com) Commission (USITC) has voted • Innovation of the year: Arce- against a US Department of lorMittal Dofasco for spreader Commerce decision that grain beam use oriented electrical steel (GOES) • Excellence in sustainability: Ger- from China, the Czech Republic, the dau for improving the sustainabili- Republic of Korea and Russia was ty of its scrap supply chain being sold at less than fair value • Excellence in Life Cycle Assess- in the USA. This means no anti- ment: Tata Steel Europe for the dumping or countervailing duty will use of LCA to demonstrate the be issued on GOES imports from benefits of steel in bridge designs these countries. versus alternative materials • Excellence in education and Collaborative programme training: Tenaris for development A Steel Research & Technology of online learning courses in con- Mission of India is going to be junction with The University of established by the Ministry of Steel Sheffield and edX to promote collaborative research • Journalist of the year: John Mill- programmes in the steel industry. The er, Wall Street Journal plan is to increase R&D investment in • Industry communicator of the steel from its current 0.2% to 0.3% year: Alexey Mordashov, Severstal of turnover to 1% to 2%.
www.steeltimesint.com November/December 2014
Industry News nov decReadMM.indd 2 11/11/14 12:35 PM 6 NEWS IN BRIEF INDUSTRY NEWS
NLMK output EU: up 4.1Mt 43% C0 reduction by 2030 NLMK Group’s Q3 2014 highlights 2 include the announcement of a group capacity utilisation rate in- crease of 2% to 96% and 100% at the company’s main site in Lipetsk. EU heads of state and govern- added that EU commitment to of the 10% most efficient instal- The company has reported a ment have sent a clear message to safeguard measures at the level of lations, based on technically and 9.5% quarter-on-quarter rise in steel steelmakers with energy-efficient the most efficient installations is a economically achievable bench- output to 4.1Mt but has announced installations by agreeing not to positive signal for industrial invest- marks, and based on real produc-
a 2.4% decrease in total sales to impose direct or indirect CO2 costs ment, growth and jobs in Europe. tion instead of historic production
3.7Mt, claiming the latter figure on the most efficient operators “A profitable European steel in- levels. CO2 costs passed-through was ‘due to the fact that a part of competing in the global market. dustry benefits European society in electricity prices must be fully long products was sold through However, the EU has agreed on as a whole. It will be able to con- off-set in all member states. sales channels with longer periods what EUROFER describes as ‘an tinue contributing to significant Referring to less efficient oper- of revenue recognition’. ambitious European Energy and emission reductions in Europe. ators, Eggert said that they will A positive pricing trend in the climate policy framework for the Our R&D network, our innova- have to buy additional allowances pig iron market has seen NLMK’s period 2020 to 2030, including a tions, products and product appli- on the market. “This gives them
semis sales growing by 11.3% to CO2 emission reduction target of cations, based on the skills of our the right incentive to improve 1.18Mt. Sales grew to 151kt in 43% by 2030 compared to 2005 employees, are the foundations their carbon efficiency to the lev- Q3 2014 compared with just 4kt levels for those industrial sectors for a low carbon, energy efficient, el of the benchmarks. If they go in Q3 2013. Planned maintenance covered by the EU Emissions Trad- and prosperous European society.” beyond those benchmarks by de- work at the company’s Lipetsk roll- ing System (ETS). According to EUROFER, “The veloping and applying innovative, ing mill, however, resulted in rolled EUROFER’s director-general Axel European Commission should now economically viable technologies, products sales falling by 7.7% Eggert called the new framework rapidly implement the safeguard they may set new, more ambitious quarter-on-quarter to 2.56Mt. ‘extremely challenging’ in the ab- measures and provide sectors at benchmarks”, Eggert says. Over a nine-month period, sence of similar constraints ‘for risk of carbon leakage with truly the group's steel output rose by our competitors worldwide’ but 100% free allocation at the level See Q&A on page 25. 3.9% to 11.8Mt with group sales up 1.6% year-on-year to 11.4Mt. Sales to the Russian market grew 15% year-on-year to 4.9Mt. NLMK expects steel and rolled Latin America’s steel industry product output to decrease slight- ly in Q4 2014 due to planned Alacero-55, the annual conference alisation that leads to sustainable Chinese economy specialists maintenance activity because of of the Latin American steel indus- development’. evaluated the effects of China’s the seasonal slow down in domes- try, took place in Mexico City this The conference also examined current economic reforms and tic steel demand. month, attracting some of the the role of innovation and new their impact on Latin America. most influential people from the technologies and how steel can Dr. Edwin Basson, director-gen- industry who met to discuss the ‘continue to provide solutions for eral of worldsteel, Nick Sowar, US Steel iron external and regional difficulties a better life’. leader of metals sector at Deloitte, facing the industry today. Among the speakers at this and Haiyan Wang, managing part- ore operation According to the organiser, Al- year’s event were Aryam Vasquez, ner of the China-India Institute, acero-55 ‘will focus on the impor- senior economist for Latin Ameri- discussed the overall outlook for cancelled tance of ensuring a ‘level playing ca at Oxford Economics. Vasquez the steel industry. field’ that allows the Latin Ameri- discussed the global economic sit- A full report on Alacero-55 will US Steel has decided to cancel can industry to compete according uation and structural changes af- be published in the January/Feb- plans to expand iron ore pellet op- to the guidelines of the WTO and fecting the markets and the Latin ruary 2015 edition of Steel Times erations at Keewatin, Minnesota, to return to the path of industri- America region. International. and cease with further develop- ment of its carbon alloy facilities in SMS Siemag has been awarded the contract Gary, Indiana. to modernise a 20-roll cold mill at Outokum- The Keewatin expansion would pu’s Nirosta plant in Krefeld, Germany. The have increased production capaci- MB 21BB-61 mill was supplied by SMS way ty by 3.6Mt, taking annual capaci- back in 1969. It was modernised in 1991. ty up to 9.6Mt. The objective of the current modernisation is The plan was to upgrade and to update the 45-year-old cold rolling stand restart an idled pelletising line and and prepare it to deal with ‘demanding new upgrade the mining, concentrat- rolling tasks’. ing and agglomerating processes. The closure of Outokumpu’s Dusseldorf-Ben- Permits required for this expansion rath plant has led to its production of thin expired in September) and won’t mirror-finish material being transferred to be renewed. Additional invest- the Krefeld site. SMS Siemag of Austria is ments planned for the carbon al- a leading process technology supplier with loy facilities of the company’s Gary strong expertise in the development of steel Works will go no further. processing systems.
November/December 2014 www.steeltimesint.com
Industry News nov decReadMM.indd 3 11/11/14 12:35 PM INDUSTRY NEWS DIARY OF EVENTS 7
November Apparent steel use up 2% 09-11 Alacero-55 – The Latin American Steel Congress Global apparent steel use will in- Hilton, Mexico City. crease by 2% to 1.56 billion tonnes A conference on the Latin Amer- in 2014 following growth in 2013 ican steel industry, organised by of 3.8%. In 2015 world steel de- Alacero. For further information, mand will grow by another 2% to log on to www.mexico55.alacero. 1.59 billion tonnes, according to org worldsteel’s short range outlook, which was presented to delegates 10-14 Metal Expo 2014 at the 48th World Steel Confer- The All-Russia Exhibition Center, ence in Moscow last month. Moscow. Hans Jürgen Kerkhoff, chair- A major metals industry event. man of the worldsteel economics For further information, log on to committee, said that the positive www.metal-expo.ru momentum in global steel de- mand seen in the second half of 21-22 Global Steel 2014 2013 abated in 2014 with weaker Mumbai, India. than expected performance from he said, adding that, in contrast, says its outlook is ‘prone to risks A conference focused upon the the emerging and developing the developed economies fared coming from various fronts’, One state of the Indian steel industry. economies. “As a consequence we well and that recoveries in the such risk is that US interest rates Organised by Gujarat NRE and are issuing a lower steel demand European Union, the USA and Ja- are expected to increase in 2015 The Economic Times. growth figure than our forecast pan were stronger than previously and this is likely to impact global For further information, log on to released in April this year,” Mr thought – but not strong enough capital flows and create instability www.globalsteel.in Kerkhoff said. to offset the slowdown in the in vulnerable emerging markets. The slowdown in China’s steel emerging economies. Furthermore, China’s transition 28-30 CISSE 2014 demand reflected the structural According to Kerkhoff, steel de- towards a consumption-driven China International Exhibition transformation of the economy mand growth in developed econo- economy and the recovery in the Centre, Beijing. Organised by and contributed significantly to mies is expected to be moderate in Euro-Area – constrained by house- Yheng International Exhibition worldsteel's lower global growth 2015, while growth in the emerg- hold and government deleverag- Co. projection, said Kerkhoff. ing and developing economies ing – are both causes for concern. For further information, log on to “We have also seen a major are projected to pick up. He said A full report on Hans Jürgen www.en.steel-expo.com slowdown in South America and that China’s rebalancing act will Kerkhoff’s Moscow presentation the CIS countries due to falling continue to act as a drag on steel can be found online: http://steel- January 2015 commodity prices, structural con- demand. timesint.com/contentimages/fea- straints and geopolitical tensions,” The World Steel Association tures/WORLD_STEEL_web.pdf 10-13 Metal Middle East Dubai International Convention For a full country by country listing visit: and Exhibition Centre. An inter- www.worldsteel.org/statistics/crude-steel-production.html national trade fair for metallurgi- cal technology. For further information, log on to www.messe-dusseldorf.de
Summer rise for EU imports 26-29 Steel Fab Expo Centre, Sharjah, UAE. Mid- Third country steel imports into It is expected that growth in dle East trade show for metal Europe rose in July and August apparent steel consumption for working and metal manufactur- 2014, according to the latest EU 2014 as a whole will rise by 3.5% ing and the steel fabrication in- customs statistics. reflecting the usual seasonal de- dustry. Organised by Expo Centre Finished steel imports have ris- stocking in the second half of the Sharjah. en 32% year-on-year compared year, underpinning the fact that For further information, log on to with a 6% rise in Q1 and a 33% the rebound in steel demand is www.steelfabme.com rise in Q2. According to EUROFER, only gradually gaining momen- this means that over the first eight tum. May months of 2014 total steel imports “That is exactly the reason why rose 21%. Flat product imports we are so concerned about the 04-07 AISTech grew 15% year-on-year while long sharply rising trend in imports we Cleveland Convention Center, products imports increased by are observing since the start of the Cleveland, Ohio, USA 49%. year. Low-priced imports benefit A major global steel event. These figures contrast sharply more from the fragile recovery in For further information, log on to with only very moderate growth of the EU market than domestic pro- www.aist.org apparent consumption, says EU- ducers. Moreover, the combina- ROFER. EUROFER’s statistics show tion of volume and pricing effects that demand for finished steel exacerbates the already severe For more steel industry news products in H1 2014 rose almost Eurofer’s director-general, margin pressure in the EU steel and features, visit 5.5% when compared with the Axel Eggert sector,” said Axel Eggert, EURO- www.steeltimesint.com same period last year. FER’s director-general.
www.steeltimesint.com November/December 2014
Industry News nov decReadMM.indd 4 11/11/14 12:35 PM INDIA UPDATE 11
The government of West Bengal has warned JSW Steel & Power to get a move-on with its multi- million dollar Salboni steel and power project in the Indian state. By Dilip Kumar Jha*
Get started or else
FACED with unprecedented delays The project family member’s job in the project as in implementation, the West Bengal The JSW Steel and Power project is worth promised by both the company and the government has advised JSW Steel an estimated INR 350 billion (US $6 billion). government. However, the project is yet and Power to commence commercial The plan is to set up a 10Mt/yr steel plant to start and the displaced families are production sooner rather than later at the and 1620MW power project. The company struggling for survival. Protecting their proposed Salboni steel and power project signed a development agreement with interests, therefore, Chatterjee urged the in the state, 152km from Kolkata, India. the then Left Front government in 2007. company to pay INR 5000 (US$82) a While issuing the ultimatum, state industry The state government granted permission month to the affected families until they minister Partha Chatterjee threatened that to the company to acquire 4,300 acres are given employment. further delay would force the government of land for the project and acquired the The minister threatened that if JSW to withdraw land allotted to the company. land and leased out around 90% of the was not interested then the government The threat assumes significanceland required by the company. The state would take back land from the company from the perspective of both the state government allowed the company to and allot it to an alternate investor. government and JSW Steel. West Bengal’s acquire the remaining 10% of its land “We are committed to the project. The chief minister Mamta Banerjee has been requirement. Following that, JSW acquired group has incurred a massive investment known for her anti-industry stance as 189 acres of land from local farmers but so far and we are waiting for iron ore she came to power through protesting has yet to sign the lease documents. linkage. Meanwhile, the company has against Tata Motor’s nano plant in May There has been bitterness between the already initiated setting up an integrated 2011. Since then, hardly any big corporate government and the steel company on power plant for which a formal proposal has announced any major industrial various issues. Two years after signing the has been submitted to the state projects in the state. Despite several luring development agreement, the government government. This indicates that we are initiatives offered by the existing Trinmool wanted JSW to sign another supplementary serious about the project,” said Biswadip Congress government, captains of agreement skewed towards the state. In Gupta, managing director of JSW Bengal. industry have distanced themselves from August 2012, the company came close to The withdrawal of land from JSW Steel any big investment decisions. As the JSW signing but was prevented from doing so and Power would be a big blow to the project is the largest single investment so by some niggling issues. company, which would impact any future far in West Bengal, the state government The land acquisition process displaced greenfield projects elsewhere in India in is looking for an early start. From JSW’s over 400 families that still await one the future. t perspective, however, iron ore and coal linkages would be better being closer to History of disagreement Jharkhand, one of India’s largest mineral- Timeline Progress rich states. Since JSW has already invested 2004 Sajjan Jindal announced revival in Salboni Steel and Power project INR10 billion (US$160 million), withdrawal September 2006 Jindal revives steel project on a much larger scale of land would mean the investment going January 2007 JSW signs development agreement with the Left Front government haywire. May 2007 JSW gets permission to possess 4,300 acres land at Salboni “The government is fed up with the November 2008 Foundation stone laid August 2, 2011 Mamta Banerjee expresses disapproval over project delay company. It seems they have no intention August 5, 2011 Government raises questions on land purchase of taking the project forward. We have August 10, 2011 Government takes back land, to lease it back to company waited enough. They (JSW Steel and September 10, 2011 Sajjan Jindal meets state chief minister Mamta Banerjee, assures all issues to be settled Power) have been talking about the iron November 1, 2011 Government decides to legalise private land acquisition ore problem. But, that is not the state January 2012 JSW signs lease agreement with land reforms department for 3,800 acres government’s responsibility. They are July 11, 2011 Government resolves differences, fixes August 9 to sign lease agreement with the estW Bengal raising one issue after another,” said Industrial Development Corporation Chatterjee. August 2012 JSW raises concern about iron ore sourcing, JSW yet to sign the supplementary agreement for the project
* India correspondent
www.steeltimesint.com November/December 2014
INDIA UPDATE NOV.indd 1 11/5/14 4:07 PM 12 CHINA UPDATE
Exporting itself out of trouble?
Can steel exports offset losses from rising production? Shi Lili* reports
ACCORDING to China’s National Bureau conflict is familiar territory for China, continue and yet the technologies and of Statistics, crude steel production especially after the economic crisis when management of Japanese and Korean steel from January to August 2014 of 550Mt foreign steel markets stayed flat and there mills are far more advanced than those represented a gain of 2.6%. Steel output was an abundance of anti-dumping cases in China and have already established for the period jumped 5.4% to 742Mt as foreign governments sought to protect both upstream and downstream JVs in and the production of pig ore during their domestic industries. neighbouring countries. the same period rose 0.5% to 483Mt. In China’s average import price for steel contrast, the average price per tonne of products in July 2014 was US$1,285/ Exports won’t help steel dropped from 4,468 yuan (US$730) tonne, up US$9/tonne from last month, The key difference between Chinese and in 2012 to 3,212 yuan (US$524) during which indicated a continuous increase foreign steel producers lies in the fact that the first half of this year. over four months and a record high for the former always own several mines. The In response to the Chinese government’s 21 months. The export price was US$786/ ownership of steel mines in China goes policy of cutting energy consumption, tonne, which differed considerably from back to when state-owned enterprises steel production still achieved record highs the import price of US$500. tried to take control of raw materials by because although one region reduced Since early September, there were adopting a policy of producing steel using production, others restarted theirs and eight anti-dumping cases against China’s their own iron ore. In other words, they raised output. Take Hebei Province and steel industry. Trading protection policies owned the entire process. However, on the Jiangsu Province as two examples: in outside of China began popping up after international market, such a proposition July steel capacities in Hebei dropped the downturn. In 2013, trading conflicts may not be competitive when compared 6Mt when compared with last year. covered pipes, galvanised products, hot with overseas players and the overall Meanwhile, in Jiangsu, capacities rose by rolling, cold rolling stainless, electric mining costs may be higher than buying 8Mt. The local Hebei government used steel, steel wire rod and so on, with steel and shipping iron ore from elsewhere. its influence to shut down and upgrade pipe accounting for as much as 31% and But having such a vast industrial certain facilities while Jiangsu took the galvanised and hot rolling accounting for infrastructure is not easy to divest and is chance to improve its market share. 22% of cases. Trading conflict spread from costly to maintain, leading to financial Market adjustment and government developed to developing countries. losses and surplus capacities. forces play a major role where surplus Most state-owned steel producers are capacity is concerned and steel exports are Challenges from Japan and Korea major taxpayers at a local level and the back on the agenda. According to Platts, China’s steel exports face challenges from very pillars of the local economy since Chinese steel exports to July 2014 reached Japan and Korea. Just over 15% of China’s they provide employment for local people. 49.07Mt, an increase of 37% compared steel exports went to South Korea in 2014. Idling or shutting down ‘backward’ with the same period last year. It is China’s low steel prices are due to low and capacities, therefore, has a big impact on projected that China’s steel exports will inconsistent quality. In 2011, 61.1% of local GDP including unemployment and reach a record high this year and might crude steel was of low-to-medium quality environmental issues. alleviate surplus capacity in the domestic and certain products were of the same To break this vicious circle, it is inevitable market. quality as those produced by developed that Chinese steelmakers in this position countries in the 1980s. will take the path of industrial upgrading Rising exports, trading conflicts China, Japan and Korea have set up a rather than closing down. The domestic steel market in China is steel trading circle and ASEAN is striving While the domestic market in China dogged with record surpluses, but there to develop its domestic steel business. remains flat, the only real solution is are still many hard nuts to crack. Chinese However, despite rising steel imports, to look at the overseas market where steel mills are constricted by international trading conflicts have prompted Chinese competitiveness depends on quality rather trading conflicts due to the huge price producers to invest abroad or set up joint than quantity. It is crucial that domestic differential. The average sales price of ventures (JVs), which have threatened mills reduce their capacities of low grade domestic steel products for export is much the market share of Japanese and Korean steel and increase that of quality steel lower than imported products. Trading suppliers. Such competition is set to products. t
*China correspondent
November/December 2014 www.steeltimesint.com
CHINA UPDATE ReadMM.indd 1 11/5/14 4:16 PM MAINTENANCE 15
Monitoring lubricant quality
Oil analysis programmes help maintenance professionals extend the life of their equipment and minimise unscheduled downtime. By Jarmo Vihersalo*
STEEL companies, now more than ever, manufacturers (OEMs) is extremely are putting heightened emphasis on valuable. OEMs establish proprietary achieving operational and cost efficiency. It control limits based on the equipment is becoming more common for managers model, lubricants used, applications and engineers to be given incentives for and operating environments. When increasing plant productivity and, as a compared against the oil analysis results, result, maintenance professionals are these predetermined safeguards help incorporating proactive strategies to help maintenance professionals make the best them achieve their production goals. informed decision about the condition of Oil analysis is one of the most popular the lubricant and the equipment. maintenance programmes being Copper is often detected in used oil implemented at present and it consists of analysis from hydraulic systems. Pumps a series of tests to determine the condition often use copper alloys, and shell and tube of equipment components and in-service heat exchangers are commonly made with lubricants. Oil analysis helps maintenance advice. Once the location has been copper or copper alloy. These materials professionals extend equipment identified, it should be noted in the come into contact with the hydraulic fluid component and lubricant life by providing maintenance records so that samples can and, given the right conditions, copper early warning signs of contamination to always be taken from the same place. may dissolve into the oil. help minimise unscheduled maintenance. This will ensure that results from the Elevated copper levels (typically less than analysis of sequential used oil samples 500 ppm) may be identified in as little as Back to basics can be compared and trended to provide 50 to 250 hours of run time. Research There is a certain protocol that should accurate insight into equipment and indicates that copper content levels off be followed to help ensure the accuracy lubricant condition. with continued operation and does not of oil analysis results. First, maintenance Oil samples should always be taken affect the performance characteristics or professionals should always use a clean, before equipment is drained. If the oil has oxidation stability of the fluid. dry container to draw oil samples. Any been drained, samples taken, and then particles that are in the container before deemed acceptable for continued use, Online efficiency the oil sample is collected could result there is no way the product can be re-used Most analysis companies offer some level in an inaccurate result. Most oil analysis for components such as hydraulics and of online functionality so it’s important companies provide sample collection gearboxes. Also, do not sample a machine to evaluate oil analysis partners based canisters. immediately after an oil change or after on how they can help expedite the Maintenance and production engineers a large amount of make-up oil has been administrative process of oil analysis. Tasks should draw samples from equipment recently added. such as managing/updating equipment at its normal operating temperature and Maintenance professionals are registration, printing completed labels when the machine is in use or online. If advised to always set sample intervals so for sample bottles, ordering additional online is not possible, it is acceptable equipment issues can be detected early. sampling kits and confirming delivery of to draw samples within 30 minutes of Sampling is usually less costly than repair samples can be simplified using online equipment shutdown. or lost production. Industry standards tools. Online programmes can also arm Oil samples should always be taken recommend sampling every quarter. maintenance professionals with the proper in the same manner and from the same However, more frequent sampling is tools to make more informed decisions. sampling point. A sample can be taken recommended if there are abnormal from the tubing from the reservoir or levels of wear or contaminant elements, Long-term success sump, the valve on pressurised return vibration readings are increasing, there Selecting an oil analysis provider that from system (prior to the filter), the valve is an increase in temperature through has application-specific expertise, on pressurised supply to system (prior to the fluid system after an overhaul or a intimate relationships with OEMs and a the filter), the valve on reservoir wall, the pump change out, or when new pieces of comprehensive online oil analysis offering special fitting or the drain from reservoir equipment are put into service. will help plant maintenance professionals or sump (valve or plug). achieve their company’s production goals To identify the most appropriate sample Application-specific expertise as well as their own. t point, it is imperative to consult with Selecting an oil analysis partner that has your oil analysis provider and machine application-specific expertise and strong For further information, visit manufacturer for application-specificrelationships with original equipment www.mobilindustrial.com
* Europe, Africa and Middle East Industrial marketing advisor for energy, ExxonMobil Fuels & Lubricants
www.steeltimesint.com November/December 2014
EXXON MOBILReadMM.indd 1 11/5/14 4:18 PM MINIMILLS 17
Thinking big at Big River Steel
John Correnti, CEO of Big River Steel in the USA doesn’t like the term ‘minimill’ and who can blame him when his company has massive ideas for the future. Correnti would rather think of his EAF facility at Osceola, Arkansas, as a flexi-mill, reports Myra Pinkham*
THE idea of building a bigger, better, lower cost mousetrap is not new to steel industry veteran John Correnti and he says that is his intention with his new $1.3 billion electric arc furnace (EAF)-based Big River Steel LLC steel mill in Osceola, Ark., which broke ground in early August and plans to begin commercial production early in 2016. Despite concerns to the contrary – and several attempts to halt its operation, including several lawsuits from Nucor Corp., which has a steel minimill facility not far from Big River in Hickman, Ark. – Correnti maintains that at the end of the day his new mill will only have a 15% to 35% overlap with other US EAF steel producers – with that percentage declining over time. “We don’t want to knock heads with the other steel minimills,” Correnti, who is Big River’s chief executive officer, declares, admitting that other US electric steelmakers also have very efficient operations. Helped by new ‘bells and whistles’ from its equipment supplier SMS Siemag, Big River does not plan to stress the traditional commodity steel products that are often associated with minimills, but rather several high-end niche markets, such as advanced high strength steels (AHSS) and electrical steels, which are usually more John Correnti and Mark Bula break ground for the new Big River Steel minimill associated with integrated steelmakers.
Fits and starts in Columbus, Miss., talking about the and capital standpoint. Big River Steel, which Correnti admits company originally known as SeverCorr Now, with further improvements of CSP has been progressing in ‘fits and starts’ LLC before it was purchased by Severstal technology, Correnti plans to produce over the past three years, firmed up its North America and just recently taken over a combination of commodity grade financing June 30, 2014 and within weeks by Steel Dynamics Inc., Fort Wayne, Ind. and highly advanced flat-rolled steels – began site preparation for the mill, which He says that EAF steelmaking facility including AHSS, coiled plate and electrical is to be brought on-stream in as many as uses the SMS compact strip production steels, many of which had previously only three phases. (CSP) process in order to produce steels been produced by integrated mills using a Correnti says he is building upon what for the automotive and other high-end blast furnace. he learned when developing a minimill markets, cheaper, both from an energy “Of course we are also going to produce
* USA correspondent
www.steeltimesint.com November/December 2014
MINIMILLS MYRAReadMM.indd 1 11/11/14 12:37 PM 18 MINIMILLS
Site preparation is almost complete for the new Big River Steel minimill
commercial quality hot rolled, cold rolled Steel types Thickness Width Planned capacity and galvanised steels as well, including Hot roll black .054 min - 1.0 max 36” to 76” 457,500 tons the structural grades that are used by Hot roll picked & oil .054 min - .160 max 36” to 74” 140,000 tons the construction sector and the high Cold roll ML/NGOSP .012 min - .095 max 36’ to 74” 323,810 tons & 198,198 tons strength low alloy (HSLA) grades that are Galvanised .012 min - .095 max 35.5” to 73” 428,942 tons not uncommon to be produced by the EAF steelmaking process,” Mark Bula, Big Basic product capabilities and capacities once Big River is fully ramped up and producing 1.6Mt of steel River’s chief commercial officer, admits, “But we are also planning to produce Steel will give them precisely what they silicon steels. those grades in slightly higher yield are looking for. “We have to be a low-cost The steelmaker plans to have a number strengths than are commonly produced at producer of high quality steel,” he says. “If of other unique capabilities, including some other mini-mills.” not we will be out of business,” which is the ability to produce slab thicknesses of But even in the company’s already something he does not intend to happen. up to 3.5 inches, which allows for larger approved Phase 1, which will give them final hot strip thicknesses, reduced surface the capability to produce a total of 1.6Mt Innovation matters imperfections and improved toughness of steel, Big River plans to produce certain He says that innovation is at the core of for steels to be used for API energy pipe niche products that have previously only Big River’s business philosophy, as is the applications. The mill will also be 76 been produced by integrated steelmakers. intention to hire great people, give them inches wide, the widest of all minimills the best technology. in the United States. Big River says this Moving forward “It is innovation that matters,” Bula will be an advantage in the coiled plate Bula says that should investors be satisfied says. “If you don’t innovate you are going market, specifically for plate used by heavy that the company’s management team to die. In fact, we believe that it is only equipment manufacturers. It also has a has lived up to its responsibilities and through technological innovation that we longer run-out table with better cooling commitments in building phase one can ensure that the United States remains capabilities, which improves surface on time and on budget and if there is at the forefront of steelmaking,” he says. quality and helps the company meet the favourable market demand at that time, One key innovation is the use of a RH higher strength grades it intends to make. Big River plans to go forward with its degasser, as opposed to tank degassers Big River also has logistical advantages, phase two and phase three – possibly used by most domestic mini-mills. The RH Bula says, noting that the 1,300 acre site simultaneously – shortly after phase one degasser, says Correnti, allows for more is bordered by the Mississippi River on one construction is completed. efficient and faster removal of carbon side with direct access to the Burlington “At the end of the day all the customer and hydrogen for higher quality steel Northern Santa Fe (BSNF) Class 1 railroad cares about is the quality and the price grades, enabling Big River to make more and a major interstate highway nearby. of their steel, not whether it is produced sophisticated steel grades. by an EAF or a blast furnace,” Correnti Another is the higher temperatures of its Not solely focused on silicon steels maintains, adding that he believes that the tunnel furnace, which is expected to result Building the mill in several phases makes spirit of innovation that is part of Big River in better properties and higher yields for common sense, says Bula. “To build a mill for silicon steels and grain oriented
HR, CR, HDG Extra Deep Drawing Steel (EDDS) or IF & DDS, DS Automotive, service centres, almost all these electrical steels (GOES) with the lower cost HR, CR, HDG Commercial Steel (CS), Low, Medium & High Carbon Various structure EAF process, you have to first HR, CR, HDG Structural Steel & Cor-Ten A & B Stee Construction justify it with some kind of carbon plant,” HR, CR, HDG High Strength Low Alloy (HSLA) Transportation, construction he explains. “You can’t build a mill solely HR, CR, HDG Advanced High Strength Steel (DP, CP, MS, FB) Transportation focused on silicon steels.” Big River’s Phase One will include the HR & CR High Carbon Manufacturing, transportation installation of one EAF, one cast, a hot mill, HR only Quenched & Tempered, Abrasion Resistant, Pressure Vessel Construction vehicles, shipbuilding, a pickling line, a cold mill and a galvanising pressure vessels, containers line enabling it to produce commercial HR only OCTG Steel - API & Sour Gas Petroleum, energy products grade hot rolled, cold rolled and hot dip CR only Cold Rolled Motor Lamination (full range) Fractional motors CR only Non-Grain Oriented Semi-processed (NGO SP) Electrical transformers galvanised (HDG) steels; hot rolled, cold rolled and HDG extra deep drawing steels; Big River Steel’s product range and end markets hot rolled, cold rolled and HDG structural
November/December 2014 www.steeltimesint.com
MINIMILLS MYRAReadMM.indd 2 11/11/14 12:37 PM MINIMILLS 19
steel; hot rolled, cold rolled and HDG high strength low alloy steel; hot rolled, cold rolled and HDG advanced high strength steels (AHSS); hot rolled and cold rolled high carbon steels; hot rolled quenched and tempered, abrasion resistant and pressure vessel steels; hot rolled API and sour gas oil country tubular goods (OCTG) steels; a full range of cold rolled motor lamination steels; and cold rolled non-grain-oriented semi-processed electrical steels.
Capacities It is expected to have the annual capacity to produce 475kt (short tons) of 0.054 inch to 1.0 inch thick, 36 inch to 76 inch wide black hot roll; 140kt of 0.054 inch to 0.160 inch thick, 36 inch to 74 inch thick pickled and oiled hot roll; 323kt of 0.012 inch to 0.095 inch thick, 36 inch to 74 inch cold rolled; 198kt of 0.012 inch to 0.095 inch thick, 36 inch to 74 inch motor lamination and cold-rolled, non-grain-oriented semi-processed electrical steels; and 428kt of 0.012 inch to 0.095 inch thick, 35.5 inch to 73 inch wide galvanised steel. Currently the only AHSS that mini-mills make are dual phase steels, Bula maintains. He says that Big River will also have the capability to produce multi-phase and martensitic grades. Likewise, it will not only make X-55 OCTG steels, but X-70 and X-80 too. WHEN THERE’S NO ROOM Second construction phase FOR COMPROMISE, PUT That, Bula says, will very likely be followed by a second COMPREHENSIVE FIRE-RESISTANT construction phase that will enable the company to produce fully processed grain-oriented (GO) and non-grain oriented (NGO) GREASES TO WORK FOR YOU. electrical steels, which would require its own cold mill facility as well annealing furnaces, rolling mills, cold mills and temper mills When you’re running the world’s toughest specifi cally designed to produce GO and NGO electric steels. jobs, optimal performance without The third phase, which Bula says could be undertaken at compromising safety is key. Quaker’s Fire- the same time as phase two, would include another EAF, a Resistant Greases are formulated to help second ladle metallurgical station, additional caster, additional galvanising line and, potentially, a seventh stand for its hot mill. reduce Total Cost of Ownership in your mill with increased safety and reduced risk. Niche markets That’s how Quaker helps you take care of In addition to benefi ting from expected growth in its key end- business, so when things get hot, you don’t user markets, including automotive, energy, coiled plate and the get burned. electrical sector, Big River will likely displace some imported steels as well as taking market share from existing domestic integrated and minimill steelmakers. FIRE RESISTANT GREASE QUINTOPLEX™ » Best-in-class water resistance A fl exmill more than a minimill While unwilling to give a specifi c breakdown, Bula says that in » Biodegradable the company’s niche markets of coiled plate, API steels, AHSS, » Engineered for extreme temperatures cold rolled motor laminations and semi-processed NGO electrical steels, more market share will be taken from integrated and » Rust and corrosion protection foreign producers than domestic mini-mills. » Extreme pressure lubrication “This is simply because these niche markets are more heavily supplied by the integrated mills due to their equipment advantages versus traditional minimills,” Bula explains. “This quakerchem.com is the advantage of Big River Steel, as we are more of a ‘fl ex 1.800.523.7010 mill’ than a minimill,” he says, defi ning a fl ex mill as being a steelmaker with the cost and business structure of a minimill and [email protected] an equipment and product mix that is more closely aligned to an integrated producer. Even beyond its current plans, Bula says Big River expects to continue to innovate and grow not just through internal capital investments, but also mergers, acquisitions and joint ventures. ᔡ
The next edition of Steel Times International asks the world’s leading steelmakers and process technology suppliers about their hopes and fears for 2015. Email your thoughts to [email protected] © 2014 Quaker Chemical Corporation. All Rights Reserved.
www.steeltimesint.com November/December 2014
MINIMILLS MYRAReadMM.indd 3 11/11/14 12:37 PM WORLD STEEL CONFERENCE 21
Aluminium attacks!
Peter Marcus, managing partner of US-based World Steel Dynamics, argues that the steel industry has been late in reacting to the threat posed by aluminium in the automotive industry and has lacked the ‘kill and win’ attitude needed to take on the miracle metal…but all is not lost. By Matthew Moggridge*
AT a recent and unspecified steel Steel, said Mittal, can provide all the asked rhetorically, bearing in mind that conference Peter Marcus, managing weight reduction that auto producers aluminium is more expensive than steel partner of World Steel Dynamics, told require to satisfy new fuel efficiency and the automotive industry is notoriously delegates that he had been studying standards. price-sensitive? the steel industry for 54 years. How, he The standards in question are the US One reason, he said, was that the wondered out loud, could he convey all of Government’s CAFÉ standards, which are F-150 was heavier than its peers but also his knowledge to his audience in the space looking for 54.5 miles per gallon by 2025. that Ford was influenced by Jaguar and of 25 minutes? The answer from the back According to Peter Marcus’ latest Rolls Royce’s use of aluminium. “This of the auditorium was ‘speak slowly’. report, ‘although it will become far partly explains some of the economic Marcus related this tale to delegates of more costly in the next decade for the irrationalisation,” said Marcus, adding World Steel-48, the annual conference automotive companies to implement the that the automotive industry was like the of the World Steel Association, held last CAFÉ standards, the mandate has been space industry: constantly pushing the month in Moscow. He was in town to accepted by the automotive industry and technological boundaries ‘outside of the discuss aluminium versus steel in the its suppliers’. boundaries of reason’. automotive industry based on a World Marcus describes the battle between There was also, he said, a degree of ‘soft Steel Dynamics report entitled AutoBody aluminium and steel for the automotive panache’ surrounding the marketing of Warfare: Aluminium Attack. dollar as ‘a high stakes contest between the new F-150 truck that has concealed The report follows hot on the heels the world’s leading steel and aluminium the inherent price and cost sensitivities of of remarks made at American Metal companies’, but argues that, while the the light metal. “With the advent of new Market’s Steel Success Strategies in New aluminium industry is in an ebullient steel grades and some attitude, economics York in September by ArcelorMittal’s CEO mood in relation to the automotive dictate that steel will, at minimum, defend Lakshmi Mittal. In addition to describing industry, steel mills – particularly those in its turf to 2018,” said Marcus. steel as the very ‘fabric of life,’ Mittal had the USA – are apprehensive and mystified. He described Ducker Worldwide’s plenty to say about the role it will play in Furthermore, they lack what Marcus ‘grandiose forecasts’ – that by 2025 the automotive industry going forward. described to journalists in Moscow as a three-in-four pick-up trucks will have an According to Mittal, the automotive ‘kill and win’ attitude. all-aluminium body – as reinforcing the market ‘is set to boom’. He said that According to Marcus, aluminium is optimism of the aluminium industry over current comparisons between aluminium the enemy of steel and Ford’s decision the F-150. “This truck is viewed by the and steel were ‘not proper’ because they to rely upon the light non-ferrous metal aluminium companies as the watershed rely upon a certain quality of steel and for the body-in-white of its F-150 truck event portending far higher aluminium that things have moved on considerably was a ‘shocking event’. What was the automotive sheet consumption in the since those comparisons were first made. thinking behind the decision, Marcus future,” says World Steel Dynamics.
* Editor, Steel Times International
www.steeltimesint.com November/December 2014
AUTOMOTIVEReadMM.indd 1 11/19/14 9:19 AM 22 WORLD STEEL CONFERENCE
Aluminium versus steel – the industry’s perspective
“There is no doubt “With the “I think the “Within the next “The main target “Steel was so that aluminium continued competition with 15 years or so for OEMs is to deeply integrated offers a number evolution of aluminium in the there could be produce cars that into the way of advantages, advanced high- auto industry is a nearly even are consuming things were, but HSLA steel strength steels, driving innovation split between less energy and but then Jaguar combined with aluminium can no in the steel steel, aluminium they are talking Land Rover heat treatment longer claim victory industry.” and carbon about multi-lateral made one of the can offer weight on weight alone. Kevin Guay, fibre content lightweighting. The first aluminium- savings and And it certainly senior sales in the average driving force is to intensive vehicles. strength-to-weight can’t claim it engineer/ North American- use aluminium to That was the first ratios that will on strength-to- research and produced light achieve their targets time an OEM compete with weight ratio or development, vehicle.” on emissions and went through aluminium on a stiffness, let alone Plattco. Jay Baron, fuel consumption and produced cost-per-piece weldability, or the president, and we see big for volume basis.” ability to connect Centre for opportunities in manufacturing Michael J Klauck, parts.” Automotive that respect.” and it’s been a president, Ron Ashburn, Research. Svein Richard success.” CAN-ENG. executive Brandtzaeg, Phil Maartens, director, CEO, Norsk CEO, Novelis. Association for Hydro. Iron & Steel Technology.
In fact, WSD goes further and suggests operations for US$650 million. undertaken alongside Nippon Steel that Ducker Worldwide has been In the executive summary to AutoBody Sumitomo Metal Corporation; POSCO’s bigging up and overstating aluminium’s Warfare: Aluminium Attack, he goes two galvanising lines at Altimira, Mexico; automotive sheet delivery potential in 10 further and mentions the ArcelorMittal/ and US Steel and Kobe Steel’s Leipsic, years from now. “For example, it is claimed Nippon Steel Sumitomo Metals Ohio, US$400 million Pro-Tec coating that three-fourths of the light trucks Corporation purchase, for US$1.95 line, started in May 2013 and designed to by 2025 will have aluminium bodies, billion, of ThyssenKrupp USA’s 5.2Mt/yr process cold-rolled coil into high-strength which WSD thinks is far-fetched.” And, rolling mill facility that is designed to ship and ductile forms of the product. furthermore, “The [Ducker Worldwide] more than 2Mt/yr of automotive steel. In 2014 deliveries of aluminium sheet report does not provide data on weight Then there was Severstal North America’s totalled 504 million pounds, claims World reduction requirements to meet CAFÉ state-of-the-art EAF-based sheet mill in Steel Dynamics. By 2018 it is expected to standards after improvements in engine Mississippi, purchased for US$1.6 billion reach a staggering 2.68 billion pounds performance.” by Steel Dynamics and designed to due to ‘significant growth’ in aluminium In Moscow, Marcus argued that the produce automotive sheet. He mentions closures and ‘surging deliveries’ for the frenzy behind building aluminium rolling Big River Steel’s new EAF-based thin-slab F-150 truck. mills is based on the claims of the Ducker flat-rolling plant under construction in That said, World Steel Dynamics further Worldwide report. Arkansas at a cost of US$1.3 billion – a claims that steel products can easily meet The bigger question, however, was why the key market for the plant is automotive. CAFÉ’s weight-saving requirements for steel industry has been so late in reacting to Nucor’s recent US$770 million 2018 and 2021 as, by then, ‘a wider the threat posed by aluminium? According acquisition of the Gallatin thin-slab flat- array of advanced high strength steels to Marcus, the automotive industry doesn’t rolling mill in Ghent, Kentucky, could be (AHSS) will be available’. Engine design like to rely upon one supplier. In 2009 expanded to serve the automotive market, improvements, claims WSD, will make there was only one ‘special steel’ on the claims World Steel Dynamics, as there is weight saving requirements in 2018/2021 market and many steel companies were room on-site for a new steelmaking and ‘not particularly severe’. playing ‘catch up’ in terms of research and rolling mill complex. The riverside location There are plenty of other factors development in an effort to establish a level is said to be ideal and there might be that make for good reading if you’re playing field – in other words, create more potential for building a DRI facility, as the a steelmaker worried about the rise of suppliers of special steels. The situation, he transportation costs for iron ore pellets aluminium in automotive. In summary, said, was not competitive, but the tide has might prove restrictive. these are as follows:- started to turn. Other notable examples of how the steel • Aluminium sheet deliveries are likely Marcus highlighted how the steel industry is tackling aluminium’s supposed to peak in 2018 due to higher build costs industry has set its wheels in motion in future domination of the automotive and the ‘sizeable and relatively low-cost an effort to gain back territory ‘lost’ to industry include Ternium’s new state-of- weight savings’ achievable using AHSS. aluminium, citing the recent acquisition the-art cold rolling and galvanising facility • Weight savings do not mean major by AK Steel of Severstal’s North American near Monterey in Mexico – a project MPG improvements.
November/December 2014 www.steeltimesint.com
AUTOMOTIVEReadMM.indd 2 11/19/14 9:19 AM WORLD STEEL CONFERENCE 23 NOZZLES • Aluminium sheet is not cheap. aluminium a run for its money where • Ford may regret opting for weight savings are concerned. aluminium in the F-150 truck: ‘it WSD also claims that not all AND SYSTEMS may pay a price in terms of reduced automotive OEMs are switching to profitability’. aluminium, citing the likes of Cadillac, Tesla, Volvo, BMW, Honda and even WSD claims that, since Ford decided Ford as companies making increased to opt for aluminium for the F-150’s usage of AHSS. Lechler nozzles body-in-white, things have moved On the bad news front, US have been setting on technologically in terms of steel investment in aluminium rolling mills standards in qua- processing. Back in 2009, for example, and heat-treating lines might lead to lity, performance continuous annealing lines (CALs) an oversupply situation and this, says didn’t exist. WSD, will enable aluminium mills and design for Furthermore, Ford might have to to enjoy good ‘pricing power’ and, over 130 years. pay an extra US$1,000 to US$1,400 therefore, the ability to pass on costs per vehicle to build an aluminium- to customers. A wide range of bodied light truck based purely on the WSD also argues that automotive specially developed and proven nozzles price differential between steel and steel sheet deliveries in 2025 might aluminium. be flat compared to 2014 even if car of many different designs and in a range There are also question marks production is up 20% over the period. of materials is available for applications hanging over the F-150’s sustainable This is due to losses to aluminium and throughout the processes of metal smelting, competitive advantage when compared less weight per vehicle. refining, casting, rolling and processing. with rival truck brands in the US While WSD expects automotive market, such as the GM Silverado and sheet deliveries to be around 42.7 the Chrysler-Dodge RAM truck. Both billion pounds, this figure masks brands might be as light and better declines in mild sheet deliveries and performing, claims WSD, in 2017/18 a rise in delivery of AHSS. Mild sheet than the 2015 F-150. will drop from 2014’s figure of 22.7 With fewer suppliers of what WSD billion pounds to just 8.3 billion and calls ‘difficult-to-make’ AHSS grades, mid-strength steels from 12.5 billion it is argued that US-based steel mills pounds to 10.7 billion. High strength should make a higher profit margins on steels, however, will rise from 7.4Mt to deliveries. This theory is backed up by 23.7Mt, up 330%. recent consolidations in the steel sheet Perhaps the last word should go market as plants previously owned by to Ducker Worldwide’s Dick Schultz. ThyssenKrupp USA and Severstal North While he has been accused of making America have been acquired by existing ‘grandiose forecasts’ and ‘reinforcing producers (ArcelorMittal, Nippon Steel the optimism of the aluminium & Sumitomo Metals Corporation, AK industry over the F-150’ he has Steel and Steel Dynamics). also been quoted as saying, “While It is also argued that AHSS – even there will be increased aluminium if priced 25% higher than average penetration, vehicles will continue to automotive sheet products – gives be predominantly steel.” t
Low growth and high volatility...
Low growth might be ‘the new normal’ until the emerging economies pick up, says Hans Jürgen Kerkhoff, chairman of worldsteel’s economics committee, as he outlined the organisation’s short- range outlook to delegates at worldsteel’s 48th Annual Conference in Moscow last Lechler GmbH month. Precision Nozzles · Nozzle Systems P.O. Box 13 23 72544 Metzingen/Germany Phone +49 (7123) 962-0 A full report on his presentation can be found on Steel Times International’s Fax +49 (7123) 962-333 website. Go to: [email protected] · www.lechler.de http://steeltimesint.com/contentimages/features/WORLD_STEEL_web.pdf www.lechler.de
www.steeltimesint.com November/December 2014
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Extremely challenging times
The EU recently announced that its CO2 emission reduction target by 2030 is 43% – but does the technology exist to achieve it? We caught up with EUROFER’s director-general, Axel Eggert, at worldsteel’s 48th annual conference in Moscow to fi nd out.
1. You’re taking over from Gordon reductions at a magnitude of, potentially, 7. “I don’t believe anybody is talking
Moffat as Director-General of EUROFER. at least 450Mt of CO2 per year by 2030 in about new capacities in Europe.” This A hard act to follow? the EU alone. EU politicians have already is a quote from Gordon Moffat earlier Gordon Moffat has considerably acknowledged that steel made in Europe this year. Is this sorry state of affairs strenghtened the voice of the European is essential for the EU’s economic fabric, likely to change in the near future – or steel industry in Europe. It is, of course, jobs and growth. Now it is up to the get worse? a challenge to follow in his path, but this politicians to deliver the right regulatory There are indeed no new capacities in the work is not a new fi eld for me. I have framework for a globally competitive EU in sight. The European steel industry worked since 2007 in a leading position at industry in Europe. is continuing to restructure and adapt EUROFER as director for public affairs and existing capacities to economic realities. have represented Gordon Moffat on many 5. With regulatory costs eating occasions in the past. into the profi ts of European steel producers, is it time to say ‘enough is 2. What will be the main challenges enough’? facing the European steel industry We are indeed at a turning point. The EU over the next 12 months? needs to make the right decisions now if The EU’s ambitious climate and energy it wants the steel industry to further invest framework for 2030 is certainly among in Europe. The awareness among many our main challenges. It is essential that our politicians is there, but clear action is industry, at least at the level of the most missing. We hope that the new European effi cient installations, will not be penalised Commission with a new focus on growth, with costs, which our global competitors jobs and better regulation will meet the do not have to bear. expectations and fi nd the right balance between economic and environmental 3. Gordon Moffat said that taking policies. an ideological approach to climate change is wrong. What’s your view? 6. Uncertainty surrounding I would agree to this. Decisions must increasingly stringent EU be based on facts and realistic impact climate change regulations assessments. It is clear that climate change has led to a deadening of has to be addressed with appropriate investment in Europe by the measures on a global level. Crucial is that European steel industry. Will the EU does not continue a unilateral policy European steelmakers take regardless of technical and economical their business elsewhere? feasibility for the steel industry. It would be unfair to point on EU climate regulation as 4. It is argued that the steel industry the only reason for declining cannot hope to meet EU emissions investment in Europe. The targets as the technology simply economic crisis, high energy doesn’t exist to improve matters any prices and regulatory and further at present. How can EUROFER administrative burdens in convince those in power that this is Europe have a huge impact, the case? too. On climate policies it is
Indeed, after having reduced CO2 in particular the forecasted emissions from EU steelmaking by 50% unilateral cost impact on since the 1970s little further potential with our industry that removes the existing technologies remains. European incentive to invest in Europe. With steelmakers are the most advanced in R&D even the most effi cient steel plant in into innovative steelmaking technologies. Europe having a huge cost burden, But these do not fall from the sky and once carbon and investment leakage will available also need to be economically be the inevitable consequence with viable. Equally important, EU steelmakers negative impacts for the climate and are delivering steel products for emission environment on a global scale.
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With the right regulatory framework and a business friendly environment, steelmakers in Europe will remain world leaders in providing indispensible steel products for modern societies and future generations.
8. It is argued that there has been a massive policy failure in Europe over the past decade in terms of energy security. Big cost miscalculations have been made over green policies, for example. What’s the solution? Europe needs to keep a diversified energy mix with energy providers and energy sources competing in an EU energy market instead of being subsidised on a national level. Europe needs to be open towards the sustainable exploitation of domestic energy sources, including shale gas.
9. There have been many calls for ‘a level playing field’. Are we ever likely to get one? It is obvious that a level playing field with equal objectives for competing industries worldwide is still far away. It is only enforceable if the major developed and emerging economies work closely together. It is clear that if the international climate negotiations in Paris in December 2015 do not come to results, that the EU must rethink its unilateral climate policy. The EU has Produce and process only 10% of global GHG emissions, a percentage that is shrinking rapidly, mainly resulting from growth in emerging economies’ metal more efficiently. emissions.
10. The EU should be supporting European industry in the same way that the Americans and Chinese support theirs. What’s your view? The EU should support its steel industry when unfair trade harms our position on the domestic EU as well as foreign markets, as effective as the USA. Unlike China, the EU steel industry operates Powerful solutions under a strict code prohibiting state aid. China’s massive, subsidised excess capacities are depressing domestic prices and for the metal fuelling unprecedented steel export surges. We monitor closely industry the trade situation while developing our communication with the Commission on the worsening Chinese steel situation. As a global provider of automa- tion solutions, Endress+Hauser 11. Are you happy about the EU’s decision to pursue a CO 2 has the necessary expertise to emission reduction target of 43% by 2030 and does the steel deliver robust and reliable field industry have the technology to achieve it? devices as well as customized The new framework is an extremely challenging target for Europe’s solutions and services. Our indus- industry in the absence of similar constraints for our competitors try-optimized packages enable worldwide. But the clear commitment by the heads of state to set you to lower energy and process safeguard measures at the level of the most efficient installations costs efficiently and comply with is a positive signal for industrial investment, growth and jobs in environmental requirements. Europe. A profitable European steel industry benefits European society as a whole. It will be able to continue contributing to www.endress.com/metal significant emission reductions in Europe.
12. You say that the EU’s commitment to set safeguard measures at the level of the most efficient installations is a positive signal and that the new framework on the table is ‘extremely challenging’. How do you think steelmakers will react? It is now time for the European Commission to rapidly implement the safeguard measures and provide sectors at risk of carbon leakage with truly 100% free allocation at the level of the 10% most efficient installations, based on technically and economically Endress+Hauser achievable benchmarks, and on real production instead of historic Instruments International AG Kaegenstrasse 2 production levels. CO2 costs passed-through in electricity prices 4153 Reinach must be fully offset in all member states. Those installations above Switzerland [email protected] the benchmark will have to buy additional allowances on the www.endress.com market. This gives them the right incentive to improve their carbon efficiency to the level of the benchmarks. t
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Simulation studies in Hot Dip Process Simulator (HDPS) on Al-Si Coatings
Efforts have been made to develop Al-Si based coatings using a hot dip process simulator (HDPS), to avoid oxidation/surface decarburisation of Mn-B steel during hot stamping. By S.K. Shukla*, M. Deepa*, Anjana Deva*, Santosh Kumar*, Atul Saxena* and B.K. Jha*
THE hot stamping process combines hot forming and subsequent quench hardening Fig 1 General view of HDPS at RDCIS in a single process step. The process is compatible with the chemical composition of boron-alloyed steels, because it creates a robust process window for quenching, which causes martensitic transformation. When uncoated boron steel is transferred from the furnace to the press, an irregular and abrasive iron oxide layer forms on the blank’s surface. Because of direct contact with atmospheric oxygen, oxidation occurs and results in superficial decarburisation, which is detrimental to a part’s final properties. In order to avoid scaling during hot stamping, different types of coatings have been developed worldwide. In the present work, efforts have been made to develop Al-Si based coatings, using a hot dip process simulator (HDPS), to avoid oxidation/surface decarburisation of Mn-B steel during hot stamping. Experiments were conducted using a HDPS to ascertain forming process for sheet metal where and indirect. The two-stage indirect hot the optimal aluminised bath composition forming and quenching take place in the stamping process allows the production of and other coating parameters (bath same forming step1. This process takes more complex shaped parts, but is more temperature, dipping time and so on) advantage of the low flow stress of boron- complex and more cost-intensive due to to achieve superior properties in Al-Si alloyed steel in the austenitic phase at upstream cold stamping and subsequent coatings in terms of corrosion resistance elevated temperature and allows parts to hot stamping stages. However, the one- and adherence as well as crack and void- be manufactured with ultra high strength, stage direct hot stamping method is the free coating during hot stamping. It has minimum spring back and reduced sheet most frequently used and is ideal for been found that Al-13%Si-1%Na is the thickness. processing manganese boron steels with optimum bath composition to achieve The hot stamping process significantly a hot dip aluminising coating. The coating superior properties in Al-Si coated Mn-B extends the possibilities for parts protects against scaling, which is a typical steel sheets in terms of corrosion resistance, production. There are currently two feature of the hot forming process, and formability and coating adherence. common hot stamping methods: direct thus increases the lifetime of the forming dies. During heating, the protective Element Wt (%) Introduction C 0.23 coating is transformed into an alloyed In the automotive industry, to improve Mn 1.26 layer of Fe-Al-Si that is highly adherent vehicle safety and reduce fuel consumption, Si 0.28 to the substrate and has good corrosion manufacturing of light weight body parts S 0.008 properties2. However, degradation of the from manganese boron steel (22MnB5) P 0.015 Al-Si coating in terms of intermetallic is rapidly increasing. The forming of ultra Cr 0.16 phase formation, Kirkendall voids high strength steel at room temperature is B 0.003 and crack formation occur at high limited by low formability and considerable Ti 0.023 temperature. In view of the above, efforts spring back. Hot stamping, therefore, Al 0.044 are required to develop new types of Al- is accepted as a widely used and viable Table 1 Chemical composition of Mn-B Steel substrate Si coatings for hot stamping operations, alternative solution. It is a non-isothermal used in simulation studies which are free from the above-mentioned
*R & D Centre for Iron & Steel (RDCIS), Steel Authority of India Limited (SAIL), Ranchi -834002, Jharkhand, India Email : [email protected]
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14 12
12
11 10
8 10 6 Corrosion rate, mpy 4 Erichsen cup value 9 2
0 8 Al-6%Si Al-10%Si Al-13%Si Conventional Al-6%Si Al-10%Si Al-13%Si Conventional GI sheet GI sheet
Fig 2 Corrosion resistance of Al-Si coated vis-à-vis conventional galvanised sheet Fig 3 Formability of Al-Si coated vis-à-vis conventional galvanised sheet
degradation. In view of the above, the at which the cracks/peel-off of the coating Si coating had only taken place in a few objective of the current work is to optimise begins is when punch movement is taken spots. In subsequent experiments, the aluminised bath composition (Si level and as the Erichsen Cup value of the composite. annealing temperature was increased to other alloying elements) and coating Coating adherence of coated sheets was 750°C and the soaking time was varied parameters (bath temperature, dipping assessed through a lock forming tester. between 60 and 90 seconds, while other time) to achieve superior properties in The corrosion rate of the coated sheets parameters were kept constant. It was Al-Si coatings with regard to corrosion was measured by the Taffel plot equation observed that a higher soaking time (90 resistance and adherence as well as to using a Potentiostat under the following seconds) at an annealing temperature of ensure crack and void-free coating during conditions: 750°C resulted in an improved coating hot stamping. quality, as higher soaking time allows Test Solution: 3.5% NaCl better reduction of oxides present on the Experimental Reference Electrode: Silver – Silver chloride. steel surface, thereby resulting in good Experiments have been conducted in HDPS Scan Rate: 0.1 mv/s. coating quality. Subsequently, in all the (Fig 1) on Mn-B steel substrate (chemical Scan Range: ± 20 mv. experiments (with different Al-Si bath composition shown in Table I), by varying compositions), the annealing temperature the aluminised bath Si level (6-13%), Metallographic analysis of simulated at 750°C and the 90-second soaking time annealing temperature (700-750°C), time aluminised sheet samples was carried out was maintained. (60-90 seconds) and bath temperature using a Scanning Electron Microscope and (590-610°C). However, other parameters, an EDAX (Energy Dispersive X-ray Analysis) Properties of Al-Si coated Mn-B steel like dipping time (~3 sec.), dew point system. Al-Si coated Mn-B steel samples sheets of the annealing atmosphere (-20°C), Na were subjected to a heat treatment cycle Al-Si coated Mn-B steel samples were level in aluminised bath (~1.0%), nozzle (heating @ 8-10oC/s up to 930oC, soaking characterised in terms of corrosion distance (17 mm) and wiping gas flow at 930oC for five minutes followed by rate, formability properties, coating rate (200 lpm) were kept constant during cooling at 40oC/s), as per hot stamping adherence and microstructures. Corrosion the experimentation. operation. Metallographic analysis of the resistance was measured through an In each simulation test, Mn-B steel heat-treated Al-Si coating was conducted electropolarisation test using the Taffel sheets sized 200mm (L) x 120mm (W) to examine degradation in the coating. plot, varied in the range of 1.4 to 12.4 mpy, were heated at the rate of 30°C/s to the depending on the processing conditions. annealing temperature and soaked at for Results & discussion For Al-Si coated sheets, aluminised in 60-90 seconds in an annealing atmosphere Effect of annealing parameters on Al-Si Al-6%Si bath, the corrosion rate varied
of 20%H2+80%N2. The dew point of the coating quality from 6.4 to 12.4 mpy, while the corrosion annealing atmosphere was kept at ~ -20°C Coating experiments on Mn-B steel rates of coated sheets aluminised in an during experimentation. Subsequent to substrates were started with an Al-13%Si- Al-10%Si and Al-13%Si bath were in the
annealing, samples were cooled with N2 1%Na bath composition. Initially, the range of 3.3 to 4.4 and 1.4 to 4.1 mpy gas up to near bath temperature (5°C annealing cycle during coating experiments respectively. In Fig 2 corrosion rates of more than the bath temperature) at a rate was maintained as followed during Al-Si coated sheets vis-à-vis conventional of ~4°C/s and subsequent to dipping in a conventional galvanising/aluminising galvanised sheets has been shown. zinc bath, the samples were cooled down experiments. Steel samples were heated at The corrosion rate of Al-Si coated sheets to room temperature at the rate of 10°C/s. 30°C/s up to an annealing temperature of is superior to galvanised sheet because Al-Si coated Mn-B steel samples are 700oC and soaked at this temperature for Al offers higher oxidation and corrosion characterised by coating thickness, 45 seconds in an annealing atmosphere resistance because of the formation of a
corrosion resistance, formability, of 20%H2+80%N2. The dew point of the tenacious and protective oxide film, Al2O3, adherence and microstructures. The annealing atmosphere was maintained at at the sheet surface. Furthermore, with an coating thickness (CT) of the galvanised -20°C. Samples were subsequently cooled increase in Si content in aluminised bath samples was measured using a Defalsko up to ~600°C (10°C more than the bath from 6% to 13%, the corrosion rate of Coating Thickness Gauge (Positector temperature: 590°C in this case) and then Al-Si coating improves significantly from 6000). Formability characteristics of GI dipped in the bath. On examining the 9.4 mpy to 2.75 mpy. An increase in Si sheets were evaluated using an Erichsen coated samples, it was found that they content in Al melt results in the formation Cup Tester and during the test, the point were not uniformly coated and that Al- of Fe-Al-Si phases in the coating structure
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which inhibits cathodic reaction, thereby resulting in superior corrosion resistance of the Al-Si coating with a higher silicon level (~13%). The formability characteristics of the newly developed coated sheets were quantified in terms of the Erichsen Cup Value of the composite. In simulated aluminised sheets, it varied between 9.0 mm to 11.8mm depending on bath composition and the processing conditions of the sheet. Formability properties of Al- Fig 4 Si coated sheets vis-à-vis galvanised sheets have been shown in Fig 3. Generally, steel sheets aluminised in a 100% Al bath exhibit a limited formability, as formability is affected by the thickness of the interlayer (alloy layer formation). For this reason, where formability is a requirement, the aluminising is preferably carried out in silicon-containing melt. The microstructure of Al-Si coating reveals that whereas with hot dip aluminising (HDA) in pure aluminium the interface exhibits a finger-like or dendritic profile, the HDA with Al-Si alloys yields a more ‘planar’ Fig 5 interface. Furthermore, the thickness of the compound layer in HDA with Al- Si alloys is, in general, much smaller than that obtained in HDA with pure aluminium. Microstructures shown in Fig 4 to Fig 6 indicate that the thickness of the interlayer, as well as the profile of the interlayer/substrate interface, are both affected by the silicon content of the melt. It was observed that the interface became almost completely ‘planar’ at a silicon level of about 13%. Further increases in the silicon level didn’t cause Fig 6 any appreciable change in thickness or profile. The addition of Si into the aluminising melt causes the finger like growth mode to gradually disappear. This is believed to be due to an increase in interface energy, or a reduction in 3 diffusion through the Fe2Al5 layer . The best formability properties of Al-Si coated sheets, however, were observed for Al- 13%Si-1%Na bath. This may be because of the lower bath temperature that can be maintained at this silicon level (due to eutectic reaction) leading to less dross generation and a slower formation of Fe- Fig 7 Al-Si intermetallics at the steel-coating interface4. Also, transition of the growth morphology of eutectic Si from plate like
Fig 4: Microstructure and EDAX analysis of Al-6%Si coated Mn-B steel sample Fig 5: Microstructure and EDAX analysis of Al-10%Si coated Mn-B steel sample Fig 6: Microstructure and EDAX analysis of Al-13%Si coated Mn-B steel sample Fig 7: Microstructure and EDAX analysis of Al-13%Si coated Mn-B steel heat treated (HR : 12oC/s) sample Fig 8: Microstructure and EDAX analysis of Al-13%Si coat- ed Mn-B steel heat-treated (HR: 10oC/s) sample Fig 8
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to fi brous resulting from the effects of Na because the aluminium plating layer of Acknowledgements on the nucleation and growth of both the product transforms during heating, The authors thank SAIL’s management Al and Si phase5. Coating adherence of before press forming, into an Fe-Al alloy for support and encouragement and the Al-Si coated sheets was also assessed phase, which has a high melting point. In thankfully acknowledge permission to using a lock forming tester. the case of Al-Si coating heated at 10°C/s, publish this paper. Thanks also to the Most of the sheets offered excellent no cracks and voids were observed (Fig laboratory staff of RDCIS. coating adherence and no cracks were 8) and the Al-Si coating was found to be observed near the bend portion. However, smoother and more uniform. in some cases, minor cracks were found, References particularly on steel sheets aluminised in Conclusions 1 Masayoshi SUEHIRO, et.al, “Properties of Al-6%Si bath. •To achieve superior Al-Si coating quality Aluminium-coated Steels for Hot-forming”, on Mn-B steel substrates, the sheet must NIPPON STEEL TECHNICAL REPORT No. 88 JULY Coating quality evaluation of heat treated be annealed at 750oC for a minimum of 90 2003, pp 16-21 Al-Si coated sheets seconds in 80%N2+20%H2 atmosphere 2 A. Naganathan, “Hot-Stamping of Mn-B steel sheets which were aluminised at a dew point of -20oC. Manganese Boron steel”. MS Thesis submitted at in Al-13%Si-1%Na bath (coated sheets •The Si level in aluminised bath Ohio State University, 2010 which manifested best properties), were signifi cantly affects the corrosion3 Lenze, F, J., Banik, J., Sikora, S.,”Applications subjected to a heat treating cycle, in resistance and formability properties of of hot formed parts for body in white”, HDPS, as followed during hot stamping. Al-Si coated Mn-B steel sheets. Al-13%Si- ThyssenKrupp Steel, Dortmund, Germany, The heating rate (HR) was varied in the 1%Na bath composition results in the International Deep Drawing Research Group range of 10°C/s to12°C/s. The heating was best possible combination of properties Proceedings, Olofström, Sweden, June 2008 deliberately kept low to prevent the Al- in terms of corrosion rate (1/3rd w.r.t 4 Wilsius, J.; Hein, P.; Kefferstein, R., ”Status Si coating from melting (melting point is conventional GI sheets), formability (at par and future trends of hot stamping of USIBOR 1500 approximately 600°C). Microstructures of with substrate) and coating adherence (as P” Arcelor Research Automotive Applications, 1. the heat-treated Al-Si coating have been per lock forming quality standard). Erlangener Workshop Warmblechumformung shown in Fig 7 & 8. • To avoid degradation of Al-Si coating 2006, Bamberg, Meisenbach 2006 It can be seen in Fig 7 (HR: 12°C/s) that during the hot stamping cycle, the heating 5 Altan, T.; Yadav, A., “Hot Stamping Boron- some cracks and voids are present in the rate must be maintained at less than 10oC alloyed Steels for Automotive Parts – Part II” ERC/ Al-Si due to a higher heating rate. to achieve crack- and void-free coating NSM, Ohio State University, Stamping Journal, However, the coating has not melted and prevent the coating from melting. Jan. 2007
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SAILReadMM.indd 4 11/11/14 12:48 PM Sculptured by the US artist Richard Serra, 4m 34 SPANISH STEEL wide plate, 50mm thick, has been curved and stood on edge to make eight massive mazes in the ArcelorMittal gallery
Bilbao once famed for steel and shipbuilding is now known for its Guggenheim Museum
Siderex – Exporting steel and services from Spain’s Basque region Prior to the 2008 recession, Spain’s equipment manufacturers had largely switched from domestic supply to exports. Where processing equipment is concerned, 80-90% of output is now exported and 10-20% destined for domestic sales, the reverse of the pre-2008 era. The main markets are no longer Europe but Asia, the Middle East, Turkey and Russia. By Tim Smith*
THE Spanish Association of Steelworks by the Spanish government’s Trade Electric Arc Furnace (EAF) minimill making Exporters (SIDEREX) is a non-profit Department (ICEX). flat products via two CSP (Compact Strip organisation founded in 1996, with The Basque region has a strong steel Production) thin slab casters directly the main goal of promoting Spanish heritage following the discovery, in Roman linked to a hot strip mill. The new works steel exports and defending the general times, of rich ores in the Bilbao district. In was initially called Aceria Compacta de interests of its members. the 19th century, these ores were exported Bizkaia, but now, as one of six mills in Siderex has 70 member companies, mainly to England and Germany. In the Spain owned by the ArcelorMittal Group, seven of which are steelmakers ranging early 1900s, 87.5% of all the UK’s imports is called ArcelorMittal Sestao. from producers of carbon, stainless of ore came from Spain. Today, Spain’s steel production is and alloy steels; 19 are steel processors The rich ores of Bilbao led to the dominated by scrap-based electric and 44 are engineering and equipment establishment of steelmaking in Spain and steelmaking with 74.9% of the 13.7Mt manufacturers and suppliers of spare its supporting industries in the region of of crude steel produced in 2013 made parts, components, raw materials and Bizkaia (Biscay), surrounding the town of this way from 21 EAF plants. Only one services to steel plants. Bilbao. integrated mill remains in the country, In 2012, the total turnover of Siderex Bilbao is located some 10km inland ArcelorMittal Asturias, located at Gijón members was €6.031bn with exports of from the coast on the estuary of the some 260km west of Bilbao, and this €3.445bn. river Nervión with its port facilities nearer produced 3.1Mt in 2013. Siderex and 50 of its members are the coast at Sestao. Indeed, the former Half of the EAF plants are located in headquartered in Bilbao in the Basque integrated mill, Altos Hornos de Bizkaia, the Basque region, which has 11 EAF region of Spain. The organisation is which closed in 1995, was located at the mills with a total capacity of 7.4Mt, but financed by its members and supported port and has been replaced by a modern the steelmaking utilisation rate was only
* Consulting Editor Steel Times International
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52.7% with output from the region in Basque Region to link the three regions making up the 2013 at 3.9Mt – although this was up Basque country. Known as ‘Basque Y’, this 3.9% on 2012. There is also a mothballed The Basque region is an autonomous commu- will link Bilbao with the region’s capital IMt/yr plant, Corrugados Azpeitia, at nity in north-eastern Spain made up of three city, Vitoria (named Gasteiz in Basque) to Azpeitia, some 70km east of Bilbao. Liquid provinces, Álava, Biscay and Gipuzkoa. It has a the south and Donositia (San Sebastián) steel from the Basque region made up short 15km border with France at its north- in the east. The line is expected to be 29% of Spain’s total output in 2013 and eastern point and is a mountainous region operational in 2017. The standard gauge 36.8% of total EAF output. with a population of 2.1 million – almost half line (Spain’s domestic network is narrower While the extensive use of EAF of whom live in the Greater Bilbao area. than this) will also connect to Madrid and steelmaking reduces the need to buy Economically, the region has the highest in- to the French high speed network via Irun. come in Spain with, in 2010, a GDP one third CO2 emission certificates (CO2 emissions Maximum speed will be 250km/h. The from scrap-based steel production are higher than the average for Spain and 40% total length of the line will be 135km of greater than the European Union average. below 500kgCO2/t crude steel – only double track and 37km of single. Because about one-quarter of those from an Spain’s ‘Industrial Revolution’ started with the of the mountainous terrain, 80 tunnels integrated works) the price of electrical exploitation of ore reserves in the Bilbao region and 71 bridges are being constructed. power in Spain is high and this has in the 19th century. Its industry was built on Part of the network will be owned by the arisen because the Government paid out steel production and shipbuilding. Today, this Basque regional government and part €50bn in incentives to renewable energy has been largely replaced by ‘high tech’ indus- by the Spanish national railway. The cost producers over the past 25 years, and tries such as aeronautics, machine tools and of the project when launched in April could no longer sustain these payments. energy generation. 2006 was €4.1bn of which the European As a consequence, not only have such Commission for Transport paid €118.5M incentives been cut to renewables, but manufacturing sector were involved in and the European Investment Bank (EIB) also compensation previously paid to high exports. Siderex organised delegations, loaned €500M to be repaid over 30 years. energy users – those prepared to accept visited 23 countries and took part in 17 The remainder is being financed by the an interrupted power supply during peak trade missions as well as four international Railway Infrastructure Authority of Spain. demand periods – has also been removed. steel conferences and three exhibitions. This has increased power costs to EAF They also organised a summit ‘Challenges Companies visited plants by 30%. In 2013, wind power of the Steel Industry’ to discuss topics At the invitation of Siderex a delegation became the largest source of power related to global steel including logistics, of steel trade-press members were given a generated in Spain accounting for 21.1%. scrap, environment, special steels and three-day tour of the region visiting a total Hydro at 14.6%, solar and geothermal at the steel-related plans of the European of seven member companies ranging from 6.9% and nuclear at 21.0% considerably Commission. re-rollers, service centres, equipment and reduce Spain’s carbon footprint in power As well as the steel production and automation suppliers and a research and generation (Fig 1). processing industry, the Basque region innovation centre. is ideally located to supply domestic Exports producers, in particular the automotive Tata Steel Layde Since the start of the recession in 2008, sector, which has manufacturing facilities in Tata Steel Layde is both a flat products Spanish manufacturing companies have the north and east of Spain. Car production service centre and a cold strip roller. striven to increase export business as the in 2013 grew to two million units and is Established in Durango, 34km SE of Bilbao domestic market collapsed. Apparent expected to increase 10% in 2014 to 2.2 in 1941, the company specialises in cold steel use in the Basque region fell 13.2% million. Ford made a €1.5bn investment rolling strip up to 650mm wide, mainly for between 2012 and 2013 to 3.3Mt. Today, at its plant in Valencia, on the east coast the automotive market. It has an annual many manufacturers are exporting 80% of central Spain, last year adding two new rolling capacity of 130kt. of production with just 20% going to assembly lines and a paint shop. Other Hot rolled coil delivered to the site the domestic market. This is the reverse global producers, including Renault, GM, for cold rolling is first pickled and slit to of the situation pre-2008. In terms of and Volkswagen, have also been investing a maximum width of 650mm. It is then value, 81.5% of Spain’s total exports are since 2011 moving some production from cold rolled in one of two reversing Innse of manufactured goods. Belgium and South Korea to Spain. Sendzimir mills to achieve high reductions. The value of exports from steel producers This provides a ready market for steel Annealing is by batch process in Ebner and processors for the year to 31 October from component manufacturers. HICON bell annealers using a hydrogen 2013 was €5.4M but this contrasts with Investment is also being made in atmosphere. Finally it is rolled on one of over 30 times this value achieved by infrastructure with a high speed rail two skin-pass mills to ensure flatness and exporters of plant and equipment which network currently under construction the required ‘temper’ hardness. reached €165M. This sector grew 70% as a result of demand from the Middle East, Power Installed Av Supply Supply at Turkey, and Asia (mainly China). Generation Capacity In 2013 at Peak Demand* Regarding the balance of trade for Wind 22.2 21.1 21.9 steel products across the whole of Spain, Nuclear 7.7 21.0 17.7 imports of steel – mainly flat products – Coal 10.9 14.6 20.0 reached 7.6Mt in 2013, and exports were Hydro 19.4 14.4 17.3 9.7Mt. Imports were 3.26% lower than in Cogen & other 7.5 12.4 11.8 2012, while exports fell just 1.03%. In the Combined cycle 24.8 9.6 9.3 Basque region, exports of steel reached Photovoltaic 4.3 3.1 0.2 2.7Mt in 2013, down 2.24% on 2012, Renewable thermal 1.0 2.0 1.7 while imports were 1.55Mt, down 0.92% Solar thermoelectric 2.2 1.8 0.1 on 2012. *Peak demand 39.963MW on 27/2/13 at 20-00 to 21-00h Source: The Spanish Electricity System preliminary report 2013 Red Eléctrica de España http://www.ree.es/en In 2012, 184 companies in the steel production, processing and equipment Fig 1 Power generation mix in Spain in 2013 (%)
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Strip can be rolled as thin as 0.1mm but for commercial reasons, 0.2mm is the normal limit. The maximum thickness is 0.4mm cold rolled and the slit width 10- 650mm. Each mill has a capacity to roll up Athader sources to 65kt/yr and at present about 50kt/yr is local steel and com- rolled on each. Grades rolled are generally ponents for its coil low-to-high carbon, spring steels, free processing lines machining Mn-Pb and low alloy Cr-V. Recently boron-containing steels have been processed, and also trials to roll This privately owned group employing organisation in 2010 by the merger of 1%C steels are underway, but ultra-high- around 600 is one of the largest groups eight specialist R&D groups, the earliest strength duplex steels are not rolled. for design and manufacture of roll established in 1955. Traceability is an important part of the forming and coil processing equipment, Its mission is ‘to transform knowledge supply and as well as mechanically testing with manufacturing facilities in Australia, into GDP’, by acting as a bridge between samples prior to dispatch, additional Canada, China, Spain, New Zealand and universities and industry. Its workforce samples are cut and stored for up to five the United States. While the vast majority of 1,415 is made up of around 30 years should subsequent investigation be of Athader’s production is cut-to-length nationalities includes 200 with doctorate required. and slitting lines, it also builds lines for post-graduate degrees. It presently holds Tata Steel Layde also supplies hot band, blanking, trapezoid cutting, grinding and 303 patents. slit coil and cut to length as part of its brushing and recoiling. The company To date it has served 4,000 clients. service centre portfolio. It can slit material employs 20 workers and expects to 51% of its €122M revenue last year up to 8mm thick and pickle up to 7mm. increase this number as markets return. came from contracted work, 34% from Most of the coil is sourced from Tata Steel It also out-sources production of some competitive public funding and 15% Europe, although, as a service centre, components. from non-competitive public funding. some coil comes from other suppliers. The Full automation is provided using It also participates in the EU Framework maximum coil weight is 28t which is the recognised components supplied by such programmes. limit imposed for transportation by road companies as Siemens, Allen-Bradley, It has seven divisions covering in Spain. Baumer and others. As far as possible, construction, energy, software, health, The company is the only one in the Tata structural steels and components are technology services, innovation strategies Europe group now rolling thin strip, and is sourced locally. It can supply lines capable and industry and transport. This last the only Tata distribution centre in Spain. of handling coil weights of up to 45t and division includes the steel industry. Europe accounts for 62% of the company’s thicknesses up to 25mm. Coils of coated Activities in the steel industry include sales. Spain is the main market but Italy steel, stainless steels and aluminium can software modelling, robotics, casting, and the Czech Republic are also important. all be processed. joining materials – such as composites – Automotive applications account for 62% 80% of its production is exported. It has to steel for light-weighting of vehicles, of output, followed by construction (20%) 25% of Spain’s export market for cutting testing and analysis, metallography, and, and general engineering (18%). Demand and slitting lines and about 5% of the presently under investigation, the recovery grew by 18kt in 2013. world market. The traditional markets of of zinc from steelmaking dust by means of A workforce of 142 operates the site, Europe and Latin America are now being a plasma furnace. on a three-shift basis in some ‘bottleneck’ replaced with orders from the Gulf, Asia (it www.tecnalia.com areas such as the pickle line, but generally has decided not to supply to China), USA, operate two shifts. Russia and a growing interest from Turkey. Jaure SA www.layde.es www.athader.com Jaure, located at Zizurkil, 110km east of Bilbao, builds transmission systems for the Athader SL Tecnalia metals and heavy industries. Established Located in Tolosa, 117km east of Bilbao, Tecnalia is a privately-owned research and in 1958, in 2005 it became 100% owned Athader designs and builds coil processing innovation centre headquartered in Spain by the US-based Emerson Industrial lines, in particular cut-to-length and where it has 17 facilities including at San Automation group where it sits within the slitting lines, with integrated roller levellers Sebastian, Bilbao and Vitoria. It has four Mechanical Power Transmission segment. and stacking equipment as options. locations outside of Spain, one each in Jaure supplies drives and couplings to Founded in 1992, the company joined France, Italy, Serbia and Mexico. Tecnalia a range of industries, including paper, the US-based Bradbury Group in 2012. was established as a non-profit making marine, mining, hoists and wind power. Metal processing is the largest segment accounting for 35% of the business. It supplies couplings for rolling mills, continuous casters and process lines. In addition to its works in Zizurkil it has a manufacturing plant in Slovakia. It employs a workforce of around 100 and can make use of the 300,000-strong Emerson Industrial group to promote global sales, servicing and design. For example, FEM analysis is conducted at Refurbishment has become a Emersons’ design centre in Puna, India. growing market for Jaure from Marine drives account for 25-35% of Europe’s steelmakers business and wind power 15-20%, the
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through a turbine. It also has a marine propulsion section to supply shipping, a traction section to supply conventional trains, and a section to supply mines. A special rotating lift order for Jaso To recover energy, systems such as trains and reversing mills use regenerative breaking enabling the motor to feed power back into the supply grid. It also promotes the use of variable speed drives for items such as fume extractor fans latter growing strongly in Asia. In this box girders, which are protected with and cooling water pumps so that power sector, the use of carbon fibre composite insulation panels on the outside. demand is reduced when these units are shafts is growing. The life of a standard crane may be just not required to work. Materials and components, such as 10 years, but with good maintenance www.ingeteam.com bearings, are sourced locally wherever could be twice this. possible or from other Emerson Industrial The company carries out refurbishment Glual Hidraulica SL companies. Steel is not purchased from of cranes. Upgrades to take a greater Located in Azpeitia, 72km to the east China. weight are also carried out by the of Bilbao, Glual builds and automates 75-80% of exported transmissions go company. For example, a load upgrade hydraulic systems to supply a range of to Europe, but Asia is a growing market. to lift an additional 50t was achieved industries. The steel market accounts for Turnover is increasing and business in Spain by extending the base of the crane and about 20% of sales. 90% of its business is reached €24M in 2013 and is expected to adding more wheels so as to ensure axle outside of Spain, in contrast to pre-2008 be €26M this FY to 30 September, but has weights did not exceed the load bearing when 80% of its sales were domestic. As a not yet reached the level of 2008. There is specification of the building. component supplier, the final destination also a growing demand for refurbishment Customers today generally require of its products is not always known, for of drives. faster operation. This can be achieved by example, exports to Germany are high but www.jaure.com building lighter cranes but through design their systems are incorporated into plants changes rather than the use of thinner that may well be destined for China. Talleres Jaso Industrial SA sections of high strength steels. The company manufactures a wide Jaso, a group member of Talleres Jaso, Transfer cars are included in the range of actuators, for example for mill located in Itsasondo 90km east of Bilbao, company’s portfolio, but account for only guides, lifting tables, walking beam manufactures lifting equipment, mainly about 5% of sales. furnaces, continuous casters and cooling gantry cranes. Established in 1965, it Company turnover for 2014 is expected beds. It also supplies cylinders for designs and builds cranes, specialising to reach €50M, up 20% on 2013 but automatic gauge control (AGC) of the in the harsh environment experienced in below the €70M achieved in 2007. mill gap, although does not provide the the steel sector. To date, it has supplied www.gruasjaso.com feedback control for this. It buys in pumps, over 50,000 units to companies in more and where required, hydraulic motors. than 50 countries. It is the market leader Ingeteam Power Technology The company also builds testing benches in the Spanish market with 95% of Spain’s Ingeteam, with its works at Zamudio, for hydraulic systems and supplies these to industrial crane market and has important just 12km east of Bilbao, produces a key industries such as aerospace. markets in Europe, Mexico, Argentina, complete range of electrical equipment Glual offers its customers a short supply India and Brazil. and automation for process monitoring time if they want purpose-built equipment Group turnover in 2013 was €120M of and control. The company was formed within eight weeks. which Jaso Industrial accounted for €70M. as a result of the 1980s merger of TEAM The company also has manufacturing It has the capacity to produce 1,300 cranes and Ingelectric. Team specialised in facilities in Bulgaria, China, USA and Brazil. a year, 1,200 of standard design and 100 electrical transmission while Ingelectric Glual is privately owned and employs specials. The steel industry accounts for concentrated on power supply for the 350 worldwide, with 120 employees in 65% of sales – for example ArcelorMittal steel industry. In the 1990s, Ingeteam Spain. While manufacturing by Glual has 330 Jaso cranes worldwide and specialised in the design and manufacture may move out of Spain, R&D and design Gerdau 223. Prior to the 2008 recession, of industrial PLCs for the steel industry as will remain in Azpeitia where a team of 70% of orders were domestic and 30% well as energy distribution and control. 20 use 3D software to design systems. exports. Since then, domestic orders fell In 2000, it purchased Inder, a company Surprisingly, material selection is dictated 40% and 78% of production is for export, established in 1940 to make electric by the customer rather than proposed by including to Saudi Arabia, Argentina, motors and generators. In recent years, the design team. Brazil and Russia. Most of the work within it has entered the wind turbine market The visit to Glual was followed by a Spain is for revamps. The Turkish market is which, until 2007/8 was very profitable. At visit to Rugui in nearby Azkoitia, a small difficult to enter as they have around 75 this time it held 13% of the wind turbine re-roller producing hot rolled narrow strip domestic crane builders. business. The steel business has dropped and bar, to see some of Glual’s hydraulics The largest crane it has built has a lifting to around 10% of turnover. in action. t capacity of 360t and was supplied to a As well as serving the steel sector, www.glual.com power plant for Iberdrola. The largest the company also produces Energy melt shop crane built by Jaso Industrial Management Systems (EMS), electrical has a capacity of 220t, but in fact was a energy storage units using batteries or Siderex, heavier construction than the Iberdrola the grid, thermal storage units for solar- Ledesma 10 bis, 1˚ izq, 48001 Bilbao, crane because of the harsh and hot heated panels – which employ the Rankine Spain environment of the melt shop. For such cycle in which a fluid in a closed circuit Tel +34 944 706 504 cranes, all electronics are fitted inside the is heated at one end to cause it to flow e-mail [email protected] www.siderex.es
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SPANISHReadMM.indd 4 11/10/14 12:12 PM CONFERENCE REPORT 39
The growing importance of DRI
The 2nd DRI and Minimill Conference, organised by Metal Bulletin and American Metal Market, took place in New Orleans in September. Hans Mueller* reports
DURING September 10-12, 2014, the to growth, including a growing shortage promoting growth included the current US port city of New Orleans hosted a of skilled workers, trade distortions, and easy-money policy, stable oil prices, conference on steel-making materials, global overcapacity (‘state-sponsored’ in a recovering housing market, rising jointly organised by Metal Bulletin and the case of China). business confidence, cheap energy, low American Metal Market. The first term He suggested such solutions as unit labour costs and a general firming in its title, DRI, refers to iron-ore pellets rehiring retired workers, multi-tasking of demand. Negative factors were high or lumps from which oxygen has been the workforce, establishing more training structural unemployment, weak consumer removed by means of energy-rich gases, centres and, with respect to foreign confidence, high debt levels, high mostly natural gas (NG). Much of the DRI competitors, removal of trade restrictions, corporate taxes, the threat of inflation and is used as feedstock in electric arc furnaces ending all ‘state ownership’ in production uncertainty surrounding domestic policies (EAFs), which in the USA accounted for 61% of the 87 million metric tonnes (MT) produced last year. EAF furnaces used to be operated primarily by small steel companies, dubbed minimills, several decades ago. Although some have meanwhile become very large, the term is still applied today. DRI is of special interest in parts of North America, where new drilling methods have led to increased extraction and a sharp drop in the price of NG, a major cost element in the production of DRI. Unlike on previous occasions, this time such enormous quantities of NG have been spotted that low prices are expected to hold far into the future. The outlook is, therefore, excellent for more investment in DRI production at locations favoured by low-cost shipments of iron ore to the plant and of DRI to minimill customers. However, the title given to this conference was overly restrictive. As was pointed out by several speakers, DRI is also used by and generally making all economies and geopolitical events. several integrated steel makers in their market-based. Steel companies should smelting and refining processes. These pursue vertical integration, practice more Metallics, shale gas, iron ore and mills often prefer to have the material risk management, and enter widely into merchant DRI delivered in a compacted form called ‘hot- partnerships and long-term contracts. R Panel members tossed about numerous briquetted iron (HBI)’. Oppelt of Accenture likewise expressed ideas and suggestions concerning concern that expansion of the US steel metallics. There were warnings that the The economic outlook for North industry might be hampered by a lack of falling price of iron ore was approaching American steel skilled labour and suggested continuous the production costs of 80% of global The market for DRI depends on steel training arrangements, focusing mining companies, that the cost of demand, which in turn is linked to the especially on the use of mobile devices for collecting and shipping scrap was rising fortunes of manufacturing and such communicating large data files. D North while prices were very low, and that it had sectors as infrastructure and housing of Euler Hermes Insurance commented become harder to find low-grade scrap in construction. Two executives and an that lower NG prices in the USA should US markets. All agreed that adding HBI economist addressed these topics. S Sanyal improve the international competitiveness to the burden ramps up blast-furnace of ArcelorMittal talked about impediments of American industries. His list of factors (BF) production volume while it reduces
* Global correspondent
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CO2 generation. R Hunter of Midrex and R Bellisle of ArcelorMittal noted that the often-heard designation of DRI as a “scrap substitute” does not apply to very low- grade scrap, a material that is rejected by most EAF operators. Only the addition of DRI, with its diluting effect on harmful trace elements, turns such material into acceptable EAF feedstock. Acting as a complement to scrap, DRI would boost rather than diminish its usage. But DRI is no doubt a substitute of pig iron. Shale gas production is largest in the American northeast, the mid-continent and Texas, whereas consumption is rising fastest in the southeast, Nicole Nucor Steel DRP. First vessel of Samarco iron ore delivery. Located in Louisiana by the Mississippi river, iron ore pellets are received via Leonard of Bentek Energy pointed out. ocean going vessel. Considerable investment in long-distance pipelines will, therefore, be required. In that they want prices to remain low for overtaken HYL in the construction of the meantime, rail transport will have some period in order to drive new and new plants. By 2013 Midrex accounted to do. Due to looming surpluses, several still fairly high-cost competitors from the for 63% of the 70MT of DRI produced ports along the gulf are being equipped market. worldwide, compared with HYL’s 15% with export facilities. Ms. Leonard added Merchant DRI is not widely available in share. However, a new firm, Energiron, that profit-maximising oil companies were the US market, Lynn Lupori of Hatch told created in 1995 by the absorption of HYL putting more emphasis on drilling for oil the audience. It seems that imports from into dynamic equipment maker Tenova, rather than gas, but that gas was often Venezuela and, more recently, Russia, which was joined in 2006 by steel-plant a byproduct of oil extraction. According were of the merchant type. However, the maker Danieli, has been trying hard to to S Kaplan of the Energy Information majority of reported imports were destined change this ratio³. Since 1998 the firm has Administration, the USA now produces for Nucor and ArcelorMittal mills. Ms. scored several successes, most recently the more oil than Saudi Arabia, exports Lupori explained that operating a DRI construction of the world’s largest DRI NG by pipeline to Mexico and Canada, plant in the USA would be handicapped plant (2.25MT/yr capacity) for American and has become a major exporter of by the absence of domestic DRI-grade steel maker Nucor. Delegates were given petroleum products. Moreover, greater pellet production and by a fragmented a chance to visit this plant on the day efficiency in the use of energy had caused customer base. She also presented a following the meeting. past forecasts to overstate demand by a rather heroic forecast of NG prices until At the technology session H Gaines significant margin. the year 2040. represented Midrex, I Martynov was there Iron ore, accounting for about half for Danieli and was backed by A Manenti the cost of producing DRI, was the DRI technology and the EAF and of Tenova, who spoke for Energiron. Ian topic tackled by two mining company BF/BOF processes Cameron of Hatch, meanwhile, made executives, F Blanco¹ of Vale and R As far back as 1957 the Mexican Hylsa a side-by-side comparison of the two Chaigneau of Rio Tinto. Both talked at company built the world’s first DRI plant, systems. Gaines emphasised that the cost length about their companies’ mining calling its process HYL. Ten years later the of energy-efficient hot DRI was below that activities, their contributions to the US Midland Ross company built a DRI of pig iron and he described how plants development of DRI pellets, and their very plant on the US west coast, using its own can be retrofitted to produce this specific ambitious expansion plans². One can only Midrex process. Then, in partnership with product. DRI had far lower residual levels wonder what strategy these companies German minimill pioneer Willy Korf, the (Sn,Ni,Cr,Mo,S,P, Si) than most types of intend to pursue by greatly expanding company started building DRI plants on scrap, enabling EAF operators to venture output capacity at a time when the world the US east coast (Georgetown, no longer into more advanced steel product lines. market suffers an iron-ore glut and prices in operation) and in Germany (Hamburg, Moreover, Midrex had built several large have greatly weakened. It might well be still operating). Midrex has meanwhile plants in India that use gasified coal, Corex
Monterey downgrade will lower this to 45 Category Weight Difference Comments Shale gas Shale oil
Iron ore consumption 84% MIDREX Same Rank Country Trillion cubic feet Rank Country Billion barrels ENERGIRON ZR 1 China 1,115 1 Russia 75 2 Argentina 802 2 United States 58 Natural gas consumption 10% Same 3 Algeria 707 3 China 32 Advantage 4 United States 665 4 Argentina 27 Electrical power 2% ENERGIRON ZR 5 Canada 573 5 Libya 26
Labour 2% Same 6 Mexico 545 6 Australia 18 7 Australia 437 7 Venezuela 13
Maintenance w/o catalyst Advantage to 8 South Africa 390 8 Mexico 13 2% replacement MIDREX 9 Russia 285 9 Pakistan 9 10 Brazil 245 10 Canada 9 Maintenance with catalyst - Advantage to World total 7,299 World total 345 replacement included ENERGIRON ZR Source: United States: EIA and USGS; other basins: ARI Advantage to Note: ARI estimates US. Shale gas resources at 1,161 trillion cubic feet and US shale oil resources at 48 billion barrels Industrial gases (O2/N2) 0.2% MIDREX Top 10 countries with technically recoverable shale resources
November/December 2014 www.steeltimesint.com
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Fixed cost 200 Unit labour costs (ULC) Italy Fixed cost 5% Other variable cost Canada Other variable cost 0% 150 Germany Electricity 2% Electricity
Iron ore 45% Natural gas Korea Natural gas 27% 100 Japan Yield U.S. Taiwan
Ir on50 ore
Yield 21% 2002 2004 2006 2008 2010 2012 (f) 2013 (f)
Cost elements in DRI (ArcelorMittal) US manufacturing is very competitive; low wage growth plus high productivity = low ULC
off-gas and coke-oven gas instead of NG. last year. Expansion of the dry fleet was Hatch Martynov claimed superiority for “state- very rapid from 2009-2012, then slowed of-the-art” Energiron versus “the other down. El Niño occurrences severely disrupt technology,” specifically in such areas as much of the world’s dry-bulk trade.
low emission levels of CO2 and NO× as well as high carbon content, which helped Nucor’s DRI plant improve EAF practice (less power, more Located about 90km northwest of New steel) and transport safety for the product. Orleans, the plant has a deep-water Manenti described the main features of a harbour and excellent rail and road low-cost Energiron micro-module (200kt/ connections. Its high reactor tower is yr capacity) that has been operating in Abu visible from far away. Still ramping up its Dhabi since 2010. Cameron expressed the level of output, it currently has a payroll view that both the Midrex and Energiron of 140. Conference delegates were shown systems are competitive and reliable, offer the control centre (housed in a rather proven hot-charging technologies and spartan building), the elevated conveyer incur comparable operating costs. He did belt, which is designed to carry iron ore not evaluate capital costs. However, the pellets one way and DRI pellets the other, Nucor plant’s capacity exceeds by 25% and finishing facilities. At times when and very capable harbour installations. that of a Midrex HBI plant built in Texas for scrap is very expensive, HBI may also be The conveyer ends over a floating-dock the Austrian Voestalpine (VA). Since both employed in basic-oxygen furnaces (BOFs) platform, which has DRI-loading facilities plants required an investment of $750M, as a coolant. These are the applications for barges on one side and unloading it seems that Nucor did better with respect that VA plans for part of the output of its facilities for ocean-going ore carriers on to “capital productivity”. S Sanyal of 1.8MT/yr Midrex plant under construction the other. When the plant works at full ArcelorMittal, a company that operates in Texas. Poveromo cautioned that in capacity, these impressive installations will 8.4MT of Midrex and 2.3MT of HYL order to maintain sufficient gas flow for have to move in excess of 5MT of materials capacity, listed some of the disadvantages preheating incoming raw materials, the per year. t that come with the use of DRI in EAF use of HBI in BFs should be limited to 25% furnaces, among them the need for more of the burden. In BOFs the addition of HBI Notes: energy, higher refractory costs, lower yield should not exceed 100kg/T of HM. 1 Mr. Blanco uses the same notation and pyrophoric dangers when storing or “Mt” for information based on World Steel transporting the material. Swedish steel Logistics and shipping Association data, which is stated in metric expert R Gyllenham further elaborated the Capt. P Eagles of SMT Shipping left no tons, and data given in short tons furnished thesis of optimal EAF burdening, especially doubt about the stringent enforcement by the Midrex company. the extent to which the addition of DRI – of rules for shipping DRI on waterways 2 Moderator Sara Hornby, of Global as well as variations of silica within DRI – and the high seas. The holds of ships Strategic Solutions, injected the idea that affect slag foaming, tap-to-tap time and must be thoroughly cleaned with integrated US mills could use their idle BF energy use. the right chemicals, hatches must be capacity to supply minimills with pig iron, HBI utilisation by integrated steel mills, watertight and, on long trips, they must thus displacing imports. It is not a fresh idea, already mentioned in earlier sessions, was be sealed with tape to hold in place a fire- having been discussed in February 2000 by discussed in greater detail by a well-known suppressing nitrogen blanket. The rules Jay Agarwal of Charles River Associates at a raw materials consultant. J Poveromo must be enforced even when shipping DRI Scrap and Scrap Substitutes conference. See explained that, by metallising the burden, qualities that do not become combustible Steel Times International, May 2000, p32. HBI could significantly raise BF productivity, in humid conditions. J Jaywant of ICAP 3 On April 3, 2014, Tenova and Danieli a result that may serve to stabilise a mill’s Shipping USA commented that an entered into a strategic alliance with Nippon level of production when one of several agreement among many of the world’s Steel & Sumikin Engineering to combine BFs is down for relining. Alternatively, it shipping companies to show concern research and give Energiron access to the could be done on a permanent basis to for the environment and cut the average technology of high efficiency coal gasification correct a mismatch between a plant’s hot speed of vessels to 20 knots reduced and the utilisation of by-product gases from metal (HM) capability and that of its rolling global dry-bulk shipping capacity by 14% integrated steelworks.
www.steeltimesint.com November/December 2014
DRI Conf ReadMM.indd 3 11/11/14 2:29 PM 42 PERSPECTIVES: COMBILIFT ‘Steel cannot be beaten’
Combilift plans to purchase 15,000 tonnes of steel this year to construct its vehicles and believes that steel will always have a place in automotive manufacturing. The only way to get strength into a compact vehicle is by the using steel, says Martin McVicar, the company’s managing director
1. How are things going at officer Ray Kilmer speaking about COMBILIFT? Is the steel industry aluminium usage within the global keeping you busy? automotive industry. Where do you Yes. Business is very positive at Combilift. stand on the aluminium versus steel 2014 will be by far the best year since we argument? established the company 16 years ago. I need to be careful what I say about Our turnover of approximately €145m will aluminium since we have also many be 50% above our peak in 2008 before Combilift users in the aluminium sector! the global downturn. The majority of our Aluminium may be good when aiming for growth over the last six years has come lighter, faster cars etc., but when it comes from within the steel sector. Our new to manufacturing solid workhorses such larger sized products such as the straddle as our trucks then steel will always have carrier (Combi-SC) have been very well a place. We require counterweight and received within the steel industry. A major strength in small restricted design areas. reason for the success of the Combi-SC is Steel cannot be beaten. We will purchase that it allows many of our customers to more than 15,000 tonnes of steel for handle full trailer loads of steel in their production this year. yard in one single lift. 7. “While there will be increased 2. What is your view on the current aluminium penetration, vehicles will state of the global steel industry? 4. Where in the world are you busiest continue to be predominantly steel,” It is great to see that global steel at present? said Ducker Worldwide’s Dick Schultz. production has increased in the region of We have been very fortunate in that all Is he right or wrong? 2.5% over the last 12 months. However, of our markets have been growing but to We would agree with this statement. The as we sell our products into many markets answer your question it does seem that trend for ever smaller vehicles is growing. worldwide we have noticed a decline in our largest growth this year is coming Even though aluminium can out-perform steel production within some of the South from the developed markets such as the steel on a weight ratio, the only way to get American markets. We note that many USA and Europe. Even if these developed strength into a compact vehicle is by the of the steel companies we supply into markets are importing steel there is using steel. There is not enough space to are operating much more competitive/ increased demand for stock holders fit sufficient aluminium into the available profitable businesses than was previously to carry larger quantities of steel and area. the case. more grades in stock. The space-saving attributes of Combilift’s products allow 8. “Within the next 15 years or so 3. In which sector of the steel our customers to cope with growing there could be a nearly even split industry does COMBILIFT mostly volumes and, therefore, to expand their between steel, aluminium and carbon conduct its business? stock without the need to relocate to fibre content in the average North You can see Combilift multi-directional larger premises. American-produced light vehicle.” So forklifts operating in various areas of said Jay Baron, president of the Centre the steel sector – starting from steel 5. Can you discuss any major steel for Automotive Research. Who is closer manufacturing right down to handling contracts you are currently working to the truth – Dick or Jay? fully painted welded steel assemblies. on? We would still think Dick is closer to the Since most steels are heavy in weight and Of the 75 markets we supply into, steel is truth. Steel will predominantly be much long in length, Combilift’s range of four- our largest single market sector. We will more popular in the production of forklift way products offers major advantages in deliver upwards of 1,000 Combilift units trucks, where counterweight is required. terms of space saving storage and safer into the sector this year. We are closing handling compared to other types of business in the steel industry on a daily 9. In your dealings with steel forklifts (sideloaders and two-directional business, therefore, none mentioned - producers, are you finding that they are counterbalance trucks for example). If I none forgotten. looking to companies like COMBILIFT had to pick an area that constitutes most to offer them solutions in terms of of our business it would be with steel 6. “Aluminium will always out- energy efficiency and sustainability? If stockholders. Our products enable quicker perform steel on a weight basis; and so, what can you offer them? and improved product location for these on the stiffness issue alone it will carry All the companies we deal with are striving customers. the day,” said Alcoa’s chief technology to make their operations more efficient on
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a number of levels and energy saving and sustainability feature high on their lists of priorities. When it comes to materials handling, the ability to use forklifts that are capable of multiple tasks, such as the Combilift, allow fleet numbers to be cut, reducing fuel consumption. One Combilift can, for example, replace a sideloader and a counterbalance forklift, but due to its versatility and manoeuvrability fleet numbers can be cut by more than half in many cases. The ability to store more in less space Both analog and digital interfaces are standard - all also contributes to energy savings as this avoids the expense of processing features are integrated into SPOT. No need for acquiring extra warehouse space and the subsequent running any separate processor unit costs. Our trucks also have a proven long life operation and will run for many years, avoiding frequent replacement. High quality optics allow for measuring small objects at a distance - features a durable sapphire protection window ensuring precise targeting 10. What exhibitions and conferences will COMBILIFT be attending in 2014? Integrated camera and pulsed high brightness LED make Euroblech will be our biggest steel trade show this year. We have alignment easy and accurate - indicates target size and been using this show as a platform for the sector with great success location using an easily visible pattern for many years. Metalcon and Fabtech in the USA are important for our business and we participate at many materials handling fairs such as CeMAT in Germany and Manutention in France.
11. COMBILIFT is based in Ireland, but what’s happening steel-wise in the country? Exports are up from Ireland and based on the feedback from our Irish clients steel consumption is increasing in the country even though there is no actual steel production here.
12. Apart from strong coffee, what keeps you awake at night? Thankfully I am a heavy sleeper and nothing generally keeps me awake at night. I spend a lot of time travelling around the world to visit customers and dealers and am lucky in that I sleep very well on aircraft and get off more refreshed than when I got on. However, as we want all of our customers to be 100% satisfied (and, therefore, be referral clients for new business) one thing that does disturb my sleep until a solution is found is a less than satisfied customer.
13. If you possessed a superpower, how would you use it to improve the global steel industry? Many commodity prices fluctuate a lot because output is hard to predict - for example grain output varies depending on weather conditions. Steel output is easy to predict. With all the communication technology available today I would like to see global steel output capable of being equated to global demand. t
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COMBILIFT PERSPECTIVEReadMM.indd 2 11/18/14 4:24 PM 44 HISTORY Bilbao’s transporter bridge, opened in 1893, was the first to be built and still runs 24/7 today The transporter bridge
It’s heartening to note that transporter bridges are still with us and that some, like the one crossing the Tees in Middlesborough, UK, is about to complete a £2.6M refurbishment programme. By Tim Smith*
ON 1 January 1888 Don Alberto de Palacio Tata Steel – to get to work. Opened in was given the task of designing a bridge 1906, the bridge was designed in France – across the estuary of the river Nervión, The Newport transporter which by then had already built four such which flows through the northern Spanish bridge opened in 1906 bridges – but the drawings supplied were city of Bilbao. Not only did the bridge have and was built to allow in metric dimensions which initially caused to span 160m, but it also needed to be workers access to the Orb some confusion since the steel supplied 50m high to allow the sailing ships of the steelworks was all in imperial sizes. day to pass. The main crossbeam is 197m and the The answer was the world’s first distance between the towers 180m to ‘transporter’ bridge which consists of allow for the suspension of the crossbeam two massive towers – one on each bank between the towers. The height of the – linked by a large trellis work ‘crossbeam’ beam above high water is 54m. Each suspended between the towers from tower uses 282 tonnes of steel, and the which a platform (gondola) hangs and can crossbeam 548t. The 10x12m gondola be driven along the beam to cross the river. and its suspension cables together weigh Work commenced in 1890 in 36t and the traveller from which these are collaboration with the Frenchman, suspended weighs 16t. The suspension Ferdinand Amodin, to build the bridge, and guy cables for the crossbeam together which was opened in 1893 as the Bazkaia weigh 199t. Bridge - in the Basque language - Vizcaya The gondola is driven by two 35 bhp in Spanish, or Biscay in English. on and more than 20 of them were DC electric motors at a maximum speed The bridge carried passengers and constructed over the years, eight of which of 3m/sec. vehicles for 44 years until the crossbeam still survive in whole or part and six are still Middlesborough’s transporter bridge was destroyed in 1937 during the Spanish in working order. across the river Tees is due to complete Civil War to prevent enemy forces crossing Still working are: Martrou in France; a £2.6M refurbishment programme in the river. Newport and Middlesborough in UK; and Autumn 2014. Its crossbeam has two Work started to reinstate the crossbeam Rendsburg and Osten, near Hamburg, in cantilever sections – one from each tower in 1939 and in 1941 the bridge reopened. Germany. – together 259.3m in length, which In 1963 a new gondola 15m long and Other locations of transporter bridges makes it the longest span of the surviving 10m wide was installed and was itself still standing, but not working, are at bridges. It is 48.7m above the river at high replaced in 1998 by the present gondola Riachuelo in Buenos Aires and Warrington water. which offers a cabin for pedestrians and in UK – the latter being the final bridge The bridge is now a Grade 2 listed two lanes of traffic. to be built and opening in 1916. The building and in 1993 was awarded the Today, the bridge carries vehicles and remaining bridges were either dismantled Institution of Mechanical Engineers’ passengers 24 hours a day and a lift has or destroyed or, in the case of Duluth, highest honour, The Heritage Plaque for been installed to allow walkers to ascend USA, converted into a lifting bridge, or in engineering excellence. to the crossbeam and walk through its Rio de Janeiro replaced by a fixed bridge. The longest span transporter bridge trellis work while admiring the magnificent A bridge at Bordeaux in France was never ever built was across the river Mersey views of the port of Bilbao, including the completed due to the onset of WWI and in the UK near Widnes. It had a span of steelworks, ArcelorMittal Sestao. the towers were later dismantled. 304.7m and ran until 1961. Sadly it was In 2006 UNESCO declared the bridge a In the UK, the Newport transporter then demolished. world heritage site and, incidentally, there bridge spans the river Usk to the south of In the Soviet Union, a transporter bridge are some excellent pictures of the bridge the city. It was built to enable workers at was built as late as 1955 in Stalingrad (now on Google Maps (search Vizcaya bridge). the John Lysaght Orb steelworks – today Volgograd). This is the longest known The transporter bridge idea caught owned by Cogent Power, a subsidiary of transporter bridge ever constructed. t
* Consulting editor STI
November/December 2014 www.steeltimesint.com
HISTORY ReadMM.indd 1 11/11/14 12:15 PM