Steel Times International May June 2022 by Quartz Business Media

IRON ORE

INNOVATIONS

STRUCTURAL STEEL

PERSPECTIVES Q&A

Michael Schwartz asks if Genmin will be Gabon’s first iron ore miner.

The latest global contracts and new products news for the steel industry.

Reid Steel discusses sustainability, cost efficiencies and net zero.

We talk to Dr. Falk-Florian Henrich, CEO of Smart Steel Technologies.

Since 1866

www.steeltimesint.com May/June 2022 - Vol.46 No4

STEEL TIMES INTERNATIONAL – May/June 2022 – Vol.46 No4

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TUBE & WIRE 2022 June 20–24, 2022 Hall 7a, Booth B04 · Düsseldorf, Germany

WE SHOWCASE OUR SOLUTIONS ON TECHNOLOGY AND PROJECTS We cordially invite you to visit us at our booth for a personal exchange of ideas and to see for yourselves our answers for the future. Please use the chance to create your personal #connect account on our website. We will keep you updated on Tube & wire news and unlock new features during the next months. See you at our booth B04 in Hall 7a! Also visit us online: www.sms-group.com/tw2022 www.sms-elotherm.com

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CONTENTS – MAY/JUNE 2022

IRON ORE

INNOVATIONS

STRUCTURAL STEEL

PERSPECTIVES Q&A

Michael Schwartz asks if Genmin will be Gabon’s first iron ore miner.

The latest global contracts and new products news for the steel industry.

Reid Steel discusses sustainability, cost efficiencies and net zero.

We talk to Dr. Falk-Florian Henrich, CEO of Smart Steel Technologies.

Since 1866

www.steeltimesint.com May/June 2022 - Vol.46 No4

STEEL TIMES INTERNATIONAL – May/June 2022 – Vol.46 No4

Cover courtesy of Badische Stahl Engineering.

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EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Editorial assistant Catherine Hill Tel:+44 (0) 1737855021 Consultant Editor Dr. Tim Smith PhD, CEng, MIM Production Editor Annie Baker Advertisement Production Martin Lawrence SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116 Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117

2 Leader By Matthew Moggridge.

36 Structural steel Green light for safer future with steel.

4 News round-up The latest global steel news.

40 Environment Environmentally-fuelled innovation.

15 Innovations New products and contracts.

43 Iron ore Genmin – Gabon’s ﬁrst iron ore miner?

21 USA update ‘Buy America’ plan applauded.

46 Special steels The vital role of nickel.

24 Latin America update 100 years in Brazil (part four).

50 Perspectives Q&A: Smart Steel Technologies Several promising projects.

27 India update NMDC steel plant privatization: Smooth transition in doldrums due to time and cost overruns. 30 Supply chain Maintaining supply chain functionality.

Managing Director Tony Crinion tonycrinion@quartzltd.com Tel: +44 (0) 1737 855164 Chief Executive Ofﬁcer Steve Diprose SUBSCRIPTION Jack Homewood Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com

53 Lubrication A reduced CO2 footprint. 57 History All you need to know about reﬁning – Part 1 charcoal hearths.

32 Automotive Another challenging year ahead.

Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £215.00 Other countries: £284.00 2 years subscription: UK £387.00 Other countries: £510.00 3 years subscription: UK £431.00 Other countries: £595.00 Single copy (inc postage): £47.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England. Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2022

ISSN0143-7798

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May/June 2022

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LEADER

Digitalisation and decarbonization – two big issues!

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

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May/June 2022

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Ask anybody in global manufacturing what are the two big issues of the day – outside of the geopolitical headwinds affecting industry – and they are likely to say digitalisation and decarbonization. Such an answer is music to my ears because back in 2015 when I started to develop the now legendary Future Steel Forum conference for this magazine, I was in at the ground floor, so to speak, talking to people who were at the forefront of Industry 4.0 development in the steel industry. The event was (and remains) a great success and now it’s even finding its way on to the diary pages of other steel magazines, which, if you like, is the proof of the pudding – the Future Steel Forum has arrived, it is now a diary event – hopefully on the calendars of steel professionals everywhere. This year’s event at the Grandior Hotel, Prague (8-9 June) is the first live Forum since Covid-19 closed down the world, and I for one am looking forward to meeting the industry face-to-face for what promises to be an exciting programme led by none other than H2GreenSteel’s chief commercial officer, Mark Bula. Mark is an interesting and highly relevant person

to be the Future Steel Forum’s opening keynote speaker. He straddles both digital manufacturing (through his past work at the cutting edge Big River Steel in Osceola, Arkansas, USA); and decarbonization through his current role in Sweden, at H2GreenSteel, a company leading the way in the complex world of decarbonization. The theme of this year’s Future Steel Forum is the almost symbiotic relationship between digital manufacturing and decarbonization, which brings me to some exciting news. Our once virtual Sustainable Steel Strategies Summit is going live in 2023. We have a virtual event this September (2022) but after that it will be a live event in its own right. The aim, as always, is to highlight best practice, examine the technology behind green steelmaking and listen to the experts on decarbonisation and steelmaking. We are considering the United Arab Emirates as a location for the conference and I would like to hear from potential speakers, so please get in touch. First out of the traps, however, is the Future Steel Forum next month in Prague and I hope to see you there.

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E N G A G E

A C C E L E R A T E

A C H I E V E

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NEWS ROUND-UP

Almost 10,000 cases of the popular peanut butter brand Skippy have been recalled after stainless steel fragments were detected inside. Hormel Foods, the company that owns the brand, issued a voluntary recall that will affect 9,353 cases of the peanut butter, or 161,692 pounds. The move affects the company's reduced fat 'creamy' and 'chunky' peanut butters, and its product with plant protein. Other products are believed to be safe. Source: The Daily Mail, 1 April 2022

ArcelorMittal Nippon Steel India has announced that it will set up a cold rolling mill (CRM) that will produce ‘newage value added products’ at the flagship plant in Gujarat, India. As part of the Rs 8,500-crore downstream expansion plan, the modern CRM will comprise of various state-of-the-art processing lines. The project is due to be commissioned in 2024. Source: Money Control, 4 April 2022

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Tata Steel has announced that it used inland waterways in Odisha to bring in heavy machinery for its ongoing Kalinganagar plant expansion project. Development of inland waterways for the industry is a focus area of the government as transportation of goods is cheaper through naval routes compared to using rail and road. In a statement, Tata Steel vice president Avneesh Gupta said the move will pave the way for a sustainable logistics model with a potential cost advantage, which will be achieved through the ‘import of machinery in an assembled condition’. Source: The Economic Times, 4 April 2022

United States Steel Corporation (US Steel) has announced that its Big River Steel mill in Osceola, Arkansas, has achieved the first-ever ResponsibleSteel™ site certification in North America. Big River Steel received the site certification after the quality system

South-east Asia’s largest steelmaker, Vietnam’s Hoa Phat Group, is moving into container manufacturing, as the company ‘sees potential synergies with its core steel production business’. The aim of both Hoa Phat and South Korea is to reduce Chinese firms’ monopoly on container manufacturing via majority state-controlled China International Marine Containers and Dong Fang and privately owned CXIC, which manufacture 96% of containers in the world. Source: The Loadstar, 4 April 2022 Hydrogen Rise, a German firm specialising in hydrogen fuel technologies, has embarked on a strategy to support the production of green steel for the first time in the Sultanate of Oman. The landmark initiative, which could be operationalised as early as 2024, has the potential to position the Sultanate of Oman among the world’s pioneering manufacturers of green steel. Source: Zawya, 4 April 2022 registrar conducted an independent third-party audit and determined the mill met the stringent requirements of the ResponsibleSteel™ standard, the industry’s only global multi-stakeholder standard and certification initiative. Source: BusinessWire, 4 April 2022

Integrated steelmaker Cleveland-Cliffs has filed for an air permit related to a potential future electric arc furnace (EAF) at its Middletown, Ohio, integrated steel mill. The permit was filed for a parcel at the Middletown steelmaking site that appears to contain a handful of buildings. The Middletown blast furnace has a production capacity of 2.3 Mst/yr, according to data from the Association for Iron and Steel Technology. The air permit listing cites ‘proposed installation of an EAF melt shop and associated operations to produce steel slab.’ Source: Argus Media, 5 April 2022

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NEWS ROUND-UP

Advisory and investment firm Nithia Capital has announced the acquisition of Crest Steel and Power Pvt Ltd (CREST) in Chhattisgarh, India, for Rs 600 crore through an insolvency process. The acquisition was completed in partnership with Amalgam Steel Private Limited, Nithia Capital said in a statement. Source: Devdiscourse, 5 April 2022

Plans to build an engineering facility in Teesside, UK, have secured £4m of Government funding. The successful bid by Middlesbrough College was secured through the Department for Education's Further Education Capital Transformation Fund and forms part of a £10m investment into the replacement and relocation of the current training site. The move will involve the existing provision of workshop training areas, teaching classrooms and staff facilities relocating to a facility at the College's Middlehaven campus, on development land adjacent to its STEM Centre. Source: Insider, 7 April 2022 www.steeltimesint.com

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UK contractor WOODSmith Construction Group has been taken on as a key contractor for British Steel at the Skinningrove site in North Yorkshire as part of what could be a longterm relationship with the company. WOODSmith was launched in March 2021 by Gary Wood, who has more than 15 years of experience in the construction industry, and forms part of Dale Smith’s SDDE Smith Group, a portfolio of real estate-related businesses. Source: Construction Enquirer, 7 April 2022

With an aim to provide more young talents with industry training, Tata Steel Foundation (TSF) has signed a MoU with the India state government to set-up the Industrial Training Institute (ITI) in Chandil, East India. The ITI will offer training in technical and vocational courses with an initial intake capacity of 100 students, and will open its doors in 2023. Source: The Telegraph, 7 April 2022

Elogen, a leader in PEM electrolysis, specializing in the design and assembly of electrolysers to produce green hydrogen, and Sarralle, an engineering, manufacturing and installation company, have signed a collaboration agreement for the engineering, manufacturing, supply and commissioning of green hydrogen generation equipment for the steel industry. Both companies will work together to design and manufacture green hydrogen

generation equipment, and to integrate both containerized and electrolysis plant solutions into the industry. Source: Market Screener, 7 April 2022

To transition to sustainable green steel, Maersk, a logistics company, has decided to join climate company SteelZero, a global initiative which brings together organisations to accelerate their transition to a net zero steel industry. A significant number of the more than 700 vessels operated by Maersk are set to be recycled in the next decade, with a proportion being the post-panamax size ships, with steel making up approximately 90% of these ships' weight. Source: Logistics Manager, 7 April 2022

A pioneering solar park near Scunthorpe, UK, has been given the go-ahead by the government’s planning inspectorate. The Little Crow solar park will generate enough energy to power up to 60,000 homes – the equivalent of half of North Lincolnshire. It will be situated between the Scunthorpe British Steel site and the village of Broughton, and has an expected lifespan of 35 years. The site hopes to generate 50MW at its peak once it is up and running. Source: Grimsby Live, 8 April 2022

Tata Steel said it will replace an old mill at its Corby site in Northamptonshire, UK, to improve the efficiency of steel processing and bring down carbon emission levels. The Mumbai-headquartered steel major said it is investing ‘tens of millions’ on the new mill, without specifying the spending on the project. It also said the construction of the new mill is part of a wider £30 million transformation programme undertaken at Corby. Source: Eastern Eye, 8 April 2022 May/June 2022

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To prevent accidents inside the plant, Tata Steel has issued guidelines for the restricted use of mobile phones at the workplace. Under this policy, the use of mobiles in shop floors as well as in the plant has been completely banned except under special circumstances. In addition to private conversations inside the plant, playing video games, chatting, listening to music and checking and sending emails have been banned. Source: The Avenue Mail, 8 April 2022

At least 13 foreign workers were injured on Saturday as a result of an explosion in a steel factory in the Sulaymaniyah province of the Iraqi Kurdistan region. The explosion occurred at the Master Steel factory in Sulaymaniyah's Tanjaro area. Ten Indian nationals, two Iranians and one Iraqi worker were wounded as a result of the explosion, with the reason for the explosion not yet being clear, according to factory officials. Source: The New Arab, 10 April 2022 May/June 2022

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NEWS ROUND-UP

Indian police are looking for gang members suspected of stealing a 500-tonne iron bridge. The bridge was built nearly 45 years ago; however as a result of being left unused, residents of the Amiyawar village requested it be taken apart by the government's irrigation department. Upon seeing men come to deconstruct it, residents presumed their request had been granted. The thieves are reported to have spent three days taking apart the bridge, before the scrap metal was transported away via a truck. Source: Unilad, 10 April 2022

As part of its plan to shift towards green steel, steel manufacturer Vedanta has said it is working on a solution to use hydrogen instead of coke in its manufacturing process in order to reduce carbon emissions. Vedanta's Sesa Goa iron ore business said it is looking for a tie-up with IITBombay to carry out research for manufacturing pig iron ore using hydrogen in place of coke. The solution is aimed at reducing carbon emissions in the production process and the company hopes that it will speed up its mission to manufacture green steel. Source: Millenium Post, 10 April 2022 A deadline of July has been set for a decision on whether to go ahead with a new coal mine in Cumbria, UK. The office of the Planning Inspectorate confirmed it had sent its completed report to housing, communities and levelling up secretary Michael Gove. In it, a deadline of 7 July is set for

Khazaen Economic City, an integrated city being developed over 51.6 million sqm of land in Barka, Sultanate of Oman, has signed two deals to set up a cement factory and a steel industries factory. The cement factory is planned to be set up on a total area of 5,000 square metres, while the steel factory will be set up on a total area of 7,500 square metres, and aims to produce 4,000 tons of steel structures monthly, and boost the economy further. Source: Zawya, 11 April 2022

RITES Limited, a leading transport infrastructure consultancy and engineering company, has entered into a memorandum of understanding (MoU) with Tata Steel to synergise their expertise. The companies plan to collaborate in offering services in the areas of railway rolling stock exports and enhance infrastructural capabilities for buildings, airports, urban engineering, and information technology. As part of the MoU, RITES will provide expertise in support required for tapping domestic as well as overseas markets, while Tata Steel’s New Materials Business division will undertake the development and manufacturing of customised products. Source: Orissa Diary, 11 April 2022 him to issue his decision. If it goes ahead, it would be the first deep coal mine to open in the UK for more than 30 years. Source: BBC, 11 April 2022 www.steeltimesint.com

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NEWS ROUND-UP

Liberia’s house of representatives has rejected the third amendment of the $800m mineral development agreement between the country and steel giant ArcelorMittal. This rejection sends the agreement back to President George Weah, who will renegotiate the agreement with the company. ArcelorMittal’s operations in Liberia focus on mining, railing and shipping iron ore. The company is the single largest private investor in the country since the end of the second civil war in Liberia in 2003. Source: The Africa Report, 11 April 2022

JSW Steel’s wholly owned subsidiary, JSW Utkal Steel, has received environmental clearance for setting up a 13.2 Mt steel plant in Odisha. The company said the capital expenditure for the environment-friendly project is expected to be approximately Rs 65,000 crore, including the associated facilities. Source: Business Standard, 12 April 2022 www.steeltimesint.com

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Australia-based company Pembroke Resources has announced the beginning of construction works at the Olive Downs coking coal project in Queensland. ‘‘Olive Downs is the very first mine to be approved under the state government’s ‘Strong and Sustainable Communities Act’. "The high-quality steelmaking coal that will be produced from our mine will contribute to national and state economies as well as much-needed infrastructure across the world, delivering economic benefits and jobs from the grassroots to a global scale,’’ chairman of Pembroke Resources and CEO Barry Tudor commented. Source: Steel Orbis, 12 April 2022

Tata Steel has completed the acquisition of an entire stake held by SAIL (Steel Authority of India Ltd) in S&T Mining, according to an exchange filing. Now, S&T Mining will become a wholly owned subsidiary of the company. The acquisition is part of Tata Steel Group’s portfolio restructuring and simplification strategy. Source: Mint, 12 April 2022

Ship manufacturer Austal USA hosted a curtain drop ceremony to celebrate the opening of the company's state-of-the-art steel facility in front of over two hundred guests, including representatives from the US Navy, coastguard, federal, state, and local government, and the Embassy of Australia. The 117,000 square foot manufacturing addition will house the latest computerized and robotic steel processing

Russian gold and silver producer Polymetal has postponed a decision on its 2021 final dividend payment amid uncertainty caused by Western sanctions on Moscow following Russia's‘ invasion of Ukraine. Several other Russian metals producers, including steel maker Severstal, have delayed decisions on dividends as sanctions on Russian banks and its economy complicate trade logistics and the transfer of payments. Source: Market Screener, 13 April 2022

Algoma Steel, a leading Canadian producer of hot and cold rolled steel sheet and plate products, has announced the appointment of Michael Garcia as CEO effective 1 June 2022, upon the retirement of current CEO Michael McQuade. McQuade will continue to serve on the

equipment to handle all the current and future demands of the US Navy and the US Coast Guard. Source: Naval News, 13 April 2022

ArcelorMittal has announced that it has signed an agreement to acquire an 80% shareholding in voestalpine’s hot briquetted iron (HBI) plant located in Corpus Christi, Texas. voestalpine will retain the remaining 20%. The stateof-the-art plant, which was opened in October 2016, is one of the largest of its kind in the world, with an annual capacity of 2 Mt of HBI. Source: Global Newswire, 14 April 2022

company’s board of directors, and Garcia will also join the board concurrent with his appointment as CEO. Source: Eminetra, 18 April 2022 May/June 2022

12/05/2022 14:16:06

NEWS ROUND-UP

Following a lawsuit from an ArcelorMittal USA LLC plant worker, who alleged that a supervisor called her ‘crazy’ and threatened her, the Northern District of Indiana ruled that the worker failed to give the company advance notice of her claim that she was subjected to disability harassment based on her PTSD, and has denied her trial. Source: Bloomberg Law, 18 April 2022

In a step toward ensuring that federal dollars will support US manufacturing, US governmental administration has issued new guidance, requiring that materials purchased for projects funded by the $1 trillion bipartisan infrastructure package must be produced in the US. However, the rules also set up a process to waive those requirements in case there are not enough domestic producers or the material costs too much, with the goal of issuing fewer waivers over time as US manufacturing capacity increases. Source: ABC News, 18 April 2022

Emirates Steel Arkan Group, the UAE’s largest listed steel and building materials company, has appointed ENGIE Impact, a global advisory firm dedicated to accelerating the sustainability transformation of companies, to assess the company's CO2 footprint. The appointment is in line with the Group’s leading position as the first manufacturing company in the Middle East to be verified for the Leadership in Energy and Environmental Design (LEED) green building system documentation. Source: Zawya, 19 April 2022

JSW Group, which runs emissions-heavy businesses including steel, cement, and energy, plans to switch a majority of its bonds to green instruments as the industrial giant seeks access to longerterm borrowings. Raising debt overseas through green and sustainability-linked bond issues will allow the group led by tycoon Sajjan Jindal to almost double its tenure to 10 years, JSW Group chief financial officer Seshagiri Rao said in an interview. Source: The Print, 19 April 2022

Submarine cable manufacturer XLCC, which will make the wires to carry power from North Africa to a North Devon village, signed the UK Steel Charter in a boost for the industry. XLCC is involved in the Xlinks Morocco-UK Power Project, consisting of four 2,361-mile long, ‘high-voltage, direct current’ cables on the seabed. The world’s longest ever undersea cables will need 90,000 tonnes of steel, with the first set due to be laid between 2025 and 2027, connecting wind and solar power generated in Morocco to Alverdiscott, North Devon. Source: The Mirror, 19 April 2022 ArcelorMittal South Africa has announced that it has completed the feasibility study for two 100MW renewable energy projects planned for Gauteng and the Western Cape. The two energy plants are intended to supply existing facilities within ArcelorMittal South Africa. The plants will also offer more energy security by enabling the ArcelorMittal South Africa plants to be less dependent on costly electricity supply from the national grid which has significantly impacted business performance in recent years. The projects are expected to be commissioned by early 2025. Source: Steel Orbis, 18 April 2022 May/June 2022

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Russian steel producer NLMK has said that it will submit a request to continue the trading of its depositary receipts on the London Stock Exchange. The request will be considered by Russia's government commission for foreign investment monitoring, NLMK added in a statement. Source: Investing.com, 19 April 2022 www.steeltimesint.com

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NEWS ROUND-UP

Nextracker and JM Steel, a division of JENNMAR USA, have announced a partnership under which a dedicated solar tracker production line has been built on the campus of a new Steel Dynamics manufacturing facility near Corpus Christi, Texas. According to Nextracker, the new facility manufactures next-generation, low-carbon tracker components to be used in solar projects throughout southern USA. Source: PV Magazine, 20 April 2022

Ferrexpo PLC, an exporter of iron ore pellets to the steel industry, said it will increase funding for its Ferrexpo Humanitarian Fund by $5m to $12.5m in response to the humanitarian crisis unfolding in Ukraine, with assistance being given to communities across the country. The company said the fund, which was set up in early March, has so far provided power generators, fuel, water tanks, food supplies, ambulances and medical equipment. Source: Proactive Investors, 21 April 2022

A meeting under the chairmanship of India’s union minister of steel, Shri Ram Chandra Prasad Singh, was held in New Delhi with stakeholders within India's steel industry. During the meeting, steel companies briefed the minister about their future expansion plans to achieve the production and capacity targets set by the National Steel Policy 2017. Source: Orissa Diary, 20 April 2022 Micronclean, a specialist in workwear rental and cleanroom laundry, has secured a major contract renewal with British Steel. British Steel has chosen to stay with Micronclean to provide the specialist clothing for more than 4,000 of its employees at its sites throughout the UK. Under the long-term agreement, Micronclean will replace, as required, current workwear across the British Steel business. Micronclean will be responsible for laundry operation and total management of British Steel workwear arrangements including garment repairs and distribution. Source: Insider, 22 April 2022

W&W|AFCO Steel, the largest steel fabricator in the United States, has announced that it plans to build a new production facility in the former LM Wind Power complex at the Port of Little Rock, Arkansas. The expansion will add 115 full-time jobs over five years and represents an investment worth $18.7 million for the company, founded 113 years ago in Little Rock. There are already three facilities in Little Rock and a fourth in Van Buren. Source: Arkansas Online, 21 April 2022 Liberia will review its iron ore concession agreement with steel and mining company ArcelorMittal as well as other concessions signed by the West African country’s current and previous governments, Liberia Parliament speaker Bhofal Chambers has announced. The announcement risks disrupting ArcelorMittal’s plans to triple its iron ore production in Liberia and stay in the country for at least 25 more years, which the government had agreed to in September. Source: Mining. com, 21 April 2022

The Financial Conduct Authority (FCA) has stopped financial advice firm David Stock & Co Limited, the company that advised on pension transfers from the British Steel Pension Scheme, from disposing its assets without permission. The FCA added that it will impose requirements on companies that are unable to demonstrate they have adequate financial resources, and those that have failed to comply with its instructions to protect assets or are attempting to avoid any potential compensation payments. Source: International Adviser, 21 April 2022 Cleveland-Cliffs, Minnesota's largest iron ore operator, is maintaining plans to temporarily shut down its Northshore mining operations in Babbitt and Silver Bay from 1 May. The company said in February that it would idle the facilities this spring amid a royalty dispute and changing operational strategies. Together, the operations employ 500 people. Northshore's mine in Babbitt and the taconite processing plant in Silver Bay are expected to be closed for at least four months. Source: Star Tribune, 22 April 2022

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NEWS ROUND-UP

Algoma Steel Group Inc, a leading Canadian producer of hot and cold rolled steel sheet and plate products, has announced that it has awarded the structural building contract for its electric arc steelmaking facility to Hamilton, Ontario-based Walters Group Inc (Walters). Walters will be responsible for fabricating and erecting the main building structure in addition to the necessary dust collection hoods. Source: Global Newswire, 25 April 2022

Swedish iron ore miner LKAB is accelerating and expanding its plans for future production of sponge iron produced with hydrogen, the company has said. LKAB is now moving towards a rapid industrialisation of the Hybrit technology for transforming production in Malmberget/ Gällivare, which is closely integrated with SSAB. The plan is to synchronise the transition with SSAB's planned transition and to have switched entirely from pellet production to sponge iron amounting to some 5.4 Mt by the 2030s. This will enable emissions reductions amounting to about 9 Mt at SSAB. Source: Mining Magazine, 26 April 2022

Japanese steelmaker Nippon Steel and Brazilian mining group Vale have signed an agreement to study the decarbonisation of steelmaking. The firms will jointly explore the potential use of green raw materials for steelmaking. Such materials include direct reduced iron (DRI), which is generated from iron ore by removing oxygen without melting, and molded pig iron, made by using biomass-based carbon materials for melting. Nippon Steel is considering incorporating biomass like eucalyptus and sugarcane to process Vale's iron ore and produce molded pig iron. Source: Argus Media, 26 April 2022

The Financial Services Compensation Scheme has declared another two British Steel firms in default. Briggs Murray Financial Planning & Wealth Management Ltd and Whitebridge Financial Planning Ltd are no longer trading, as both are companies associated with claims regarding the British Steel Pension Scheme. The development follows a dramatic intervention from the Financial Conduct Authority in April. It used emergency powers to stop some British Steel firms from disposing of assets to avoid paying compensation. Source: Money Marketing, 27 April 2022

Salzgitter AG and Mendritzki Holding GmbH have signed a partnering agreement and are building on their long-standing business relationship, now also in the field of low CO2 steel products and downstream product processing. The Salzgitter Group's partnering programme offers companies the possibility of securing a defined tonnage of green steel upfront as part of an economic commitment. This green steel is to be produced and delivered as from the end of 2025 as part of SALCOS® – Salzgitter’s low-CO2 steelmaking process. Source: Market Screener, 28 April 2022 May/June 2022

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China’s largest steelmaker Baowu Group is taking majority control of a steel company in the Jiangxi province, fast-tracking the company’s consolidation plan and boosting production capacity at time of heightened emphasis on decarbonization. The Jiangxi province has agreed to transfer a 51% stake in Xinyu Iron & Steel Group (Xingang Group) to the steel giant, according to a statement from Xingang Group’s Shanghai-listed arm on 25 April. The move will take Baowu one step closer to its annual crude steel output target of 200 Mt by 2025. Source: Hellenic Shipping News Worldwide, 27 April 2022

The Indian union steel minister Ram Chandra Prasad Singh opened the TMT rebar mill of Jindal Steel & Power at its 6 Mt/yr integrated steel complex in Angul district in Odisha. Singh commented, "India has become the secondlargest steel producer in the world, leaving behind major economies. The maximum amount of steel has been produced from Odisha. I appreciate Naveen Jindal for building such a beautiful mega-steel plant in Odisha." Source: India Today, 29 April 2022

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“IT’S AN EXCEPTIONAL OPPORTUNITY TO ASSESS THE EVOLUTION OF THE STEEL INDUSTRY” Diego Diaz Fidalgo, ArcelorMittal

FULL 2022 PROGRAMME NOW ONLINE!

“THIS EVENT IS THE ONLY MEETING FOR INDUSTRY 4.0 FOCUSSED ON THE STEEL INDUSTRY IN EUROPE” Kiyoshi Ebihara, Nippon Steel Corporation

HOW DIGITALISATION CAN AID DECARBONISATION – Discussion Panels. Day 1 (Part 1 at 3:45). Day 2 (Part 2 at 3:45) SPEAKERS INCLUDE…

Mark Bula, Chief Commercial Officer, H2GreenSteel

Carlos Alba, Chief digital officer, ArcelorMittal

Professor Katja Windt, CDO, SMS group GmbH

Day 1 – Opening Keynote – 09:10)

(Day 1 - ArcelorMittal’s global approach to digitalisation – 09:40)

(Day 1 - The future of steelmaking: decarbonized and digitalized – 10:10)

Robert Vandlik, Head of digital studio, US Steel Kosice, Poland (Day 1 - Aiding human decision making and standardizing practices using artificial intelligence – 11:10)

Paramjit Kahlon, Liberty Steel Group Primary Steel & Mining (Day 1 - How Digitalisation can aid Decarbonisation Part One – 15:45)

Roman Stiftner, MD Austrian NonFerrous Metals Federation and the Austrian Mining & Steel Association (Day 1- Digitalization and automation as crucial success factors in modern steelmaking – new special steel plant sets a global benchmark – 13:45)

“WOULD HIGHLY RECOMMEND TO MY COLLEAGUES INVOLVED WITH THE DIGITALISATION OF THE BUSINESS, THE EVENT GIVES A VERY GOOD GLOBAL OVERVIEW” Luigi Morsut, Danieli & Co

Secure your discounted Early Bird Ticket now at www.FutureSteelForum.com EXHIBITORS AND SPONSORS INCLUDE…

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22/03/2022 11:56

“IT’S AN EXCEPTIONAL OPPORTUNITY TO ASSESS THE EVOLUTION OF THE STEEL INDUSTRY” Diego Diaz Fidalgo, ArcelorMittal

FULL 2022 PROGRAMME NOW ONLINE!

“THIS EVENT IS THE ONLY MEETING FOR INDUSTRY 4.0 FOCUSSED ON THE STEEL INDUSTRY IN EUROPE” Kiyoshi Ebihara, Nippon Steel Corporation

HOW DIGITALISATION CAN AID DECARBONISATION – Discussion Panels. Day 1 (Part 1 at 3:45). Day 2 (Part 2 at 3:45) SPEAKERS INCLUDE…

Mark Bula, Chief Commercial Officer, H2GreenSteel

Carlos Alba, Chief digital officer, ArcelorMittal

Professor Katja Windt, CDO, SMS group GmbH

Day 1 – Opening Keynote – 09:10)

(Day 1 - ArcelorMittal’s global approach to digitalisation – 09:40)

(Day 1 - The future of steelmaking: decarbonized and digitalized – 10:10)

Robert Vandlik, Head of digital studio, US Steel Kosice, Poland (Day 1 - Aiding human decision making and standardizing practices using artificial intelligence – 11:10)

Paramjit Kahlon, Liberty Steel Group Primary Steel & Mining (Day 1 - How Digitalisation can aid Decarbonisation Part One – 15:45)

“WOULD HIGHLY RECOMMEND TO MY COLLEAGUES INVOLVED WITH THE DIGITALISATION OF THE BUSINESS, THE EVENT GIVES A VERY GOOD GLOBAL OVERVIEW” Luigi Morsut, Danieli & Co

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22/03/2022 11:56

Take the right machine health decisions Traditional monitoring of machine health is reactive. If it gets too hot, you’ll get a warning. If it vibrates too much, you’ll receive an alert. But what happens before failure? To help you take informed decisions ahead of breakdown, SKF Enlight automated machine monitoring systems combine cloud based IoT solutions and analytics with over 100 years of mechanical engineering knowledge. Visit skf.com/enlight-collect-imx-1 to find out more.

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INNOVATIONS

Primetals Technologies receives final approval on drives upgrade Primetals Technologies has received the Final Acceptance Certificate (FAC) for its F5 and F6 main drive upgrade project with Nucor Steel Arkansas of Armorel, Arkansas. The order completes the third phase of the total project: full replacement of the hot strip mill’s six main mill stand drives. According to Primetals, the main challenge in replacing the drives was to execute the changeover within the customer’s nine-day maximum outage time. To meet the tight timeline, the drives had to include identical take-over points for all existing

cables. The new Siemens Sinamics SL 150 drives also needed to start up and achieve full production immediately, without any ramp-up time. Covid-19 added complications, forcing Primetals to conduct virtual acceptance tests on the drives to ensure functionality prior to shipping. Covid constraints also dictated changes to the company’s standard start-up procedures for projects of this kind. The goal of the upgrades was to replace equipment rather than achieve specific improvements. However, Nucor conducted its

own tests after Primetals Technologies completed the upgrades and found that the new drives’ more modern controls improved both current and speed responses. The result, says Primetals, has been smoother operation when the strip head enters the mill gap and thus improved strip quality.

For further information, log on to www.primetals.com

John Cockerill Industry contracted for new processing lines Market leader in the supply of steel strip processing lines, mills and equipment, John Cockerill Industry has been entrusted by steel manufacturer, ArcelorMittal Nippon Steel India with the complete supply of two processing lines: a continuous galvanizing line and a combined continuous annealing galvanizing line. Both lines will feature John Cockerill’s latest technologies and innovations that claim to allow for increased energy efficiency, optimized zinc consumption and the highest level of corrosion resistance, leading to greater sustainability in the steel production process.

Related to this type of strip processing lines, this contract is one of the biggest ever awarded to John Cockerill Industry. The new continuous galvanizing line will be producing galvannealed (GL) and galvanized (GI) coated flat steel for exposed automotive panels, aiming to contribute to lighter vehicle weight and improved fuel consumption. The combined continuous annealing galvanizing line is to produce highly resistant steel coils coated with either a GL or an Al-Si coating, particularly suitable for advanced high-strength steel applications in corrosive environments. Upon completion, the new lines will

produce 1.5 Mt of galvanized and annealed steel sheet per year. Together with the experts of several of John Cockerill Industry’s other worldwide entities, John Cockerill India is to supply the two lines to ArcelorMittal Nippon Steel India’s Hazira Works in Gujarat. The start of operations is scheduled by 2024. This important investment will help ArcelorMittal Nippon Steel India to cater for the growing high-end steel market and to enhance its share of value-added steel products, while underlining its commitment to ESG (Environmental, Social and Governance) issues. Mr. Joao Felix Da Silva, executive president at John Cockerill Industry said: “We are very proud to have been chosen by such a first-class steelmaker to supply our latest innovative technologies for the processing of steel. To accompany ArcelorMittal Nippon Steel India in their journey towards sustainability is of utmost importance for us. The fight against climate change is part of John Cockerill’s mission. This new contract will not only enable us to contribute to India’s emergence as a new high-end steel hub, but also to the country’s low-carbon economy ambitions.” For further information, log on www.johncockerill.com

May/June 2022

innovations – read MM..indd 1

11/05/2022 15:57:18

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INNOVATIONS

BUMAX fasteners verified in renewable energy project Swedish specialist fastener maker BUMAX has supplied premium stainless-steel fasteners to a pilot hydropower project in France, testifying that the fasteners suffered no corrosion, wear or galling after two years of operation in extreme conditions. The BUMAX premium stainless steel fastener solution has been verified by a two-year pilot project that has contributed to the development of the next generation tidal turbine, capable of providing Europe with reliable renewable energy. “This is extremely encouraging for the future of sustainable renewable energy solutions since wear and tear and maintenance are major challenges for power plants in extreme conditions like choppy and salty waters with strong currents,” said Lars Holm, managing director of BUMAX. “Europe also needs to develop new sources of reliable renewable energy, which this project will lead to.” BUMAX 88 fasteners were used on the 1 MW

HydroQuest tidal turbine installed off the coast of Brittany in Northwest France that began operation in April 2019. After over two years of operation at the Paimpol-Bréhat site at 30m depth, the company claims that the turbine fasteners showed no traces of corrosion or galling. Tests of the mechanical properties (both strength and ductility) of the bolts conducted by BUMAX after the pilot project showed that they had maintained their properties. “No issues were found related to bolting during this project, and our team didn’t have any issues with galling during disassembly,” said Raphaël Coquet, project director at Hydroquest. “These lessons give us positive learnings for the long-term deployments, and we are confident to manufacture our future turbines with BUMAX bolts.” According to BUMAX, their 88 grade was selected for its high molybdenum content and pitting resistance equivalent number that indicates

a high resistance to localized pitting corrosion. The tidal turbine prototype was designed by HydroQuest, which is a French turbine technology developer of vertical axis turbines. For further information, log on to www.bumax.com

WDS Components supplies shock absorber solution WDS Components, supplier of standard parts and machine accessories, has been contracted by The OEM, one of the UK’s leading material handling manufacturers, for a shock absorber solution to maintain safety when operating its baggage and cargo loading devices. The shock absorber was commissioned for OEM’s Unit Load Devices (ULD) - used worldwide within the aviation industry – as OEM required a solution could handle variable loads, protect operators, and remove damage to equipment. Each side of the ULD features a barrier that is lowered to maintain stability on the bed during side loading. After loading, the barriers are returned to their raised position. The barriers are manually operated and are lowered by releasing a latch via a foot-operated pedal. During operation, the barriers can suddenly drop, potentially causing injury to the operator. The force could also damage the loading environment’s bed as well as the ULD itself. The OEM turned to WDS to specify a shock absorber design that could decelerate and reduce the impact of the barrier. The solution had to be able to provide variable shock absorption and, as the OEM had a requirement for high volume production, the design had to be cost effective. WDS was able to provide the optimum engineering outcome by specifying a self-compensating shock absorber. Selecting the right shock absorber for the www.steeltimesint.com

innovations – read MM..indd 2

application in order to provide sufficient deceleration, WDS had to consider the barrier’s velocity, mass, propelling force and frequency of cycles. The speed of the descending barrier could vary, depending on its starting position. This meant that adjustable shock absorbers that are set where the factors of impact remain constant would not be suitable. Instead, WDS developed a solution involving a self-compensating shock absorber which aimed to greatly improve performance. Constructed from steel, the WDS range of self-compensating shock absorbers claim to

provide robust, long-term use and can variously handle a maximum effective mass of up to 1,200kg, a maximum energy per cycle of 98Nm, and a velocity of up to 4m/s. The OEM is also trialling the shock absorbers across other applications, and with wide stocking and supply directly from its Leeds, UK facility, WDS states that it is well positioned to rapidly supply OEMs with high volume requirements.

For further information, log on to www.wdscomponents.com

May/June 2022

11/05/2022 15:57:23

INNOVATIONS

Maxcess launches 100% vision inspection and automation solutions Maxcess, a global leader in products and services for web handling applications, has unveiled VisionMax and VisionConnect;100% vision inspection and automation tools that the company claims reduce scrap, customer claims and rework, while improving productivity. “In today’s converting environment, with unprecedented material and labour shortages, it is crucial to be able to run your process line as efficiently as possible by automating the process and removing defects before they become critical, which can cause significant material waste and expensive rework,” said Conor O’Neil, business development manager for Maxcess

innovations – read MM..indd 3

Vision Systems. “Our new line of 100% vision inspection and workflow automation solutions for wide-web applications feature industry-leading price performance, an easy operator interface and advanced workflow automation software for smart converting, giving customers the ability to deliver defect-free material to their customers. Backed by the global service and support network of Maxcess, doing business where you do business, customers can trust that their investment will be supported for years to come.”

software, VisionMax is a tool that can be used in both surface and print inspection applications, finding key defects like insects, gels, carbons, colour problems, streaks, drags, roller marks and more, alerting operators before they become costly. VisionConnect is a workflow automation software suite, which allows operators to automatically control process lines and slitters to physically remove defects with as little waste as possible.

Featuring high-definition cameras, a touchscreen operator interface and 100% inspection

For further information, log on to www.maxcess.com

11/05/2022 15:57:32

INNOVATIONS

ABB awarded contract by Primetals ABB has been awarded a major contract by Primetals Technologies to help optimize production at thyssenkrupp Steel Europe’s (tkSE) Duisburg-Bruckhausen plant in Germany, using the ABB flow control mold electromagnetic stirring and braking technology which the company claims will incur a higher quality steel produced faster and at lower cost. The construction of a casting rolling mill and the upgrade of an existing continuous casting plant is part of a wider project awarded to Primetals Technologies, named tkSE’s Strategy 20-30, which aims to optimize operations for the requirements of automotive customers seeking improved surfaces, thinner and high-performance steels to meet crash safety standards in the growing e-mobility market. By using its FC Mold G3, ABB claims that thyssenkrupp can prevent gas bubbles and impurities

from becoming trapped in the solidifying steel as the technology will offer simultaneous stirring and braking from one fixed position on the caster. In continuous slab casting, conditions in the meniscus area of the solidifying steel are crucial to determining end-product quality and have a major impact on productivity and overall operating costs. Integrated with the caster, FC Mold uses electromagnetic fields to control meniscus flow speed and fluctuations and aims to enable improved process control and increased resource efficiency. With an installed base at 40 sites worldwide, performance improvements delivered by FC Mold technology are, according to ABB, well-proven. Typically, these include a 50% reduction in defects and up to an 80% reduction in rejected or downgraded product. “By significantly reducing defects, rejects and

downgrades, the FC Mold will improve cost and resource-efficiency at tkSE, thereby supporting both sustainability and profitability goals, while contributing to the company’s Strategy 20-30 ambitions to meet customer requirements for higher performance steel grades,” said Zaeim Mehraban, global sales manager, metallurgy products at ABB. “Backed by decades of experience working with plant builders, like Primetals, and knowledge of metallurgical processes such as slab casting from numerous installations worldwide, ABB continues to devise solutions to solve bottlenecks in steel and aluminium manufacturing processes and repeatedly prove they are effective.”

For further information, log on to www.abb.com

Panduit introduces new labelling system Panduit, a leader in electrical and network infrastructure solutions, has introduced the compact semi-automatic, “PLA-100/E” WrapID automatic labelling system. The new labelling machine is claimed to offer significant increases in productivity for medium- to high-volume label applications. According to Panduit, users can benefit from faster turnaround times of up to 3x faster than traditional manual installation and 2x faster than leading competing systems. The winding head of the compact system is designed to be easy to reach, so that labels can be attached to the line or cable within 12.7 mm of the connectors or terminals. In addition, the label head has a modular design and can be replaced for maintenance, while the label position can be realigned at the push of a button. Today, valid cable labelling is an essential part of the documentation in switch cabinet construction, network technology or in the data centre for easier commissioning and maintenance. The new WrapID system, together with Panduit’s labels and label printers, is designed for large-scale cable harness production. Panduit engineers aimed to improve the design ergonomics in order to reduce operator fatigue and minimise the risk of repetitive motion injuries. Panduit's analysis between manual and automated systems attests that the WrapID automated labelling system saves approximately 170 labour hours per 100,000 labels, which compared to competitors’ automated systems, saves approximately 80 man-hours per 100,000 labels against rival systems. For further information, log on to www.panduit.com

www.steeltimesint.com

innovations – read MM..indd 4

May/June 2022

11/05/2022 15:57:37

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18.03.22 17:12

USA UPDATE

‘Buy America’ plan applauded America’s big steel trade associations have welcomed the Biden administration’s ‘Build America, Buy America’ plan. By Manik Mehta* THE broad spectrum of the US steel sector – ranging from steelmakers through trade unions – joined together in a chorus to applaud a White House announcement on 18 April on guidance issued to Federal agencies implementing the ‘Build America, Buy America’ Act. Kevin Dempsey, the president and CEO of the American Iron and Steel Institute (AISI), which calls itself the steel industry’s ‘voice’ on public policy issues, expressed the industry’s appreciation of the ‘commitment of the Biden-Harris administration to ensure that all federally-funded infrastructure and public works projects use iron, steel and other products that are made in America’. Dempsey further maintained: “As some federal programmes do not apply Buy America requirements for the procurement of iron and steel products, we are pleased that today’s initiative begins the process to remedy this situation by providing clear guidance to federal agencies for adopting appropriate Buy America requirements for all federally-funded infrastructure projects.” Describing the announcement as an ‘important first step toward ensuring

the fullest possible implementation and enforcement of Buy America domestic procurement preferences by all federal agencies’, Dempsey said it represented ‘just the beginning of a process and we look forward to working in partnership with the administration and Congress to continue to ensure the use of cleaner American steel in all federally-funded infrastructure projects’. The AISI’s reaction also represents the sentiment in the Steel Manufacturers’ Association whose president Philip Bell said that the new White House guidelines ‘demonstrate the administration’s commitment to ensure that federally funded infrastructure projects are built with steel made by Americans for Americans. Clarification and strong enforcement of Buy America domestic procurement preferences will lead to an infrastructure that is made with the cleanest, lowest carbon intensity steel in the world.’ Steel workers have traditionally supported government policies that emphasize the use and consumption of domestically produced steel. Not surprisingly, Tom Conway, the president of the United

Steelworkers (USW) international union, also praised the new guidelines. “America’s workers stand ready not only to build new transportation systems, communications networks and other infrastructure through the IIJA (Infrastructure Investment and Jobs Act) but to supply the raw materials, parts and components needed for all of those projects,” he said in a press release. “These workers lead the world in responsible production practices, and they’ll deliver unparalleled quality, ensuring new roads, bridges and other improvements stand the test of time.” Conway added that the USW would work with the Biden administration ‘to finalize the Build America, Buy America guidance and unlock the full power of the IIJA.’ The Biden administration is translating the Build America, Buy America Act into action, mandating that federal dollars only be spent on infrastructure projects in which “all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States”. The policy was approved along with the bipartisan infrastructure bill last year.

* US correspondent, New York www.steeltimesint.com

USA – read MM.indd 1

May//June 2022

12/05/2022 06:52:49

USA UPDATE

“The COVID-19 pandemic underscored the feeble state of American manufacturing, while Russia’s invasion of Ukraine drove home once again the danger of relying on foreign-sourced products. A reinvigorated industrial base will help to safeguard America’s economy and security,” Conway said. Scott Paul, the President of the Alliance for American Manufacturing, called for vigilance while implementing the policy and ensuring that taxpayers’ money was not used to support foreign steelmakers. He emphasized that public funds should benefit American factory jobs, not undercut them. On another note, US Steel’s Big River Steel mill in Osceola, Arkansas, became the first steel plant in North America to achieve site certification from ResponsibleSteel ™, the steel industry’s first global certification initiative for responsible sourcing and production of steel. Big River Steel received the site certification after the SRI Quality System Registrar conducted an independent thirdparty audit and determined the mill met the requirements of the ResponsibleSteel Standard, the industry’s only global multistakeholder standard and certification initiative. The audit consisted of gathering comprehensive materials, on-site visits and worker and stakeholder interviews. ResponsibleSteel is an international, non-profit multi-stakeholder membership organization. Its mission is to enhance the responsible sourcing, production, use and recycling of steel. The ResponsibleSteel Standard is based on 12 principles and covers a wide range of criteria such as health and safety, Greenhouse gas emissions, water stewardship and biodiversity, human rights, workers’ rights and community relations. US domestic raw steel production was 1,766,000 net tons (1.76Mt) in the week ended 16 April, 2022, while the capacity utilization rate was 80.9%. By annual comparison, production was 1,834,000 net tons (1.83Mt) in the week ending 16 April, 2021 while the capacity utilization then was 80.8% – a decline of 3.7% in production over the corresponding period in the previous year. However, production in the week ending 16 April, 2022 was 1.6% up compared to the week ending 8 April, 2022, when production was 1,738,000 net tons (1.73Mt). The year-to-date production as of 16 May//June 2022

USA – read MM.indd 2

April, 2022 was 26,416,000 net tons (26.41Mt) with a capacity utilization rate of 80.2%, reflecting a decline of 1% from the 26,672,000 net tons (26.6Mt) during the same period last year, when the capacity utilization rate was 78%. The figures were compiled by the AISI. If anything, the Russia-Ukraine war has raised red flags among all those relying on foreign and, particularly, Russian steel. Nevertheless, there are still companies in the United States that will not go for green steel simply because it is not as lucrative as ‘regular’ steel. The war has disrupted the pig-iron supply chain, presenting an opportunity for the US to push the transition to green steel production. As televised images were flashed of the steel plant in the Ukrainian city of Mariupol where Ukrainian troops

had assembled themselves to resist the Russian troops, critics of the unclean steel – in contrast to green steel – were quick to point out that the plant produced millions of tons of such steel. Just consider this: Russia and Ukraine supplied last year alone more than 60 % of pig iron imports into the US. Pig iron is the raw material used in much of the steel produced, but the war has led to US steelmakers scrambling to buy pig iron. Steel prices have, meanwhile, risen by roughly 50% since Russia launched its invasion on 24 February. Cassandra cries were heard about the steel prices rising further, with the US Chamber of Commerce presenting a survey taken in December saying that the commercial construction industry feared that steel prices in their upward surge coupled with the product shortages could adversely affect the post-pandemic recovery in the commercial construction sector. Others paint a grim future for the

economy, warning that any disruption in steel supply would impact every other sector – from the auto industry to galloping inflation, not to mention the severe impact on renewable energy, a promising growth sector in the US. Several steel consumers, discouraged by the high steel prices of US steelmakers, resort to sourcing their steel requirements from foreign suppliers. Take the case of the US Bureau of Ocean Energy Management, which invited bids to build wind turbines off the New York and New Jersey shores. However, some of the suppliers were skeptical whether they could obtain US steel at prices that were competitive and within the budget allocations. The plain fact is that it is difficult to produce in the US ‘green’ steel for use in certain infrastructure projects. The US does not have enough of new, clean steel manufacturing plants, making steel-using industries use ‘un-green’ varieties of steel. We need to wait and watch the course which the steel industry will take in the future, considering that pressure to use ‘green’ steel will increase. While China’s steelmakers closely follow the intricacies of US legislation and policy relating to imports of metals, US experts and analysts also monitor developments in China impacting its steel industry, noting that China’s National Development and Reform Commission recently announced plans to reduce Chinese steel production in 2022. As the world’s largest steel producer and exporter, with the US serving as a huge market, the news of China reducing steel production was received with interest by the US steelmakers who fear that China exports a big chunk of its production to the US. A statement released by China’s Iron and Steel Association urged the industry to “maintain a balance between supply and demand”, and not lose sight of the limited market demand. China exported some 67Mt (metric tons) of steel in 2021, but this year’s output will decrease by 30Mt, according to CISA. Tariffs imposed by the Trump administration may have worked as a discouraging factor, but China is keen to reduce production to minimize air pollution. China is the world’s largest producer of nitrogen and phosphate fertilizers. In late 2021, the NDRC suspended exports of fertilizer, despite record global prices. � www.steeltimesint.com

12/05/2022 06:52:52

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2/10/2021 11:34:18 AM

LATIN AMERICA UPDATE

100 years in Brazil

(part four)

In the fourth and last of a series of articles, Germano Mendes de Paula* examines ArcelorMittal Longos’ trajectory from 2018, covering, among other things, the merger with Votorantim Siderurgia, the impact of Covid-19 and the start-up of a new wire rod rolling mill. IN February 2017, ArcelorMittal announced the merger between its Brazilian long steel division with Votorantim Siderurgia, which was fully owned by the Votorantim group, one the country’s largest industrial conglomerates (with interests in cement, aluminium, nickel, zinc, energy, and orange juice). Under the agreement Votarantim Siderurgia would become a wholly-owned

Fig 1. ArcelorMittal Longos’ production, 2018-2021 (kt)

subsidiary of ArcelorMittal Brasil, and Votorantim would hold a minority stake in the rival’s capital. The value of the transaction was not disclosed. Votorantim Siderurgia operates only in the long steel segment, with two mini-mills (located in Barra Mansa and Resende, both in the State of Rio de Janeiro) and 50% of the reroller Sitrel (installed in Três Lagoas, in the State of Mato Grosso do Sul). Barra Mansa was

commissioned in 1937, Resende in 2009 and Sitrel in 2012. The transaction did not involve the steel mills owned by Votorantim in Argentina and Colombia. The business combination would result in a long steel producer with an annual production capacity of 5.6Mt/yr of crude steel and 5.4Mt/yr of rolled steel products. The transaction was approved by the Brazilian antitrust authority (CADE) in

Fig 2. Brazil’s monthly steel production and consumption, 2020-2022

* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br May/June 2022

LAmerica – read MM..indd 1

www.steeltimesint.com

12/05/2022 14:59:46

LATIN AMERICA UPDATE

February 2018, with restrictions. In order to fulfil these obligations, in April 2018, ArcelorMittal Longos sold two packages of assets. The first included the mini-mill of Cariacica (State of Espírito Santo), the reroller of Itaúna (which was leased by ArcelorMittal at that time, in the State of Minas Gerais) and some drawing equipment, which were purchased by GV do Brasil (a subsidiary of the Mexican steelmaker Simec). The second package included other drawing equipment, which was transferred to Aço Verde do Brasil (AVB, in the State of Maranhão). It is important to stress that GV do Brasil and AVB are newcomers in the Brazilian long steel segment. As a consequence of the merging with Votorantim Siderurgia and the disposal of some steel assets, ArcelorMittal Longos amplified its crude steel production from 2.9Mt in 2017 to 4.1Mt in 2018, while rolled steel output increased from 2.9Mt to 3.8Mt, respectively (Graph 1). The company’s production share of Brazilian common long steel products enlarged from 35.2% in 2017 to 45% in 2018, recovering first place position in the sector’s ranking. Covid-19 The impacts of Covid-19 for the Brazilian steel industry, in general, and for the long steel segment in particular, were massive. Not surprisingly, as it can be observed in Graph 2, national crude steel production diminished from 2.7Mt in March 2020 to 1.9Mt in the following month. The same trend was observed for apparent steel consumption (1.7Mt to 1.1Mt, respectively), long steel production (821Mt and 445kt) and long steel consumption (663kt and 540kt). It is important to note that the number of idle blast furnaces in the country jumped from six in January 2020 to 14 in April 2020, while the respective figures for steel shops were four and 17. Fortunately, the retrieval was relatively fast, as steel consumption (both as a whole and for longs) recovered its previous plateau in June 2020, long steel production in July 2020 and crude steel production in August 2020. In December 2020, the number of idle blast furnaces had already diminished to five and steel shops to four. Throughout 2020, the country’s crude steel production was 3.5% lower than www.steeltimesint.com

LAmerica – read MM..indd 2

2019, but an improvement was veriﬁed for: total apparent consumption and long steel production (2.3% each) and long steel consumption (6.4%). ArcelorMittal Longos’ productive performance in 2020 was 4.3% higher for crude steel and 4.0% higher for rolled steel products than 2019, but even so smaller than the record achieved in 2018. Resumption of idle operations and new investments ArcelorMittal Longos had temporarily idled its EAF #1 and #2, billet caster and long rolling mill #2 at Barra Mansa in January 2019 in response to poor market conditions. Due to the quick recovery from Covid-19, it decided to resume some idle equipment. In April 2021, it announced that it would restart one of the two EAFs and the billet caster at Barra Mansa in the second half of 2021, at a cost of roughly $3.5M. They were operational again in September 2021. In August 2021, ArcelorMittal Longos said that it would start up a new 1Mt/ yr wire rod rolling mill at Monlevade steelworks in January 2022. The construction of the equipment was concluded in Q3 2015, but due to an unsatisfactory market situation, it has never entered commercial operations. While the company did not divulge how much was invested in its start-up, the total investment was $110M. More importantly, in November 2021, ArcelorMittal Longos announced that it will double the output of its Monlevade steelworks – at a cost of $500M – from

1.2Mt/yr to 2.2Mt/yr as of Q2 2024. The investment package comprises another sintering plant (2.3Mt/yr capacity), a new blast furnace and the doubling of capacity of the steel shop (1Mt/yr). It also includes the expansion of the logistics systems for receiving raw materials and shipping. This new production phase will feed the new wire rod rolling mill, which was commissioned in January 2022. It is, therefore, a new, complete and integrated steel production line. It should be remembered that the plans to double Monlevade’s capacity was originally unveiled in September 2008. However, it faced many delays because of disappointing market conditions. The Monlevade expansion project contains investments to expand production at the Andrade Mine, which supplies iron ore to the mill and is located only 11km away. The mine will more than double production from the current 1.5Mt/yr to 3.5Mt/yr. An investment of $350M will be used to produce 4.5Mt/yr of DRI quality pellet feed at the Serra Azul iron ore mine in Itatiaiuçu (State of Minas Gerais), but this input will not supply ArcelorMittal Longos’ mills. Production is expected to begin in Q2 2023. In February 2022, ArcelorMittal Longos announced an investment of $250M at Barra Mansa to add a new 400kt/yr bar and section mill and to double capacity at the steel shop, as of Q1 2024. The aim of the project is to deliver higher added value products, in particular merchant bar and special bars, to enhance proﬁtability. Brazilian crude steel output jumped 15.2% to 36.2Mt in 2021. The respective ﬁgures were: steel apparent consumption (26.5Mt and 23.5%), long steel production (10.8Mt and 13.8%), and long steel consumption (11.2Mt and 22.5%). ArcelorMittal Longos fabricated 4.1Mt of crude steel in 2021, which represented an enlargement of 8.8% y-o-y. Indeed, it was a good way of celebrating the 100th anniversary of operations in Brazil. In the same year, its rolled steel product output reached 4Mt that was equivalent to a 41% production share. ArcelorMittal Longos’ trajectory provides an outstanding example of how to understand the evolution (and sometimes involution) of doing business in the Brazilian steel industry. �

May/June 2022

12/05/2022 15:00:39

INDIA UPDATE

NMDC steel plant privatization: Smooth transition in doldrums due to time and cost overruns IN a bid to raise funds to continue several undergoing social welfare programmes, the government of India has been accelerating privatization of its assets to individuals or a group of bidders with all possible policy supports to the interested buyers. Several plants have been successfully passed from ownership by the government to private companies or individuals. However, projects like NMDC’s steel mill, currently under construction with an installed capacity of 3 Mt in central India, are not fortunate enough to get a smooth transfer of ownership. From over half a dozen existing steel mills and new entrants that showed interest earlier, the number of interested parties is now narrowing down to fourwhich may affect the privatization of the NMDC’s steel mill. The plant progress NMDC’s Nagarmar greenfield plant was conceived in 2009-10 with an idea of moving up the value chain and diversifying the company’s portfolio from a pure iron ore player to a value-added steel producer with a strong backward linkage of iron ore across large mines in the state. The company aimed to augment its performance by adding forward integration of steelmaking to prevent any impact on its topline and bottom line due to volatility in iron ore prices globally. Currently, NMDC sells its high-grade iron ore to the domestic steel mills on a merchant basis, and exports a large quantity of its output to companies in Japan, Korea, China and a host of other countries on both a spot and long-term contract basis. For processing iron ore in its captive steel mills, NMDC proposed to set up a 3Mt/yr

NMDC’s steel mill is currently under construction, designed to diversify the company’s portfolio from a pure iron ore player to a value-added steel producer. However, delays in government decision making causing cost overruns have unsettled its beginnings, and its fate now lies uncertain. By Dilip Kumar Jha*

THE WATERMARK LINE NMDC steel plant fact file Particulars

Facts

Location

Nagarnar, Chhattisgarh, India

Capacity

3 Mt

Original cost

US$2 billion (~INR 155 billion)

Cost overrun

US$855 million (~INR 65 billion)

Original commercial operation to begin year

2015

Time overrun

7 years

New commencement schedule

July 2022

Potential bidders

JSW Steel, Jindal Steel & Power, Vedanta, and Adani Group

Source: NMDC Ltd

* India correspondent www.steeltimesint.com

India – read MM..indd 1

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INDIA UPDATE

Mittal, the global steel tycoon, had made several attempts to enter India’s market by setting up greenfield steel plants, but instead commenced business in the country through a brownfield route, by acquiring private assets in mills for both carbon and value-added steel production. New entrants such as Vedanta and Adani Group, continued their interest in acquiring NMDC’s sole steel plant.

steel mill for which the company procured hi-smelt technology. NMDC chalked out an initial investment of US$2 billion (~INR Rs 155 billion), with the plant originally being scheduled for commercial production in 2015. The idea for setting up this plant was to hedge itself against the fluctuations of iron ore prices which sometimes witness very high volatility in the wake of global geo-political developments. However, the commencement of this plant has already been delayed by seven years due primarily to the inordinate delay in decision making within the Steel Ministry, which resulted in a cost overrun of US$855 million (~INR 65 billion). Now, over and above the time and cost overruns, the government has delayed its demerger process for splitting from NMDC’s iron ore mining business. Despite the Union Cabinet’s approval for this demerger 18 months ago in October 2020, the actual process is prolonged because of the delay in decision making in the Steel Ministry yet again. Now, the government is planning to complete the demerger process by August-September 2022, coinciding with the commencement of the commercial production at this steel plant, which eventually will be followed by privatization. Experts believe that the privatization under which the ownership rights are transferred to a private individual or a group of individuals or companies, will be delayed further.

May/June 2022

India – read MM..indd 2

Severe impact on privatization process The dilly-dallying approach of the government has impacted NMDC’s privatization process immensely, with leading private companies starting to withdraw their interests. Ratan Tatabacked Tata Steel and L N Mittal-supported ArcelorMittal-Nippon Steel India are rumoured to have not participated in the bidding to acquire NMDC’s 3 Mt/yr steel plant. Earlier, these giant steel companies had shown interest in participating in the bid. With these withdrawals, companies like JSW Steel and Jindal Steel & Power remained in the fray. It is worth mentioning that India-born Lakshmi

Value accretive Analysts believe that the time and cost overruns may prove the project too costly for beginning greenfield steel production in India. To avoid such a high-cost acquisition, existing steel mills have expanded their production capacity through the brownfield route and debottlenecking of existing facilities to achieve the growth scale. NMDC’s Nagarmar steel plant has a total land bank of around 2,180 acres (882 ha), in which the steel plant covers 1,940 acres (785 ha). A major positive factor of this plant is that the steelmaking capacity can be expanded by another 2-3 Mt in the next phase without requiring additional land. Yet another advantage is that the productmix of the unit includes hot rolled coils and auto grade steels, in addition to API pipes grade steel, which is prominently used in modern infrastructure. Conclusion With the demerger being delayed, the fate of the steel plant’s privatization from the NMDC’s core iron ore business hangs in the balance. �

www.steeltimesint.com

12/05/2022 06:54:53

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SUPPLY CHAIN

Maintaining supply chain functionality

Nucor Corporation, the USA’s biggest steelmaker and the pioneer of electric steelmaking, has a huge supply chain that relies heavily on high tech from IntelliTrans to make any logistics challenges more manageable. By Rob Roberson* WHEN Nucor entered the steel business more than 50 years ago, we changed the future of the industry by pioneering the use of electric arc furnaces (EAFs) to make steel by recycling scrap metal. We have never lost that spirit of innovation and our company constantly adopts new technologies that help us stay ahead of our competitors. Our history of innovation has helped us become North America’s most diversified steel and steel products company. Our vision is to lead our industry by providing unparalleled customer care, building trusting partnerships, and creating sustained value.

Nucor founder Ken Iverson started a small steel company on the idea that teammates, customers, and communities could trust one another. Fifty years later, Nucor is America’s largest steel producer with 30,000 employees located in over 300 plants and offices around the country and Canada. Nucor is headquartered in Charlotte, North Carolina. Having grown from a single joist manufacturer into North America’s largest recycler and the world’s most sustainable steelmaker, Nucor’s steel products are transforming the American landscape,

one project at a time. From structural and advanced automotive steels to fasteners and tubes, our family of companies offers a full range of steel and steel products. Nucor produces steel beams, plates, joists, fasteners, grating, wire, racks, tubes, and bars. We serve the agriculture, automotive, construction, energy, oil and gas, infrastructure, transportation, and heavy equipment industries. Nucor is dedicated to defining the future of steel through continual innovation, worldclass safety performance and sustainable steelmaking production methods. As

* Director of Corporate Logistics, Nucor Corporation May/June 2022

Nucor.indd – read MM, needs bold Xheads..indd 1

www.steeltimesint.com

11/05/2022 12:52:07

SUPPLY CHAIN

our customers’ needs grow, so do our capabilities and the list of industries we serve. Nucor has 25 steel mills that provide environmental and economic benefits, while offering innovative products, including light weight, high strength steels and engineered bar. Our steels are produced with an average recycled content exceeding 72%, and our mills are strategically located with efficient access to major highways, railways, and waterways. All this ensures our customers receive on-time dependability, high quality products and sustainable value. One of the markets we serve is the agriculture industry, where there is a constant drive for larger, more productive equipment combined with lighter weight and lower fuel consumption. The agricultural sector also depends on steel for parts in grain conveyors and grain storage units, irrigation, and animal fencing. Nucor is also a leading producer of innovative steel solutions for the automotive industry. Our full range of advanced steel sheet, engineered bar and cold finished steel products are used in applications ranging from drivetrains, frames and suspensions, to exposed body panels and high-tech components. With the broadest and most diversified product portfolio, our supply chain, transportation and logistics operations are both global in nature and extremely complex. A few years ago, we decided to bring those operations onto a single, holistic visibility platform that would cover all of our supply chain activities – including truck, rail and barge (our primary modes). We assessed a few different transportation management system (TMS) providers, several of which included a trucking function. Few of those providers offered truck, rail, and barge as a comprehensive suite of services, and that’s what drew us to IntelliTrans, the developer of a cloud-based control tower that provides complete global supply chain transparency. We were already using its technology to track our rail cars, so expanding that engagement to include all of our other transportation modes made perfect sense. “Our supply chain is huge” Our supply chain is huge and incorporates a large carrier and customer base. Bringing these two elements together – at least from a transportation perspective – was www.steeltimesint.com

Nucor.indd – read MM, needs bold Xheads..indd 2

an important goal of ours that our control tower has helped us achieve. And while we continue to address challenges within our supply chain, the technology that we’ve invested in has made those obstacles much more manageable. We use IntelliTrans as our transportation communication network vehicle. We tender freight through CarrierPoint and we create visibility through our global visibility platform (GVP). We also have some pre-rail execution functionality that we leverage GVP for, so we have a full suite of transportation services. The IntelliTrans Global Visibility PlatformSM includes multi-modal command and control features that give unprecedented visibility into fleet and non-fleet equipment to proactively manage shipments from origin to destination, with a focus on exceptions and enhancing customer experience. The platform integrates with a wide variety of data sources, including TMS and ERP systems. It provides real-time locations updates with dynamic ETAs for our rail, truck and barge shipments. IntelliTrans’ CarrierPoint TMS is the only

SaaS-based TMS that provides shipment execution and visibility across our rail, truck, and barge shipments. The IntelliTrans TMS helps lower distribution costs and improves bottom line profits. It does this by reducing labour-intensive, time-consuming, and error-prone business processes. IntelliTrans’ suite of services, and specifically CarrierPoint, helps us manage by exception. We probably ship a million truckloads a year and around 80% of those loads flow through our supply chain network without a great deal of intervention. The loads get posted, they get accepted, they get shipped, they get tracked, they get delivered, and they get paid through our TMS application. This gives our transportation service reps (TSRs) and customer service reps (CSRs) a lot more time to focus on the exception loads that require special attention. The automated bid process has been immensely beneficial, allowing us to access what we refer to as ‘spot market capacity’ because most of our freight moves under contract. Every so often, we’ll have a need for spot market capacity and there are several dispatch templates within our platforms that we use to reach out to the spot market. That works really well for our company. Looking ahead Going forward, we expect our technology partners to keep us at the forefront of supply chain functionality. Our success in the steel industry proves that we’re already doing many things right, but we also have a vision for taking our operations to the next level. As we move forward, IntelliTrans will be a big part of that vision. “IntelliTrans really appreciates the long-term relationship that we have had with Nucor,” said Ken Sherman, president of IntelliTrans. “Together, Nucor and IntelliTrans have been able to drive a significant amount of innovation in the market. This ranges from the number of flatbed carriers engaged in the technology, to a mobile app focused on the carriers to increase the ease of doing business with Nucor, to creative solutions to tender loads in a variety of combinations, such as bundles, backhauls, and tours. Rob and his team have been very forward thinking and have worked closely with IntelliTrans to increase Nucor’s operational excellence while also becoming a leading shipper of choice.” � May/June 2022

11/05/2022 12:52:14

AUTOMOTIVE

Another challenging year ahead Over recent years, the North American automotive market – and its demand for steel and other raw materials – has been very volatile and very unpredictable, with supply chain issues, geopolitical unrest, rising inﬂation and interest rates, and the lingering effects of the Covid-19 pandemic, affecting the ability to forecast the future. Myra Pinkham* reports

CURRENT uncertainty in the US automotive market is exacerbated by the big discrepancy between the demand for light vehicles and production levels, John Catterall, vice president, automotive programme at the American Iron and Steel Institute (AISI), said. But given the strong underlying demand for vehicles, there is at least cautious optimism about the auto market itself and what that could mean for its steel suppliers. “We are in a very unique situation,” Bernard Swiecki, director of research at the Centre for Automotive Research (CAR), said, explaining that normally the automotive

market had been demand forecast-based on the assumption that the automakers will supply product to meet whatever the demand is. But, he said, currently everything is upside down. “We have never before been in a market where demand is so much greater than supply, where it is questionable how many vehicles the automakers can actually build.” Phil Hornack, acting managing director of Metal Strategies Inc., agreed, noting that right now there is only a very small difference between auto sales and production volumes in North America.

This is very different than what expectations were late last year and early this year, John Anton, a director at S&P Global Market Intelligence (formerly IHS Markit), said, noting, “We had thought that 2022 would be the year that we would ﬁnally begin to recover from Covid-related supply chain issues,” but that now appears to be off with a mid-March report from S&P Global’s mobility unit indicating that globally the conﬂict in Ukraine is likely to put 2.6 million light vehicles at risk this year. Now, AISI’s Catterall observed, despite all the pent up demand, North American auto production is not likely to get back to its

* North America correspondent May/June 2022

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www.steeltimesint.com

11/05/2022 12:47:18

AUTOMOTIVE

Fig 1

Fig 2

Fig 1. 2017 Steel Strength Ductility Diagram Fig 2. 2021 The Global Formability Diagram comparing strength and elongation of current and emerging steel grades Fig 3. Architectural impact Fig 3

peak 2018-19 pre-pandemic levels until at least 2023. This is because of the extreme volatility experienced over recent years by both North American auto production and the auto industry’s steel suppliers, coming after what Swiecki describes as a one-two punch. The ﬁrst punch was the auto plant lockdowns at the onset of the Covid-19 pandemic, which, resulted in only 12.9 million light vehicles being produced in North America in 2020, which resulted in a depletion of vehicle inventories. However, as the pandemic started to ease, initially there was a bit of optimism that North American auto production would actually grow by as much as 20-25% in 2021 to about a 16 million light vehicle build rate – expectations that Phil Gibbs, an equity research analyst for KeyBanc Capital Markets, said prompted automakers and auto parts producers to increase their steel purchases in anticipation of that increase. But instead, the shortage of semiconductor chips hit and kept 2021’s North American auto output down to only 13 million complete, ready-to-sell vehicles despite strong consumer demand for automobiles. That, Abey Abraham, the principal of Ducker’s automotive and materials practice, noted, has turned dealer lots into ghost towns with a massive number of incomplete vehicles sitting www.steeltimesint.com

Automotive.indd – read MM..indd 2

awaiting chips. Then, just as there were forecasts that the chip shortage could be potentially showing early signs of easing, in late February the third shoe dropped upon the market – Russia’s invasion of Ukraine. Illustrating the impact of these issues, Abraham pointed out that pre-Covid it had been forecast that 17.2 million vehicles would be produced in North America in 2022, but pre-war (post-Covid) that forecast was already revised down to just slightly more than 15 million light vehicles. Now, the number is even lower, due to the ripple effect of the Ukrainian war upon certain auto-related products. Microchips have been affected, as well as various auto raw materials (including Ukrainian neon gas, which is used in the chip production process, and Russian palladium, which is used in vehicle catalytic converters). Even other auto components, such as wire harnesses, have impacted production, as they are often supplied by Ukraine. “In addition, there are other associated disruptions to the supply chain due to the conﬂict that doesn’t allow for any nearterm replenishment across the distribution network, which makes for a perfect storm,” Metal Strategies’ Hornak declared. Because of all of this, Abraham said that it now seems likely that North American auto output will be only moderately better than it was last year – most likely somewhere

between 13 million and 15 million vehicles. But in addition to throttling down their production levels, Edwin Pope, the principal research analyst for S&P Global Mobility, said that automakers are engaging in certain other strategies including the parking of partially built vehicles on certain designated lots or even for dealers to put in chips as late as a year or two after delivering to the customer. Also, the OEMs are being more selective about which vehicles are being installed with the microchips that have become available. This, Catterall pointed out, is also in line with recent, and anticipated, changes in the vehicle mix. The light truck share of the US vehicle mix has, over several years, moved up to about 50% of total production in line with a US consumer preference for large vehicles; this is expected to continue to grow, and automakers have been either putting the chips that they do have available into pick-up trucks, sport utility vehicles (SUVs), crossover utility vehicles (CUVs), and topend luxury vehicles. According to Caterall, it makes sense for automakers to build their vehicles in line with consumer preferences in order to make the most money. But at the same time, there are several questions emerging about where the US light vehicle mix will go from here and what that will mean for steel and other auto materials. While Hornack maintained that, at least as of mid-April, the post-war escalation in gasoline prices hadn’t had a negative impact on consumer demand for light trucks, he admitted that there is a chance that could change. Gibbs agreed, noting that the combination of the high gasoline prices – should they persist – and rising US interest rates will likely move some consumers to smaller vehicles. This comes at the same time as more stringent fuel efﬁciency and greenhouse gas emissions standards – May/June 2022

11/05/2022 12:47:27

AUTOMOTIVE

standards that Swiecki said US automakers are supporting – are reportedly coming down the pike. Another question is whether it isn’t these factors, and perhaps more importantly certain other factors, that will speed up the North American transition from internal combustion engine (ICE) to more electrified vehicles, including battery electric vehicles (BEVs), which to date have lagged behind that transition in certain other regions of the world. One reason, Ducker’s Abraham said, is because gasoline prices could change on a whim. Also, S&P Global’s Pope maintained that they would need to move up to $10 per gallon (compared with about $4-$5 per gallon in mid-April) to have a significant impact upon such a transition. While in 2022 only about 5% of all light vehicles produced in North America are BEVs, Ducker’s Abraham said that share is expected to increase to about 21% by 2029. This, he said, was partly because the line-up of new BEVs coming down the pike over the next three to seven years is very impressive, including the addition of many light truck options, but also because of the expected push for more tax incentives and improved charging infrastructure. With these dynamics, automakers are still ordering steel, as well as other auto raw materials, although the amounts have been fluctuating up and down, Catterall noted, with several different factors influencing it. According to KeyBanc’s Gibbs, the automakers’ change in perception about the number of vehicles they would be producing this year – prior to the Ukrainian war – didn’t stop them buying steel, thinking that they would soon catch up.

May/June 2022

Automotive.indd – read MM..indd 3

However, this has left them with a lot of pre-staged steel in the channel – possibly millions of short tons. Also, there are varying views about what impact the auto industry’s continued push to lighten the weight of their vehicles and its transition to EVs is having upon the automakers’ material choices. “A lot of the materials being used are largely powertrain agnostic,” Abraham said, maintaining that whether you are talking about an ICE vehicle or an EV, which tends to be approximately 1,000 to 2,000 lbs. heavier than its comparable ICE counterpart, lightweighting directly translates into a more efﬁcient vehicle. Even though Gibbs sees steel as being the material of choice for most automotive applications, particularly given the move toward more high strength steels, which can be used in lighter gauges than mild steels, he admitted that aluminium has been taking a little bit more share from steel every year. “However, if aluminium prices remain elevated, steel will have a bigger part in the conversation as far as the pace of changes in the automotive material mix,” he said. This, Anton observed, is especially the case given that primary aluminium is in much tighter supply and is less environmentally friendly to produce than steel. Any inroads in steel use, however, is likely to be more for advanced high strength steels (AHSS), including the newly developed third generation (Gen 3) AHSS steels that are starting to be used in some structural components. In fact, there has already been a gradual shift away from mild steel and high-strength low-alloy steels for automotive applications, Catterall admitted.

However, he said he doesn’t see that as an issue for the steel industry, given its history of collaboration with automakers to supply the materials that they need, which has resulted in about 50% of the steel in North American-produced vehicles already over 500 megapascal AHSS. With mild steel being disproportionately replaced by AHSS than other automotive materials, Abraham said that he expects that AHSS use by automakers will continue to grow, perhaps at a greater rate than Ducker projected in its latest steel use study in 2019. “But this isn’t an all or nothing dynamic,” Abraham said, noting that steel, aluminium, magnesium, and composites can easily coexist in vehicles and that, ultimately, it is the consumer that wins when automakers use the best materials for the best applications. Meanwhile, Anton noted, US steelmakers have been making the necessary investments to meet the auto industry’s needs. This includes certain electric arc furnace steelmakers, who are now claiming that some of their steel could also be used in exposed automotive applications. It, however, will take several years to get that steel certiﬁed by the automakers, Hornack noted. Overall, 2022 will be another challenging year for the North American auto market and their steel suppliers, Catterall said. “Everyone is working every day trying to be as nimble as possible and to keep an eye on what is going on,” he said noting that the past few years have taught the industry a lot about what it takes to get product out and the importance of onshoring and shortening supply chains. �

www.steeltimesint.com

11/05/2022 12:47:33

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STRUCTURAL STEEL

Reid Steel discusses sustainability solutions, cost efficiency in steelmaking, and its drive to reach net zero THE structural steel sector could prove to be an important cog in the wheel of change as momentum builds towards a cleaner, greener decarbonised industry. Deadlines are coming ever closer – including the government’s 2050 net zero target for all sectors of the economy-and the 2035 aspiration for near-zero emissions from ore-based steelmaking recommended by the national Climate Change Committee. May/June 2022

Structural steel.indd – read MM..indd 1

Structural steel firms such as John Reid & Sons (Strucsteel) Ltd are in a percipient position, able to gauge sentiment among clients and main contractors on one hand as well as suppliers on the other; especially when it comes to cost and sustainability. The Dorset-based company – known as REIDsteel – has recognised the growing influence of sustainability on its own and clients’ decisions for some time, although

such eco-sensibilities may well be tempered as energy and steel prices rise. Managing director Simon Boyd, a member of the Confederation of British Industry’s manufacturing council, said: “Our customers care about the quality and provenance of our steel and so do we. We have named British Steel as our preferred supplier and are absolutely convinced of its quality and credentials. It’s BES www.steeltimesint.com

11/05/2022 15:26:46

STRUCTURAL STEEL

Green light for safer future with steel Simon Boyd, managing director of Reid Steel

Main image: Bridge being lowered over the river Don in Rotherham Ministry of Foreign Affairs in Belize under construction Below left: Horizon cruise terminal completed (credit: Brymor Construction)

Below right: Belize Civic Centre/sports centre under construction and completed building

6001 environmental and sustainability certification for the responsible sourcing of products certainly played a part in our decision. More broadly, it is paramount that there is a strong, vibrant and sustainable steel industry for UK public limited companies, but also for our national security, infrastructure and the health of our manufacturing and construction bases. We are living in a more uncertain world, in some part due to climate change, and appreciate that the war in Ukraine and rising costs may have a damaging impact www.steeltimesint.com

Structural steel.indd – read MM..indd 2

upon on the country’s ability to progress the sustainability agenda. As a company we remain committed to net zero and will continue to deliver the most efficient and highest quality solutions for our customers.” Boyd added: “We can use our position to influence sustainability decisions upstream in the steel making process but are also able to make a difference through our own design, engineering, fabrication, manufacturing and erection processes.” REIDsteel – which celebrated its centenary

in 2019 – directly employs 130 people at its main base in Christchurch, Dorset, and at peak times provides work for 400 people through subcontracting. It has won the Queen’s Award for Enterprise (International Trade) four times and has exported to more than 140 countries to date. It is a modern company with strong financial foundations which remains family owned and is led by a dynamic and progressive management team. There is a ‘one team’ ethos which values every employee and encourages wellbeing. The May/June 2022

11/05/2022 15:27:38

STRUCTURAL STEEL

Kumasi International Airport in Ghana

company believes in giving back to the community and has a strong focus on continuous improvement in all aspects of the business. REIDsteel designs, manufactures, supplies and constructs high-quality steel structures of all kinds – inclusive of cladding, glazing, louvres, curtain walling, industrial doors, staircases, bleachers, metal decking and mezzanine floors. It can work on inhouse designed schemes – from conception to completion – or value-engineered projects, whether it is steel only that is required or the whole building envelope. Customer preference, budget and specification clearly play a role in any given project and its sustainability as well as REIDsteel’s own ability to deliver carbon savings. Value engineering is key. For predesigned schemes, this can create the same or greater structural strength and integrity while using less steel. Equally, for new projects REIDsteel delivers optimum solutions with the least amount of steel yet the highest quality design and durability. Ultimately, this saves money, time, materials, and energy, as well as reducing the overall carbon footprint of a scheme including production, fabrication, road miles and erection. A recent project where value engineering demonstrated its worth was a new terminal at Kumasi International Airport in Ghana where a reduction in the amount of steel used in the structure was achieved, which meant a saving on the cost of the entire building envelope. The value engineering expertise of REIDsteel was also instrumental for Associated British Ports’ (ABP) flagship Horizon Cruise Terminal at Southampton, built with main contractor Brymor Construction. The 11,695 sqm structure’s futuristic design includes curved glulam beams and exposed soffits to create a spectacular wave shaped roof. It also has rooftop space for 2,000 solar panels and May/June 2022

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shore power connectivity allowing ships to ‘plug in’ rather than keep their engines running. REIDsteel used a wide variety of British Steel products to reduce base reactions by a factor of 10, saving significantly on cost. REIDsteel conceived, designed, detailed and fabricated the steel frame of the structure. Another project was a new hangar at Norwich Airport with main contractor MJS Projects where value engineering was able to rationalise the scheme’s structural steel design which led to savings in both time and money. The maintenance, repair and overhaul (MRO) hangar is 16m high to the eaves, measures 91m-wide by 55m-deep, and has two equal spans of 45.5m – crucially with a central spine to create a column-free space on the hangar floor. Efficient, innovative, sustainable and economical designs will increasingly contribute to the overall sustainability of projects and their energy efficiency. The Kumasi International Airport terminal included a roofing system to comply with specific noise and thermal reduction specifications along with high-specification glazing, including ‘statement’ curtainwalling for the elevations of the building with solar controls to withstand extreme sunlight and temperatures. The 12,500 sq m terminal is at the heart of a €125 million (£104 million) airport development. The scheme, which is being built by Contracta Construction UK Limited, is due to complete later this year for Ghana Airport Company. Other innovative designs have been used for a flagship hospitality centre at Thruxton Motor Circuit and a new headquarters for the Ministry of Foreign Affairs in Belize, which included an advanced through-wall façade system and glazing to give a modern and stylish look while keeping the building cool. REIDsteel’s expertise also contributes to the longevity and resilience of structures – meaning less time, money, energy and

resources have to be spent on repair or reconstruction. One of its specialisms is disaster-resistant structures designed and built to withstand such natural catastrophes as hurricanes and tsunamis. All its buildings survived the devastating hurricanes of 2017 in parts of the British Virgin Islands. Recent disaster-resilient structures with the REIDsteel hallmark included a new national civic centre in Belize, Lady of Fair Haven Cathedral in Roseau on Dominica in the Caribbean and a new Enis Adams Primary School on Tortola. Steel will also have a role to play in supporting the drive for greener industry in the UK, whether it is for new structures or infrastructure. For example, a new bridge for Templeborough biomass power plant in Rotherham was built to allow delivery of many major parts – including 130-ton turbines – for the new facility plus traffic when operational. REIDsteel was appointed by Interserve Construction for the design, supply and installation of the new structure in 2016. The power station was designed

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STRUCTURAL STEEL

with the capability to produce 41MW of green electricity – enough for up to 78,000 homes. Of course, steel’s durability, superior strength-to-weight ratio, flexibility, and recyclable qualities means it is the ultimate construction material and can play a key role in improving the energy efficiency of buildings. According to British Steel, steel transported within the UK produces 50% less CO2 than steel sections sourced from the EU. Meanwhile, supply routes can offer total emissions of less than 10kg CO2 per tonne of steel in some cases – four times less than steel sourced from mainland Europe. REIDsteel is committed to net zero. It was the first contractor to sign the UK Steel Charter with UK Steel in support of British manufacturing and is a member of the British Constructional Steelwork Association (BCSA) and the Confederation of British Industry (CBI). The company has signed the UN’s Race to Zero pledge and is working towards the gold standard of the BCSA’s Sustainability Charter. This drive for net zero has been built into multi-million-pound redevelopment plans for its site in Christchurch, Dorset – including a new manufacturing facility and offices. The manufacturing facility will feature rooftop solar PV panels which will be able to generate enough electricity at peak times to power the entire factory. Other key features include switching to electric-powered forklifts, investment in energy-efficient technology and machinery, high-specification buildings allowing an end to gas and oil as a source for heat, reduction of HGV traffic, and an enhanced travel plan. REIDsteel will also be able to fabricate more steelwork itself rather than subcontract at peak times, reducing road miles and saving energy. Boyd commented: “Our redevelopment plans are a vote of confidence in the steel industry and its sustainability goals. For our company, business growth and clean energy go hand-inhand with steel as the ultimate construction material of choice. We aim to be among the UK’s first structural steel contractors to reach net zero. It is a goal which will not only yield real and practical benefits for our company, but also for our customers, the economy and the steel sector as it drives toward a low-carbon future.” �

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ENVIRONMENT

Environmentally fuelled innovation

BY-PRODUCT LEACHING In early 2020, Primetals Technologies commissioned the world’s first by-product leaching plant, designed to treat the residual dust from off-gascleaning systems like Meros. By Dr. Martin Goetz1 and Adam Merki2 PRIMETALS Technologies’ new by-product leaching plant has now begun full operation. It was designed to treat the dust from off-gas cleaning systems such as the sinter-plant oriented MEROS system. By combining these two environmental solutions – MEROS and by-product leaching – Primetals Technologies has developed a method of recycling valuable materials for reuse in sinter and pelletising plants. This innovative set-up also reduces carbon emissions and the use of landfills without sacrificing efficiency. Adapting to current challenges Amidst growing concerns regarding environmental protection, countries worldwide continue to develop and implement various measures and legislation to reduce disposable waste and encourage the reuse of waste material. Following such guidelines, multiple industries, such as the iron and steel industry, use desulphurisation

Introducing a by-product leaching plant in addition to gas-cleaning systems such as MEROS yields several benefits: • By-product leaching takes care of large quantities of dust containing heavy metals, naturally occurring harmful components, and other toxins, concentrated to a fraction of the original residue. • Designed for the comprehensive recovery and utilization of by-product from drydedusting systems. • Tailor-made design and compact layout based on a modular system. • Recovery of up to 90% of the by-product, which can then be reused and recycled. • Fulfills ‘Best Available Technology’ requirements. • Adjustable to meet individual legal requirements. • By-product leaching plants make a substantial contribution to the circular economy.

(DeSOx) plants like MEROS (Maximized Emission Reduction of Sintering and Pelletising) to improve waste gas emissions. These emission-reduction plants effectively remove harmful substances from the off-gas, capturing sulphur dioxide, dust, and 90 to 99% of the dioxins, furans, and heavy metals, which are separated and collected as residue. With more than 99% dust reduction, MEROS is the most modern and effective system for off-gas cleaning in sinter plants. However, this innovation produces another type of waste in the form of residual dust, which contains high concentrations of heavy metals, harmful naturally occurring compounds, and other toxic substances. Manufacturers are then required to dispose of the dust from the

desulphurisation process as unused waste. One standard disposal method is sending the dust to a landfill site. However, according to environmental guidelines and based on the dust’s chemical composition, the dust is classified as ‘toxic waste’. The disposal of dust to these specific landfills is cost-intensive and limited to ever-shrinking hazardous waste areas. Additionally, the by-product must also meet specific requirements before being deposited in a landfill. One such requirement is the stabilisation and solidification of the dust to render the dust immobile. In common practice, this requirement is met by using cement as a stabilising and solidifying agent. Solidification ensures that rain or high

1. Product manager, by-product leaching 2 Lead editor, both working at Primetals Technologies, Austria May/June 2022

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ENVIRONMENT

Activated-carbon filter

Chemical treatment

Dosing-station area with chemical storage

Slurry thickener

Chamber filter press

FIG. 1: Model showing the main components of the by-product leaching plant

air humidity cannot circulate harmful substances from the dust, polluting the surrounding soil and water. At first glance, the use of residual dust as cement additives could perhaps offset the raw materials for cement production. However, the soluble salts in the dust can also affect the longterm stability of the cement block and cause problems with the containment of heavy metals, in particular lead and selenium, making this an ineffective and potentially harmful long-term solution.1 Furthermore, concrete solidification also requires a high concentration ratio between cement and dust, which reduces the ability to reuse the dust in the future. Using cement also means additional CO2 emissions, producing between 200 to 550 kg for each ton of dust.Concrete solidification and later disposal to toxic landfills have been metals producers’ standard treatment of dry dust by-products – until now. From theory to innovation Several scientific papers investigate the possibility of reusing the dust in sinter or pelletising plants. (For one such paper, see MEROS Dust Quality of Different Plants and Its Potential Further Uses3) These papers conclude that direct use of dust is problematic due to the high alkaline concentration. The dust from a dry desulphurisation plant contains approximately 44% sulphate, 13% chloride, 24% sodium, and 11% potassium. The composition of the dust from a dry desulphurisation plant using sodium bicarbonate – i.e., MEROS –, depending on www.steeltimesint.com

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the desulphurisation rate, is approximately 67 to 77% sodium sulphate, 3 to 8% sodium chloride, and 20 to 30% suspended solids. The alkalis – sodium and potassium – have a particularly negative effect on blast furnace performance. These elements decrease the efficiency of the blast furnace’s reduction process, locking the coke’s incineration and building up scaffolds. Thus, the dust requires treatment based on its chemical composition before reuse in sinter or pelletising plants. Additionally, the type of agent used in the desulphurisation process determines how this residue, or dust, needs to be processed after being collected. When using sodium bicarbonate, the agent successfully used by the MEROS system, it is essential to consider that the by-product after the MEROS plant cannot

typically be recycled or reused in other applications, primarily due to its high salt and alkaline concentration. By implementing a leaching plant after the desulphurisation plant, the leaching process separates harmful materials, such as heavy metals and naturally occurring compounds, from the sinter dust. Much like leaching plants in other industrial applications, by-product leaching extracts the ‘valuable’ materials from the dust for reuse. This innovation allows for more than 90% of the dust to be treated in an environmentally beneficial way. By the end of the treatment cycle in a by-product leaching plant, manufacturers can reuse up to 30% of materials previously deposited as toxic waste, recycle up to 70% of the dust used in the treatment process, which is dissolved in water, and reduce deposits in landfills to just 10% of the residual dust (see Fig 2). The leaching plant step-by-step Taking a look inside the by-product leaching plant, in the first step, the dust from a desulphurisation plant is thoroughly mixed with water in the leaching tank (Fig 3). The resulting solution consists of suspended solids, including insoluble particles from the sinter dust – for example, activated carbon – and dissolved salts from the dust and desulphurisation agent. The solution may also include particles already in the water added during this step. Once the mixing is complete, the solution is filtered. The main task of the filtering system is the separation of particulate matter from the leaching water. The filtered particulate will be washed,

Fig 2. Dust discharge is reduced by as much as 90 percent with a By-Product Leaching plant implemented

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ENVIRONMENT

Fig 3. The flow chart shows the sinter and pelletising plants, MEROS, and by-product leaching plant moving from left to right. From the sinter and pelletising plants, exhaust moves to the MEROS plant to be cleaned. The by-product from the MEROS plant is collected in by-product silos and discharged into the leaching tank. After that, the solution is filtered; the water is then dried off and the resulting material sent back to the sinter or pelletising plants. From this step, moving right on the chart, the water is sent through chemical and physical treatment steps until being discharged to the main water-treatment plant or the sea. Additionally, below the sedimentation step in the flow chart, the sludge is thickened, dewatered, and deposited in specific landfills

dried, and discharged to the sinter or pelletising plants for reuse. Depending on the desulphurisation rate and the efficiency of the electrostatic precipitators, 20 to 30% of the undissolved materials from the dust, for example, iron oxide (Fe2O3) and activated carbon, can be reused. Following the filtration process, chemical treatment steps, like heavy metal removal, extract harmful substances from the solution. Due to the high concentration of toxic substances, approximately 10% of the dust must be deposited in a specific landfill in the form of sludge, which results from the chemical cleaning process. However, it is vital to note that the resulting 10% is significantly lower than the 100% of residual waste previously deposited in toxic waste landfills. Finally, following environmental regulations, the chemically treated water is filtered again with a sand filter and then polished with an activated-carbon filter before being discharged to a wastewater treatment plant or the sea, depending on local conditions and regional emission standards.

landfills to just 10% of the residual dust and decreases additional carbon emissions by moving away from the use of cement. Used in conjunction with MEROS, Primetals Technologies can provide a tailor-made treatment system to recover raw materials, provide environmentally friendly wastewater disposal, and reduce harmful waste material to a small fraction. Additionally, Primetals Technologies seeks to develop the technology further by collaborating with university partners, modifying the system to include a mercury filter, and transforming the by-product leaching concept to work at sinter plants located further inland. The compact layout and modular system allow for a tailor-made design based on the customer’s needs and are highly adaptable to various site-specific conditions. By implementing a leaching plant after the desulphurisation plant, customers will see a considerable reduction in operational expenditure (OPEX) in the long run, especially considering that disposal costs at

landfills will increase as the space for such sites decreases year after year. Not only does the by-product leaching system satisfy the fulfilment of ‘best available techniques’, but it also decreases overall CO2 emissions and reduces a steel plant’s overall carbon footprint by avoiding excessive use of cement as a solidifying agent. While the MEROS system currently satisfies all the current environmental regulations in terms of off-gas cleaning systems, the by-product leaching system augments desulphurisation plants to provide an even more significant reduction in overall waste. Reusing what was once toxic waste means further contributing to a circular economy and limiting the environmental impact of hazardous waste landfills. With metals producers continuously looking to improve their environmental impact, and global trends signalling inevitable changes to heavy industries, by-product leaching is a viable solution to improve waste disposal immediately and, importantly, recycle essential by-products. With a new plant currently in operation and showing immediate results, by-product leaching is an answer to the growing concerns of governments implementing regulations and legislation to limit waste. �

References 1. Song, M.; Liu, J.; Xu, S. Characterization and solidification/stabilization of iron-ore sintering gas cleaning residue. J. Mater. Cycles Waste Manag. 2014, 17, 790–797. 2. Huber, F.; Blasenbauer, D.; Mallow, O.; Winter, F.; Fellner, J. Alternatives Konzept zum Flugaschenmanagement der Stadt Wien. In Mineralische Nebenprodukte und Abfälle 3 – Aschen, Schlacken, Stäube und Baurestmassen; TK Verlag Karl ThoméKozmiensky: Neuruppin, Germany, 2016. 3. Hledik, C.; Goetz, M.; Ottner, F.; Fürhacker, M. MEROS Dust Quality of Different Plants and Its Potential Further Uses. Metals 2021, 11, 840. https://doi. org/10.3390/met11050840

The end results Responding to a worldwide trend of wastematerial handling, Primetals Technologies has developed a unique leaching plant that reduces waste material deposits in May/June 2022

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IRON ORE

Genmin – Gabon’s first iron ore miner?

Gabon is well-known for its abundance of natural resources, including gas, iron ore and hydropower, and has developed into one of Africa’s most successful economies. Holding a strategic location along the Gulf of Guinea, it is a member of the Central African Economic and Monetary Community (CEMAC) and of the CFA Franc Zone. With a population of 2.3 million, Gabon has its own School of Mining and Metallurgy. By Michael Schwartz* IN contrast to other commodities including manganese and gold, iron ore has no history of exploitation in Gabon. Of note is the country’s Belinga iron ore deposit, first discovered in 1955 and subsequently identified as offering a high-percentage iron ore with low contaminant content. Belinga lies within Archean-aged rocks of the Congo Craton and close to Moanda, the regional centre. Belinga’s lithology and structure are typical of other greenstone belts that are found in West Africa, for example, the Simandou project in Guinea (this latter hosts two billion tonnes of highgrade iron ore and is the world’s biggest undeveloped iron ore deposit). A new mining code was published in 2019. The 2019 Mining Code provides a strong framework for mining title holders and is attractive and favourable for foreign direct investment (FDI.) It evaluates ESG principles and encouragingly allocates 75% of mining royalty revenues to local populations for the implementation of regional and community projects. In March 2022, as part of a cabinet reshuffle, an independent mining ministry was established as a standalone department within the cabinet for the first time. The mining portfolio was most recently attached to the oil and gas ministries and, prior to that, other ministries

including tourism. The new minister of mines, Elvis Ossindji, is the former head of the state-owned Gabon Mining Company. This important strategic move by the government underpins its focus on developing the mining industry. Supporting Mr Ossindji is Ms Rose Christiane Ossouka Raponda who has been appointed as Gabon’s first female prime minister. Ms Raponda is an economist by training and is known as a progressive politician. Genmin’s role African iron ore explorer and developer Genmin (ASX:GEN) is focused on its 100%-owned assets in Gabon. It is now sufficiently financed to carry out a Preliminary Feasibility Study (PFS) – due imminently – at its flagship Baniaka project. Founded in 2010 by current managing director and CEO Joe Ariti, Genmin was previously a privately held company specifically incorporated to target iron ore exploration licences in Gabon. The company has been listed on ASX for just over a year, shares commencing trading on 10 March 2021. During eight years as a private company, Genmin invested US$35 million defining its pipeline of projects, through foundingshareholder seed capital and private-equity funding from London-based Tembo Capital.

In 2012, Genmin applied to acquire the Baniaka iron ore licence and now holds six iron ore licences in Gabon, covering three projects and roughly 5,270 km2. For this article, Steel Times International asked Joe Ariti for Genmin’s views. He explains why it has taken so long to realise Gabon’s iron ore potential: “While rich in iron ore, the bulk commodity is yet to be mined in Gabon. The Belinga iron ore project located in the northeast of Gabon is one of the world’s largest untapped sources of high-grade iron ore. Initially discovered in 1955, Belinga is in an extremely remote part of the country, several hundred kilometres inland in an area with no significant infrastructure. “In the early 2000s, Gabon entered an agreement with China to develop the mine with project costs estimated at US$3.5 billion. The significant cost and vast infrastructure challenges of the project forced the Gabonese Government to put the agreement on hold in 2007, eventually regaining control of the asset in 2013. Gabon opened communications on Belinga in 2021 with interested parties, and Fortescue Metals Group Limited recently entered into an agreement to assess the project.” Genmin states that Gabon will become a new Central West African iron ore province

* Iron ore correspondent www.steeltimesint.com

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IRON ORE

to export material for more than 50 years. It cites Gabonese manganese, where Gabon has been respected as a supplier for over 60 years. Exactly when customers receive their first consignment of iron ore is not certain, as the future of the project is still dependent on the scenario portrayed by the PFS, plus a Full Feasibility Study (FFS.) This latter relies in turn on additional funding. Risks comprise ore price volatility, financing and operational/technical risks and continuing local community support. The clear advantages, as Genmin sees them, are favourable geology, established Gabonese infrastructure and labour, a long history of hard rock mining, demand for new producing countries and considerable political stability. As things stand In the first year since listing on 10 March 2021, Genmin has achieved the goals set out in its prospectus. For example, the flagship Baniaka project is now at feasibility stage with a defined JORC compliant mineral resource estimate of 260 Mt (see The Resource panel) and studies have commenced. The social and environmental impact assessment has also formally commenced to support Genmin’s application for a mining licence. Roughly 80 km from Baniaka is Bakoumba, Genmin’s advanced exploration stage project, drill-target ready for the resource definition and reconnaissance auger drilling programme planned to test high priority Detrital Iron Deposits (DID) targets. Then there is Minvoul/Bitam, an earlystage exploration asset in northern Gabon. Targeted geological mapping and sampling was completed in Q4 of 2021, when field observations confirmed the potential for high-grade iron mineralisation at three of the four prospective areas investigated; further interpretation will be completed after receipt of geochemical analyses of rock chip samples. And the actual mining? Genmin is targeting first production at Baniaka for mid-2024. The PFS for Baniaka currently being completed by Genmin is assessing the development plan and economics for a bulk, open-pit mining operation with proposed initial production of 5 Mt/yr of iron ore products, and subsequent expansion to 10 Mt/yr. Key May/June 2022

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technical work-streams for the study are underway and are due for completion at the end of Q2 2022. To date, Genmin has entered into three non-binding MoUs with Chinese parties for potential off-take agreements: * Jianlong Group over two years for a total of 4 Mt of lump and fines iron ore products; and * China Minmetals Corporation and Changzhou Dongfang Special Steel, both over three years for a total of 10 Mt of lump and fines iron ore products. For the at-surface shallow iron ore deposits at Baniaka and Bakoumba, opencast mining has been selected. The

first 70 m of oxide mineralisation are ‘freedig’ and do not require drill and blast. Opencast mining is the most cost-effective with the iron ore accessible from the surface, configured in a favourable flat-lying geometry, and with no significant waste stripping required. Transporting the ore Baniaka and Bakoumba are both located in the Haut-Ogooué province of southeast Gabon, the centre of Gabon’s established mining industry, and with producing manganese mines in Moanda and Franceville. Established and operating mining infrastructure consequently includes the Trans-Gabon Railway, which connects Franceville to the bulk mineral port terminal located at Port Owendo near the capital city of Libreville. Genmin is planning to transport its iron ore via a rail spur of approximately 60km to connect to the Trans-Gabon Railway (TGR)

and ship from the Owendo Mineral Port. The latter is connected to the Trans-Gabon Railway with integrated storage and reclaim facility. Current capacity is 5 Mt/yr, scalable to 15 Mt/yr with mechanised infrastructure. The port is owned by major investors including AP Moller, Meridiam and Africa Finance Corporation, with financial capacity to upscale for larger volumes of iron ore. Genmin has an existing non-binding MoU in place with the Owendo Mineral Port, with negotiations ongoing to convert to a detailed terms sheet. SETRAG, a company controlled by COMILOG, Meridiam and the Gabonese State, operates the TGR, which is currently used for hauling manganese ore and timber, as well as general freight and passengers. The railway is standard gauge with a 25 t axle load and single-track configuration. Significant investment is underway to support upgrade programmes designed to increase the annual transport capacity. Genmin’s green strategy Genmin has signed a Memorandum of Understanding with Gabon’s stateowned power utility for the supply of 30 MW of renewable hydroelectricity from the Grand Poubara hydropower station for Baniaka. The term of supply is up to 20 years, with pricing reflecting the generally lower cost of hydroelectricity generation, and is less than US$0.1 per kiloWatt hour. The 30MW of renewable hydroelectricity will provide all of Baniaka’s initial electricity requirements, negating the need to fund, construct and maintain an on-site power station. Genmin will build, own and operate a 30km transmission line from Poubara ensuring it remains dedicated to its operation. Genmin describes its power strategy as capital and operating costeffective and fits China’s decarbonisation policy with the production of greener iron ore products. A greener product Jo Ariti answered STI’s questions regarding the drive for a greener product: “From our initial arrival in Gabon in 2012, we have been committed to purchasing clean, renewable energy from Poubara to power a mining operation at Baniaka, just 30km away. This is consistent with our ESG values and also impacts project economics in a positive way. Our vision is to become www.steeltimesint.com

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IRON ORE

Gabon’s first iron ore producer and in doing so deliver high-grade, greener iron ore products to global markets, promoting reductions in Scope 1 and Scope 3 carbon emissions in iron making.” “In addition, excellent value-in-use outcomes from Genmin’s fines and lump iron ore products led to the recent signing of the three non-binding MoUs with the Chinese counter-parties for potential offtake from Baniaka; this provides a point of validation for the value-in-use outcomes and our potential to supply a greener, African iron ore into Chinese markets. “One of the counter-parties, Jianlong, has the goal of completely replacing carbon as the reduction agent in iron making. In H1 of 2021, it successfully commissioned China’s first hydrogen-based steel-making production line, using hydrogen rather than coking coal – as well as new blast furnace technology – to produce iron from iron ore without the use of carbon.” Impact assessments Genmin has appointed Golder WSP to manage the social and environmental impact assessment (SEIA) required as part

of a mining permit application for Baniaka. Golder WSP has significant and extensive recent experience in Africa with a number of SEIA programmes currently underway for major projects. TEREA, a French company specialising in social, environmental and sustainable development, and with a permanent office in Libreville, has been engaged to partner with Golder WSP in the development and execution of the social and environmental baseline studies, which are required to complete the SEIA. Final words… …are once again Jo Ariti’s: “While the initial project execution plan for Baniaka is to mine and export iron ore, with its ore processing and supporting infrastructure planned to be powered by renewable energy (that key component to produce green hydrogen) from Grand Poubara’s hydroelectric plant, Genmin looks forward to potentially exploring future commercial possibilities with Jianlong to decarbonise the steel making value chain by utilising onsite hydrogen iron making.”

The resource Baniaka comprises the Baniaka and Baniaka West licences covering a total area of 881 km2. Bakoumba comprises the Bakoumba and Mafoungui licences covering an area of 1,836 km2. Both are at-surface, shallow iron ore deposits hosted in the Archean Chaillu Massif in southeast Gabon. Together, Baniaka and Bakoumba represent a potential iron ore hub in southeast Gabon with 2,445 km2 of landholding and 121 km of iron mineralised strike with only 13% diamond-drill tested. To date, Genmin has surveyed 25% of the strike length and 50 m in depth. Since 2012 over 260 Mt of iron ore have been delineated, while further investment could lead to a substantially increased asset. The 260 Mt figure refers to the total DID, oxides and primary mineral resources, both indicated and inferred. The in situ iron content is 40% of the 260 Mt, with another 33.9% comprising silicon dioxide. Genmin’s focus for 2022 includes drilling to support material resource upgrades at Baniaka and Bakoumba and to provide a great platform for definitive feasibility studies and near-term development. �

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SPECIAL STEELS

The vital role of nickel Several studies analyzing the raw materials required by renewable power generation highlight the vital role of nickel. By Dr. Hardy Mohrbacher*

NATIONAL governments and supernational organizations are aiming for a significantly increased share of renewable power generation over the next three decades. This not only represents a cornerstone in the effort to reduce CO2 emissions, but is also gaining further importance in the light of recent geopolitical developments impacting supply security of fossil energy. However, it should be kept in mind that the installation of renewable power generation devices requires a massive amount of construction and functional materials. This implies a significant need for special metals, including nickel. Accordingly, there have been several studies analyzing the raw materials required by renewable power generation technologies, confirming the vital role of nickel. High corrosion and/or heat resistance

is essential for sufficient performance of critical components in several of those technologies. The use of nickel-alloyed austenitic stainless steels or even nickelbased superalloys is the first choice in such cases. Solar thermal and geothermal powerplants comprise of a very high specific nickel content. However, less recognized, but certainly no less important, is the application of nickel alloying in structural carbon steels. Hydropower and wind energy are currently two major technologies that will also be main pillars of renewable power generation in the future. In both technologies structural carbon steels form the backbone of the necessary equipment. Nickel is a highly relevant special alloying element in these steels providing superior functional properties required for efficient construction and service performance.

So, what makes nickel so important in structural carbon steels? In structural steels, nickel alloying comes into play – especially when heavy gauges or very high strength are required. By extending the austenite phase field and particularly lowering the austenite-toferrite transformation temperature, nickel slows the early formation of polygonal ferrite grains that subsequently can grow to an undesirable large grain size under low cooling rates after hot rolling. The presence of just a few individual large-sized grains is particularly harmful to toughness. When accelerated cooling is applied, nickel improves hardenability. In other words, the critical cooling rate for achieving strong bainitic or martensitic microstructures is reduced by nickel alloying. Yet even for the polygonal ferritic microstructure, typically

* Consultant to the Nickel Institute May/June 2022

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SPECIAL STEELS

present in medium strength structural steels, the slowing effect caused by nickel produces a finer grain size which in turn results in a favourable combination of increased strength and simultaneously improved low-temperature toughness. The magnitude of achievable improvements in function of the nickel alloy content is shown in Fig 1. Although grain refinement is typically obtained by microalloying in combination with controlled rolling, it might be challenging to provide sufficiently high rolling reduction when producing heavy gauged plate. Consequently, the occurrence of larger grain sizes especially in the plate centre is often unavoidable. The grain refining effect of nickel, on the contrary, does not require a specific rolling reduction therefore making its use particularly suitable for heavier gauged products. A refined grain size with a more homogeneous distribution over the entire thickness can thus be achieved, enhancing toughness. Applicable standards specify nickel alloying of up to 0.85% in normalized or thermomechanical rolled fine-grain structural steels (EN10025-3/4) as well as in weldable structural steels for offshore constructions (EN10225). The fact that allowances for nickel alloying are significantly larger than those for other special alloying elements is also due to its relatively small impact on weldability. The contribution of nickel to applicable carbon equivalent (CE) definitions (see insert) is small compared to other alloying elements, making it much easier to meet CE maximum values demanded by welding specifications (Fig 2). A low CE is beneficial for avoiding unfavourable microstructural constituents in the heat affected zone, thereby improving impact toughness and indirectly also fatigue resistance in that critical area. Wind turbines employ heavy plate of www.steeltimesint.com

Nickel institute.indd – read MM.indd 2

medium strength for the tower construction which typically is 70-140 metres in height with diameters of 4-5 metres. Plate gauges for onshore towers are in the range of 16-60 mm while offshore towers and foundation monopiles require gauges as much as 80-140 mm. Shells sections are typically produced from S355 steel grade variants by three-roll bending. Double or multi-pass submerged arc welding (SAW) is used to join the plate shells into ring segments which are then configured to cans by orbital welding. Three to five cans weighing up to 200 tonnes each are assembled for building an offshore tower. Due to transport limitations, onshore towers consist of four to eight cans with a maximum weight of 80 tonnes each. The market for onshore tower plates generally uses lowest cost S355J0/J2 grades. However, plates of S355 variants for offshore towers and monopiles anchoring the tower to the seabed have a clear potential for nickel alloying due to the significantly larger gauges and more severe toughness requirements. Above 40 mm plate gauge nickel is even mandatory in some S355 subvariants according to offshore standards (EN10225, S355G9/ G10). Future high power onshore towers are likely to target extreme hub heights between 180 and 200 metres since the winds at higher altitude are considerably stronger and steadier. The challenging combination of higher operational loads and harsher environmental conditions demands heavier plate gauges and a toughness performance comparable to that required in offshore applications. For these reasons, nickel alloying should also become more likely in steels used for the construction of these mega-sized onshore towers. The specification for high yield strength structural flat steels in quenched and tempered (Q&T) condition (EN10025-6) defines an upper limit of 4.0% for nickel alloying. Steels of that group cover the yield strength range of 460 to 960 MPa and have an intrinsically fine grain structure with nickel promoting through-hardenability during the quenching process. Adding 2% nickel to a given steel alloy increases the hardenable thickness by more than three times. Yet, there is more to higher nickel additions than just hardenability. Beyond the indirect effect of lowering the ductileto-brittle transition temperature (DBTT) via grain refinement, nickel directly contributes May/June 2022

11/05/2022 15:41:26

SPECIAL STEELS

Fig 1. Evolution of strength and low-temperature toughness improvement in function

Fig 3. Effect of nickel on ductile-to-brittle transition behaviour in a S460M plate steel

of the nickel addition in a normalized plate steel alloy S355N

(grain refinement originates from Nb microalloying in combination with thermo-mechanically controlled processing); Ni provides intrinsic toughness)

Fig 2. The Graville diagram (left) ranks the weldability of steel alloys depending on the carbon equivalent and absolute carbon content (ranges of structural steel grades are indicated). The bar chart (right) shows typical carbon equivalent ranges for plate steels in function of strength, treatment and gauge

to excellent low temperature toughness. This intrinsic nickel functionality is related to improving the mobility of dislocations within the iron lattice – a phenomenon that becomes particularly relevant at very low temperatures. The well-known cryogenic steels exploit this effect using nickel content in the range of 7% to 9% thus reducing the DBTT to below -200°C. Additional strengthening mechanisms complementing grain refinement are needed to produce ultra-high strength Q&T structural steels. These strengthening mechanisms, however, are detrimental to low temperature toughness. Therefore, moderate nickel additions are employed to compensate for this loss of toughness, allowing for the adjustment of the DBTT in accordance May/June 2022

Nickel institute.indd – read MM.indd 3

with the lowest prevailing operational temperature (Fig 3). Ultra-high strength Q&T steel, produced as plate or strip, also plays a vital role in other renewable energy technologies. For example, it is used to manufacture penstocks which are pipe strings bringing water from a reservoir to the turbine of a hydropower station. In pump-storage facilities the height difference between the reservoir and turbine (water head) is large and can reach more than 1000 m. The water pressure in the lower part of penstocks may get as high as 200 bar. Steels with a strength of 690 to 890 MPa and plate gauges of 20 to 80 mm are needed to withstand such enormous pressure. The nickel content in these steels

often ranges between 1% and 2% (Table 1). Pump-storage facilities are essential in stabilizing the electricity grid since green energy production is often plagued by unsteady output and even dark periods. Accordingly, excess electricity originating from wind and solar farms during high production phases is stored by pumping water upwards into the reservoir. When extra power is needed in the grid during peak consumption periods or grid shortages, the waterflow is reversed with the pump now acting as a generator and providing high amounts of swiftly available electricity. With many renewable energy facilities yet to be built for meeting the 2050 climate targets, a lot of steel will be needed www.steeltimesint.com

11/05/2022 15:41:31

SPECIAL STEELS

S890QLAlloy content (mass %, min./max.) C

Supplier A

0.15/0.20

0.25/0.35

0.80/1.10

0.40/0.50

0.50

Supplier B

0.15/0.20

0.20/0.25

1.40

0.20/0.30

0.50

0.025

0.015

1.00

Supplier C

0.10/0.15

0.15/0.20

0.80

0.70

0.45

1.30

Supplier D

0.15/0.20

0.25/0.30

0.80

0.60

0.45

1.80

0.20/0.25

0.015

≤0.01

0.05/0.08

0.05/0.10

≤0.002

0.04/0.08

0.05/0.08

≤0.002 ≤0.001

Table 1. Variations of chemical composition in S890QL plate grades used in the lower penstock section of the Cleuson-Dixence pump-storage facility (water head approx. 1200 m).

not only for constructing the facilities themselves, but also for specific auxiliary equipment. The latter includes cranes and other hoisting devices as well as heavy weight transportation vehicles and vessels in which high strength steel is an indispensable ingredient. For instance, booms of mobile cranes capable of lifting heavy wind turbine components weighing several hundred tons to heights of over 100 m are already using Q&T steel grades of 1100 MPa strength. Because of its metallurgical properties, nickel is an important alloying element in such steels for mitigating the conflicting demands of strength, low-temperature toughness and weldability. The nickel market, like those of other alloying elements, is confronted with a

certain volatility with occasional periods of price peaks. Such events regularly trigger the request for ‘alloy cost saving actions’ and the search for cheaper substitutes. While such substitutions might be possible regarding individual effects, the complete spectrum of nickel’s metallurgical functionality is unique. In today’s structural steel alloys, nickel is only added when this

complete functionality is required, thus substitution is unwise. These steels are used for constructing valuable equipment that relies on full functionality, safe operation and high availability. Any compromise in the alloy design can result in very expensive consequences far exceeding any imaginable alloy cost saving. �

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11/05/2022 15:41:37

PERSPECTIVES Q&A: SMART STEEL TECHNOLOGIES

Several promising projects Smart Steel Technologies supplies a ready-to-use data platform plus AI software products for process optimization in steel mills across the entire processing chain. The company finished 2021 on a high and has a number of new projects on the go. We talked to Dr. Falk-Florian Henrich*

1. How are things going at SST? Is the steel industry keeping you busy? Absolutely, we finished 2021 very strong with various new projects. Our AI Solutions are integrated broadly, 24/7 live from upstream to downstream processes. SST has achieved substantial, permanent improvements in quality and reduction of inefficiencies, confirmed by customers. We notice a strong increase in demand for our AI software solutions both from the market, but also from a recruiting perspective. 2. What is your view on the current state of the global steel industry? The steel industry will continue to be a key industry worldwide. It is of considerable importance for each economy. At the same time, as the sector with the largest share of greenhouse gas emissions in industry, it bears a special responsibility in climate protection and is facing new challenges. According to data provided by the World Steel Association, on average, 1.89 tonnes of CO2 are emitted during the production of one tonne of steel. The steel industry accounts for approximately 8% of anthropogenic CO2 emissions. A significant reduction in fossil energy usage and CO2 emissions is required. Hence, the industry is undergoing a great transformation where new technologies and approaches are needed. 3. In which sector of the steel industry does SST mostly conduct its business? Smart Steel Technologies supplies a readyto-use data platform plus AI software products for process optimization in steel mills across the entire processing chain, from upstream to downstream. Resulting optimizations lead to permanently improved quality, reduction of energy costs and improved CO2 efficiency – without the investment overhead of new physical

equipment. 4. Where in the world are you busiest at present? Our biggest references as of now are located within Europe. We have just opened our North American subsidiary in Cincinnati, Ohio, to handle the incoming demand for 2022. We have promising discussions with some of the largest mills in the USA and are looking forward to further scale our business internationally.

temperature buffers and lowers the temperature in production. The result is permanently saved energy costs and CO2 emissions as well as further cost savings through increased process stability. 6. Where does SST stand on the aluminium versus steel argument? From a strategic perspective for 2022 we will continue to focus on supplying our AI solutions to the steel industry primarily. Nevertheless we are evaluating possible synergies with process-related industries such as brass or aluminium production.

Dr Falk-Florian Henrich

5. Can you discuss any major steel contracts you are currently working on? We have signed several promising projects in 2021. One approved reference we are allowed to share is our new Temperature AI project at one of the largest EAF plants in the industry, Çolakoğlu Metalurji in Turkey. The SST software is used for precise temperature control from the electric arc furnace to the continuous casting line and is integrated live into the production process. Consequently, Çolakoğlu minimises

7. What are your views on Industry 4.0 and steelmaking and how, if at all, is SST using it? The necessity of a comprehensive digitalisation of industrial production is a key value driver for us. From iron ore to the finished product, steel manufacturing involves a chain of complex and highly automated industrial processes. Temperature, chemistry, mechanics, and timing issues interact dynamically. Thousands of sensors generate time series data, image data, and audio data 24/7. SST is able to correctly transform this mass data, and to build live models that take into account data from many steps in order to improve CO2 efficiency, energy efficiency, and quality. 8. Hydrogen steelmaking appears to be the next big thing. What’s your view? The goal of climate-neutral steel production is no longer in doubt and hydrogen plays a central role in this transformation. However, steel producers will have to buy in hydrogen and electricity to meet the massive demand. All major steelmakers are working on long-term decarbonization projects, implementing a broad set of process technologies. Regarding the blast furnace,

* Founder and managing director, Smart Steel Technologies May/June 2022

perspectives – read MM, needs bold Qs..indd 1

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13/05/2022 07:37:37

PERSPECTIVES Q&A: SMART STEEL TECHNOLOGIES

pulverized coal injection (PCI) is replaced by natural gas and, if available, hydrogen produced using renewable energy. New direct reduction plants and electric arc furnace plants are under construction, which will eventually replace blast furnaces in order to cut emissions. This is a necessary, but long-term and complex transformation. Artificial intelligence and machine learningassisted production has the potential to lower energy consumption, increase yield and lower the carbon footprint for existing plants, and for newly constructed steel mills and this is happening now. 9. In your dealings with steel producers, are you finding that they are looking to companies like SST to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them? We are noticing a strong increase in demand when it comes to the topic of avoiding energy inefficiencies. In 24/7 production use, our software helps to minimize inefficiencies across various production routes. Each reduction of quality deviations, energy inefficiencies and CO2 inefficiencies minimizes the CO2 footprint of steel products and, therefore, has a direct impact on the topic of sustainability. 10. How quickly has the steel industry responded to ‘green politics’ in terms of making the production process more environmentally friendly and are they succeeding or fighting a losing battle? The necessity to transform the industry has been widely recognized already and the foundation has been laid out. The federal government of Germany, for example, has mobilised an additional 5 billion euros for decarbonisation. All major steelmakers are heavily investing to tackle this challenge of making steel production more environmentally friendly. This historic transformation is an ongoing task and that will succeed if there is a strong cooperation between the steel industry, trade www.steeltimesint.com

perspectives – read MM, needs bold Qs..indd 2

unions and politicians combined with the courage to develop and implement new technologies. 11. Where does SST lead the field in terms of steel production technology? SST has successfully blended process expertise of steelmaking with AI and ML knowhow. Smart Steel Technologies’ approach solves data centralization, linkage and quality through a professional automated data platform, purpose-built for the steel industry. On top of the SST platform, a growing range of AI-powered applications provides solutions to core steelmaking challenges like temperature control, casting quality, rolling productivity,

13. China dominates global crude steel production. How should the industry react to this situation? Competitiveness in the steel industry will be defined by two major factors: Quality when it comes to the steel products and speed of innovation in order to tackle the challenge of decarbonization. Many industries, such as the automotive industry, are cleaning up their supply chain and will be asking for CO2 reduced or even CO2 free, high quality steel grades. Hence the western industry should be able to take the lead when it comes to these new challenges. 14. What is SST’s experience of the Chinese steel industry? As of now we’ve had first discussions with major steel makers in China and we see that China is also undergoing a transition when it comes to quality and sustainability. We don’t have an ongoing project in China, but let’s see what the future holds. 15. What exhibitions and conferences will SST be attending over the next six months? We will be present at various conferences this year, some of them are the following ones: • Digital Transformation Forum 2022 • Wire 2022 • AISTech 2022 • Future Steel Forum 2022 • ICS2022 • Stainless Steel World Conference & Expo 2022

and surface inspection. Our team of experienced computer scientists and process experts has numerous successful steel industry projects that blend state-of-the-art ML with state-of-the-art process expertise. 12. How do you view SST’s development over the short-tomedium term in relation to the global steel industry? We will continue to build a strong AIpowered product portfolio that will assist the steel industry in tackling quality, energy and CO2 inefficiencies in the short-to-medium term.

16. Apart from strong coffee, what keeps you awake at night? Eating too late and not right does have an impact on my sleep so I maybe should stop that. I promise, it’s on my 2022 resolution list. 17. If you possessed a superpower, how would you use it to improve the global steel? I would like to have the super power of removing all historic greenhouse gases in the blink of a second to have a fresh start for industrialization. �

May/June 2022

13/05/2022 07:38:12

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LUBRICATION

A reduced CO2 footprint This article will focus on the beneficial aspects of the unique morphology of Ceran greases as the basis on which to explain the high performance characteristics of the brand. Two project examples are presented on how this performance can be used to generate significant cost savings (TCO) as well as reduce the CO2 footprint (TCO2) during production on a continuous casting line. By Fabio Silva1 and Olaf Kurtz2 FIG 1 illustrates the concept of the TCO2 approach. In the first step the TCO is calculated by monitoring grease consumption, bearing breaks and downtime costs. The product-related CO2 footprint is calculated by a certified calculator considering the CO2 footprint based on the formula, packaging, blending and transportation, which is a variable. These calculations are verified by an external party and confirmed by an official certificate. The CO2 eq. are used for the TCO2 approach: TCO + CO2 = TCO2 (see Fig 1) Ceran technology CERAN is a TotalEnergies brand standing for a market leading grease technology. The CERAN product range belongs to the Calcium Sulfonate Complex (CaSX) greases. Its high performance and its success are based on a patented production process[1]. This process ensures the specific threedimensional morphology of the CERAN greases, which form part of their unique characteristics.[2,3] The high performance of CERAN

“Cradle to Gate” Internal tool promoting our solutions CO2 value of lubricants, oil filters, bearings... � Eco-calculator Fig 1. Concept of the TCO2 approach

technology pays off directly in cost savings for its user. By carefully selecting raw materials, suppliers and logistics, as well as providing consumption reductions, CERAN technology allows its users to reduce their CO2 footprint significantly. Without any additives, CERAN greases provide extreme pressure, anti-wear and anti-corrosion properties based on its morphology. Furthermore, even in the case of water contamination, CERAN can absorb up to 30 to 40% water without any change in consistency or performance. This

By comparing with the product currently in service, we can calculate direct and indirect cost and CO2 savings for the end user

makes CERAN greases a good choice in applications where water – also saltwater – is omnipresent.[4,5,6] 3. 1st TCO2 approach example 3.1. Cost savings (TCO) Based on this performance, Ceran technology significantly reduces the total cost of ownership, TCO, by reducing bearing failures, grease consumption, maintenance and machinery downtime. In the presented example a conventional CaSX lubrication technology was used

1. TotalEnergies Lubricants, market manager, France. 2. Grease department, France. www.steeltimesint.com

Total Energies.indd – read MM..indd 1

May/June 2022

13/05/2022 08:06:03

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13/01/2022 09:20

LUBRICATION

Conventional CaSX Technology

CERAN XM

TCO Impact

Grease consumption per month

21.60 tons

6.48 tons

-70%

Bearings consumed per month

20 discs

12 discs

-40%

150kt

176kt

+17%

3 hours

0-1 hour

Monthly steel production Monthly downtime due to bearing lubrication problems

Total lubricating cost savings per ton steel

-67% -39%

Table 1. Cost comparison between Ceran and conventional CaSX lubrication monitored in continuous casting lines.

Fig 2. Reduction of grease consumption by 70% after switch to Ceran technology

Left: Fig 3. CO2 savings based on grease consumption and reduction of number of steel drums

Fig 4. Tremendous extension of re-greasing intervals

Fig 5. Strong reduction of grease consumption with

Fig 6. Grease cost reduction per ton of steel with

with CERAN XM

CERAN XM

in the continuous casting lines before switching to CERAN. For this benchmark, the grease consumption (re-grease intervals), bearing breaks as well as downtime were monitored over a period of 18 months. The results show a 70% reduction in grease consumption. In addition, the bearing failures could be reduced by 40% and downtime by 67%. Considering that productivity has been increased by 17%, the lubrication costs per ton of manufactured steel could be reduced by 39%. Table 1 summarizes a TCO calculation which was made in close co-operation with a major steel manufacturer. 3.2. Reduction of the CO2 footprint (TCO2) The collected TCO data have been combined with CO2 savings as a new TCO2 approach to support the reduction of the CO2 footprint. For this approach, a certified calculator has been used and each calculation for the used products is validated by an external party. In the first www.steeltimesint.com

Total Energies.indd – read MM..indd 2

Fig 7. CO2 savings based on grease consumption and reduction of number of steel drums

step the CO2 savings have been calculated based on monitored grease consumption reduction (see Fig 2) and the related packaging savings. Using the CO2 equivalent for Ceran XM as well as the one for the steel drums, the CO2 savings per year have been calculated (see Fig 2). The assumption that the conventional CaSX grease has the same CO2 footprint was done in this calculation. The calculated CO2 savings are 294 tonnes/yr including grease consumption and packaging by using Ceran technology (see Fig 3).

4. 2nd TCO2 approach example 4.1. Cost savings (TCO) In the second example a conventional CaSX grease was used in a hot rolling line producing 5Mt/yr of steel. The grease has been used in the finishing mill’s work roll bearings. In a trial plan it was agreed that regreasing intervals should be stepwise increased and it was ascertained which investigation methods would be applied. At the end of the stepwise increase, CERAN XM reached a re-greasing cycle extension of 240km, up from 60km of May/June 2022

13/05/2022 08:06:16

LUBRICATION

rolled steel plate while adding the grease only once. Thus, the regreasing interval could be quadrupled (see Fig 4). Due to better stability and adhesion the refill volume could be reduced by 70% (see Fig 5). Finally, the costs per ton of steel could be reduced by 42% (see Fig 6). 4.2. Reduction of the CO2 footprint (TCO2) As in the previous example, the grease volume savings as well as the reduced need for steel drums have been used to calculate the CO2 footprint reduction. The CO2 savings are 101 tonne/yr, see Fig 7. Conclusion These very detailed studies are the first examples of the new TCO2 approach, showing that the high performance of Ceran technology leads to cost savings as well as a reduced CO2 footprint in the steel industry. �

grease, WO2015071331A1, 2013 [2] P. Belot, Calcium Sulfonate Grease – A unique approach to industrial grease lubrication, 7 th Lubricating Grease Conference, India 2005 [3] A. da Costa D’Ambros et al, Calcium sulfonate complex grease, a legendary technology adapted to future requirements, ELGI Athen, 2019

References [1] F. Bardin, R. Bruggemann, Process for preparing a complex calcium sulphonate

[4] G. Fish, Calcium Sulfonate Greases – Performance and application overview, Lubrisense White Paper 14-16, pp. 1-12 [5] D. Authier, Calcium sulfonate carbonate greases: a solution to water resistance, ELGI Amsterdam, 2013 [6] J. Leckner, Water + Grease = fatal attraction, ELGI Amsterdam, 2013

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HISTORY

All you need to know about refining – Part 1 charcoal hearths A review by Tim Smith* A most excellent paper by Richard Williams published in ‘Historical Metallurgy’, the journal of the Historical Metallurgy Society, covers the fining of blast furnace iron into malleable wrought iron from the various methods employed in charcoal hearths to the puddling process which began to predominate by 1791. The full title of the paper Grey or white pig? The importance of the starting material whether fining iron in charcoal hearths, clay pots or puddling furnaces summarises the vast range this paper covers in its 20 pages drawing on 42 literature sources. The chemistry of pig iron is addressed from the perspective of whether a grey iron, which contains free elemental carbon as graphite flakes, or white iron, in which the carbon is combined with iron as the carbide, cementite (FeC3), is made in the furnace. The former is necessary for making castings as it has a small degree of ductility while the white iron is harder and more brittle and fractures readily; indeed the name ‘white iron’ is derived from the look of the fracture which is wholly crystalline and contrasts the duller appearance of a grey iron fracture. White iron is the preferred form for fining. This is partly because the finer form of the cementite aids the speed of removal of carbon. More importantly, however, it melts over a range of temperatures and produces a mushy mass in the hearth which can then be manipulated with iron bars to provide oxygen to the bulk from air blown through a tuyere; and by the addition of iron oxide in the form of slag, hammer scale or rich ore. As more carbon is removed, the melting point of the mass increases and it can be removed from the hearth as a lump (loop) and consolidated under a hammer. A low silica content in the metal and/ or rapid cooling on casting are the key conditions for producing white iron. Grey iron is formed when the silicon content is higher – typically above 1.5%, and/or

TIP – If you wish to identify if a piece of cast iron is white or grey without breaking it, see if it ‘rings’ when hit. White iron will, grey will give a dull note.

1. White iron. The darker areas are an intimate layered structure of ferrite iron (αFe) and cementite, known as pearlite, and the lighter areas are cementite (FeC3) Micrograph x 66 2. Grey iron. Random graphite flakes in a matrix of pearlite Micrograph x66

solidification on casting from the furnace is slow. On fining, it melts completely at 1150°C as it is the product of a eutectic reaction where melting of the solid goes directly to a liquid rather than via a twophase region of solid plus liquid as noneutectic compositions do. Melting directly to a liquid prevents the manipulation of a mushy mass beneath the tuyere. In addition, the silicon burns off before the carbon as it has a greater affinity for oxygen, which increases the time to refine the metal and requires more fuel – partly compensated by the burning of the silicon which also provides heat. Williams explains all these reactions clearly and the importance of silicon and other elements affecting the position of the eutectic point using the concept of ‘Carbon Equivalent’ defined as CE% = (C + Si/3 + P/3). Ideally, a metal for fining should have a CE of 3% in contrast to a grey iron which has 4.3% C, constrained to its eutectic point. Normally, iron from charcoal-fired furnaces is low in silicon and hence favours the production of white iron. In contrast, iron from coke-fired furnaces is high in

silicon and thus favours the formation of grey iron. Williams describes the two-hearth process of the Walloon forge and its evolution into a single hearth process to save charcoal. He also describes how the large sows, known as ‘gueuse’ on the Continent, and weighing as much as a ton, were replaced over time by pigs that were smaller and easier to manipulate. He describes various methods of fining with charcoal including the fining to steel containing some carbon, rather than wrought iron of minimal carbon content. Fining to steel was more common on the Continent than in the UK, where cementation (accomplished by diffusing carbon into wrought iron by packing wrought iron bars in a stone chest containing carbonous material, sealing this, and heating for days) became the preferred method. He refers to the Lancashire hearth, developed in South Wales and largely used in Sweden, as the ultimate charcoal refining method because of its enclosed nature improving thermal efficiency. Historical Metallurgy Journal, R Williams Vol 58 Pt1 pp84-103 available free to access on-line at https://hmsjournal.org �

*Consulting editor, Steel Times International and a member of the Historical Metallurgy Society www.steeltimesint.com

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13/05/2022 07:46:29

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