FROM THE DESK OF CHIEF EDITOR
Reengineering steel industry through Supply Chain Management best practices: Dear Readers, 1: If you talk to people who matter in steel industry the problems that needs solution relates to suppliers, availability of raw materials like iron ores, coal, steel scrap, sponge iron etc, price increase which came all out of sudden, high lead time, poor inventory management practices resulting in large inventory with capital blocked, high cost of energy, non availability of natural gas etc 2: On the Operation side it is high quality cost occurrence due to high percentage of rejections which could be due to lack of trained manpower, poor quality of input material, wrong specifications etc, Then comes the customer part who wants Quality, flexibility, reduction in price, payment at its own convenience, not willing to share its profit margin. 3: This is something not new, for us in Pakistan we are not prepared. We have not done our homework right the first time. 4: What needs to be done is to set up best practices of supply chain by having professional running this area. Developing long term collaboration with Iron ores and coal suppliers, sharing forecasts, bringing new technology to improve productivity. Going beyond borders, Iran, India, turkey, Indonesia etc. Why cant there be SAARC Steel Mills or Muslim countries joint steel ventures. Lets join hand together we can. 5: Finally look for mergers, Pakistan Steel, heavy Mechanical complex, Peoples Steels, POF Wah etc. Start with common R&D then look for more areas. 6: Expansion of Pakistan Steel to 3.5 Million tons capacity is a must without further delay with capability to produce high valued items like steel for automotive sector. Let the masses vote only for those whose agenda is to ensure expansion of PS to 3.5 million no less. 7: Those at the helm of Peoples Steel to act now and put up Vaccum arc remelting and other balancing facilities. Let production of silicon steels, gun barrels , super conductors etc be an important part of product mix. 8: In terms of developing proper forecast Pakistan steel and others ought to consider using expertise at Business schools like Institute of Business management,etc to do the needful.
Muhammad Moin Uddin Ali Khan Chief Editor Energo Steel Journal Pakistan
EDITORIAL BOARD Capt (R) Sarfaraz Inayatullah TI (M) Patron in Chief
Mr. Moinuddin Ali Khan Chief Editor
Ms. Amina Quratulain Ansari Editor
Mr. Muhammad S. Ansari Prof. Wasimuddin Ahmed Khan Honorary Editors
Mrs. Syeda Amna Qadri / Mrs. Nadia Ehsan Deputy Editors
ADVISORY BOARD
Rear Admiral (R) S A Mujtaba HI(M) Dr. Rana Gulzar Mr. Muhammad Ehsan Ullah Sherrif Mr. Khalid Khan Mr. Ali Akhtar Khan MANAGEMENT
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Director Admin & Accounts
Mr. Syed Siddique Sultan / Mir Muhammad Ali Marketing Consultant
Ms. Areeba Ansari
Assistant Editorial Board
OVERSEAS CORRESPONDANTS
Mr. Muhammad Ehsan Uddin Ansari Director Overseas
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GRAPHICS & LAYOUT
Mr. Muhammad Ali Rais LEGAL ADVISOR
Mr. M A. Ali Moiz (Moiz Associates)
Pak Rs. 450/- US $ 5 - UK Pond Sterling 2 UAE 15 - Saudi Riyal 15
FROM THE DESK OF EDITOR 1: In recent times the state of affairs in our country, to put it modestly, has remained far below the desired expectations. Not only the economic recession, which could conveniently be blamed to the global economic meltdown, the ensuing energy crisis is the worst in the brief history since our freedom as an independent state. The common man, who is to face off many hours of electricity outages on the daily basis, the worst hit is the industrial community. It is indeed very unfortunate for a country which has a surplus installed capacity of about 4000 to 5000 MW, owing to poor management and ill planning has to import electricity in the shape of rental power generation at exorbitantly high consumer cost further burdening the already frail economy of the country. Instead of this short term extremely expensive solution to the problem of energy crisis, steps in the direction of self-reliance; be it coal, moderate run-of-the-river projects, solar, wind or biogas plants would have accrued positive results favoring the present fragile economy. The other neglected area which could favorably support the economy is the engineering sector. The absence of, or a modestly developed engineering sector, in today s competitive world, manifests into disastrous results in the progress of nations. It is with this inspiration that Ayub Khan s government showed some interest in this direction and had managed to develop few national engineering icons such as Heavy Mechanical Complex, Machine tool factory and above all the Pakistan Steel Mills. These vital engineering marvels have now seen their better days owing to lack of insight by the successive governments and are now a heavy burden on the national exchequer. It is unfortunate that the steel mills which was founded with a vision to support the engineering infrastructure of the country stands at a point where it doesn t have enough funds. No one even cares now that this nation once we had the capability and capacity to produce heavy machines including sugar mills and robust road rollers etc; in the shape of National Heavy Mechanical Complex and Pakistan Machine Tool Factory. Yet another iconic national engineering resource is breathing its last adding to the southward imbalance in the trade bill of the country. 2: We at Energo, however, are still hopeful and determined to promote the positive side of our country s engineering sector by providing quality reading on various engineering matters. In our previous issue we had included an article introducing the high profile national manufacturing capability in the shape of Karachi Shipyard and Engineering Works. We are also extremely thankful to Dr. Samar Mubarakmand for graciously contributing the article on Thar Coal Fields and the futuristic propositions relating to indigenous power generation options for our beloved country. I am hopeful that our readers must have found something that caught their attention in our last journal, and it is our endeavor to make this journal even more interesting full of quality reading for the students of engineering community. We would also welcome contributions in the shape of articles relating to various engineering subjects. I wish our readers happy reading.
Amina Quratulain Ansari
Editor Energo Steel Journal Pakistan
Energo Steel Journal Pakistan - Quarterly Magazine Suite# D-49, Rabia City, Block 18, Gulistan-e-Jauhar, Karachi-75290 (Pakistan) Tel: +92-21-32072159 Fax: +92-21-34014165 Email: esjpakistan@gmail.com Disclaimer: No reliance should be placed on the basis of information provided in this publication by anyone for making any financial, investment and business decision. The information provided is general in nature and not been prepared for any specific decision making process. Energo Steel Journal Pakistan has not independently verified all of the information provided in the publication and has totally relied on sources that have been deemed appropriate and reliable in the past. Accordingly, Energo Steel Journal Pakistan or any of its staff or other sources of information do not bear any liability or responsibility of any consequences for decisions or actions taken based on provided information, therein the magazine.
CONTENTS Speed of Light 04 The By: Amina Ahmed Raza World of Petroleum 08 The By: Iqbal Hussain Shale Gas Could Soon Be a Global Resource 13 Unconventional By: Mustafa Abdullah with Mr. Kalim A. Siddiqui 19 Interview By: Muhammad S. Ansari Cat Development 22 Green By: Samir Ahmed of Nanotechnology to Manage Steel Corrosion 25 Use By: A. U. Nasir Lashari Arc Furnace & Heat Recovery 30 Electric By: Atique Ansari & Prof. Wasim Uddin Ahmed Khan with Mr. Kashif Shah 33 Interview By: Muhammad S. Ansari Quran, Iron and the Earth (Part II) 42 The By: Muhammad Saeeduddin Ansari & Commander (R) Ikramuddin Khan of Pakistan Steel (an overview) 56 Future By: Hafiz M. Ehsan Uddin Ansari Global Shipbuilding Industry and Pakistan s Prospects 60 The By: Rear Admiral (R) Pervaiz Asghar HI (M) Phased Array 65 Ultrasonic By: Muhammad Aqeel
68 Ask the Quest with Mr. Muhammad Moin Uddin Ali Khan 70
Metal Painting Basic Knowledge of Surface Preparation
By: Mazher I. Khan
with Shahnawaz Ishtiaq 75 Interview By: Areeba Ansari
82 News Bulletin 84 News Bulletin (Corporate) Product Import Data Jan-Feb-Mar 2012 85 Steel Compiled By: Areeba Ansari Aur Kainati Science (Urdu Version) 92 Quran Tarjuma : Asma Ahmed
02
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
The
Speed
of
Light
Behind the Closed Doors of Cosmology By: Amina Ahmed Raza
04
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
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beam to be reflected on these mirrors to back again to the earth by this they calculated the precise distance between earth and moon. As the earth spins in its own orbit the moon complete its one round of earth on every 29.5th day. The moon revolves around earth in a non- circular (Oblate) orbit Distance between both of them is about 384.403 thousand km. Moon revolves around earth in a speed of 1 km I second. 6: Movement of moon determines the durations of months and years; hence the month is one complete rotation I round of the moon around the earth which means 12 complete rotations of moon is around the earth is equals to one year. 7: This scientific information was revealed in Quran 1401 years back as nindead, the number of months with Allah Is twelve [lunar] months in the register of Allah [from] the day He created the heavens and the earth; of these, four are sacred" (Surah Tauba Ayah No. 36) 8: In a simple calculation based on month duration the moon travels 2152612.27 km around earth in complete round. This distance represents the length of the orbit that the moon takes while a complete untaught person (Nauzubillah) spheres of humanity, the Quran round during one month. So the Prophet Hazrat Muhammad (Peace touches upon diverse scientific distance per year is: 2152612.27 x Be Upon Him) making profound topics like astronomy, geology, 12 25831347.24 km statements that are amazingly embryology, genetics, biology, And in one thousand year is: accurate, of a scientific nature. I archaeology etc. In this article we 25831347 X 1000=25831347.24 km. pansonally see how1hls could are highlighting the scientific be mer& chance, there are too many relationship between the cosmic 9: The day length is of 24 hours accuracies and like Dr. Moore, I world and Quran with the references and in seconds it is calculated as of 86164 seconds in accordance have no difficulty in my mind of Quranic verses. with the International standards. reconciling that this is a divine Inspiration or rvvelatlon which lead 5: Calculation of Year's length Now with the available value of one him to these statements". and Speed Of Light: In year 1969 thousand year which is astronauts put a glass mirrors on 2583134 7.24 km and is nthe 4: Besides providing guidelines in the surface of the moon and distance" we determined the length personal, social, moral and spiritual scientists on earth sent a Laser of the day which is "86400 second"
=
can,
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
05
06
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
References: -http ://www.paradetect.com / index .php ? option = com_content &view=article&id=217%3Aspace-and-time&catid=34%3 Ascientific researches &Itemid=103&lang=ar -http://www.speed light.info/angels_speed_of_light.htm -http://kaheel7.com/eng/index.php/astronomu-a-space/249-speed-of-lightin-holy-quran
ENERGO STEEL JOURNAL PAKISTAN
APRIL TO JUNE-2012
07
THE WORLD OF PETROLEUM Mr. Iqbal Hussain
originate were not known. Oil and gas have an edge over o1her fonns of energy. Complete combustion, ease of handling, easy transportation and high heat energy are some of their aowning features. No wonder the Oil is called Black Gold. There is no nation who does abundant source of energy. In the not seek petroleum resource for earty history of mankind, the source their wellbeing. Oil and Gas have of energy was limited to firewood many applications and without these and coal by which the progress was resources nothing in modem world very slow. Several sources of will move ahead. The wheels of natural energy are known since age. industry, agriculture and transport But their exact nature and how they cannot move without oil. Urban
ha11 done M.Sc. In Petroleum Tachnology with specialization In "Health Safety and Environment In Petroleum lnduslly" from University of Karschi. Ha ia curranUy employed in Shall Pakilltan Limited as a Tennlnal Operation Admlnlstralnr. Mr Iqbal has p811 down this article "The Wottd of Petroleum' with assiatanca of Mr. Muhammad Sharif who is a known Petrollun Expert and owna veal experience In the field of Petroleum on both national and lnlematlonallevels. For feedback of this article Mr. Iqbal can be approached via this email add1111111: iqbal.huBB8in@shall.com
Introduction (History of Petroleum) Energy is one of the basic requirements of human society. The growth of human civilization depends upon the availabi Iity of cheap and
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
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wm
domestle life become mlserallle without oil and gas. Petroleum was In use l!4me 5000 years ago. The liquid crude oil and solid bitumen were first used by Sumerians, Arsgrlans, Blbylonlans and Egyptians. N. about 6th Century BC the army of Kir II, first shah of .Acllaemenld Empire (Present Iran) uM Ablheron oi in 'N&apon& of fire to invade c:autles and citielJ. In 325
It wu cheap and brought lo!B of income to shah avery year. The famous first wei Gilled by Col EciM! Lorentlne Drake at Tllusvllle, Pemsytwnia, U.SAcn271hAugt181 1859, stuck oil at a depth of about 21m from surface. This was 1118 !lrtt scientific: attempt at loc:ating oil in the earth 6Ub-6urfaoe. Nearly at the same time Government of India driled firt well in Punjab at Kundan near Mlanwall. GeiWIIaiOrtgln of Petroleum}
1: Petmeumls deftned In a variety of ways by eeoloGist. c:hemlst, engineers and lawyers, but there Is no uniformity or full agreement among them. As it E<lwioDrab'sDH<..-wyoroa;.r-•rh-aai• Is natural product BC decade Alexander the graat form inside earth, so geological used flaming ton:hes af petroleum definition findi more ac:cept.anca products to scare his enemies; In than others. The word 'Petroleum• ancient India at Mohan-jo-Oam oil is darillad from two latin world Petra was used as a leak-prooflng mean Rock and Oleum mean 011. material In their house&, also for Petroleum was !lrst nolloed on the lighting and cooking purposes. surface af Land. Occa&iol'lllly it was China <**ned that In about 200 BC found floa1fng on the water of lakes a shallow wall drtllad In c:hlna for and seas. n was also associated brine struck oil at a depth af about 140m. In 8th century AD Baku people uaed ground Impregnated with oil for heating because of absence of wood. In 1273 Marco Polo recotded visiting the Persian c:ity of Baku, on the shores of Caspian Sea Iii modem Azerbaijan; h9 saw oil being collected from seeps for use In medicine and lighting. A stone dated 1584 and signed by Allahyar Muhammad Nurogly Is found In an oil well of 35m depth In Baku; this well Is dug by hand. In 1618 Italian traveler Pietro Della Valle spok& abotJt great amounlll of black oil around Baku;
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ENEJI.GO STEEL JOURIW. PAKISTAN APRIL TO ..UNE41)12
with mud volcanoes In many part& of the 'WOrld. Petroleum gaooration oonalsls of a process iM:IIvlng many
physical and c:hemlcal changes inside the earth. Remains of the ancient animals and plants after their death were playing an important role in the generation of petroleum, wtllch were entombed in the secliments of thOII& perioda. Sedimenlatiol'l is a natural pr'O<l8SlJ on the earth 6Urface and has been going on throughout 1118 raM8 upon the prevloU5 one and lmposeiload upon all Increases It causes the temperature to rise and in consequence several physical and chemical changes are Induced. In this proC88& fos8il release gaasea like nitrogen, hydrogen, sulphide, carbon-dioxide etc, whlc:h help to convert the organic matter into oil and gas. After genera11on oil and gall from IOII'C& rock Ilk& day, dial& and mud etc, to reservoir rock like sa.nd&tone, limestone and fracture dolomite etc. Migration ia a part of the digenetic process whic:h 81'1di In the enlnlprnent of oil tnt gas Iiiio pools. As the earth movements continue 11'1 time so these pools a'& sub)Kted to changes of shape wflen the entrapmerlfB is disrupted and consequently the oil and gas are tree to move up until they are
tn~pped once mon~. llle prooeas of generation and migration Is a slow one, in1101ving long periods of time. It Is estimated that the whole process of genere:tlcn and m9'Btlon ancing in arrtr&pmant tBk88 at IBallt
Walt~
a millions of yearv. World 011 & Ga. Production Con•umptlon and Re•erve 1:
Oil and gas are the most
popular and demand~~ fuels In the world and expected to continue In tile foreliaaable futl.n. It is a cause for concern as to how we are gomg to meat the rising demand for oil Mel gas. It is, tllervfore, neoessay to consider the p!'OIIf)eCis of ol Mel gas for the world as a wflola. The wkle use of petroleum has been one of the moat Important stmlull of . When oil production claa88118, it will effect human culture and modem technological society. It alternatives are not fortllcoming, tile {klcludlng fertlltzerv, clalergeuts, solvents, adhesives, and most ) would become scarce and expensive. Discovering new sourcM of oil and gas is not an easy task. However, World wide oil and gas dlscow!tes haw been less til an annual prodLICtion since 1980. World population llas grown faster til an oil and gas producllon. Recent work pointa to the difficulty of Increasing production even wHh
vastly increased investment in exploration. Additionally, while It Is widely believed that increased oil prices spur an Increase In production, an Increasing number of oil industry insiders are now coming to believe that evan wltll higher prices, oil prod uctlon Is unlikely to Increase significantly beyond Its current level. According to a January 2007 (lEA) report, global s~ (which includes blofuels, norH:I'Ude so u r c as of petroleum, and use of stra1egk: oil reaet'V88, In addition 1o crud& producdon) 8\ieraged 85.24 millionbarrelsperdayin2006,up 0.76mlllonbarrelspel'day(0.9%), fl'om2005.Averagayeadygalnsln global supply from 1987 1D 2005 ware 1.2 million barrels per day (1.7%}.1n 2008, the IEAdraatfcally i ncreaaed its prediction of procilcllon dadile from 3.7% a year to 6.7% a year, based largely on better accounting methods, I ncludlng actual research of individual oil field production throughout the
'WOrld.
2: World aude oil demand grew an average of 1.78% per year from 1994 to 2006, w1ltt a high of 3.4% in 20032004. After reaching ahighof85.6m•on barrels per day in
barrels per day from 88 million barrels), due In large part to increasaa in demand from the tnmsportatlon sedor. Is dllltr1butecl amongst four broad sector&: transportation, , commercial, and Industrial. In terms of oil use, transportation Is the largest sador and the one that has seen the largest~ In demand In recent dacadas. This growth has largely come from new demand for personal-use vehicles powered by • Transportation is therefore of partiwlar intervst 1D those seeking to mitigate tile effects of oil. 3: Although demand growth Is hlghe&t In the, the United Slat.u is tile world'ala.rgeat consumer of petroleum. Between 1995 and .2005, U.S. consump11on g~YH from 17,700,000 barrels per day to 20,700,000 barrels per day, 3,000,000 barrels per day increase. Chine, by comparison, Increased consumption from 3,400,000 barrels par day to 7,000,000 barrels per day, an Increase of 3,600,000 barrel& per day, in the same time frame.
4:
Another dgnlflcant fe.clor on
petroleum demand has been tu.man
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2007, world c:rcntJmptlon decn as ed • 011 produd!on per capita peeked
in both 2008 and 2009 by a total of 1.8%, due to rising fuel costs. Despite tills, world demand for oil is projactad to inauase 21% over 20071evels by 2030 (104 million
in 1979. 1l18 in 2030 wil be almost double that of 1980 and oil prockJc:don In 2030,. decline back 1D 1980 181181s. This wil because af worldwide demand. 011 production
APRI. TO JUt62012 EIERGO ST'EB. JOURNAL PAICISTAN
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per c::a,na has dedined fR~m 5.26 barrels per year In 1980 to 4.44 barrels per year in 1993, but than lncn aaed to 4.79 barrels per year In 2005. In 2006, the world oil production took a downh.lm from 84.631 to 84.597 million barrels per day although population has continued to increase. This has C8I.IS8d the oil production per capita to drop again to 4.73 barrels per year. One factor that has 110 far helped ameliorate the effect of population growth on demand is the decline of population growth lll1e since the 1970s. In 1970, the population grew at2.1%. By 2007, the growth rate had declined to 1.167%. However, oil production was, until 2005, still outpacing popula11on growth to meet demand. Wcrld popula!lcn fPNI by 6.2% flun 6.07 bilion in 2000 to 6.45 billion in 2005, whereas according to BP, global oil producuon during that same period increued from 74.9 to 81.1 million barrels, or by 8.2%. or according to EIA, from 77.762 to 84.631 million barn~ls, or by 8.8%. 5:
Rising oil prices will also
a Ifact the 0011t of food, heating, aid
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i-.,..
;:_
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•i~
electricity. tunQollifa hard espacialy to poor and middle class. This w111 alao generate employment problems. Thla all requires enhanced exploration etl'ort:s for discovery of n- resources, with Increased search In deep marine and deeper onshore horizons.
Otherwise a doom period in discovered of which 535 million Petroleum and world ac:or10mlcs Is barrels have already been anticipated. produced. A PI'OIJ'ICSiic potential Clf total endowment of hydrocarborw 6: The world's largest proven has been estimated as 27 billion gas raservas &nllocetad in , with banrals of oil and 282 trillion cubic 4.757X1013 nf. With the Company, feet of gas. Approximately over 620 Russia Is frequently the world's exploratory wells have been drilled largastn.Wndgaa ,-----------------------------~ extractor. MaJor proven reaourca.a {in billion cubic meters) are world 175,400 (2006), Rueeia 47,570 (2006), Iran 26,370 {2006), Qatar 25,790 (2007), Saudi Arabia 6,568 {2006) and United ' ·~ ' Arab Emirates 5,823 (2006). It Is estimated that by various naUonal and ln18ma11onal there are about 900 trillion cubic exploration and production meUI!Sof"wwconwrrtlonar gas euc:h companies, In which over 177 oil as shaJa gas of whlcl! 180 trillion and gas wells dlseovera. may be recovan~ble. The world's Petroleum exploration In largest gas fleld Is 's offshore , 2: 8111mated to hava 25 trillion cubic Paldalan began after few yeara of meters of gu in plac:e-GI'IOugh to the World first well drilled by Cell l86t more 1hlln 420 years atopefmum Edwin Lorantlne Drake at "TTUMIIe, 8ldrac:tian I""'*. 1118 88COnd larga8t Pannsytyania, U.SAon 27th August n.Wral gas field is the in waters 1859. The first wall was drilled in In the .l.oc:ated next 1886 at Kundel In the Mlanwall to Qatar's North District of Punjab Pn:rmc&. During Field, It has an 1912-1947, private oil companies. .... ·- ·estimated reaet'Y8 of Including Attock 011 Company, 8 to 14 trillion cubic Burmah Oil Company, lndolax meters of gu. Petroleum Company and Whitehall Petroleum Corporation cai'Tfed out OIL AND GAS IN exploration, baeing their drilling operations on geological PAKISTAN lnve.idlgaUoRB. But except for Allock 1: Oil and 98S Oil Compeny no other company Is the major source could strike oil and only four oil of energy wortctwide fields, all in Potwar, ware and it is 8lCJ)eCted to l'8l'tllW! eo over discovered, namely, Khaur 1915, the next few decedes. Pak!Ain has Dldlan 1935, Joya Malr 1944 and an interesting Geodynamic history Balkaaaar 1946. of large and prospac:Uve basin (onshore and offshore) with 3: After Independence of sedimentery area of 827,268 sq. Pakistan, Altock Oil and Burmeh km. So far about 844 million bam.lls 011 comp!l'llas establshed Paldstan crude on reserves have been Oil Fields Ud (POl.) and Pakistan APRIL TO JUNe..:l012 EIERGO ST'EB. JOURNAL PAICISTAN
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Petroleum Ltd (PPL). Pakistan Petroleum Ltd discovered a giant gas field In 195.2 at Sui (12 tet) end a pipeline to Karactli was co~ in 1953. Pakistan Petroleum Ltd. after the discovel'y of giant Sui field could not repeat Its performance
enter dlrec:lly Into ol explora11on and Occlden1al for explanation In various
with assistance from U.S.S.R. established the 011 and Gas De\lelopment CorporatiOn (OGDC) in 1961 whose drilling program led to a small yet significant gas discovery at Sari Singh In 1968. In , - - - - - - - - - - - - - - - - . . 1968 after OGDC s diecovered Tut Oilfield (1967) and POL discovered oil - I at Meyal (1968).1n ;;,.o ~ 1976 OGDC announced the discovery of condensate I gas field at Dhodak and discovered gas at
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-
a •
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Plrkoh1982 In (1977). From to 1987 there was a and ended up with five smaller gas considerable acceleration in fleld&. These flelds are: 2Jn (1954, Petroleum exploration. The 0.1 tcf), Uch {1955, 2.6 td). Khalrp~.r discovery of condensel81 gas and
(1956, 0.1 tet), Kandhkot(1958, 4A oil at Dakhnl (1983), Dhumal (1984) tcf) and Mazarani (1959, 0.1 tcf). and gas at Nandpur (1884) and
blocks Including offshore region.
5: Oil and natural ga.e supply fulfill the 80 percent of Pakistan's energy needs. However, the consumption of those energy sources vattly exceeds the indigenoue supply. For instance, Pakistan ~rrently pnlduces only 20 percent of the oil it consumes, fosl.effng a dependency on Imports that places consklenable strain on the country's 11nanclal position. While the preaent situation with respect to natun!l gas production has now become serious as it is not meeting demand now.
6: The gas eupply-demand imbalance is expected to grow every year to cripple the economy by 2025, when shortage will be 11092 MMCFD agalnsttotal13257 MMCFD productions. To fulfill the gas requirement in future, PakiStan started discussions with Iran in 1994 and decide the construction of Pipeline from south Pars fleld to Karachi. Later Iran made a proposal to extend the pipeline from Pakistan into India and aleo invite china and Bangladesh to Join the project. But In 2008 India withdraw from project over the Price and Security lsauu. DiScussion i8 going on thi8 pro;ec:t and may be by this project Pakistan nasolve his energy crises.
Two Wells were Drill in Karachi, Panjpir (19&5) provided new leads Karachl-1 and Drtg Road-1 In 1956, to the hydrocarbon potential of buttherewasnosuocassandthese Northern Potwar and PunJab wells were abandoned. Platform raglan$. During the period . . - - - - - - - - - - - - . from 1983 to 1987 a tolal d 65 BlCJllonatory wells were drilled at an average of 13 wells per year with a succeas ratio of 1: 2.7. A total of 14 oil discoveries, 9 gas discoveries and one condensate discovery were DATA SOURCE made. Later Amoco, Petro-Canada and 1 : Production of Oil and Gas, _..,-.;.._ _ _ _....__ _ __ ..;;;:a Phillips were also Mir Publishers Moscow Pa.klsraD First C omuctal Wdl granted Explanation Geology of Petroleum, Feffer Khar -1 D rtU«< In 1915 Licenses In Kohat& Simon Pvt. Ltd. 4: Pakistan Stanvac project Banoo and l.oiNer Indue Baeln. POL Hlstoty «the World pe1roleum Industry (Book) discoven:Jd Mali Gas Field in 1957 acquired petroleum concenion but due to the presence of inert rights over Khuahalgarh Block with International Petroleum gases the development was OGDC In northern Potwar and Encyclopedia {Book) delayed for several years. No new Kohat region. POL also entared Into Pakistan Energy Yearbook oilfield wat dltcovered. The Joint Venture agreements with 2010 WOrkl Energy Cri8i8 (Article) Government of PakiStan decided to OGDCL, Petro Canada and
APR!~ TOJUNE-2012 EJEJIGO STEEL JQUAMAL PAIOSTAN
unconventional路路shale Gas" eould Soon Baa "Global Resource". Mr. Mustafa Abdullah owns eight years of working experience in 1he field of Corrosion Management in Material Selection in Middle East. Over ten years of expertence In the fleld of pipeline integrity management in USA. Another over ten years of experience in Sui Soultlem Gas Company in fields of maintenance, construction & management of 30,000 km of distribution & 3,000 km of transmission pipeline network. He has done Bachelor of Engineering, MSc. From Univenlity of ManchestBr- Unilad Kingdom.
A). Introduction 1 : Worldwide demand for energy will continue to grow. Many estimates suggest that, by 2030, global energy demand will be double what it was in 1990. 2:
This goes along with a
ENERGO STEEL JOURNAL PAKISTAN
unprecedented growth of the last century. Will it sustain the accelerating economic growth of the next 20-40 years?
3: Forecasts of the imminent end
of the hydrocarbon future have been with us for a generation. In recent years, the development of projection of 55% rise in population unconventional gas resources, (9 billion), a 150% increase in the especially Shale gas, has number of passenger vehicle on significantly changed those the road, and doubling the number forecasts. Natural gas, led by the of commercial jets in service. This vast reserves of Shale gas, located is sure to drive up energy costs as all over the world, has the potential conventional sources become to extend the hydrocarbon era for scarcer over time. Coal and liquid several decades and provide a hydrocarbons drove the bridge to whatever anergy forms
APRIL TO JUNE-2012
Stat88). Thla Ia baing made poulbla by 4: Natural gas haa already 5: Shale ia moat common a new generation of efficient infrastructurv of pipein88, slo11199 sediment on earth. but its completion technologies that can facllltfea and delivery eyetema. Its compoaiUon vartes rvdlcally from reduce completion Ume by 30路 anergy Ia s!Drad In chemical form, one fonnatlon to another the 50% Thera are a number of ai.ICh and can be transported a~ene variation can be aubetantlal. technologies that ana providing in demand. It is highly vetsalile- consequently, each clevelopment effective: the choice depends on Clll'1 be 111111d for dirvct heat power oft'unl a unique 11r1d complex eet of the specific conditions. generation and transportation. challenges from formation Today, there are mora than 15 evaluation through drilling to B). A World of Resources million natural gas vehicles In completion and production. 1).$hala gas a. plentiful around urvlce worldWide: this number tilt atoM. COnlleMl.t!Ye MUmates could grow rapidly undw certain 6: Developing each Shale gas place the totll roource volume economic acer~~~rios. Const~mption fornllltiot 1 irtvdltas dimbing a&taep at about 20,000 Tcf aa compMICI Ia lncraaalng, b u t - aalfmatea leamlng curve. Acceler&Ung that to 8000 TCF of conventional are also Increasing faster. learning process Ia the opanrtor's natllral gaa raHrve. This volt~ma Predlctlona are that Shale will blggeat challel'lgea. Is likely to In~ as more Shale provide as mi.ICh as 50% of u.s. T h e e co n o m i c s o f gas reserves are identified end natural gsa rvquiramerrts by 2030. unconventional gas basins have evaluated. R88erve e&t!matea for Shale gaa led to constructing horizontal In the Middle East and North Mica walla wfth many stagN-(20 or C). Shale Gaa In US; are 11 kaly to lncreaae as more stages are now common In development accelaratn In the Shale gas walla In tho United 1: Enei'IY scenario has prove economical after that.
coming years.
APRIL ro JUhE-2C12 EhDCIO IJE.EL.IOURIW.. PAKISTAN
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completely changed in US in the last five years,( since the success of Shale gas}, which now accounts for 15 Bcfd out of total 65 Bcfd US gas production. Cheap availability of NGL's to US Chemical Industry has boosted export competitiveness of US in products such as ethylene, PE, etc. whereas competitors in Europe are still dependent on expensive Naphtha and Vacuum gas oil (bye-product of crude oil) as their field stock. This success can be attributed to the higher gas prices (US$ 12-14 per Mcf} during the period 2005-2008, which enabled the development of Shale technology. 2: There are many compelling reasons to develop Shale gas outside North America, and these reasons vary among regions and countries. First, the conventional gas is distributed unevenly: more than half of proven reserves are located in just three countries-Russia, Iran and Qatar. Some countries in Europe rely on gas imports for nearly all of their needs. In Latin America and Asia, increasing demand is requiring imports to be secured at high prices. Growing reliance on imports creates energy security concerns that can be alleviated by domestic Shale gas production. Another reason for growing interest in unconventional gas is that natural gas is a clean fuel that can be used for residences and industry.
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D). Shale Gas in Europe:
others exhibit significant potential. Argentina is rapidly becoming a 1: Shale gas activities are now center for Shale gas exploration. under way all over the world, with Apache Corp. and YPF are drilling Europe leading the way. wells to test the thick, high-quality Exploration licenses have been Los Molles and Vaca Muerta awarded in Austria, Poland, Shales in the Neuquen Basin. Sweden, Denmark, Germany. The Exxon Mobile and Total have UK, the Netherlands, France, acquired exploration licenses. Spain, Romania, and Ukraine. All Other Shales are present in the of these countries except for Cuyo and Nirihuau basins and still Denmark and the Netherlands rely others in the Chaco and Tarija on imports to meet a substantial basins that extend into Bolivia and portion of their gas demand. Thus, Paraguay. Shales are found energy security is a major concern throughout Latin America. One in Europe. Gas prices generally interesting prospect is located in are high, which will favor Shale gas northeast Brazil in a populated area development. Costs will also higher with a rapidly growing industrial base. This region is far from the gas infrastructure in Rio de Janeiro and So Paolo. Thus, even though Brazil could face a gas glut once the high gas I oil-ratio presalt fields comes in production. It could be more costeffective to develop Shale gas in the northeast than to build pipelines supply oil to serve this region. because of the need to import rigs, hydraulic fracture units, and personnel, but with higher gas prices, Shale gas, could be an attractive investment. Most activity to date has been confined on reanalysis of existing wells and seismic date, though a few wells have been drilled in Poland, Germany and in the UK. E). Shale Gas in South America: 1: In South America there are many interesting Shale gas plays. Some are under evolution, and
EN ERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
F). Asia Pacific Prospects: 1: In the Asia Pacific region, Shale gas activities are under way in China, India and Australia. China and India have been importing increasing volumes of gas to meet rising demand. China is planning to offer Shale gas exploration rights in a licensing round in the near future. Only Chinese companies have been prequalified to bid, but international oil companies can partner with them later. China's possible Shale gas reserves can reach BOO TCF. A boom for China's
future growth. 2: Indonesia, which has been an exporter of LNG, soon could begin developing its unconventional resources. Indonesia already is evaluating coal bed methane (CBM), so Shale gas may be the next step. Gas prices are relatively high, at about US$ 7/Mcf, making unconventional gas a potentially attractive investment. China and Mongolia have numerous Shale gas prospects, and many are located far from gas pipelines. India's petroleum basins have potential Shale gas formations, but little is known about them at this time. ONGC, India's national oil company and others are taking a look at them. Australia's gas markets are segmented into three regions, with domestic gas available only within each market. This presents an opportunity for Shale gas to supply local needs and even for export where offshore conventional gas is more costly than Shale gas. Shale gas development in Australia has been overshadowed largely by the rapid commercialization of CBM in Queensland and New South Wales, which is cheaper to produce. In the west, however, Shale gas has been attracting increasing interest in recent months due to high local gas prices. Australian operator AWE has been reviewing the Carynginia Shales of the Perth Basin, where it has drilled and cored the Woodada Deep-1 well. Australian Shales are reportedly similar to commercially
successful Shales in North America. G). Massive Middle East, Africa Reserves: 1: The Middle East with its vast conventional gas resources would seem an unlikely place for Shale gas to be viable. However, a large part of the conventional reservesmore than 50% of Saudi Arabia and UAE is "associated gas~. Most nonassociated gas reserves are located in Qatar and Iran. Gas demand is increasing rapidly, and associated gas production cannot keep-up with
poor fiscal terms. Shale gas is found all over Africa, but so far only the northem and far southern regions have infrastructure and markets. North Africa has huge conventional gas reserves and is a major gas exporting region. Even so, Algeria is finding it difficult to replace conventional reserves and may be inclined to exploit Shale gas in the not too-distance future. Tunisia, meanwhile, has taken initial steps toward unconventional gas development. Exploration activities have already begun in South Africa home to the Karoo Shale and in Botswana.
HYDRAUUC FRACTURING
the rising demand in Middle East. 2: Conventional gas in Saudi Arabia and UAE is often found in deep reservoirs that contain sour gas, which is very costly to produce. Thus, Shale gas could present an excellent opportunity to increase gas supplies in the region, particularly in Oman, UAE, Saudi Arabia, Kuwait, Syria and Jordan. Oman has begun tight gas exploration and Shale gas may not be far behind. The Silurian-age 路hor Shale formations have favorable Shale gas properties and are prevalent throughout the region. Major challenges include low regulated gas prices and, in general,
H). Development Challenges:
1 ). There will be challenges in replicating the North American Shale gas success story. Shale gas development is an intensive process, requiring large amounts of capital, labor, and logistical support. North America has been able to deploy enormous physical resources, mostly in regions, that are familiar and comfortable with petroleum development. Hundreds of rigs drill thousands of wells each year. Recent decline of gas prices in the range of US$ 4-5 Mcf has somewhat subdued new Shale developments in US. The recent findings of Eagle Ford Shale, which offers opportunities for production of higher priced condensate, NGL's and crude oil has opened new era in US Shale activity, with more and more E and P companies have directed more capital expenditure on the on-shore liquid-rich Shale plays, paving the
way for further supply growth.
set of circumstances. Shale gas drilling programs that require already supports 600,000 jobs in constant reinvestment. Out side 2: By contrast, Europe, for US, which may increase to 1.5 North America, most gas is example, only has about 50 land million jobs by 2035. Growth in purchased and distributed by the drilling rigs operating at any one America's steel and chemical govemmentatfixed regulated prices time, which means only a relatively industries is a great example of how or by a few large buyers that small number of wells are drilled the US benefits from Shale boom. purchase gas under long-term each year. This amount of drilling Special steel, ethylene and ethylene contracts. In many countries, would not support even one Shale based production has increased regulated gas prices are too low to gas play. There is an order of considerably. Increasing Shale gas support Shale gas development. If magnitude difference in scale. production will continue to help Shale gas prices must be regulated, country move away from foreign they should be tied to gas import 3: In North America, there is a fuels. This is a monumental prices rather than to local natural deep pool of experienced field opportunity for future of US industry. gas prices. This is true for Pakistan personnel, engineers, and also low fixed domestic prices. geoscientists working on Shale gas 5: In countries with high development. Other countries may population densities, such as those 1). Conclusion: have some expertise, but currently in Europe, surface impacts, water they do not have There are many the numbers of attractive people that are opportunities to needed. Still other develop Shale gas, but it will countries have no current oil of gas take a concerted production and no effort on the part experience with of government such operations. officials working along with Most or all of the equipment and experienced personnel will have operators. In to be imported until case of Pakistan local operations can foreign oil be built up. companies should be taken 4: Another into confidence to develop fiscal significant difference between North American rights, and regulations will be major terms and regulations that allow and international Shale gas issues. Though horizontal wells Shale gas development to development is the number of drilled from single pad can reduce proceed. The many economic potential operators. There are the surface footprint, there still is and energy security benefits to hundreds of companies in the US, the problem of land acoess, not to countries that develop their own many of which are small mention increase in traffic gas resources provide independent that were the first to congestion and noise from incentives, in developing this try producing Shale gas. The rapid equipment. Access to water is important energy resource. innovations that led to the Shale gas another concern, and could be local Pakistan has proven Shale I tight revolution would have been resistance to using water for Shale gas deposit of approximately 30 i mpossi b I e without the gas operations. TCF, equivalent to the original Sui deposit. Hence it has the experimentation and adaption carried out by hundreds of such 6: A fourth consideration is gas potential to develop in near companies. Although other countries markets. The American gas market future to meet part of the natural will benefit from the expertise gains is large and liquid, allowing gas shortfall, country is facing in North America, success will come companies to sell gas easily and to at present; however, the cost of only from adaptation to each unique use the futures market to support gas will be high.
ENERGO STEEL JOURNAL PAJOSTAN
APRIL TO JUNE-2012
DELIVERING ENERGY As the demand-supply gap of natural gas deepens with every passing
day, we strive harder in pursuing a sustainable energy program through deployment of modem age practices such as LNG and SNG and import of gas through transnational pipeline projects to keep the flame burning.
From the fields to the flame
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i
t
Sui Southern Gas ssoc Company Limited www.ssgc.com.pk
Mr. Kalim A. Siddiqui is the Chief Executive Officer of newly founded oonoem •Rehkal Pakistan• dealing in Oil and Lubricants. Mr. Siddiqui has a master's degree from UK He possesses global experience in business development, system re-engineering, streamlining processes, management of supply chain, marketing, sales and operations management. He has over 30 years' experience in senior management positions in the oil industry.
Q-1: Tell us something about this newly formed company "Rehkal Pakistan"? Ana: Rehkal Pakistan is basically related to Oil & Gas sector. It will be dealing in complete range of those branded Lubricants which are very important for common applications. The range which will be introduced in market would include Gasoline Motor Oils, Diesel Motor Oils, Motor Cycle Oils, CNG Oils, and industrial Oils etc.
Q-2: Do you plan to import these products or manufacture them locally?
Interview with
Mr.laliiD A. SiddiQUi CEO Rehkal Pakistan
Ans: The Company will work in a combination basically. We will By: Muhammad S. Ansari - - - - - - - - - - - - - - manufacture these products locally in near future and on 1he other hand products are concerned, basically Q-5: Will you be importing the we will be importing the brands from the market economics will influence products in bulk quantities and carry our decision whe1her to produce the out local packaging for the market? foreign market as well. range of products locally or focus our Answer: Yes. Packaging which Q-3: Where do you intend to import efforts in importing the oils and include drums and tins will be done 1hese products? lubricants from abroad. Until such locally; however, the small sized time that we have achieved the packaging will be out-sourced to Ans: Initially most of the products capability and capacity to produce international companies. will be imported from United Arab Emirates. However, we will consider locally we plan to continue importing other countries and principals as well high-end products with top range Q-6: What is the main objective of based on competitive rates. quality from abroad. It may be forming this company? pertinent to mention that as of today there is no domestic company in Ans: The main impetus in launching Q-4: Is Rehkal Pakistan considering Pakistan which has the capacity to this company was to provide the large to install it's own manufacturing produce them locally. Out ofthe broad cross-section of customers with an plants? range of products that we intend to option to choose their brand based Ans: We have not installed our deal in, the underiying factor to pick on high quality at competitive price. plants as yet. We will go for blending and choose each individual product The market consumption of our process instead to which end we for indigenous production will be brands will reflect on our success in have already purchased 1he blending supportive and affordable economics. achieving this goal. To this end, the equipment here in Pakistan. As far Therefore, as I see it, we will stick to specialized packaging of products will be the hallmark of our brand, as manufacturing of the base a mix bag of resources.
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
providing ease of transportation and dispensation blended with high product quality in achieving customer satisfaction.
to focus more in rural areas rather than urban areas where I expect to confront little competition as well. Q 10: In order to achieve success as
Q-7: There are many local and
international oil companies already established in Pakistan; where do you see your company standing in coming five years? Ans: Our competition will be with the
existing 4 to 5 leading lubricants & oil marketing companies. The quality of our brand will provide a serious competition. As a matter of fact it will be better in many respects than our competitors. Q-8: What about the pricing strategy
of your products? Ans: Price factor will be in
accordance with the marketing dynamics. In order to compete with our opponents, our main thrust will be to provide the customer with high product quality and good packaging in the affordable market price range.
Q-9: The existing brand names such as PSO, BYCO, Caltex etc have their particular marketing strategies for a reasonable length of time now. And as we have learnt that you have contributed significantly in establishing their marketing strategies resulting in country wide success. How do you plan to embark upon formulating new and more attractive marketing strategy for Rehkal Pakistan? Ans: This is a very good question. In
fact the answer to your question lies within. Yes, I have done major work for them. I did contribute a lot in launching the product lines of those companies. So being a strategy maker of these companies, I know where they lack and where do the gaps exist? My main focus will be to target the grey areas. They have very good coverage and penetration in urban areas. Therefore, our strategy will be
a brand name don't you think it will be a defective strategy to remain in the rural market absenting from the urban areas altogether? Ans: When I said we will be focusing on the rural regions, I did not mean that our brand will only be rural market oriented. That, of course, will remain our main thrust but as a brand name we will be present in the urban market. As a matter of fact our brand will reside in the main urban location such as Mulan, Lahore, Islamabad and Karachi where majority of our offices are already established with adequate staffing and as we progress down the path of success we intend to increase the list of urban locations insha Allah. Taking industrial sector as a worthy customer we intend to increase our product range beyond oil and lubricants and enter into fuel and chemicals as well. I would like to elaborate a little more on our specialized packaging techniques. Very generally speaking the present brands offer a one liter can for motorbike customers, whereas the standard capacity of majority of motorbike engine is 0.71iter, which means they have to pay for 30 percent extra oil. Our brand will take even this miniscule anomaly into consideration and will offer specially customer oriented packaging. Same is true for the agricultural tractors and other automobiles. Besides this the packaging drums and medium sized containers will be so designed that they can be utilized for other domestic use after consuming the main product especially for customers in the rural areas considering their income levels and life style.
Q-11: Do you have any plans to expand your product range into Hydraulic fluids, being an expensive product?
Ans: Hydraulic oils, as a matter of fact, are already available with us. We will soon expand the scope to supply various other types of products like heat transformer oil, hydraulic oil, soluble cutting oil and all other industrial oils as well.
Q-12:Aviation and Steel are highly specialized sectors will Rehkal Pakistan provide the fuel and other lubricants to them as well? Ans: No, currently we are not focusing on them. These are highly specialized products requiring governmental approvals after meeting very strict industrial standards. Rehkal Pakistan being in an introductory phase it is quite pre-mature for us to even consider any near future expansion in that direction. The specialized products for both of these sectors are currently available with established companies. We will focus on these sectors later at a more appropriate time when the market of our basic products is established.
Q-13: Do you plan to import raw material and market the finished products after indigenous processing? Ans: No, we will bring finished
products only and prepare local packaging on international standards before marketing the merchandises.
Q-14: You have worked with BYCO and have contributed tremendously in their expansion projects and progress. Are there any plans for such expansion in Rehkal Pakistan? Ans: Yes. Our ultimate goal is to
convert Rehkal Pakistan into an oil marketing company. Initially we have started with lubricants. Like every other business venture, Rehkal Pakistan is no exception, and it will also need two to three years of time period for progress and penetration in the local market before embarking upon plans for such expansions.
APRIL TOJUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
serious intent is displayed by the governmental agencies. We can also use solar energy as it is far cheaper than furnace oil. Wind energy is Ana: Investments are being done in another option which is also being Rehkal Pakistan but they are not of neglected by the authorities. foreign nature. There are some local investors in this company. Q-17: It is believed that the foreign oil companies are creating hurdles Q-16: Pakistan is currently facing for not utilizing the alternative severe energy crises. What are your 19S0Urces available to Pakis1an. What comments? are your comments? Q-15: Are you figuring foreign investment in your business plans at Rehkal Pakis1an?
Ans: This question basically relates Ana: I personally think that this is a to the aises at national level. Pakistan baseless allegation on the foreign oil has the power generating capacity of about 20000 MW whereas the national requirement is about 1600017000 MW. Unfortunately the government controlled power generation sector is not properly regulated to meet the required demand. The reason is that most of the power generation plants in Pakistan are furnace oil based. It is a well~own fact that use of fum ace oil for power generation around the world is considered as last option because it is extremely expensive however, regrettably we are using it as the primary option. The entire procedure of importing oil and its processing results in high consumer cost. Secondly, we rely heavily on this expensive option totally disregarding the other easily available and extremely economical indigenous resources of power generation. We have plenty of water resources, but not using it to our full advantage. Politically motivated decisions with total disregard to ground realities (Kalbagh Dam project is a case in point) has forced the nation into using expensive electricity. The other available options are coal, gas and alternative energy sources. In the Thar district in Sindh, for example, there are some 175 billion tons of coal reserves which can be processed and converted easily into electricity generating fuel (study carried out and demonstrated by the famous national nuclear scientist Dr. Samar Mubarakmand), however, no
companies especially since it is difficult for them to meet the entire need ofthe international market; there being a wide gap in demand and supply. The problem is of more domestic nature. Unfortunately the biggest issue is that relevant governmental authorities in our country do not contemplate national interest with the seriousness it deserves. There are always concems for indMdual success. Even if some projects are proposed the bureaucratic approval process for such ventures takes unbelievably long time resulting into lack of interest by the investors. Furthennore, there should be no political influence on such serious national planning issues.
be ended immediately as in thirty to forty percent amount of our bills transmission losses are being counted. When these transmission losses will get reduced there will be an ultimate decrease in the amount of bills . When these main issues will be resolved it will cause big national savings. Besides, the government bodies like WAPDA, PEPCO, KESC etc. should be operated tactfully. Their authorities Q-18: What can be the short cut to should hire qualified professionals end the energy crises? as the leads of these department and they should end things like over Ana: There are no short cuts when staffing and the gaps should be filled it comes to power generation. sooner. However, there are few solutions The currently installed plants in which can help to reduce the crises. country are nearly thirty to thirty five First thing is as I said earlier as well years old and are also not very that power should be generated in efficient. If government would have combination with mix calculations invested in modernizing those plants at minimum cost. Firstly, when instead of financing the rental power planning the power generation at project this will not only have been national level, consideration should done in low cost but also the nation be given to all modes of production would have get in-expensive i.e. gasoline, hydal Secondly electricity as well. This would also everyone should be liable to pay have been done in approximately their bills off as the leading defaulters not more then an years' time span. are normally government bodies. If these few things will be followed Third thing is the reduction in the crises will be reduced to some transmission losses and they should major extents.
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
who was responsible for introducing China to the free market economy, when questioned about his involved in developing & commissioning high profile renewable unsustainable methods of growth, energy projects but also has penned down high impact articles in used to say •It doesn't matter if the well recognized energy journals and magazines. For the feedback of this artlae "Gnnen Cat Developmenr Mr. Samlr can be approacl1ed cat is black or white; all that matters via his email address: samirdeveloper@gmail.com is that it catches the mice•. The consequences of this model growth (A). Introduction shook the very basis of their most were nothing less than catastrophic. celebrated model. Deng Xiaoping China's atmosphere & water 1: China's inevitable sprint for its economic growth was due to the unequivocal focus of their leaders. This growth was at all cost incentive structure and the corresponding breakneck paced development that took the global market like a storm. Mr. Samlr Ahmed Is a young and experienced professional related to the field of Renewable energy sector. He is not only
2: The ideological basis of this meticulously fabricated growth model was simple and straightforward, "Get rich first and clean up later-
3: The ideology was made to echo from the mountains of Tibet to the wealthy shores of the east. 4: T h e co n s e q u e n t i a I environmental degradation not only took the country by surprise but also
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
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became toxic and inhabitable. Twothirds of China's electricity is generated from coal based power plants, which emits substantial amount of fumes to the atmosphere. Excessive use of fertilizer made thousands of acres of land uncultivable, which is still growing. Acid rain and unheard diseases have become a norm. Behind the acclaimed and yet conspicuous growth of China as a new economic giant on the global arena, the intellectual drivers of this country knew they had made a grave mistake. The associated price of this mistake was not only hefty but also unaudited in the country's annual economic reports. The unanimous consensus and concern was that "China's economic mirada would soon end because environment could not keep pace with the Chinese double digit growth•. 5: Hu Angang a professor in the at as well as Director of the Center
for China Study at Tsinghua-CAS (Chinese Academy of Sciences) , intellectually opposed this growth basis and claimed that for the last 20 years China has had a ¡slack cat GOP growth". He has been advocating measuring the growth by taking out the cost of environmental destruction. A new term was coined for this phenomenon was "Green Cat developmenf'. To assess how deep the impact was, a Green GOP official report concluded that a total of $64 billion worth of damage was caused through land, minerals, forests, water & fisheries. 6: China now strongly believes that the achieving energy security is crucial for their economic growth and stability. By 2007, 17% of China's electricity was generated through renewable energy which includes hydro power. China has already reached 25.1 GW of wind energy integration by the end of 2009. Around 30% of all solar PV manufacturing is done in China. (B) Proposals for a better & prosperous Pakistan
1: This exciting case of their self awareness, rehabilitation, revamping and rethinking mechanism of the very core values also gives us an opportunity to reflect back on our own condition in Pakistan. 2: We as a nation stand at a
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
We as a nation stand at a very important point where we have the opportunity to develop national consensus on our preferred development model. very important point where we have the opportunity to develop national consensus on our preferred development model.
3: Would it be the black cat, in which we continue to bum oil and gas by running ludicrously expensive rental and conventional power plants, by talking about more nuclear installation, and the unabated use of synthetic fertilizer? 4: Or would it be the Green cat development in which we should take immediate action on the multitude of renewable energy generation methods, sustainable processes and energy efficiency measures. 5: To accelerates the national consensus on our objectives and to start taking concrete, formidable and decisive step towards more sustainable & prosperous Pakistan. 6: The decision to this issue is entirely ours and the time is begging to be resolved immediately. The task now at hand is simple yet dlallenging
7: Pakistan's energy crisis is a self created virus, threatening to destroy our national economic structure. (C) Proposals :-
1: The crisis can immediately be tackled by enforcing 3 essential steps. These steps are simple and pragmatic. The level of success we have in implementing them will determine our success in tackling the national energy crisis itself. 2: The best part of these 3 simple steps is that it doesn't require the government involvement at all; however the state can stimulate the success of these 3 steps through numerous measures. (D) Steps: -
1: Increase the use of bicycle The advantages of using bicycles need not to be mentioned, it is excellent ractice to use
both short and long distances. The use of bicycles has both health and financial benefits, especially when one sees where the price of petrol and diesel are going high. 2: Wide spread integration of residential solar water geysers 3: Replace all diesel and grid connected tube wells to Solar energy. 4: Pursuing these steps aggressively can substantially revolutionize the countries energy sector. 5: Pakistan has over 1200000 Tube wells which are working on grid electricity and diesel engines. Each tube well on an average consumes around 5000Kw of energy per month on the lower side, which means that a total of 5000 to 6000MW of electricity is consumed by these agricultural Tube wells alone. Provided all the above
to electricity. 6: Pakistan residential sector is consuming around 224,000 mmcft of natural gas, which is around 16 to 17% of the country's total consumption during 2011. Israel's 90% houses are using residential solar heaters, as it was made necessary by Israeli law to use them instead of using gas fired water heaters. 7: If we could start saving this essential resource by installing more solar water heaters, more factories and industries could open up once again. 8: The immediate steps that have to be taken for a greener economy and to cater the acute energy crisis are very much within our reach . 9: It is only our willingness to tackle the problem that will determine our
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
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resistance and performance of the steel itself (e.g., use of stainless steel in place of carbon steel for rebar in concrete), or reducing the corrosivity of the service Engineering Council and Corrosion Engineers of Pakistan. For feedback of this article Mr. Lashari can be approached via this environment (e.g., electrochemical email address chloride extraction for steelreinforced concrete), or altering the measures are taken to prevent or steel/electrolyte interface (e.g., Introduction control it. The corrosion of steel may corrosion inhibitors, metallic 1: Steel is a type of widely-used take many forms such as uniform coatings, non-metallic coatings, and engineering material for many corrosion, galvanic corrosion, pitting surface treatment of steel). These industries and can be found in corrosion, crevice corrosion, under counter measures can be used manufacturing, construction, deposit corrosion, de-alloying, and individually or synergistically in the defense, transportation, medical, stress corrosion cracking (SCC), practices of managing steel and other applications. The corrosion fatigue, erosion corrosion, corrosion. corrosion of steel as a result of and miaobially influenced corrosion chemical or electrochemical reaction (MIC). In addition to cathodic 2: Over the last two decades, is a spontaneous process, which protection, there are many traditional significant advancements have can compromise the materials technologies available to mitigate been made to improve the integrity and impact assets, the corrosion of steel. By either management of steel corrosion environment, and people if no enhancing the inherent corrosion through research, development, and Written by: Mr. A. U. Nasir Lashari Introduction: has done MBA in Marketing & Human Resource Management and B.Sc. in Metallurgy and Materials Sciences from University of Punjab. He is also a Professional Member of Pakistan
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
implementation. Nanotechnology has been playing an increasingly important role in supporting innovative technological advances.
interface (e.g., formation of nano treatment and subsequent composite thin film coatings on annealing. As the component steel). Significant improvements in elements in the mixture are the corrosion protection of steel mechanically alloyed "without have been reported through the co- recourse to any melting process", 3: First of all, improved deposition of N i-SiC or N i-A1203 austenite steel powders achieve "a understanding of corrosion and nano composite coatings on mild nano-size crystal grain structure inhibition mechanisms has been steel and the application of Ti02- that can never be achieved by continually achieved through naoparticle sol-gel coatings or conventional processes". This characterization and modeling of multilayer polyelectrolyte nano films structure is further reinforced by the steel surface and corrosion on 316L stainless steel. The solid-solution strengthening of products at various length scales incorporation of nano-sized particles nitrogen into an austenite phase. down to the nanometer scale. (e.g., polyaniline/ferrite, ZnO, The crystal grains are more finely Fe203, halloysite clay, and other divided on a nanometer scale by 4: Secondly, nanotechnology has nanoparticles) into conventional mixing a particle dispersant (e.g., been employed to enhance the polymer coatings also significantly AIN, NbN, TaN, Si3N4, and liN) or inherent corrosion resistance and enhanced the anti-corrosive mixing a metal oxide or a semimetal performance of the steel itself, by performance of such coatings on oxide in the MA process. achieving the desirable finely steel substrates. Furthermore, an oxide, nitride, crystalline microstructure of steel carbide, silicide, or boride of a metal (e.g., nano-crystallization) or by 2. Fields of Application or semimetal exists as a crystal modifying its chemical composition grain growth inhibitor between at the nanometer scale (e.g., 2.1. Steel Bulk Materials with and/or in the nano-crystal grains, formation of copper nanoparticles Excellent Corrosion Resistance preventing them from becoming at the steel grain boundaries). coarse in the forming-by-sintering Metallurgy approaches to the 1: Nanotechnology has been process. Such stainless steels production of high-performance utilized in endowing the steel bulk having a high N concentration (in steel with a fine-grain structure materials with excellent corrosion place of expensive Ni or Mn) were and/or self-organization of resistance and other enhanced reported to feature much improved strengthening nano phases properties, mainly by refining their resistance to corrosion and (carbides, nitrides, carbonitrides, crystal grains to the nanometer particularly to pitting corrosion as intermetallides) have been scale. The steel substrate with a well as significantly reduced burgeoning under the guide of nano nano-phased grain structure tends sensitivity to stress corrosion technological principles, including to have less defects or cracking (SCC). As such, they may nano processes for steel smelting inhomogenities where corrosion find a wide range of applications and micro alloying, mechanical attack traditionally initiates and/or such as high tensile strength bolts pressure treatment (e.g., intense propagates. The first invention in and nuts, bulletproof steel sheets plastic deformation), and heat this category discloses a nanoand vests, bearings, gears, tools treatment (e.g., superfast quenching crystal austenite steel bulk material for hot processing and extrusion, of melts) . One such technology with an improved corrosion and medical tools. commercialized in the U.S. resistance and ultra-hardness and produces high-performance carbon toughness, comprising an 2.2. Decorative and Protective steels that feature a "three-phase aggregate of austenite nano-crystal Coatings with Superior Abrasion microstructure consisting of grains grains containing a solid-solution Resistance of ferrite fused with grains that type nitrogen in an amount of 0.1 contain dislocated lath structures in to 2.0% (by mass). The steel is 1: Nanotechnology has been which laths of martensite alternate prepared by mechanical alloying utilized in decorative and protective with thin films of austenite". (MA) of fine powders of austenite coatings featuring superior abrasion steel-forming components (e.g., Fe, resistance (which helps to prevent 5: Thirdly, nanotechnology has Cr, Ni, Mn, and C) and an N- erosion corrosion and mechanical been employed to reduce the impact containing substance (e.g., N2, damage of the surface) and good of corrosive environments through NH3, and nitride of Fe, Cr, and Mn), corrosion resistance. The most the alternation of the steeVelectrolyte followed by forming-by-sintering recent invention in this category
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deals with a plastic, ceramic or metallic article having on at least a portion of its surface a smooth coating with the appearance of brass, nickel and stainless steel. Among the multiple superposed coating layers, a metallic strike layer was produced through physical vapor deposition (PVD). When cathodic arc evaporation (CAE) is used for PVD, adding a low percentage of oxygen during deposition was reported to have the effect of reducing the number of macro particles and thus rendering a dense nascent PVD layer with fewer defects. For zirconium, the resulting strike layer exists either as amorphous 1o nanosize crystals up to 50 nm or as preferentially-oriented crystals dominantly in (112) direction and up to 80 nm in size, with a small percentage of amorphous refractory oxide acting as precipitation hardening particles. By maintaining the flow ratio of oxygen to argon into the vacuum chamber during CAE, a stoichiometric zirconium oxide layer (preferably between 10 to 30 nm thick) is then deposited on the strike layer, which provides another non-conductive barrier layer to improve resistance to corrosion and pitting.
and corrosion under extreme conditions. The disclosed method relates to such nano particles as cerium oxide, nanoceria, or an oxide of an element selected from the group consisting of aluminum, silicon, scandium, titanium, yttrium, zirconium, niobium, lanthanum, hafnium, tantalum, thorium, and other rare earth elements. One possible mechanism is that these elements exhibit a reactive element effect (REE) that decreases the oxide scale growth rate and reduces scale spallation by improving the scale-alloy adhesion.
2: The invention suggests exemplary applications of this technology in protecting stainless steel [e.g., austenitic (304, 316, or 321 ), terrific (e.g., 430 or 409), and martensitic (e.g., 410) stainless steeij and nickel or aluminum alloys at high temperatures and in steam environments, service conditions often seen by fossil energy system components, heat exchangers, re heater pi pes, sol a r collectors/panels, refrigeration and heating equipment, vacuum and gas chambers, hydrogen fuel cell components, heat treating furnace components, flame stabilizers, surgical components, fan accessories, inlet-outlet transitions, 2.3. Protective Coatinaa to and automotive and aircraft Manage Damaging Oxidation and components. Compared with many conventional techniques for surface Corrosion treatment (e.g., physical vapor 1: Nanotechnology has been deposition, chemical vapor utilized in surface treatments to deposition, ion implantation, and improve the performance and sol-gel applications), the invention service life of steel and other alloys features simplified processes such used in oxidizing and corrosive as the simple dip me1hod or some environments. A recent invention additional surface treatment is directed to nano particle surface techniques (e.g., spraying, treatments and methods of brushing, spinning, and providing such treatments for electrophoresis), with a preference forming a beneficial oxide coating for the methods that reduce nano (e.g., thin and non-spelling oxide particle agglomeration. For layers) on alloys, thereby providing instance, the steel samples were the substrate with enhanced dip-coated with nano particles in resistance to damaging oxidation their respective solutions for once ENERGO STEEL JOURNAL PAKJSTAN APRIL TO JUNE-2012
---The most - -
recent invention in this category deals with a plastic, -ceramic or ----metallic article having on at least a portion of its surface a smooth coating with the appearance of brass
Of' 'II8Venl times w!1h Intermediate drying at 2oo•c. Mer ha.atlng to 1ooo·c for 34 hourt, tho 316 &talnl8188 8l8el ~e tlealed IIIith ~hada~,1ht\,
llllld edhon:mt oxido film foi mod on 118 surface, whereas lhe sample ¥~~!!out tho nano paJtldo traatment had lhidi.IIP!llod oxide -1o on it. w r1ace. Sl mI arty, be neftclaJ e1l'8cl8 of nanocerla 81Jrfaoo trea!ment fer 430 and 410 etaln~Ms.,. ob8elvad after heating to 800'C In air for some limo. The dltiUslon-
'-1 p!edldlvemodele~:l the lifetime of nanocerta·ooated ablinl- to be aigrib tUy greater til an th& unooa.t9d matlilrlal C.ligh temperatures In an oKidlzlng atmosphere. The resistenca to damaging oxidation of tile eelf-
glycol, and polyelher amine and the nanHcala additive iil1f)ltllld poly glycd eetenJ) le •I Jlwd In a high COI'I1)t!on raalata.nce of the solvent at the concenlnltlon 6- coar.~g relallll& lo the comman:llll 35 wl%. Then, a rnelal sell {e.g., gradas.lnone_,.,plo, thOCOIIItiiiQ chloride, b~mlde, ch~ata and Wit!at tilg the nani)-SC81e addlltv9 ptolad!ve aurfaoe& !J8nera18d after acatate salts« Zn, Fe, Nl, or Cl') wllhatood a hanlh chlorfde·laden different nano particle aurfeca dilaollled aepltllllely in tha aama environment at so•c even for 8
treatmente waa found to be compal'llllle to that ob&arwd wtth 111111oceria eu'fece baeb•••IL Tee of nano CI'Ylllalllne-coated and utiC081ad aloya (e.g., 304, 321 n 430 etllinleee .-;,) COIIfilmod tho corrosion reslata.nce of tile selfprotedlll& aurfacaos towards humid air,~ c:ii'IIICtc:on111dwith liquid In the temperature 111nge of 160"C to sso•c, towards submorged _..ice in high ••linity eolutions, end towad811le VIIJIOf' ~ alloYe th- solllllons. corrosion coatings or for llanaalna tile CorroalvltY or 88Mca EIWIIOI•nent 1: Nenotochnology ha• been utilized In preparing nano-11lzad addiiWia tor ooaangsusad 1o Jli'Ciact •tael and other metal• from
corroalve envl~nments. A r8C8nl Invention (24) 18 directed to a proceea for praparlng dllpe111lon addltiYes usetul for antklor!'o81on coalinga. Finrt, a polymer havi~ ather or amine groups (e.g.. po~ene oxide, polyethylene
«
«
aolvent at the conoenlnltlon 410 wt % 18 added. 1lle polymer and tha salt ere elei'Mid fill ~geet fer an ex!eilded period to fonn a QOfllllex. which Ia than reacted et 10-aD•c with an alkali (o.g., •odium h.JiiCAdde. potassUn ~oxkte and liquid ammonia) fer 4-8 houra to fonn a colloidaJ p~it*- Finally, the precipitate Ia separated ~ tho reaction mixture by centrifugrion Of' filtrrion and then drted and ground to flne powder (with particle size of 2-50 nm, preferably 3-5 nm}. The roN1Inu powder can be used aa nanl)partlculate dlsflilll'lllon addlltlle In coalinga to pf8vant comiSion of steal substrates In harsh OIWI ron I'IWIIa (e.g., ·11111!1?· SUch nanO«aae addlttvee <:en be ueed et a much lower COI1cantratlon (typically 2·5 wt %) then the conv~~ntlonal-grade flne pigments (typically 60-70 wt %) Without the laaa of corrosion resialllnoo, thi.IS providing the coadng with much llgharq:Gcal ~and snlOOIIlness end reduced risk Gf aaclci~. The eklc:trochemlcsl teatfng of coated mild steel 81Jbs1ra1118 lndk:allld that
hours, wheraae the coating containing the commercial-grade eddi!MI feilod immedielely within 1 heir. 2.5. Nanotechnology for Intelligent Corro&lon Ptolllellllll
sm.m.
1: The last but not the taut lnlar88tlng fteld of appllcaUon for nenotec:hnology ia it• u1e for Intelligent corrosion protection eystems. A recent Invention diw • - ei'WMIIIIPPIWCh fer tho pr11paratlon of •smart" corroalon· lnhlbHing pigment and Ita utw~ In t!Oif-heeling ~on coring~~ In tlhe form of a powder or a auapenslon, In wllld\ tw10 psrudee (tJ.g., Si02, Zr02, Tl()2, C4I02 nttnD paJtlcles) 8/8 coated !eyer-by-layer (lbL} wHh or more layers of pdymwOf'~ehel{e.g.,
poly (al~-lmlna), poly ~a glcol, and blopolymera and poly amino aclde) re•pon•lve to a apedllc alfmulua or lrlg1J8r. These particles thus act M nano acala ~111 fer lhe affec:ttve atot11ge of the corrosion Inhibitor (e.g.,
quinaldic acid and mercaptobenzotrlazole). The method of producing the intelligent coatings was reported to be costeffective and easy-to-implement, as the nano reservoirs provide prolonged release of the inhibitor. The corrosion inhibitors are released in a regulated fashion, mainly to the damaged coating zones and/or corrosion defects where they are most needed, thereby providing active, long-term corrosion protection of the coated substrate (e.g., steel and aluminum alloys}. In one example, the Lbl deposition technology was utilized to coat Zr02particles (with average size of 150 nm) with multiple poly allyl amine) /poly(acrylic acid) layers, within which qulnollnol was entrapped as the corrosion inhibitor. The self-healing effect of a sol-gel coating doped with such nano reservoirs was demons1rated by the scanning vibrating electrode technique and attributed to the release of quinolinol in the damaged area when initiated by pH changes caused by the corrosion of the steel alloy substrate. 2: Another invention in this category is directed to the use of multiphasic nano-components (MPNs) for detecting or mitigating the corrosion of steel and other metallic materials in biomedical applications. For instance, multiphasic nano particle compositions can be prepared by electrically jeUing polymer fluid In a side-by-side configuration. At least one phase of the MPNs Is designed to have good adhesion to intact or corroded metal surfaces, using the excellent binding affinity of functional groups (e.g., hydro.xyl groups, slloxy groups, amine groups, phenyl groups, catechol, or their combinations). The MPNs can be employed to "diagnose or image certain regions of a metal surface
due to specific binding (for instance, detecting regions of corrosion on a medical device)~. to "provide a biological coating of the metal surface to prevent corrosion and/or to improve the biocompatibility of the medical device surface In 'llfvo'", or to enable both diagnosis and corrosion protection.
techniques and new applications can be expected along with new products to be Introduced to the market. For instance, one area of Interest not covered In this review is the use of nanotechnology for sensors and Instrumentations which will play an increasingly Important role In the management of steel corrosion. Similarly, the 3. Current & Future Developments use of nanotechnology tor cathodic protection is another emerging field 1: Recent inventions related to that is yet to produce some the management of steel corrosion inventions. include the use of nanotechnology to produce high-performance steel Concluslon:to produce coatings with superior abrasion resistance and good Nano~n~ogyhasdemons~ corrosion resistance to enhance its clear benefits and will continue the surface of steel designed for to play a key role in the production oxidizing and corrosive of high-performance steel. Future environments and to prepare nano- developments will be centered on sized additives for anti-corrosion furthering the understanding of why coatings or Intelligent corrosion and how superior corrosion protsction systems or for reducing resistance (as well as other the corrosion risk of the service desirable properties) of steel can environment • Many of these efforts be achieved by the design and will undoubtedly conUnue by the control of Its chemical composition inventors and more cost-effective and morphology at the micro- and solutions will emerge as a result nano-meter scales (e.g., through of the advanced knowledge base micro alloying and thermal and continuous Improvements In mechanical treatment). Progress In research and development as well steel production technology will as In production technologies. The open possibility of rapid change In great potential of nanotechnology steel metallurgy and increase the in this field is not fully achieved competitiveness of nano-enabled and in the near future new produdB.
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
By Mr. Atlque Ansari & Prof. Waslm Uddin Ahmed Khan
Note: The below article is based on the presentation delivered at AISTech 2010 Mr. Carsten Born (Tenova Re Energy GmbH) and Mr. Carlo Raggio (Tenova SpA)
(A) Introduction 1: An Electric Arc Furnace (EAF) is a that heats charged material by means of an. The electric arc furnace (EAF) (together with the basic oxygen vessel) is one of the two modern ways of making steel. In the UK, EAFs are used to produce special quality steels (steels alloyed with other metals) and some ordinary (non-alloy) quality steels -the lighter long products such as those used for reinforcing concrete. The EAFs making special quality steels are located in Sheffield and Rotherflam
small units of approximately one capacity (used in for producing products) up to about 400 ton units used for secondary. Arc furnaces used in research laboratories and (in Yorkshire}, while those making by may have a capacity of only a ordinary quality steels are at few dozen grams. Industrial electric Sheerness on the Thames estuary arc furnace temperatures can be in Kent and Cardiff in south wales. up to 1,800 째C, (3272 째F) while laboratory units can exceed 3,000 2: Unlike the basic oxygen route, oc. (5432 째F) Arc furnaces differ the EAF does not use hot metal. It from in that the charge material is is charged with "cold" material. This directly exposed to an electric arc, is normally steel scrap (recycled and the current in the furnace goods made from steel which have terminal passes through the reached the end of their useful life}. charged material, Other forms of raw material are however available which have been 4: The modem electric arc furnace produced from iron ore. These typically makes 150 tonnes in each include direct reduced iron (DRI) melt, which takes around 90 and iron carbide, as well as pig iron, minutes. which is iron from a blast furnace which has been cast and allowed (B) Special quality steels. to go cold, instead of being charged straight into a basic oxygen vessel. 1: A vast range of special quality steels is made in electric arc 3: Arc furnaces range in size from furnaces by adding other metals to
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form steel alloye. The moet commonly-known of these ia atalnlees steel, which haa chromium a.nd nickel added to form e c:orroalon·reslstent steel. There are very many othera llo-.1he vary ham .teelei*ICI
to m11ke mii.Chlne tools, 1he lltasla apeaallf-formliated to make !ham eultable for engineering, steels d-lopad to .ur;~..., for dac:edae 1he hoatie envircnnlllllt fl! nuclear reactors, light but strong steels ueDd In aeroepac:e, ex1n1 tough IDels for .-mour plating ·Ill nsme but a few. (C) Hllltory
1: In 111819111 century, aBJr!Wof :z: The nm electrfc arc 1\lmaces men hed employed 1111 electric enc were davelaped by , of , with a to melt • Sir conducted an con 111 l8l'dal plart 881ai)j l8hed Ill the elq)erfmental demonstration In In 1907. The Sandersoo brothers 18iO; welding wu meetlgiollld llf formed Tha Sendaraan Bro1hene steel Co. in Syrecuae, New YOitt, In UJB Ul\1 lll!llall~ the lntelectrfc are fum8ce In the U.$. Thle fumacel8 now on EAFs are used display at Station Square, Pittsburgh, Penn~vanla.lnltlally produce special "electric Ileal" wn e epeclelly productforauch and .Arc quality steels ~ W81'&8111o uaed to 1ft11818 (steels alloyed wiih fill' 1M In • The ~no 411ectrtc fumaca Ia en ..: type that usuely other metals) and ro1ates to mix the bath. Tha Girod I'llmace Is elmllar to the HOroult some ordinary fumllce.
to
u-•
(non-alloy) quality steels • the lighter long products such as those used for reinforcing concrete. P8PV8 Ill 1815; Pinch on atlllmpted to CRaiB tn elactn:AI•tric limllce In 1863; and, In 187&-79, Sir took out for electric; l\lrnaC88 fl! the 8nc type.
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3: While EI\F$ WW&'IIIdety IMd h Wadd W.ll fill' pnxilctlon fl! aJoy lllllels, i t - only 18111r th Ill eladri c Meelrnaldng began to eocpend. The low capilli! coat for a -round U8$t40-200 per of llmUIII it ' "ad ~.competed v.lh US$1,000 par ton of 8 n1'411111 natal led cepa.t:lly fill' en -t!lbwed mills to be qlicldy eelabl8hed hwai'I'IMI08d Eutql&, and also allowed them to •JCCaeafully compete with lhe big eteemak.er8. ai.ICh ae and , for towcoet. "''cq pnxilt:ls" (.rod a.nd b6r, .-1} In the U.S. maJialt.
APRIL T0-'1~2
4: When -mN one fl! the larUNt lltael pnxiJC11111111n tha U.S.dlldded to entel' the long products Mill kat In 1989, they clloee liD Wlrt up a mini-mill, with an EAF u Ita
..,makilg furnace, socn fol~
by other man1.11'acturer11. Whilst Nucor exp~~nded rapidly In the Eastern US, the companiea that followed tham ln10 mlnl·mlll ope ratione concentrated on locel metkela fill' long producta, whena 111e uae fl!an EN' &lowed the plarm to vary~ acconlng to local demand. This paltem we• al8o foll111118d globally, W1111 EAF steel ~on prtma~ty used fill'~ pmducta, whlla lntegntltlld mills, ullirlg and, comared thell'l&lbts tor "ffat product.11"- and heavier lltael plete. In 1987, Nucor mad& the deciaion to expand into the fllll pro0.m lll4ltr.et. 8111 uwglhe EAF producllcn malhod
fDl Conlltrucltlon 1: A pi na enc fln'fll.os (PAF) . _ torches Instead of graphite electrocles. Each fl! 111- torchee oonalata of a 011111lng po•lded with a nozzle and an 8lCI81 tubing for feeding 8 pla9ma-formlng gaa (either nitrogen or argon), and a
burnable cylindrical graphite electrode located within the tubing. Such furnaces can be referred to as "PAM• (Plasma Arc Melt) furnaces. They are used extensively in the titanium melt industry and similar specialty metals industries. (E) Vacuum arc remelting
1: Vacuum arc remelting (VAR) is a secondary remelting process for vacuum refining and manufacturing of ingots with improved chemical and mechanical homogeneity. 2) In critical military and commercial aerospace applications, material engineers commonly specify VIMVAR steels. VIM means Vacuum Induction Melted and VAR means Vacuum Arc Remelted. VIM-VAR steels become bearings for jet engines, rotor shafts for military helicopters, flap actuators for fighter
jets, gears in jet or helicopter transmissions, mounts or fasteners for jet engines, jet tail hooks and other demanding applications. (F)
Recent
Development
1: There are several reasons why steam producction is the best operating practice for flexible heat recovery from a modern EAF. Steam can be used for many purposes (ie process steam, heating, compressor operation and power generation). A wide temperature range exists (similar to off-gas temperatures - steam tem-peratures can be variable), in addition to which steam is relatively easy to transport, water is an inexpensive and non-toxic base and the process uses proven technology. The technology used to tum waste gas energy into steam is called ECS
or Evaporative Cooling System. An ECS waste gas duct is a tube-tubeconstruction, which looks similar to a conventional cooling duct. 2: The main difference between an ECS and a conventional cooling system is that pressurised water at boiling point is led through the piping. The chosen temperaturepressure combination is detennined by the required steam parameters at the plant, typical values being between 13 bar/192°C and 28 bar/230°C. Higher pressures are used to run steam turbines. 3: The almost boiling water absorbs energy from the waste gas by evaporation and the physical process of evaporation consumes much more energy than heating water for 20°C more. 4: An ECS system is designed for partial evaporation of the water; typically no more than 5%-12% will be evaporated under normal operation conditions, which means there is spare capacity in the cooling system.
ELECTRIC ARC
5: Heat recovery is the main driver behind today's growing importance of ECS technology used on EAF furnaces. Benefits other than heat recovery are viewed as secondary advantages.
A
Roof
B
Electrode Ring
c
Slag Zone
D
Sidew~l
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Bottom Safety Lining
J
He~rth
K N
Safety Lining
L
Filling Mixes
M
Cold Zone
Furn01ce Door
0
T01pping Spout
p
Rep01ir Mixes
Q
T~phole
s
Charging Door Repair
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6: The waste gas ducts work with radiation heat transfer, which is efficient down to approximately 600°C. Below this temperature, heat transfer by convection becomes more effective. In other words, a waste heat boiler must be used to recover the energy between around and a filter inlet temperature of 180-250°C. Due to the high dust load of EAF waste gas, the design of the waste heat boiler must be planned carefully.
eoooc
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ENERGO STEEL JOURNAL PAKISTAN
Interview with
Mr. Kashif Shah
33
down-stream integrated oil business as Advisor to the Sponsors. He has more than 20 years of experience, including sixteen years working in the financial services industry at various senior level positions. Mr. Kashif joined Arif Habib Group from mid-2011 and apart from his position as Chief Executive of Aisha Steel Mills Limited, which is a JV between Arif Habib Group and Metal One Corporation (a majority owned subsidiary of Mitsubishi Corporation) he is also rendering his services as a Director of Arif Habib Corporation,
start production in near future. Bulk of the market requirement of the import is met by local market. However Aisha Steel's production capacity of Cold Roll Coils will be from 215-350 MetricO Tons. Hence more than 50% of local demand will be met by Aisha Steel Mill. In fact Aisha Steel will supply more than combined supply of Pakistan Steel and International Steel. Aisha Steel will be the largest CRC Producer in Pakistan.
Corporation in the supply of machinery?
it is not really a commodity. There Ans: Cold Roll Coil manufacturing are certain types of grades which is a new sector for Pakistan and will be utilized by Automotive Sector Steel manufacturing company's or will go in wide product sector, perspective is new for me however; which require certain type of when it is concerned with the machinery. Aisha Steel has that financing of Steel Sector I have facility, for instance ECL which is been involved with Pakistan Steel knoYm as to be Electrolytic Cleaning as well but from a banking side. Line Aisha Steel owns it in Steel Unfortunately Pakistan lacks in the sector and have an advantage for generation of Energy & Steel, the quality. Cleanliness and finishing infrastructure, which is considered required by high end grade as the basic requirement of any customer on CRC sheet will only developing country. The total be provided by Aisha Steel. demand of Cold Roll Coil in Pakistan Secondly Aisha Steel is equipped is about from 500-550 Thousand with High CVC Cold Rolling Mill Metric Tons but unfortunately Cold which is the latest technology of the Roll Coil manufactured in Pakistan wortd. Steel is of about 100 thousand tons only. We hope thatAisha Steel may Q-3: What is the role of Metal One
must have noticed that I am not considering 1hem as our competitors as we are not competition with Pakistan Steel or International Steel; our competition is imports. Even if Pakistan Steel, International Steel and Aisha Steel continue to work for local market we will hardy be able to make small difference in imports. So the quantity Aisha Steel will be manufacturing it will there to reduce imports. And thafs why I am saying and I have a firm believe that this is a positive contribution towards the national economy.
Ans: Metal One Corporation is our share holder company I am talking about our machinery suppliers that our machinery is latest and brand new. The annealing furnaces are from wortd's number one producer of industrial furnaces Ebner of Austria. So when we compare us with other manufactures then we are the only one with Japanese machinery and Japanese Q-2: Will there be a price difference technology. The quality and finishing in between CRC manufactured by of products which we will Q-1: How is your this new Aisha Steel and other makers? manufacture other manufacturers in Pakistan are not able to produce experience with steel industry of Pakistan? Ana: CRC is like a commodity but that quality of CRC. But still you
Q-4: What is the source of Raw Material for Aisha Steel? Ana: Raw material for Aisha Steel
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
35
customs. In this regard we are also with extra efforts. Further I would engaged with government on like share about an international certain levels with the help of our survey that Pakistanis are 4th most Japanese investors as this import intelligent nation of the world. So issue is their major concern. these are all positive signs. So we only have to boost up our economy Q-9: The imported Japanese and I firmly believe that this country vehicles remain corrosion free have lot of potential. Coming back however the lower portion of locally to your question well there are three manufactured vehicles get affected more sub-sectors CQ which is wHh corrosion or rust in a very short Commercial Quality, DQ which is span so will you consider Corrosion dropped quality and DDQ which is In factor for your products and what Deep Dropped Quality. technology will be used in Aisha Commercial Quality sheet should Steel to prevent the retained quality? not be bend neither any shape should be formed. This is one end Ana: Yes we have consider this as of spectrum the other end is DDQ I explained earlier that Aisha Steel in this for example you take a sheet is equipped with latest technology and formed a tank out of it the and we will not compromise on characteristic are different. Then quality so we will produce a CRC there is a middle quality DQ in which
made to order characteristic but with us they will have this facility evan up till 50 metric tons. The biggest problem for downstream vendor industry is excess to consistent quality raw material and CRC is their main raw material which don't avail currently. The big vendors do import direcUy however the small vendors have to cope-up with dealers as they cannot open their FC. Dealers do make one package for his ten clients so if I need DDQ and you need CQ but dealer will not differentiate he will deal all together so the outcome will either favor you or me. So this is the major issue being faced by downstream industry and Aisha Steel can meet all these demands and can satisfy it on 101%.
with cleanness and quality that whatever treatment will be done by end user against corrosion it will lasts. So if our end user will do a proper treatment than there will be no difference in Japanese vehicle and Pakistani Vehicles. There is one more thing in Aisha Steel as it is a newer sector in Pakistan so we have Japanese experts with whom our local engineers are in contact in fact today also they are in training as we will start production by the end of this month. Our Pakistani Engineers are Masha 'Allah very intelligent and do have quick laaming skills. And I am very happy to say that they do learn very fast
Q-1 0: What will be your marKeting Strategy?
there will be mixed characteristics. Aisha Steel is capable to produce all these grades. Now talking about hardness our machines do have this capability as well depending on what quality of hardness is required. For example the lower part vehicles is also being made with CRC which should be hard for it we will keep its hardness 60-65 may be close to 70 further for the softer part we will keep around 5055 the advantage of being a local manufacture is end user can come to us and we can produce according to the demand. Currently the problem is as the CRC are being imported they cannot ask for
Ana: Aisha Steel Mills is a joint venture where Arif Habib Corporation is a majority shareholder along with Metal One Corporation which is world's largest Steel trading company and Universal Metal Corporation as partners. Metal One Corporation is a part of Mitsubishi Japan who own 60% shares in Metal one and is on controllable side and Mitsubishi is in Pakistan since 1955 and Mitsubishi Group has even today supplying various types of steal to its dients which going forward they
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generating jobs and has invested hundreds of millions of dollars in this country to work so this is the question our Japanese colleague chairman of our board of directors Mr. Kino Shita asks. He is a very senior official in fact number two in Metal One Corporation so he called me and he asked me what we are doing about this. So you know you can imagine the seriousness of this issue so now he wish to meet the higher officials and ministry of Pakistan to raise it to that level. And others as I mentioned which is going on is mis-declaration material comes at port they don't declare it as CRC and pays zero percent duty so the first looser in this process is Government of Pakistan because they lose the tax money, second looser is industry and the third looser is downstream industry; because the quality that we are trying to make available to them will may not be provided so this cycle needs to be stopped. Than under invoicing I mentioned to you that 38-40% discount they claim. I wish to buy their secondary material at 40% discount. So these are issues which need to be taken by Government of Pakistan. Q-13: We are facing worst energy crisis in recent times, what are the alternatives Aisha Steel will be using in production phase? Ans: Fortunately for us CRC process is not a large consumer of Energy. The most of process is done on room temperature so whatever the temperature is we deal with it. The only process where we use gasses is annealing furnace but even there it is not to melt them it is only to retrieve the chemical properties so we need it to only 390 - 590 degree only for shorter duration. And then it is being cooled steadily. So it is not that we have to melt it that's why the consumption
is very low. As for energy utilization where gas consumption is concerned as less as 1 mm CST is being consumed. On the electricity side the sponsor had a vision even when this project was setup so we have a 132 KVA connection with KESC so we have a dedicated line as industrial sector is exempted from load shading so are we . Unfortunately for CRC mill you cannot operate on captive power because the talks are so high that at par the consumption is 12.5 Mega Watt and our set is on 15 or 18 MW at our plant and our motors are of 2.25 MW each. So when start and stop in every 2-3 minutes so that pressure a local captive unit cannot sustain. That's why even if I have local captive plant I have been doing barter with KESC I will go to KESC and will still buy it from KESC exactly what Pakistan Steel does. They also work on KESC power and whatever they produce they barter it with KESC. But in our case because we are on 132 KVApower so we are saved from load shading. In this I would like share one of my interesting experience I had been to Bangkok they are lot of service centers of downstream industries for CRC and I asked them also I said even Thailand is facing load shading as we do in Pakistan. They said government entered into 15 years binding contract with us that not even one second of load shading will be done in this area and in return the downstream industrial sector have guaranteed the more investment. I feel the same level of agreement government of Pakistan needs to bring in. For example if they ask our Japanese partners that will you do more investment if we assure you these few things even without talking to them I can assure you that the answer will be yes. But on the other hand If you say I can't control smuggling, I can't assure you law
and order situation your life is not going to be safe but I still want you to invest more so that is one way of asking question. The other one is I will take care of all that you can wish which means that no illegal competition, no smuggling, no under invoicing I will provide you energy as per your requirement and I will assure you the law and order situation even without law and order just say yes to our first two points our Japanese partners will be ready to double their investment they are very hopeful about Pakistan. They say Pakistan is trapped in vicious cycle but we will take out it. And that is then there will be tremendous grow. So all what we have to do is to fix our energy crisis, and also the border situation where we have to control smuggling bring in order and I think country has right to grow. Q-14: It is believed that India has started penetrating in steel sector especially Automobile sector what impact will Indian imports in Pakistan have after the production phase of Aisha Steel will start? Ans: See India is much ahead of us and as far as steel sector is concerned Indian government is providing them incentives in their country which one can't even think of in Pakistan. They integrated mills. The government of India has announced that we will provide you Iron Ores at the discount to the international market prices. So that made their raw material price 25% cheaper than rest of the world. I think there is no comparison with them we still have a long way to go. But in terms of quality Aisha Steel is not saying that we need anything extra we are able to produce quality products and I can fight imports from China, Japan and Korea than I can fight imports from India as well so we are alright. However, it should be a two way street. The problem
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with India Is which one needs to understand is that it is not that when we say zero tariffs to you and zero tariff to us that's very fine. When we say zero tariffs we mean it when they say zero tariff then there are millions and one none tariff values badly there. If I will have to sell my product there then they say ok; once it comes on our port then there are millions of licenses you have to get and in order to licenses it takes more than 6 - 12months to complete the process. So imagine the inventory carrying cost I have to pay. So therefore it is important when we are trading with India, there should be level playing seats. And Non-Tariff Barriers must go away because otherwise they will take full advantage of Pakistani Market. Pakistani Manufacturers will not be able to take advantage of their big market. So if their NonTariff Barriers are not there I believe we have more to gain from there because we can produce quality products we can also export to them. Q-15: What percent of market share is expected for Aisha Steel to have after its production phase will start? And what measures you will take to ensure that end user do make purchases from Aisha Steel? Ans: First thing is our pricing will always be fair which means that we will sell on import prices. As if any party would like to import from outside they can purchase it from us on the same price rates. Our prices will be same but our quality will be better than imported products. Further they will have an advantage that they can purchase the quantity of their choice. It is his choice to either purchase one coils of 1000 tons this is the flexibility we are offering to our customers. Besides, he does not have pay bank charges, LC cost or working capital
etc this will be his savings. He can purchase any time all he have to give cash and can collect the desired quality CRC at the same time. As far as the market is concerned we feel we will be able to capture two third of this market. We have plans to expand. Currently the biggest challenge is the smuggling from Iran. Since this has been started Japanese are getting cold feet that yes we are ready to expand in this country we are ready to do more technology transfer and it is not just a capacity expansion of CRC only that I am talking about, we will do that also but they say we want to go in downstream industry also we want to not just produce coils we want to produce sheets, we want to produce shades etc.
even any plan regarding thins in coming 5-7 years. Q-17: Are there any plans for Arif Habib Group to invest in Energy Sector? Ans: Our group has view in energy sector to support the country not in monetary terms. There is a project going of 50 MW in Karachi near Khaddo jointly with a group. Working Is going on filing has been done. Besides this regarding furnace oil power this is a torture for nation. If we talk about gas than there currently there is no gas. Wind Power is only affordable option however the wind technology is new for Pakistan.
Q-16: Won't this attempt cause a competition to Aisha Steel?
Q-18: Is it possible that we can produce 200 MW from Wind technology?
Ans: No, see take any manufacture for example a motor cycle assembler he will say he does maximum out sourcing he purchase CRC and has to do five of its steps. So whatever cost those steps will caused him we can do them in minimal cost in comparison to him because we have economic scale. This business model has been practiced by Metal One Corporation in 26 countries of the world we will be the 27th country following it. So they also want to work so we want to do more value addition to this country. At times there are talks of backward integration that we don't we produce HRC, we done we produce slabs etc but there it comes the big issue of energy. Because when we go in backward there are much energy requirements. Let's say usage of 1 mm CMT and 12 MW which is nothing. But when talk about backward I will be in need of 200-400 MW electricity and 80-90 mm CMT gas and these are not available here in our country not
Ans: The available wind corridors are currently producing 1000012000 MW electricity in India. So this has lot of potential. The only thing we need to see is the tariff which is under consideration and issue of Government circular desk. Pakistan should go in alternate energy such as non-fossil energy that is wind and hydel (Water). Allah talah has blessed Pakistan with abundant natural resources. If you approved one project of ten thousand MW the pay back can be gain in few years' time because that will replace furnace oil. When you will replace furnace oil with Hydel then there a big difference in cost. As I have worked a lot in banking sector take the rental power fiasco. Irrespective of whatever people say we do have our Coal. I know this is not of good quality but it is usable. Government need provide infrastructure. There are many companies in Private sector who are interested to invest in power sector. If government provide
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
facilities our group may also invest Tuwairqui Steel will be in the same. As we have good manufacturing the raw material for relations with Japanese they may that sector. There are 200-250 be interested you may invite companies are operating in Long Mitsubishi and other groups. In wind Steel and only 3-5 companies are technology our neighboring country there in flat products the reason is is making 10000-12000 MW with the capital cost in flat products is this facility. This will be expensive high however AI Tuwairqui is big electricity in comparison to water investment. When it comes to and coal. So in combination of these investment in future and for example three I can suggest government you say to invest in energy project should start work on production than even on being Pakistani citizen 1000-2000 MW with wind power I will not suggest you to invest as this may come online with 2 years, thiswillspoilthenameofmycountry with Coal it may come online within due to current energy crisis. So the 4 years and with hydel it may come solution for energy crisis is much online within 10 years so we don't needed because if energy will there really need to produce electricity on the investor might even overlook furnace oil. No country in the world the clause of law and order situation is producing electricity on furnace because he will than manage it with oil. We need an integrated policy pricing because our country do have for this all which means if the start that potential of pay back. So law today on coal or hydel we have to and order is important and but not see how the refineries will upgrade critical; here the critical thing is with the time. Because all the energy. When there will be rule of refineries exception to PARCO are law and energy in this country many on hydro-crashing. So if this policy more investments will come to is being followed after ten years invest. There are countries who Pakistan will be cost effective in have defaulted like India has energy that this electricity robbery defaulted also Pakistan never have will be stopped. By increasing the done. Even when we nationalized rates of electricity you are pushing we said that the companies majority people to attempt the crime of own by foreign will not be robbing electricity. Increasing rates nationalized. So our law on papers of electricity is actually not a solution is very strong, very clear and very government need to make it much advanced in comparison to affordable which will stop this social anyothercountryin region including crime. We do have resources but India. Our capital markets do have are not availing them. clarity. So our things are rights but in fundamentals two to three things Q-19: From the investment point of are needed to be done. There is view considering the current another thing I would like to add situation and scenario of Pakistan about infrastructure we have only will these international groups would two operational ports, Port Qasim continue to invest in Pakistan? and Karachi Port Trust increased their depths. Our project is small Ans: First I would like to clarify but if I say about integrated steel that steel sector broadly is divide in mill and I say I would like to import two sections one is flat products in 100,000 Metric Tons but there is which we, Intentional Steel, not space for 100,000 metric ton. Siddique Sons Tin Plate and So we are in need to invest in our Pakistan Steel's CRC Mill are part infrastructure and energy so there of it. The other is long products and will be an ultimate increase in
investment. Q-20: There many officials from Pakistan Steel who are working with so how much they are helpful for your organization for example the Ex-directors and officials? Ans: This is an unbelievable advantage for us. We are fortunate to have them as we will not have been here if there experience and knowledge would not be there or either our cost would have been increased as in that case we would have to seek help from foreigners in every aspect. In fact it will be good after two- three if any other foreign group come and invest in this sector they also get benefited with them. This might sounds odd from the CEO of Aisha Steel but this a fact of life that I am a Pakistani first than an employee of Aisha Steel. So after two years from today I can proudly say that these people came with their expertise to us and they practice it so now if they move ahead and share their knowledge and expertise with others it will be good and we will hire more other people and will train them this is a cycleandthiswillgoon. However, this was unfortunate that Pakistan Steel was founded but in these 2530 years nothing happened in case of flat products. International Industries Limited came up with small project and now International Steel Industries has come in operating phase. Q-21: Do you plans for further expansion and investments? Ans: Yes we will do expansion as it is in our policy. Q-22: Will Private Sector be able to boost up public sector in case of steel making? Ans: First thing I would like to say
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if enabling environment being created our both groups Artf Habib Group and Mitsubishi are ready to do much more Investment In steel sector. The reason is this sector has potential as no much investment had been made in past in it. So our two groups are willing to invest resources financial and man povver. But the question is hoiN much roam we are being provided with from government in terms of enabling environment. If there is no energy then we will not invest in the projects where there is much need of energy. So therefore we cannot go in backward however, major investments have been made in bacf<.ward. So billion dollars can be made in backward projects in case of availability of energy. Projects In forward are not much energy Intensive we will do them and will make investment and will do bring In new technology and will also launch new products in Pakistan. This will beneflted downstream industry as their local vendors will not only provide their produced raw material to Indus Motor Company. Honda and Pak Suzuki they will also be able to elCP<)rt their products not only in Europe but also in Far East. As there labor is expensive and our labor is cheap.
Pakistan how he see its future in Pakistan?
Ana: Arlf bhalls very optimistic about Pakistan. He has made all his investments hundred percent in Pakistan. He has invested in all those sectors which are aS150Ciated with the growth of Pakistan's economy. Pakistan is an agriculture country. For the development of agriculture economy he invested in Fatima Fertilizer and Pak Arab Fertilizer. They are not only producing urea but also their value added commodities. Cement and Steel sec!Dr investments are related
to the growth of infrastructure of Pakistan. He has vision to invest in key sectors which can be resourceful for the development of Pakistan. He involves personally in Ans: Our first priority is to fulfill the case of CSR and charity aspects demand of Pakistan as it is our also. Despite of the fact that Arif fundamental objective. When will Habib Group is among the five do expansion after that we will leading group he Is of very humble export. And as I you can compare nature. our producfs quality 'With any other intemational quality CRC if not more Q路23: Is there any possibility that than those then not even less than Government may privatize Pakistan it. Steel? Q路23: The products which will be produced by Aisha Steel Will these be exported?
Q路24: You have been associated Ana: First I would like to clear the wHh Artf Habib Group, what Mr. Arlf point that earlier prlvauzaUon was Habib thinks about investments in a consortium. In that there were two
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main partners included AJ Tuweirqui Group and another was MMK a Russian Company both were controlling shareholders with 80% sharing. And in rest 20% there were some very reputed groups and Arif Habib was one of them. So as Arif Habib is better known in comparison to MMK and AI Tuwairqui also because there construction phase was not very much started by then. it was mistaken thatArif Habib might take over Pakis1an Steel which was not true because neither the chairman was from Arif Habib nor the CFO besides we hardly had one seat in board of directors out of twelve. As far as concern to privatization I feel and it is a policy of our group also that Government should be making policies and providing enabling environment. Business should not be done by government with the exception of those project which cannot be done by private sector for example Infrastructure. They do take taxes from them and they should utilize those taxes in the development of country's infrastructure so Pakistan steel get privatized and an enabling environment may be provided I think when such time will come our group's knowledge and experiences would have grown to another level. Further the invaluable resources we have in the form of ex officials of Pakistan Steel they are vary passionate. If you sit 'INith them you will get to know they do have ideas if you ask Mr. Tanq Baig Sb he will lei you know how by spending 1015 million dollars how much more production of Pakistan Steel may be Increased. As you may know Pakistan steel is not only a mill but they do have a work shop as well which work as a HMC and where several things can be done. So If enabling environment be provided there Is a potential In sector In Pakistan to grow.
One cannot but begin to admire the overwhelmingly powerful nature of the divine verses of the Holy Quran, which were revealed some 1500 years ago. The One- The Almighty- The all Knowing ALLAH (Subhanao- waTaala), the Author of 1he Holy Quran in just one line verse of chapter 27 Surh •.AJ.Hadeed• verse no. 25 gives the precise account of the origin of Iron;
"And WE sent down Iron which Is strong and has many beneflts for mankind"
The verse reveals the astonishing to various types of steel. It is now fact that Iron was not the naturally intended in this issue to discuss occurring element on earth but was advancements and progress made actually added to its constituents in the field of ferrous metallurgy at much later in the shape of indus1riallevel including a brief look meteorites raining down on the earth into global history of iron and steel from distant galactic bodies such production. as giant stars and it is found on 1he earth in the shape of meteoritic THE ARCHAEOLOGICAL IRON AGE element. In the previous issue of this 1: The Iron Age is the magazine we discussed the archaeological period generally amazing facts about the origin of occurring after the Bronze Age, Iron, its properties, various me1hods marked by the prevalent use of iron. and processes through which The early period of the age is meteoritic iron is turned into useful characterized by the widespread metal including a brief introduction use of iron or steel. The adoption
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of such material impacted upon other changes in society, including differing agricultural practices, religious beliefs and artistic styles. The Iron Age as an archaeological term indicates the condition as to civilization and culture of a people using iron as the material for their cutting tools and weapons. The Iron Age is the 3rd principal period of the three-age system created by Christian Jurgensen Thomsen for classifying ancient societies and prehistoric stages of progress. The term "Iron Ageft has low real chronological value, as the sequence of advancement was not universally synchronous of the three
epochs in all quarters of the world. The dates and context vary depending on the geographical region; the sequence is not necessarily true of every part of the earth's surface, for there are areas, such as the islands of the South Pacific, the interior of Africa, and parts of North and South America, where the peoples have passed directly from the use of stone to the use of iron without the intervention of an age of bronze. 2: Modem archaeological evidence identifiesthestartofiron production as taking place in Anatolia around 1 2 0 0 B C , thou g h some
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
contemporary arch a eo log ica I evidence points to earlier dates. Around 3000 BC, iron was a scarce and precious metal in the Near East. Iron's qualities, in contrast to those of bronze, were not understood. Between 1200 BC and 1000 BC, diffusion in the understanding of iron metallurgy and utilization of iron objects was fast and far-flung. In the history of ferrous metallurgy, iron smelting is more difficult than tin and copper smelting. While these metals and their alloys can be coldworked or melted in relatively simple furnaces (such as the kilns used for pottery) and cast into molds, smelted iron requires hot-working
GaRdhari
Banas
and can be melted only in specially designed furnaces. Thus it is not surprising that humans only mastered the technology of smelted iron after several millennia of bronze metallurgy.
3: Let us study the historical record of ferrous melalk.ugy 'With respect lo regional developments on the global scale.
1: Southeast Asia I Middle East In Chaldaea and Assyria, the initial use of iron reaches far back, to perhaps 4000 BC. One of the earliest smelted iron artifacts known is a dagger with an iron blade found in a Hattie tomb in Anatolia, dating from 2500 BC. The widespread use
of iron weapons which replaced bronze weapons rapidly spread throughout the Near East by the beginning of the 1st millennium BC. The earliest bloomery smelting of iron is found at Tell Hammeh, Jordan around 930 BC.
Indian Subcontinent: 1: The Beginning of the Iron Age in India: The Sanskrit word ayas, which occurs in the sacred Hindu scriptures of the Vedas (about 1500 BC), is very similar to the IndoEuropean or Indo-Germanic word for iron, eisen, from which the word iron itself derives. Iron seems to have been used in India from about the late second millennium BC. The forging of wrought iron reached its zenith in India in the first millennium AD. 2: Francis Buchanan and Verrier
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Elwir1 llave given detailed raporta llldia, known 88 wootz. OFI ln:m ameltlr~g fumacea In IIIdia In the 18th to early 201h century. A 4: W001Z steel Is ~rlzed by tribe, known e.s the Atarlas a pe!lem cf banda or sheets of micro specialized in iron smelting. Agaria carbides within a tempered means a per1101'1 who 'NI:Irk:ed with mar1BFI8ite or pearl ita matrix. It was flra. The art of lror1 smeltlr~g was developed IFI India 8/0UFid 300 BC. kept as a tribal secret for The word wootz may have been a generations. mistranscription of wook, an Tile use of crucible steel and anglicized version of urukke the crucible me111od of plllducing ateel word for steel ir1 Tamil. Wootz &tllal was flrat lntnxluoed In the Indian was widely exported and traded throughout andent Europe arid the metallurgical Industry. Arab WOI!d, and became paflk:Urarty 3: Thera is another truly famous in the Middle East. where raiTIIII'kable story that ia not so -rr it was known 88 OamaaClla steal known. Thh~ Is the chfQI'llcle of the alld waa later tracad to workahopa legendary wootz steel l'A>m India, In weetem India.
wttlch has lofiU been a subject or mud! r-:irlaticn &IVUFid the globe, Srt l.aflka: with many legends and aa:o~.~nta aurroundlng lt. India led the 'NI:Irld In diM!Icplng an lmpre66N'e trecltlon more than two milennia ago of makir~g high-grade steal in South
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alldAiigala shelter in Sigiriya. The skeletal remains of an Earty Iron Age chief were excavated In Analkoddal, Jaffna. The name 'Ko veta' is engraved in Bnlllmi script OFI a -1 buried with the akaletOFI alld Is aaslgned by the excavato111
to the 3rd cenuy BC. KD, meaning
"King• In Tamil, 18 comparable to such names as Ko Atan and Ko Putivira oCCllrrifiU ir1 conlampon~ry Brahmllnactfptlona In aouth India. It Is also speculated that Early Iron Age srt.es me.y ex111t 11'1 Kalldarodal, Matota, Pilapitiya and liaaamaharama.
1: In Qlina. bronze inacriptiorD ara found around 1200 BC. The
1: The pnl11H!IsiD!k: EMy llllnAQe clevelopntecrt cfhln rnetalklrgy waa In Sri Lanka laated from 1000 to treNplred by the 9111 century BC. 600 BC. RadiocM:Iool evidence has The large seal script is identified bean collected from Alluradhapura
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with a gillup of characta~ from a
iron, cast iron, malleabilized cast iron, and quench-hardened steel, with only a few, probably ornamental bronze weapons. 3: During the Han Dynasty (202 BC-AD 220), Chinese ironworking achieved a scale and sophistication not reached in the West until the eighteenth century. In the first century, the Han government established ironworking as a state monopoly and built a series of large blast furnaces in Henan province, each capable of producing several tons of iron per day. By this time, Chinese metallurgists had discovered how to puddle molten pig iron, stirring it in the open air until it lost its carbon and became wrought iron. (In Chinese, the process was called chao, literally meaning, stir-frying). book entitled Shi ZhoCI Pian (800 BC). Iron metallurgy reached the Yangzi Valley toward the end of the 6th century BC. The few objects were found at Changsha and Nanjing. The mortuary evidence suggests that the initial use of iron in Lingnan belongs to the mid-tolate Warring States period (from about 350 BC). 2: The production of cast iron requires higher furnace temperatures and more reducing conditions than the bloomery iron process. It was produced in China prior to other parts of the world in small blast furnaces, which were precursors to the modern blast furnaces. Cast iron with a high carbon content of between 2% and 4% is a brittle and fairly unworkable alloy with poor strength, but it has the lowest melting point in the iron-carbon system being a eutectic at 1149 째C. By the early Christian era cast iron was used in China on a very large scale for producing tools, weapons, vessels and utensils.
Cast iron is rather brittle and unsuitable for striking implements. It can, however, be decarburized to steel or wrought iron by heating it in air for several days. In China, these ironworking methods spread northward, and by 300 BC, iron was the material of choice throughout China for most tools and weapons. A mass grave in Hebei province, dated to the early third century BC, contains several soldiers buried with their weapons and other equipment. The artifacts recovered from this grave are variously made of wrought
4: Also during this time, Chinese metallurgists had found that wrought iron and cast iron could be melted together to yield an alloy of intermediate carbon content, that is, steel. According to legend, the sword of Liu Bang, the first Han emperor, was made in this fashion. Some texts of the era mention "harmonizing the hard and the soft" in the context of ironworking; the phrase probably refers to this process. 5: It is impressive to note that
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China made cast iron as early as 200 BC. In Europe the use of cast iron was not appreciated until after about the 141h century when it was used for making cannon. By the end of the 18th century cast iron began to be used extensively. Korea: 1: Iron objects were introduced to the Korean peninsula through trade with chiefdoms and state-level societies in the Yellow Sea area in the 4th century BC, just at the end of the Warring States Period but before the Western Han Dynasty began. Yoon proposes 1hat iron was first introduced to chiefdoms located along North Korean river valleys that flow into the Yellow Sea such as the Cheongcheon and Taedong Rivers. Iron production quickly followed in the 2nd century BC, and iron implements came to be used
by farmers by the 1st century in southern Korea. 2: The earliest known cast-iron axes in southern Korea are found in the Geum River basin. The time that iron production begins is the same time that complex chiefdoms of Proto-historic Korea emerged. The complex chiefdoms were the precursors of early states such as Silla, Baekje, Goguryeo, and Gaya. Iron ingots were an important mortuary item and indicated the wealth or prestige of the deceased in this period. Japan: 1: Tatara iron has been produced in Japan for about 1000 years. It was introduced from Korea in the latter half of the sixth century AD. In the Meiji era iron and steel were imported from Europe and made
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
the Tatara process almost extinct. There is a revival of interest in the Tatara process. Even now this ancient manufacturing process is preserved in Yokota. The box type Tatara furnace is made out of clay and is approximately 3m long, 1.5m wide and 1.2 m high. The use of iron sand powder is characteristic of this process. It led to the production of tama-hagane, the Japanese term for this unique material. This was the main source for making the Japanese sword.
Medieval Islamic world: 1: Iron technology was further advanced by several inventions in medieval Islamic world, during the so-called Islamic Golden Age. These included a variety of waterpowered and wind-powered industrial mills for metal production, including geared gristmills and
nanostructures give Damascus steel its distinctive properties and are a result of the forging process. AFRICA 1: In Africa, where there has been no continent-wide universal Bronze Age, the use of iron succeeded immediately that of stone. Metallurgy was characterized by the absence of a Bronze Age, and the transition from "stone to steel" in tool substances.
Ancient Egypt:
forges. By the 11th century, every province throughout the Muslim world had these industrial mills in operation, from Islamic Spain and North Africa in the west to the Middle East and Central Asia in the east There are also 1Oth-century references to cast iron, as well as archeological evidence of blast fumaces being used in the Ayyubid and Mamluk empires from the 11th century, thus suggesting a diffusion of Chinese metal technology to the Islamic world. 2: Geared gristmills were invented by Muslim engineers, and were used for crushing metallic ores before extraction. Gristmills in the Islamic world were often made from both watermills and windmills. In order to adapt water wheels for gristmilling purposes, cams were used for raising and releasing trip hammers to fall on a material. The first forge to be driven by a hydro-powered water mill rather than manual labour was invented in the 12th century Islamic Spain. 3: One of the most famous steels
produced in the Islamic world of medieval Near East was Damascus steel used for sword making, and mostly produced in Damascus, Syria, in the period from 900 to 1750. This was produced using the crucible steel method, based on the earlier Indian wootz steel. This process was adopted in the Middle East using locally produced steels. The exact process remains unknown, but allowed carbides to precipitate out as micro particles arranged in sheets or bands within the body of a blade. The carbides are far harder than the surrounding low carbon steel, allowing the swordsmith to make an edge which would cut hard materials with the precipitated carbides, while the bands of softer steel allowed the sword as a whole to remain tough and flexible. A team of researchers based at the Technical University of Dresden that uses x-rays and electron microscopy to examine Damascus steel discovered the presence of cementite nanowires and carbon nanotubes. Peter Pautler, a member of the Dresden team, says that these
1: In the Black Pyramid of Abusir, at least 3000 BC, Gaston Maspero found some pieces of iron, and in the funeral text of Pepi I, the metal is mentioned. A sword bearing the name of pharaoh Memeptah as well as a battle axe with an iron blade and gold-decorated bronze shaft were both found in the excavation of Ugarit. 2: The collections of Egyptian antiquities showd absence of iron metal. Bronze remained the primary material there until the conquest by Assyria. The explanation of this would seem to lie in the fact that the relics are in most cases the paraphernalia of tombs, the funereal vessels and vases, and iron being considered an impure metal by the ancient Egyptians it was never used in their manufacture of these or for any religious purposes. It was attributed to Seth, the spirit of evil who according to Egyptian tradition governed the central deserts of Africa.
Sub-saharan: 1: Iron Age finds in East and Southern Africa, corresponding to the early 1st millennium Bantu expansion. Discoveries ofvery early copper and bronze working sites in Niger, however, can still support the idea that iron working may have
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developed in that region and spread elsewhere. The earliest instances of iron smelting in Tennit, Niger may date to as early as 1200 BC. It was onoe believed that iron and copper working in Sub-Saharan Africa spread in conjunction with the Banb.J expansion, from the Cameroon region to the African Great Lakes in the 3rd century BC, reaching the Cape around AD 400.
1: The usage of iron in northern Europe would seem to have been fairly general long before the invasion of Caesar. But iron was not in common use in Denmark until the 1st century AD. In the north of Russia and Siberia, its introduction was even as late as AD 800, whereas Ireland entered its Iron Age about the beginning of the 1st century. In Gaul, on the other hand, the Iron Age dates back some 500 2: Sub-Saharan Africa has years BC; whereas in Etruria produced very early instances of (present day ltly) the metal was carbon steel found to be in known some six centuries earlier. production around 2000 years As the knowledge of iron seems to before present in northwest have travelled over Europe from Tanzania, based on complex the south northward, the preheating principles. These commencement of the Iron Age was discoveries, according to Schmidt very much earlier in the southern and Avery (archaeologists credited than in the northern countries. with the discovery) are significant Homer represents Greece as for the history of metallurgy. The beginning her Iron Age twelve Haya people of Niger discovered a hundred years before the Common type of high-heat blast furnace era. Greece, as represented in the which allowed them to forge carbon Homeric poems, was then in the (3,276째F) nearly transition period from bronze to iron, steel at 1,802 2,000 years ago. This ability was while Scandinavia was only entering not duplicated until centuries later its Iron Age about the time of the in Europe during the Industrial Common era. Revolution. At the end of the Iron Age, Nubia 2: Legends of wootz steel and became a major manufacturer and Damascus swords aroused the curiosity of the European scientific exporter of iron. community from the 17th to the 19th EUROPE Century. The use of high carbon alloy were not known in Europe 1: In Europe, the use of iron covers previously and thus the research the last years of the prehistoric into wootz steel played an important period and the early years of the historic period. The regional Iron Age may be defined as including the last stages of the prehistoric period and the first of the protohistoric periods. Iron working was introduced to Europe in the late 11th century BC, probably from the Caucasus, and slowly spread northwards and westwards over the succeeding 500 years. The widespread use of the technology of iron was implemented in Europe simultaneously with Asia.
oc
Northam Europe:
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role in the development of modem English, French and Russian metallurgy. 3: The early Iron Age forms of Scandinavia show no traces of Roman influence, though these become abundant toward the middle of the period. The duration of the Iron Age is variously estimated accordingly as its commencement is placed nearer to or farther from the opening years of the Christian era; but it is agreed on all hands that the last dMsion of the Iron Age of Scandinavia, the Viking Period, is to be 1aken as from 700 to 1000 AD, when paganism in those lands was superseded by Christianity. 4: The Iron Age north of the Alps is divided into the Pre-Roman Iron Age and the Roman Iron Age. In Scandinavia, further periods followed up to AD 11 00: the Migration Period, the Vendel or Merovingian Period and the Viking Period. The earliest part of the Iron Age in north-western Germany and southern Jutland was dominated by the Jastorf culture. 5: Early Scandinavian iron production typically involved the harvesting of bog iron. Bog iron refers to impure iron deposits that develop in bogs or swamps by the chemical or biochemical oxidation
are new and transition complete. Europe, (Gauls) and following the Gallic invasion of the Balkans in 279 BC as far east as central Anatolia (Galatians). In Central Europe, the prehistoric Iron Age ends with the Roman Conquest. Southern Europe: In Italy, the Iron Age was probably introduced by the but this culture is otherwise considered a Bronze Age culture, while the following is regarded as part of I ron Age proper. The Etruscan Iron Age was then ended with the rise and conquest of the , which conquered the last Etruscan city of in 265 BC.The age that followed the Roman Iron Age is called the Germanic Iron Age or the Age of Migrations.
STEEL MAKING - THE INDUSTRIAL REVOLUTION of iron carried in the solutions. The Scandinavian Peninsula, Finland and Estonia show sophisticated iron production from 500 BC. Metalworking and AsbestosCeramic pottery co-occur to some extent. Another iron ore used was iron sand {such as red soil). Its high phosphorus content can be identified in slag.
Eastern Europe: 1: The early 1st millennium BC marks the Iron Age in Eastern Europe. In the Pontic steppe and the Caucasus region, the Iron Age begins with the Koban and the Chemogorovka and Novocherkassk cultures from 900 BC. By 800 BC, it was spreading to Hallstatt via the alleged "Thraco-Cimmerian" migrations. 2: Along with Chemogorovka and Novocherkassk cultures, on the territory of ancient Russia and Ukraine the Iron Age is, to a great extent, associated with Scythians, who developed iron culture since the 7th century BC. The majority of
remains of their iron producing and blacksmith's industries from 5th to 3rd century BC were found near Nikopol in Kamenskoe Gorodishche, which is believed to be the specialized metallurgic region of the ancient Scythia. 3: From the Hallstatt culture, the Iron Age spreads west with the Celtic expansion from the 6th century BC. In Poland, the Iron Age reaches the late Lusalian culture in about the 6th century, followed in some areas by the Pomeranian culture. 4: Central Europe: In Central Europe, the Iron Age is generally divided in the early Iron Age (HaC and D, 800-450) and the late Iron Age (beginning in 450 BC). The transition from bronze to iron in Central Europe is exemplified in the great cemetery, discovered in 1846, of Hallstatt, near Gmunden, where the forms of the implements and weapons of the later part of the Bronze Age are imitated in iron. In the Swiss or La Tene group of implements and weapons the forms
1: Steel was known in antiquity, and may have been produced by managing bloomeries, iron-smelting facilities, where the bloom contained carbon. 2: Iron smelting was originally produced in bloomeries, furnaces where bellows were used to force air through a pile of iron ore and burning charcoal. The carbonmonoxide produced by the charcoal reduced the iron oxide from the ore to metallic iron. However, the bloomery was not hot enough to melt the iron, so the metal collected in the bottom of the furnace as a spongy mass, or "bloom", whose pores were filled with ash and slag. The bloom then had to be reheated to soften the iron and melt the slag, and then repeatedly beaten and folded to force the molten slag out of it. The result of this timeconsuming and laborious process was wrought iron, a malleable but fairty soft alloy, variedly having very small quantities of carbon. Concurrent with the transition from bronze to iron was the discovery of carburization, the process of adding
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carbcn ID wrought irorHJ step in the dlrecllon of steel making. While the iron bloom contained some carbon, the subsequent hot-working oxidized most of H. SmHhs In the Midcle East discovered that 'Nitll.9rt Iron could be turned Into a much harder product by heating the shaped piece in a bed of charcoal for some Ume, and then quenching it in water or oil. This procedure turned ltte outer layers of the piece iniD steel, an alloy of iron and iron carbides, which was harder and Jess brHtle than ltte bronze It began In replace.
technology of iron production in Europe, and bloomerlea remained the main source. Two minor developments, however, are worth notlng; the flrst being ltte applcallon of waterpower to ltte bloomery in 1135 AD and the other was the production of cast iron.
on a spinning staff, lttis farmed a ball (cannon ball) of Iron, known as Osmond.
7: Iron tapped from the blast furnaces is pig iron, and contains significant amounts of carbon and silicon. To produce malleable wrought iron, it needs to undergo a 6: Cast Iron development Jagged further proc:ess.ln ltte early modem in Europe, as the smeHers could period, lttis was canried out in a im ore. aJke and li uesb 1e
ho1 was a gases
/
3: Perhaps as early as 300 BC, high quality steel was being produced In southern India by ltte crucible technique. In Ittis system, high-purity wrought iron, charcoal, and glass were mixed In a crucible and heated unlilltte iron melted and absorbed the carbon. Iron chain was used in Indian suspension bridges as early as the 41tt century. 4: Steel was being produced in Sri
Lanka since 300 BC by furnaces blown by the monsoon winds. The furnaces were dug into the crests of hills, and ltte wind was diverted into ltte air vents by long trenches, known as venturles. This 81T8ngement created a zone of hi$;! pressure at the entrance and a .mne of low pressure at the top of the furnace due ID the venture effect. 'The flow Ia believed ID haw allowed higher temperatures than those which were possible with bellows路 driven fumaoea, resuiUng In better<Jiality iron. steel made in Sri Lanka were traded extensively within ltte region and In the Islamic world. Cast iron is rather brittle and unsuitable for striking Implements. Hcan, however, be deca.rburized to steel or wrought iron by heating it In air for several days.
A typical blat furnace used In the production of wrought Iron ai'CKind 15 cent11ry
only achieve temperetures of about 1000 C; or perhaps they did not want hotter temperatures, aslttey were seeking to produce blooms as a precursor of wrought iron, not cast Iron. Some of the earliest casting of iron in Europe occtmtld In SWeden, In two stt.ea, Lapphyttan and Vinarhyttan, between 1150 and 1350 AD. Iron from these blast furnaces was refined lniD wrought iron by ltte Osmond process. In the 5: UntJJ the beginning of early Osmond process, pig Iron from the modem period there was no fumace was melted in front of a fundamental change in the blast of air and the droplets caught
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11nery forgGS. The proc eaaIa known as Dacarburisation as opposed ID Cerburlsatlon. 'Through this prooess, contents of carbon were decreased in ltte metal. Oec::arburisation ocx:urs when carbon In the metal reacts with gases present in the atmosphere. 8: An alternative method of decarburtslng pig Iron was ltte 11nery ~.which seems ID have been devised In ltte region around Namur in ltte 151tt century. The fineries in Uppland, Sweden, utilizing Walloon
~for dec:arbwizing, P!Odi.Kl8d the finest quality of wro~.~ght iron at that time which was known as Orvgrouncfe Iron.
9: Ageneral schematic dllia'lptlon of the conlel~ blast fum aces dwing that time paiod is a shown her.. Mont dominant type, during the same pllflod was the German type forges in Swedert, which Mrv utilizing tingle !!earth for all the proc I BBIB of dea.lb~on. These became the main types forp!UCII.Id"' bar iron in Swaden. The Walloon method for decarurisatiort, as opposed to German typat, utbld two aepam!a heart forges; the finery and the chafery or s1Jing-fumace. In the finafy, pig iron was re-melted so as to oxidize 1he carbon (and silicon). This pnxluced a lump ofllron known aa bloom (wflich had some slag). ThiB was c:onsclldallld usl"' a wallrpowered hammer and returned to the finery. The next stage - s undertaken by the strtngtmlth, heating his Iron In a string-furnace (chafery). Because the bloom is highly porous, and its open tpQc:ee were full of slag, the hammerman beat the heated bloom with a hamrnar,ID driv9 the moHan slag out and then to drvw the bloom Into a barto produce what was known as bar iron. In the COin& af doing so, the Iron was r.healed In the chaflry. The fuel In the finery had to be di8R:CIIII, because imputitiea irt any mineral fuel woulcl aft'ect the qualty of the Iron. All the Iron prodi.ICed In Britain used the Waloon prvceas as the preferred tac:hnlqlJ8 up until the 18thoentwy. The apacialily of Orground's iron was Its purtty. This level of pwtty of the Iron bars meant that It was partic:ularty suitable for corwel'liort ID 61881 bv btWlg re<altlurtzed, using the cementation process. The oregrounda iron was art llndlspensallle rrrw material for atee1 ml.llUfac:tures.
10: However, owing to the use of charcoal in the process causing the environmental hazard In the shape of diminishing forests the finery forge process began to be replaced In the late 18th cenwry by other methods, of which Puddling waa the mCIIIIt 11UCC9118ful In Britain for producfng bar Iron (wrought Iron or steel) from pig inon. It used mineral fuel (ooal or coke). freeing the Iron Industry from Its depandenoe on the speed of growth of treee. This transition to puddling type of furnaces, in the Iron Industry provided the impetus for Industrial Revolution
furnace underoxicili1g atrnoephere thut decatburizing the iron. When the Iron came to a pasty consistency, It was gathered Into a puddled ball, shingled, and rolled. The aallentfeewre of the puddling technique was the use of Reverberatory fum ace, wflera the charge Is separated from bumlng flre box. The hot air Is pulled OV8I' the iron, without it ooming into contact with the fuel. The ma)or advantage of this system Is keeping the i""'-'ritielJ of the fuel separated from the charge. The illustration above shows the ammgernent of a basic Reverberatory Furnace
-••..,.. Hotgases ---- ->-· Radiant heat
Firebox
Hearth
Flue
Schematic drawing of a puddling fumaca initially in Britairt artd soon to be followed In the rest of the world. However, as discussed earlier under the archeological Iron Age, thll transition was already In place In China as early as 200 BC, known as chao technique, or stir frying technique. 11: Puddling technique, inven1ed bv Henry Cort, an Englishman in 1783-84, was a revolutionary Idea of making wrought Iron and ~~Wei. In the original puddling technique, molten Iron, while being heated In a Reverberatory Furnace was stirred with rods, which were conslmlld In the proc m. The enfre process was condliCted Inside the
Cort's process (as patented) only worked for whltecast Iron, not grey cast Iron. This problem was, how&Yer, rvsolvad by Merthyr Tydtil. He combined puddling IMtti anotller hearth furnace known as Reflnery. The pig iron was first melted in re11nery and run out Into a trough, wf1ere the 61ag was sepanated, and floated on the moltart iron before being removed by lowering a dam at the end of the tro~.~gh. The ef!'ett of this was to deallk:onlse the metal, leaving a white britlle mete! known u 'Fhlr& Metal'. This was the Idee! material for Ina! dec:arbortlzatlon In the puddling furnace. The entire process came to be known as Dry Puddling and continued to be In use
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in ecme plac::e$wrtil ulaiuw 1890. The altamalille to refining gray iron was known e.s 'wet puddling', also known as 'boiling' or 'pig bolllng'. This was invented by a puddler named Joseph Hall. He began adding 6Cf8P Iron to the charge. Later he triad adding iron scala {rust). The result was spec:tae4Jiar In that th& furnace boiled >Aclently due to a chemical rvaction bet'N88n oxidized Iron of rust and the dissolved carbon of the pig Iron. The 19aUitant W~"CM~ght iron was of good quality. wet puddling was also more efficient than dry puddling e.s the best yield of the dry puddling was a ton of iron from 1.3 tons of pig Iron, whereas II was close to 100% In the wet puddling. Owing to limitad scale of the c:hB/18 thatapuddllngbnaceccU:lhandle at a given time, It began to be replaced with lhe introduction of the BMMmer Convert.r for producing steel. The Bessemerfumaoe could be converted to wrought iron using theAstonpt'OCGUatamlnlmalc:oat and time. An 8'YIII'888 sized puddling furnace could handle 380 to 410 kgs of charge, while a Batsamar converter charge was 13600 kgs. TheBellsernerllfl)C8Awasthe1im inexpensive industrial method for the mass produdlon of steel from molten pig Iron. The prooeas was
introduced in 1855 by Henry Beasemer. The key principle is removal of Impurities from 1he Iron by oxidation with U' blown through the mo1tan iron via the refractory linings Inside the converter. The oxidation also raises the temperatura of the iron maaa and keeps It molten. 12: The Bessemer process nM~Iutlonlzad steel manu1'ac:tura by
drastically reducing Its coat during the introduction period, along with greatly inCf88sing the scale and speed of production. The process also decreased the labor ~ntsfcrstael-making.
Prior
to Its Introduction, steel we.s far too 9lCPenslve to make brklges or the framework for buildings and thus wrought Iron had been used throoghout the l~strtal Revokltlon. After the introduction of the Bessemer process, steel and wrought Iron W&A~eokl at the &aiTI8 price, thelefote, most manufadlnl8 turned to steal. Some claim the availability of cheap steel, having balt8re,.naering banefi1B, allowed IB198briclgestobebuittan::t enabled the construction of railroads, skyscrapers, and large ships; however, the large8t ship of the 19th century was the Iron SS Great Eastern launched In 1858, high
pressure steam-powered locomotive railways appeared in 1825 with the opening of the stocldicf1 and Da~lngton railway (the first passenger railway opened in 1830 between Liverpool and Manchester). 13: However, as early as 1895 In the UK It was being noted that the heyday of the Bassamer process Wet OVfl/l and that lhe Open Headh method predomftated. Hhe.s been suggested, both at that time and more recently, that the cause of this was the lack of trained personnel and investment in the technology rather than any inherent downside to tile process Itself. 14: In the U.S, commercial steel pmcilcUon using BeB8emer method stopped In 1968. H was replaced generally by the Basic Oxygen Process wlich o1l'ered better oon1rol of final chemistry. The Beaaamer pro088ll was eo fast that it aiiCJW&d lillie time for chemical analysis or adjustment of1he al~ elements in the steel. The other reason for discontinuation of this method was that the Bes818mer converters did not remove phosphorw aflicientty from the molten steel; as lowphosphorus ores became mora expensive, conversion costs inct"BUad. The process permiHed only limited amount of scrap steel to be c:barged, further Increasing coats, especially when saup was Inexpensive. Use of Electric Arc Furnace technology competed favorably with the Bessemer process, resulting In Ita obsolescence.
15: We will rtt1W discuaa these thr8& methods of steel producllon,l.e. the Open He!lth method, Bask:Oxygen process and the Electric Arc Furnace In some greater detail. Siemens Open Hearth Regenerative Furnace: Sir Carl Wilhelm Siemens developed It In the1850s, and claimed In 1857 to
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EIERGO ma.JOURIW. PAICISTAH APRIL TO .AJN&21ll2
54
maximize solution hardening. This also allows the use of precipitation hardening improving the alloy's temperature resistance. Tool steel is generally used in axes, drills, and other devices that need a sharp, long-lasting cutting edge. Other special-purpose alloys include weathering steels such as Cor-ten, which weather by acquiring a stable, rusted surface, and so can be used un-painted. 21: Many other high-strength alloys exist, such as dual-phase steel, which is heat treated to oontain both a ferritic and martensitic microstructure for extra strength. Transformation Induced Plasticity (lRIP) steel involves special alloying and heat treatments to stabilize amounts of austentite at room temperature in normally austentitefree low-alloy ferritic steels. By applying strain to the metal, the austentite undergoes a phase transition to martensite without the addition of heat. Maraging steel is alloyed with nickel and other elements, but unlike most steel contains almost no carbon at all. This creates a very strong but still malleable metal. Twinning Induced Plasticity (TWIP) steel uses a specific type of strain to increase the effectiveness of work hardening on the alloy. Eglin Steel uses a combination of over a dozen difl'erent elements in varying amounts to aeate a relatively low-cost metal for use in bunker buster weapons. Hadfield steel (after Sir Robert Hadfield) or manganese steel contains 12-14% manganese which when abraded forms an incredibly hard skin which resists wearing. Examples include tank tracks and bulldozer blade. 22: Thou g h not an a II o y, galvanized steel is a commonly used variant of steel which has been hot-dipped or electroplated in zinc for protection against rust. 23: In the words of the famous
Roman scientist, Pliny the Elder, of 2000 years ago, 'Iron mines bring man a most splendid and most harmful tool. It is by means of this tool that we cut into the ground, plant bushes, cultivate flourishing orchards and make grape vines younger every year by cutting off old vines with grapes. By this same tool we build houses, break stones and use iron for all purposes. But it is also with the help of iron that we fight and battle and rob. And we do it not only at close quarters but giving it wings we hurl it far into the distance now from embrasures now from powerful human hands, now from bows in the form of feathered darts. This, I think, is the most infamous invention of the human brain. For, in order to enable death to catch up with man faster, it has given it wings. For that the blame rests with man and not with Nature'.The man has come a very long way in his achievement of modern day's marvelous technological advancements using the God gifted instinct of inquisitiveness, stimulating his brain cells to explore the surroundings leading him to discover the importance and significance of matter around him. The matter; Iron is no exception. One cannot but begin to admire the overwhelmingly powerful nature of the verses of the Holy Quran, which were revealed to the last prophet Muhammad (PBUH) some 1500 years ago. 24:The One- The Amighty- The all Knowing ALLAH (Subhanao- waTaala}, the Author of The Holy Quran in just one line verse gives the divine message; "And WE sent down Iron which is strong and has many benefits for mankind" References .-. Ebrey, Walthall, Palais, (2006). East Asia: A Cultural, Social, and
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
Political History. .-. Boston: Houghton Mifflin Company. .-. Needham, Joseph (1986). Science and Civilization in China: Volume 4, Part 2. Taipei: .-. Caves Books, Ltd. .-. Needham, Joseph (1986). Science and Civilization in China: Volume 4, Part 3. Taipei: ._. Caves Books, ltd. ._. Plainer, R. (2000) Iron in Archaeology. The European Bloomery Smelters, Praha, .-. Archeologicky Ostav Av Cr. .-. Wagner, Donald (1996). Iron and Steel in Ancient China. Leiden: E. J. Brill. .-. Woods, Michael and Mary B. Woods (2000). Ancient Machines: From Wedges to .-. Waterwheels. Minneapolis. ._. Holy Quran, Chapter 27, Verse No.25
EN ERGO STEEL JOURNAL PAKISTAN
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Future of Pakistan Steel • an overv1ew
Introduction 1: The Steel Sector has always been considered as a back bone for every country's economic development and growth of Industrial sector. Pakistan Steel Mill (PSM) which like-wise other public entities, faced worst downfall in the past years. But it is said that those bad times never stay for long. With the re-appointment of the exchairman of Pakistan Steel Mill (PSM) Major General (Retd) Muhammad Javed HI (M) it seems that the performance of the mill will again start to show improvement as had been done by him during his first tenure. As the Chief
Executive Officer of PSM he has already started taking steps towards the refurbishment of the mill. The encouraging factor is that the Government of Pakistan has given this responsibility to the management of PSM for its (PSM) refurbishment without any outside interference. In the recent past KESC had stopped providing electricity to PSM due to some misunderstanding, but as soon as the new CEO took charge he not only sorted out this critical problem but also arranged his teams so that the thermal power plant (TPP) and 1hennal boiler plant (TBP) start generating electricity, which can fulfill at least 50% of
Pakistan Steel Mill's requirements at the initial stage. 2: It is rather unfortunate for us that while wor1dwide Steel Plants of identical technology and production capacity have progressed and increased their capacities to annually produce three to five million metric tons while we are moving backward and our production capacity is decreasing day by day. In this situation when the employees of PSM had lost all hopes of any betterment, the Government was kind enough to appoint a regular CEO to look into the affairs of the organization, which came as a spring breeze.
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The current annual production capacity of Pakistan Steel is One Million Metric Tons I Annum which can be increased gradually up to 3路5 Million Metric Tons as Pakistan Steel is already well equipped with machinery, Skilled Staff and Labour. PSMC established in 1968 with Soviet assistance culminated into a techno-finance agreement signed with the Pakistan Govt. in 1971 and the foundation stone of the mill laid by none other than the late Zullikhar Ali Bhutto on 3oth Dec.1973. This integrated plant consisting 20 major units was commissioned by installing 70% machinery and complete infrastructure for 2.2mtpy in phases from 1981-85 thus capping its production capacity at 1.1 mtpy due to financial constraints. It was heartening to establish the mill's viability, efficiency and performance on a sustained basis owing to political non interference which resuHed in a majortumaround by bringing it to a breakeven position and turning it into a profitable organization in yesteryears.
3: Presently the production capacity of Pakistan Steel is being utilized at a substantially low level of 18% - 20% only, which is detrimental not only for the operation of the two blast fum aces and other equipment but also contributes in
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adding up unmanageable recurring financial losses year after year.
uz Zaman, under whose guidance expansion of the mill's production capacity up to 3.0mtpy was also planned in detail indicating available financial resources which proposal was submitted to the MOP(Ministry of Production) for approval.
The appointed trade union is interested more in providing unwarranted facilities for employees and increase in their salaries rather than concentrate on production and improvement of the Plant's This proposal of the mill's expansion condition. This Is also one of the without any flnancfal burden on the key reasons for decrease in Government exchequer which was production and low revenue submitted to the MOP could not see eamings. On the other hand despite the light of the day. these excesses by union, the employees and workers are The one civilian bureaucrat who suffering badly due to low governed the affairs of PSM in a production and business. Their befitting and appropriate manner salaries are long overdue since last other than the military personnel , two months although being a finance professional was Mr. Haq Nawaz 4: It is ironical to note that the Akhtar who in due course had financial health of the organization acquired the acumen for technical always remained stable under the proficiency and industrial chairmanship of previous three management . Generals respectively. PSM became profitable during these 5: It is now hoped that Pakistan periods and remained in surplus Steel Mills, with the induction of financially ie worth Billions of Maj.Gen.(Retd) Muhammad Javed Rupees, where the employees were as its new CEO with his leadership benefited with year1y three to four qualities and awareness of extra bonuses particularly during technical, managerial skills and the tenure of Lt.Gen.Sabeeh Qamar assessment of the prevailing law
ENERGO STEEL JOURNAL PAKISTAN APRIL TOJUNE-2012
The current proposition can again become selfsufficient if the Government of Pakistan agrees to dole out the required amount of money urgently demanded by the management for the refurbishment ofPSM. and order situation will surely help in putting the house in order and bringing back the much required discipline to tum the ailing system into a profitable entity and safeguard the interest of employees in particular, associated businesses in general, and the nation as a whole.
can be increased gradually up to 3-
refurbishment to the management
5 Million Metric Tons as Pakistan of Pakistan Steel, with the priority Steel is already well equipped with machinery, Skilled Staff and labour. If adequately funded at this juncture with proper and competent management in place there is no reason to apprehend any negativity In the mill's performance as It has time and again proved that with proper management in place its viability and efficient performance has been and will be more than established. It is an asset for our developing economy and will remain a mother of all industries within the country for its future prosperity, which under no false pretext can be allowed to go waste. Else we will suffer tremendously. Refurbishment of this gigantic project is the only choice left with us.
The current proposition can again become self-sufficient if the Government of Pakistan agrees to dole out the required amount of money urgently demanded by the management for the refurbishment of PSM. For its constant growth and development it is important that the management tenure is not short lived, instead it is allowed to continue to render valuable services to PSM for longer periods of at least three to five years if positive growth is apparent and noticeable every year. Piecemeal dole outs will further aggravate the present The value of Pakistan Steel's assets financial crunch and compound the is in trillions including the value of losses further. 165 MW Thermal Power Plant of Pakistan Steel. Considering the 5: The current annual production recent situation it is important that capacity of Pakistan Steel is One the Government should shoulder Million Metric Tons I Annum which the sole responsibility of
of carrying out repair and maintenance works of TPP/TBS in order to cater to the essentially required power generation for the mill as well as sale of additional power generated to KESC thus easing our required cash flow. Pakistan Steel &Allied Industries 1: Presently Pakistan Steel is an entity consisting of several Iron, Steel and their Bi-Products manufacturing units. These units are providing raw material including Billets, Slag, Cold Roll Coils, Coke Oven Products, Hot Roll Coils, Slabs and Pig Iron etc to the counby wide Steel Allied Product Manufacturing units. Pakistan Steel Fabricating Company Karachi and SME Lahore are making Steel Structure, Machinery, Equipment and Spare Parts etc. for the Industries operating under this Sector.
2: Pakistan Steel's share in total supply of steel within the counby is only 20% which leaves us with a
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
hoavy po1ell1!AI to lncre.tte 1111
proclu:tlon m~~lllold. There .,. mlll)l Cit!>« email S'ld lqe......,. makq unlleln AlwiN
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AaoeBs«u'f•s Manufaotur«rs. Besldea, there are other (vf) """'IIIII lV of - n t l l - to b llnllflt from II • lid for tile __....IIIIDinAHtng.-y lrnpcu.. nwtend-..,-<1 u.- ...,llo ......., _ _ Qij, M-IOOI~Ta.llll,.-y
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y.- to "" """"' -.! In 1M en(#nGGrfng and aklled worbn Thorell no de.tr!ll of talent and catGgofy to com~ for euper our uuntry Ia replete w11h the (I) Mana;erlel dltclpllne •nd hlghnl pot•ntlel e.nd diM!tlon to lh e.u. of pilnnecl commitment. Will pruper ~ and suppart tho <loy lo not far (be) Toohnloal trelnlng to be bollolllr:t/1-llln aammllmonl pal-l n..,.. fmpartld on a r.gulllr basla. wli"" Patl IIIII n wII b1i In h I Ill Hlwflc•a. al' -lopod oount~ ... We 101411 (!<) .,.,..ln--ofBMR- b• able to manufactur• (I~ Cunal~~>ent of tra6e union c.tpltal repen to be •IICidGd. equ~lll. macl'iniM)', whlcloe. adMIN In ttl& nilute of welfatv power ~Jener~~tlon plonta ofe In -II~~& 1rantpart. aat~on. (ld) ~. brd!lllndlldph, our OIMI<lOUntl)' S'ld wll not need meciCIII, township, nnmr S'ld pcor nlll8"ment p~ S'ld to be Importing lliem, b o ~ . .........aillllld)l -of-lytDbo~ IHI.olorllly - a"' a h lll'd - rt:f ng nllfDn .
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Rear Admiral (R) Pervaiz Asghar HI(M) is a retired officer of the Pakistan Navy and is currenUy serving as the Director General of the National Centre for Maritime Policy Research. He did his Principal Warfare Officer's course from HMS DRYAD, UK, his staff course from the Royal Naval Staff College at Greenwich UK and his war course from the National Defence College, Islamabad.
INTRODUCTION 1. The wor1d shipbuilding industry has had it's sha1'9 of ups and downs. The pl'9dominant powers of the first half of the twentieth century have been replaced by new actors. The meteoric rise of the current pack leader, South Korea, to the No 1 spot has been awe-inspiring. Following Japan's example, which had used the shipbuilding industry as a catalyst to rebuild it's industrial
of compensated gross tons. NATIONAL STAKES
2. Shipbuilding, which is global in nature, is a multi-billion dollar industry. Many developing economies have over the years structure in the post World War II taken giant strides in this field by era, it went on to outstrip Japan by classifying it as a strategic industry, 2003 in the three key categories of by virtue of which they have been shipbuilding volume, order backlogs able to inject generous doses of and new orders. By bagging new government subsidy to the tune of orders of upto US $ 31.48 by mid - 20 to 30% of the cost of the ship. 2011, it is way ahead of it's nearest The driving force behind this rival China with US $ 8.88. China, categorization is the strongly-held which had started replicating both belief that the retention of local skills the Japanese and the South Korean and capabilities, particular1y for the models with huge state -supported construction of warships, is essential investments at the tum of the century, for pursuing national objectives. is hov.reverthe market leader in terms While these state subsidies
APRIL TOJUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
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facilitated countries like China, S. Korea, Japan and Taiwan in developing highly automated and competitive shipyards, their withdrawal caused an equivalent slump in the western shipbuilding industry, saddled as it was with high material and labour costs.
a relatively high-skilled enterprise, with activities ranging from designing, fabrication and welding to management and commercial, all of which contribute significantly to national industrial capability.
3. Most governments have traditionally been taking more than a passing interest in the shipbuilding industry because it employs a significant number of workers, uti! izes a wide range of technologies, generates considerable income and encourages a large number of associated support industries. Despite the ever-increasing trend of automation, shipbuilding remains
4. Construction of warships is a much more complex affair. Apart from an intrinsic need for greater strength, greater power, greater stability, water-tightness and gastightness, there istheobviousadded need for the installation of sensors andweaponsystems. ONingtothe specialist nature of each item, a significant part of the work has to be entrusted to a network of second and third level suppliers and
WARSHIP CONSTRUCTION
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
subcontractors, and hence for the overall coordination and supervision of the project, the nomination of a lead architect becomes inescapable. The existence of an efficient and effective supply chain is also critical to the success of the enterprise, though reliance on the modular concept of construction certainly makes life easier. SHIP MAINTENANCE, REPAIRS & CONVERSIONS 5. Ship maintenance, repairs and conversions provide a useful backup earning option, particularly for those shipyards with insufficient shipbuilding orders. All ships in any case do need periodical maintenance to enable them to
operate profitably and meet the minimum standards laid down by the IMO and classification societies. While warships follow their own stringent maintenance cycle, other vessels are required to undergo special surveys every five years In order to remain seaworthy. Ship repair requirements, on the other hand, can be periodic or emergency in nature and may include rectifying machinery defects, hull corrosion, tanks cleaning, overhauls, alterations and repainting. Routine or emergency repairs may require dry docking, though in most of the modern yards, even complex underwater work can often be undertaken alongside at berths. Ship conversions likewise are a lucrattve activity from the shipyard's as well as the ship owner's perspective, as the latter struggles against high new-build prices and long delivery times.
1957 under partial funding from the German Govemment. It is capable of building and repairing mediumsize ships up to 18000 tons and multi-purpose cargo vessels up to 26000 tons. It is self-sufficient in terms of assoda18d support facilities like fabrication, foundry, machining etc and has CXII'Istructed around 440 ships, repaired 5000 vessels and fabricated over 2000 heavy engineering units so far. The twodecade period from the early seventies was a profitable one from KSEWs perspective as it bagged orders for 19 support vessels from Iran, a cargo vessel and two tugboats from Abu Dhabi, two tugboats from Saudi Arabia and a cargo vessel plus two bulk carriers from China.
7. From the mid-90s onwards, foreign export orders having dried up, KSEW Ltd was primarily sustained by govemment subsidies PAKISTANI SHIPYARDS and orders from the Pakistan Navy. A missile craft PNS SHUJAAT was 6. Karachi Shipyard & first constructed there, followed by Engineering Works Ltd, the sole an order for the fabrication of a subshipyard in Pakistan, was set up in section of the third Agosta 908
submarine. Three Fast Attack Craft (Missile) of German design were subsequently constructed under contract from a Thai yard. Two small KSEW-built tankers-cum-utility ships have recently been inducted In the Pakistan Naval Fleet. T!]R order for the construction of the 4 F22P Chinese frigate has proved to be a boon for KSEW as It has resulted in upgradation of the yard and training of their personnel in China. KSEW is now collaborating with China Shipbuilding & Offshore lntemalional Corporation for the incountry construction of two 500 ton FAC(M) for the Pakistan Navy. 8. KSEW has also been meeting orders for the fabrication of general Items like flood light towers, dumping grate stokers, clinker cooler trolleys, fuel storage tanks, wind turbine towers, fire tube & water tube boilers, heat exchangers, gates for dams, barrages & headwork&, conveyors, elevators. sugar mill machinery, cranes, steel structures, towers, caravans, overhead steel bridges, sewage treatment plants etc.
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9. A Stlip Lift and Transfer System being pR)Ctlrecl from a German firm is under installation, which can be expected to significantly enhance KSEWs shipbuilding and ship mpalr capacity. Time only will tell if this results in equally significantly changing KSEWa financial fortunes for the better. GLOBAL PROSPECTS 10. M. the moment, slllpbulldlng Is an expanding market. In 2009, orders were placed for 169 ships, while the very next year, the order book increased by more than Slimes to 525 sl'lips. This however presents a deceptive picture as to the health of the shipyards. The fact iB that among the toU:II of 198 )'ads globaly, onlera were only placed to 50 yan:ls in 2009. In 2010, likewise, opportunities for construction of the afon:Hnen1loned 525 ships 'IMll'8 orly ~to 75 of the yards. A yam thus has to be ~tltlve. either In 1Brms of production costs or In terma of technological sophistication. 11. El60j)Gan yards have thus been
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forted to focus on niche markets like yadrts. cruise ah~ small container ships and specialized vessels such as ice breakers, chemical tankers, Ofl'ahore Support Vessels, research ships and warships. US etrort is currently being devoted towards the construction ofwarships and 11888els being used for domestic purposes, where a lack of competition has resulted In Inefficiencies and con~ently t191er contract prices. S. Korea Is primarily Investing In high-end and high.priced vessels such as LNG Canners and offshore facUlties. ctllna Is also now a major player in the shipbuilding industry, particularly in bulk carrier and container vessel categortea. Ala far as warship construction is c:oncemed, those countries that have the wherewithal prefer to construct them in their own yards.
12. The trend to Invest In countdea with cheap labour and land costs is also picking up as It makes strong economic sense, the 8lnJtegy being to produce simpler vessels there at nominal rates. Yards In Philippines, 'Thailand, Vietnam, Malaysia and
ENERGO STEEL JOURNAL PAKISTAN APRIL lOJUNE-2012
India are accordingly making their presence felt. Indian shipbuilding, which was initially catering to it's own need, became export-oriented In the late nlneUes and Ia cunrentty thriving through huge foreign investments and joint ventures. Indian state-owned shipyards are however comparatively stagnant, with onlers being only plaoecl either by the Indian Navy or by the Shipping Corporation of India. Indian shipyards have also forayed into the manufacture of rigs, which is relatively sophisticated in nature with comparatively higher proflt margins. PAKISTAN'S PROSPECTS
13. Pakistan's prospects can be gauged by flrst locking at KSEWs example. This state-owned shipyard had been buoyed up for a considerable period ofUme through injection of generous government subsidies, but for the past few years has come out of the red through generous orders from the Pakistan Navy. So prior considering the establishment of new shipyards in
Pakistan, it may be worthwhile to review as to why KSEW should not be privatized first. This would lead to a significant technological upgradation, incorporation of a modem design department capable of meeting customized requirements and the formulation of an effective marketing strategy to attract buyers.
14. The only reason such a move has been resisted thus far Is because of the yard's supposed strategic importance. This facet has been blown out of proportion as KSEW can certainly not construct warships, or other simpler ships for that matter, through purely Indigenous means. Such constructions rely massively on foreign suppliers for almost all the equipment, weapons, sensors, machinery, electronics and even shipbuilding designs and materials. So the claim of having achieved self-sufficiency In warship construction appears meaningless when seen in this context. 15. Having said that, there is no harm in inviting proposals for seUing up of new shipyards at designated places along our coast Alternately, the choice of specific spaces can be left to the discretion of would-be investors. If sufficient interest is visible, it can be taken as a sign of
the viability of the enterprise. The Govt of Pakistan should preferably insulate itself against possible risks owing to fluctuating market conditions by restricting its contribution to the land, utilities and infrastructure (buildings) only. The foreign investor chosen can thus be expected to try his best to make the endeavour a success, since he would be the major beneficiary in case of proftts and major affectee in case of losses.
16. It would however definitely be in the country's interest too to ensure that the project is a success, since that would in itself attract further Investment. From Pakistan's point of view, it should be ensured that the foreign investor selected has the necessaytechnologicalandfinancial badlgi'Otl'ld for setting up and runring a premier shipbuilding and repair yard. Such an investment would also result In the creation of an highlyskilled local workforce possessing wide-ranging high-order skills like ship desigring, rr&lagement, weklng and fabrication. CONCLUSION 17. Those governments possessing ample resources can only afford to pump in generous subsidies to keep state-owned
shipbuilding yards going. These subsidies concurrently make them dependant and relatively inefficient Resource-constrained countries like Pakistan can barely manage to inject enough to keep their head above water, without any meaningful upgrade in their capacity, infrastructure or technological prowess. It is a capital-intensive field where one has to constantly stay ahead of the competition In terms of production costs, quality, logistical planning, marketing skills and above all, in meeting deadlines. Once a shipbuilding enterprise takes off, the benefits are enormous. 18. Joint ventures with Investors possessing ample finances and experience can help revive the flagging fortunes of the Pakistani shipbuilding industry. Apart from land and basic infrastructure,
Pakistan would need to offer various other Incentives to entice the best bids, the least of which is a good law and order situation and a conducive working environment. The country possesses two of the key drivers for investment, namely low production costs and good access to Important markets, and needs to exploit these well, not only to encourage joint enterprises but also to tum them into commercially vibrant ones.
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ULTRASONIC PHASED ARRAY The technology can be used on most common geometries, such as pipes, vessels, and tank bottoms suspected of having corrosion problems.
The article is being contributed by
Mr. Muhammad Aqeel Manager Operation SGS Pakistan (Pvt) imited.
A - Introduction 1: Industrial plants require safe and reliable operations, but corrosion is a major problem for the owners of industrial equipment, installations, and plants, due to the presence of corrosive chemicals and harsh operating and environmental conditions. For industries throughout the world, corrosion costs billions of dollars. Mitigation costs include corrosion prevention and detection, as well as repairing the results of corrosion. 2: Corrosion requires reliable methods for efficient detection. If undetected for a long time, corrosion can cause leaks and component failures, which reduce the performance and reliability of important equipment. In extreme cases, corrosion can lead to unexpected disruptions that are often costly in terms of lost production, the expense of repairs, lost or contaminated products, environmental damage, and potential harm to humans. In many facilities, key
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equipment may have been in service for decades and have the potential to be compromised even by relatively slow corrosion mechanisms. B – What is Corrosion? 1: Corrosion in welds occurs despite the proper material
having been selected, industry standards followed, and welds deposited that possess complete joint penetration and have the proper shape and contour. Corrosion occurs as a result of the material’s exposure to harsh conditions, and this may be external, internal, or both.
Fig. 1 – The latest phased array equipment, such as the Phasor CV/DM from GE Sensing & Inspection Technologies, uses multiple ultrasonic elements and electronic time delays. Advantages include repeatability, speed of inspection, and capability for inspecting complex geometries. Shown in the screen shot of the reference block.
2: Corrosion is a chemical or electrochemical reaction between a material, usually a metal, and its environment, which produces a deterioration of the material and its properties. Corrosion can be widespread and relatively uniform or localized, in the form of pitting and cracking.
checked by spot measurements or a couple of coarse scans. If only general corrosion is present, this method works fine. However, this technique has a high chance of missing localized pitting corrosion, even when large surface samples are scanned.
3: Considerable efforts are expended to reduce the extent of corrosion by techniques such as inhibitors, coatings, metallurgy selection, and cathodic protection. However, these methods are typically slow, and fail to completely prevent corrosion.
1: Ultrasonic phased array technology has become an established method for advanced nondestructive examination (NDE) applications. Phased array technology reveals defects hidden inside a structure or weld by testing the structural integrity. This newer ultrasonic testing technique is based on generating and receiving ultrasounds, but instead of a single transducer and beam, phased array equipment uses multiple ultrasonic elements and electronic time delays to create beams with constructive and destructive interference patterns — Fig. 1.
4: It is, therefore, essential to continuously monitor critical equipment to prevent catastrophic failure and to maintain excellent on- stream factors. C- How Can Corrosion?
we
Detect
1: Usually, corrosion detection is performed with a thickness gauge or a portable flaw detector. The residual thickness is
D- Ultrasonic Phased Array
2: Phased array is an advanced pulse- echo technique that utilizes multiple miniaturized
Fig. 2 – Corrosion pattern as displayed by the Phasor CV/DM. Phased array technology can display simultaneous views of different presentations, such as sectoral views as well as A-scan, B-scan, and C-scan representatives.
ENERGO STEEL JOURNAL PAKISTAN
APRIL TO JUNE-2012
transducers and time delays to shape the ultrasonic beam to a desired angle and focus. The versatility of the system permits simultaneous views of different presentations, such as sectoral views as well as A-scan, B-scan, and C-scan representations — Fig. 2. 3: In comparison to manual pulse- echo techniques, the advantages of phased array testing are its excellent repeatability, increased inspection speed, more accurate results, and the ability to inspect complex geometries and to visualize indications in welds and/or base materials using B, C, D, and S-scans (with all A-scans included). Moreover, phased array allows the digital storage of all data, location, and system settings, and is very much safer to operate within a working with NDE methods that use X-rays and gamma-rays for detecting imperfections. 4: This technique is ideal for use in combination with tank floor testing. The tank floor is first tested with magnetic flux leakage (MFL) equipment. Traditionally, when an indication is found by MFL, the area of the indication is checked with a thickness gauge or portable flaw detector.
Fig3. – An example of a dual array corrosion probe.
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The chances of missing a pinhole indication are very high using that equipment, but when a phasedarray probe is used (Fig. 3), the indication becomes very clear. The time taken to inspect the area is also much shorter using the phased-array probe, since it can inspect 44 mm at a time. 5: Phased array can also be used for the detection of laminations caused by hydrogen-induced cracking. Typically, this is done using a traditional ultrasonic probe, which is time consuming. Using the phased-array probe saves a lot of time, because it can quickly determine whether there are any indications present or not. 6: The probe can be used on all vessels or pipes that are
ENERGO STEEL JOURNAL PAKISTAN
suspected of having corrosion problems. E- Phased Array by SGS Industrial Services 1: SGS Industrial Services, part of the SGS Group, is a global service provider for technical verification, inspection, testing, and conformity assessment. SGS Industrial Services performs conventional and advanced NDE inspections throughout the world and is continuously developing its services and applications. The company operates in more than 30 countries worldwide.
shipyards, the offshore industry, and conventional and nuclear power plants. 3: When conducting phased array inspections, the company’s experienced and qualified NDE experts not only provide the phased array inspection test results, but also a detailed interpretation of the data obtained and technical consultancy to advise the next steps to be carried out.
2: Applications include fabrication, pipe manufacturing, pipelines, plant construction, chemicals, petrochemical plants,
APRIL TO JUNE-2012
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Ask the Quest with Mr. Muhammad Moin Uddin Ali Khan (Ex-Principal, Institute of Material Sciences & Research)
Q 1: How can Pakistan Steal Mills be made profitable? Answer 100 Million dollar question. Let's try, a).Pakistan Steel Mills be divided into three Divisions.
1).Iron Making 2). Steel Making 3). Rolling Mills. b). Steel slabs should be imported as is being done by Peoples steel Mills and Rolled into sheets and plates. c). Renovation of Billet mills be done and converted into Bar Mill capable of producing
reinforcement bars.
manufacturers for joint working.
d). Billets be imported and rolled in the Bar Mill.
i). Consider talking to steel Authority of India even Mittal, the steel icon. J Communication will help. Don't have to be shy.
e). Temp core process should be installed to produce ASTM (American Society of Testing Materials) Grade 60 steel bars for which there is a major requirement. f). Refractory department be run as a private set up in collaboration with major refractory producer. g). The Metallurgical training Center in collaboration with a private Business School is run to develop professional development courses. h). Talk
to
Turk
steel
Q 2: Is tha steel bars produced
by water quenching and tampering of standard quality? Answer One of the major requirements in the country is of grade 60 steel bars, having yield strength of 60,000 PSI. The right way for producing this high strength steel is to add micro alloys during steel making, namely vanadium or Niobium from 0.02 to 0.04% depending upon the diameter of the
APR-JUNE 2012 ENERGO STEEL JOURNAL PAKISTAN
bars. This will give consistent mechanical properties. A bar produced by quenching and tempering does not give consistent properties. Any use of this type of bars for important construction is a great risk. The customers should ask for fatigue strength as per British Standard of minimum 5 million cycles. Details can be seen in the standard. Q3: Is there any organization for checking fatigue strength of deformed bars? Answer Not that I know of. There is a possibility of testing fatigue strength of plain bars, not deformed bars. Research can be carried out to develop a correlation between values of plain bars and deformed bars using the correlation predict that of deformed bars. Hence the strength can be predicted. Higher Education Commission can be asked for research grant, and Universities can conduct research in this regard. The sooner it is done the more safe will be the structures. Q4: Is the steel industry in Pakistan carrying out Self Assessment as per national
Environmental Quality standards (NEQS)? Answer I doubt if this is being done on regular basis. There is a need to check the effluents etc as per NEQS. Pakistan Steel mills and Peoples steel mills can develop testing facilities and help smaller rerolling Mills. SEPA should visit these major set ups and help them in measuring carbon dioxide etc Q5: Is there any Research and Development being carried out in any steel industry? Answer The Giants, Pakistan Steel, Heavy Mechanical complex Taxila, & Peoples Steel mills, should set up a collaborative research Centre with the collaboration of KRL. a) Pakistan Steel Mills should revive its Institute of Materials sciences & Research set up by Mohtarama Benazir Bhutto saheba in 1996. b) The Metallurgical departments in the universities of Pakistan should be invited to share their expertise. c) In collaboration with private Business schools, forecasting
techniques should be developed to see the future status of iron ores, coals, & steel scrap etc. d) There is a need to have SAARC steel association whereby all SAARC steel mills can join and share their best practices. let this be part of Amn ki Asha. Q6: Is there any approach by which ailing steel Industry can benchmark? Answer I asked a similar question to a visiting German expert who worked for BMW .His prescription was try BMW approach • Never Give Up" Communicate, develop collaboration, and try to improve continuously, search for new technology. May God be with you. The question and queries related specifically to the fields of Energy Iron & Steel Technology, Corrosion and Pipeline Integrity Management can be asked from our experts Dr. Rana Guizar & Mr. Moin Uddin Ali Khan in this new section of ·Ask the Quest From Expert"; simply email your question and queries on or post us we will direct your probes to our experts :
The question and queries related specifically to the fields of Energy )ron & Steel Technology, Corrosion and Pipeline Integrity Management can be asked from our experts Dr. Rana Guizar & Mr. Moin Uddin Ali Khan in this new section of "Ask the Quest From Expert"; simply email your question and queries on esjpakistan@gmail.com or post us we will direct your probes to our experts : Editor, Energo Steel Journal Pakistan D-4/49, Rabia City, Block- 18, Gulistan-e-Johar, Karachi - 75290. Tel/ Fax: +92-21-34014165 E-mail: esjpakistan@gmail.com Note: We will shortly be introducing a new section "ESJP'S Blog·bo in which the reader may contribute their thesis and case studies. For the further details email us on above mentioned email address.
ENERGO STEEL JOURNAL PAKISTAN
APRIL JUNE-2012
METAL PAINTING BASIC KNOWLEDGE OF SURFACE PREPARATION (A) lntroductlo 1: Understanding and knowledge of surface preparation prior to metal painting either new or repainting is the single most important factor to consider and it also determine the coating durability. Surface preparation means different things to different people. a. To a house painter, it may mean scraping off loose paint with a putty knife; b. To a bridge painter, it may mean sandblasting off mill scale or old rust,
Mr. Mazher I. Khan 11 lhorough ~onal and owns V8llt expertanceln !he lllllld d An1I-Comlelon Management a lid Paint Tedlnology. Cm8n1ty hal aIUOCtlllllftJlly ll.l'lr*lg hit own Mrllice COI!1fjll'ly "C- Cllle Technicel Servicee in Karadli. Belli elM, ho II ran daring hla &arviC8188 a Dlreca Marb11ng for Dover Paint SON. BHD. KlangMalaysia , Zola Coatings SON. BHO., P8B111'19, Malaysia and Ex&cutlv8 DlniiCtor for C<lrroeion cere & Coatings (Mailyllia & Pakietan). He ie aleo a Teci'lnicel Advi&ol' & Ml!rlcdlg Heal{~) fat' Paint Bu8hla8 PSFCL. Port Qaalrn. Karucfll, Paldatar1. F芦 ttle flied back of a !UCla "Metal Palr1Ung- Bailie Knclwladge of SlJrface PNpara11on' he may approached via hit email add*M: mazher.khan@c:on'O$ion路care.com
c. while to an aluminum extruder, it may mean anodizing. 2: Surface preparation is perhaps one of the most important aspects of paint coatings. It has been found that more than 80% of paint failures take place due to poor surface preparation.
(B). Definitions. 1: Surface preparation basically means creating a surface suitable for paint/coating application, a surface that can give strong adhesion to the paint/coating. 2: The main components of surface preparation are surface
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
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cleanliness and anchor profile of the surface.
following three most common doing short cut you may save some standards (though there is other money but would severely damage standard also available which the life of painted structure. 3: Both are obtained by blasting include ASTM, JIS, DIN, BS the surface with suitable etc.):4: Pre-cleaning can be done either abrasives which remove the a. SSPC (The Society for by solvent or hand tools or power Accepted standards of Industry for surface preparation is given in this table Methods
Process involved
Solvent Cleaning
Cleaning with solvent either water, organic or inorganic by spraying, swabbing or dipping
Hand Tools Cleaning
Blast Cleaning
Remove loose mill scale, rust, paint. Tools required: Wire Brush, Scrapers, Chisel, Knife, Chipping Hammer
SP-2
Full white metal Near white metal Commercial blast cleaning Virtual cleaning (sweep blast)
SP-5 SP-10 SP-6 SP-7
corrosion and unwanted debris on the surface and give a suitable profile.
4: Before we go for blast cleaning, the surface must be pre-cleaned. Depending upon the source of the substrate, it may have different kinds of impurities.
5: A substrate may have dust, rust I corrosion products, grease and oil, and may be salt deposits on its surface. 6: Thus it must be pre-cleaned before blasting treatment is carried out.
(C) Standards. 1: The standards are based on Blast nozzle orifice size (mm) 6.35 9.53
12.70
SSPC Standard SP-1
NACE Standard
IS0-8501 Standard
S 12 or S13
NACE1 NACE2 NACE3 NACE
Sa3 Sa2% Sa2 Sa 1
Protective Coatings) b. NACE (National Association of Corrosion Engineers) c. ISO (International Organization for Standardization)
tools. The SSPC Surface Preparation Specification SSPCSP1 describes solvent cleaning as a means of removing oil, grease, dirt, soil, drawing compounds and other similar organic compounds.
2: Generally speaking blasting
5: The procedures vary from simple solvent wiping with a clean rag, through vapor degreasing, to emulsion cleaning.
cleaning to SSPC SP-10 (Sa 2%) is common for most 2 pack systems and get good surface profile (up to 751J to get physical adhesion as well). SSPC SP-6 (Sa 2) is common for surface tolerant epoxies.
6: The choice of technique depends largely on the type of contamination.
3: Usually paint and coating manufacturers recommend extent of surface cleaning as per their products and it is mentioned in the data sheets. It is advisable to stick to manufacturer's recommendation and do not make short cuts. By
7: Solvent cleaning is specified as a prelude to the other, more aggressive, methods of surface preparation described by the SSPC. B. Hand tool cleaning (SSPC- SP2) and power tool cleaning (SSPC SP3) are often adequate for
Air required in cubic meter per hour) for various efficiency at different nozzle pressure 5.5 Bar 7 Bar 4 Bar 114 144 175 257 325 394 438 578 702
*Values given are approximate.
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
removing loose rust and previous coats of loose paint, especially in relatively small areas and in interior or normal atmospheric environments. 8: Blast cleaning Is determined and surface condition is usually confirmed by visual inspection and comparing with visual standard provided by SSPC or ISO. (0) Factors of Cleanina. 1: Factors to be considered what
I
Abrasive Type
surface to be painted) b. Typa of exposure c. Corrosivity of area where structure Is exposed d. Desired life of the a1ructure or painted obJect e. Coating system to be applied
2: Personals involved in blasting and painting must have good knowledge of surface preparation and work efficiency. For example before the work start they must know what should be the size of
--r---
Abrasive consumption rate (kgfm2)
Silica Sand (14/35 mesh) Gamet (30 mesh) Copper Slag (14/35 mesh) Aluminum Oxide (30 mesh) Steal grit G-40 type of cleaning and blasting required, these factors are as follows:a. Type of substrate (metal
12.75 17.50 15.00 15.10
27.00
important because if you do not calculate what amount of air {m31hr) is required, you cannot achieve desired results. Just for reference below Ia chart of the efficiency of a blast cleaning process as a function of nozzle size and air availability.
4: Other factors are also important when doing blasting e.g., wind velocity, atmospheric temperature, humidity, dew point etc., in addition to distance of nozzle from the Extent of cleaning (m2/mln)
0.44 0.33 0.40 0.42 0.30
blasUng nozzle and In how much time they can blast how much ama.
surface and experience of the person.
3: Availability of air is extrematy
5: Selection of blasting material is
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
iiJllO!iant as well, it depends on the recommended. requirement, economy and most 5: In addition to conventional blast important cleaning procedures, other 6: Environment regulallcns. Different equipment and techniques are type and size of blasting material available for preparing surfaces give different extend of cleaning using a mixture of abrasive and and most important the surface water, known as 'Wet Blasting', or profile. Wet Abrasive Blasting'.
c. SSPC.SP12 describes high and uHra-hlgh- pressure water jetting as a means of preparing or cleaning steel or other hard surfaces for re-coatlng.
7: Before quoting for blasting job, 6: Wet Blasting or Wet Abrasive one must calculate the abrasive Blasting definition:quantity based on Job specification, a. The technique is described requirement and substrate condition. In SSPC-1R2/NACE 6G198 Joint Technical Report - Wet Abrasive Blast Cleaning. (E) Methodology b. It Is a method of cfeanlng 1: Above surface preparation is whertt water is injected into the
e. Pressures below 10,000 psi are considered water cleaning, not water Jetting.
d. SSPC deflnes water jetting as the use of water at pressurttS above 10,000 psi.
f. Ultra-high-pressure water jetting is performed at 25,000 psi or higher.
g.Water jetting differs from wet
The unique feature of Dry Ice Blasting is that dry ice vaporizes on contact with the surface to be cleaned. mainly for mild steel (MS), cold rolled steel (CRS) and hot rolled steel (HRS}.
air/abrasive stream generated by conventional abrasive blast c:feanlng equipment.
2: For electro-galvanized (EG) 7. ObJectlvea:路 depending on the condition only eolvent cleaning as per SSPC SP- a. The objective Is to remove 11senough contaminants and suppress the dusting effect caused by the 3: similarly for hot dip galvanized Impact of the abrasive on the (HOG) SSPC SP-1 is substrate, while retaining the recommended. blasUng characteristics of dry abrasive, including creation of 4: if condition is not so good (stDred anchor profile'. outside and have eome deposits or b.Uitra-High-Pressure water JeCtlng zinc oxide layer then sweep blasti~ is In contrast to wet abrasive blasting, SSPC SP- 7 or Sa 1 is 8.
..
EJIERGO STEEL JOURNAL PAKISTAN APRIL TOJUNE-2012
abrasive blasting in that it does not Impart any StJrface profile to the substrate, h.slnce It does not use any abrasive in the water stream. I. What It can do, however, Is to remove contamination such as dirt and rust, as well as old paint j. If the substrate initially had a profile, this profile will be retained by the water jetting proceas.
Drv Ice Blasting:-
a. It is a revolutionary blasting method that uses small, compact dry ice pellets as the blasting material. b. T he dry ice pellets are accelerated in a jet of compressed air similar to that used in traditiona l blasting methods.
f. This can usually be swept or vacuumed from the floor beneath the treated object.
b. Treated surfaces are therefore left dry and clean, without residues of detergents or blasting materials.
g. Dry Ice Blasting is ideal for removing coatings such as adhesives, varnish, oil, grease, coal dust, soot, mould release agents and bitumen - to name but a few of the materials we remove daily using the process.
c.As the process is completely dry and non-conductive, Dry Ice Blasting can be used where other methods are unsuitable.
c. Dry Ice Blasting is designed to replace high-pressure cleaning and other traditional blasting methods that use materials such as sand, glass and plastic as abrasive agents. d. In addition , however, a wideErange of other cleaning methods that involve the use of hazardous chemicals, solvents, etc. , can withEadvantage be replaced by Dry Ice Blasting.
Blasting is that dry iceEvaporizes on contact with the surface to be cleaned.
h. Dry Ice Blasting will often allow a company's production equ ipment to be cleaned while in operationEwithout the need for dismantling and costly downtime.
d. For example, electric motors and equipment with electric, pneumatic or hydraulic components can be cleaned direct using.
i. Dry Ice Blasting is nonabrasive, and surfaces are therefore treated gentl y.
Dry Ice Blasting.
9. Advantages Of Dry Ice Blasting:-
e. Dry Ice Blasting produces no waste products. Only the coating that has been removed remains to be disposed of,
j. The system can thus be used on easily-damaged surfaces like nickel, chromium and soft aluminum.
a.The unique feature of Dry Ice
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APRIL TO JUNE-2012
ENERGO STEEL JOURNAL PAKISTAN
Interview with Shahnawaz lshtiaq Chairman Karachi Chapter- Pakistan Steel Re-Rolling Mills Association By: Muhammad S. Ansari & Areeba Ansari Introduction: Steel industry in Pakistan stands on its own. Due to bad governance of previous government, private sector could not setup the infra strucfJ.Jre for the production of heavy & small industry. Its spare parts of greater volumes paid their attention towards making of rods and grader. Need of iron in our country is almost equal to 501ac tons while our production is much lesser than that. Pakistan Steel could have turned us a new life if it is allowed to s1and on its own foot. It requires provision of benefits, financial aid and concerns to the Private Sector. Mr. Shahnawaz lshtiaq is one of the people who are eligible to
-
command, running the steel sector in Pakistan. He is an educated, skillful and experienced person and has been re-elected as chairman of Pakistan Steel Rerolling Mills Association of Pakistan. He plays a very active role for his association. The role he played for the survival and integrity is worth praising. The most worth-praising act is that he has given sympathies for publishing our magazine, which will be a milestone for us and for the industry. Here, we are quoting a dialogue with Mr. lshtiaq, to be aware about his success.
Q.1: The Objectives on which Pakistan Steel Mills was founded, do you agree that these objectives
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
have been achieved?
Ans: Seeing the contemporary era, it would have been a great achievement if Pakistan Steel Mills would be allowed to run by itself. The objectives behind the establishment of Pakistan Steel Mills were really solid. Steel mills are basically the back bone of any country. Main objective of Steel mill was the establishment of various industrial organizations in different fields. But unfortunately no such organization could be established till date. Pakistan steel Mills laid out "Down Stream Sector' but no worth mentioning division I setup could be established which has a direct link to Steels Mills. Some small
induslries have been set up but their knowledge about "Input• & "Out output is comparatively lower than Pur, raw material availability etc. it had been expected. Moreover, There came a time when there was the circumstances of the country a big increase in the demand of Iron also add up to the worst conditions. and Steel, but there were very Besides, those officials who were limited resources of raw material. or are still in command of Pakistan Keeping in view of these limited Steel Mills are not sincere enough. resources, we all had to make joint Whichever Government comes in efforts. Our association went to Power, usually announces false every platform and demanded to intentions of progress and provide raw-material. But in our advancement of Pakistan Steel country it was not meeting the Mills. But in fact nobody does demands and PSM was also not anything in reality. As the demand giving us raw material. Therefore of iron and steel is constantly mini furnaces and multi-units were increasing/growing in the country; set up, so that we may get enough so as a rule, Pakistan Steel Mills material for our Rolling Mills. Some should have also grow but instead of this, it has started deteriorating. The overheads were quite high, and the price kept on increasing and so did the mark-up rates. Like these, & several other factors, the importance of Steel Mills is disclosed to everybody.
so much duty that the concerned people would never import such thing again. Then gradually PSM, ship breaking and melting induslries got monopolized. At that time prices were raised to such an extent that those were unaffordable. At that time FBR realized the importance of our association. We had a broad based meeting on a fourth source "Biller, which we wanted to import. One of our arguments was that this is such a raw material which is directly in the hands of consumer and it is a way out of blackmailing. Secondly there are certain raw materials which require low
Q.2: Policies for every sector are made in Pakistan but why not any clear policy for Iron & Steel Sector in Pakistan?
Ans: Any Policy for steel sector could not be made due to our own mistakes. Most of the people working in this sector are ofourmaterialdemandwasmetby investment, and material can be uneducated in this field that's why Giddani Ship Breaking Sector but imported at the prices which would the associations could not do any still we couldn't totally depend on keep rest of the prices under control constructive work. Central Excise Giddani's ship breaking industry. and un-monopolized too. The Duty was also a liability which was Because I always believe that ifs Ministry of Finance and Industries bound to pay for it. The whole all subject to the availability of raw & the Ministry of Commerce industry was working on self- material. It is not included in the accepted that it was a valid point. assessment at that time. The continuity of our business. We An SRO was issued the same day owners of Steel Mills were not expecttogetrawmaterialfromthree and "Rollable• was given a separate related to each other. Gradually 1he resources in which first comes head. From that day our industry demand was increasing so more "PSM, then Steel melting units and became independent for importing steel units were established. Due lastly imports. raw material on its own. However, to such factors the problems of steel Before the year 2004, the duty our first priority was to obtain locally industries owners also started structure HS-4, of "Rollable• and available raw material otherwise we increasing. When GST system was "Billet etc was much painful and will import it. This is a part of our levied, it compelled all the steel unit nobody used to import it. In case policy secured and protected by owners to sit together to get if imported, the dept. used to impose Government. We did organize a
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
conference of all the stake holders of Steel industry without their consent but no SRO could have been revised. Q.3: Why there is not any Export Policy for Steel Sector? Ans.: Quality & productivity generates different resources of income. In Pakistan, Steel Industry has always been surrounded by the problems. The production is mostly less than demand. For example, auto industry is a big sector. All the parts are manufactured by the flat products i.e. sheets, but it is deficient in our case. Since the time PSM came into being, it should have started producing high value products rather than low value produds. So the local industry could have been formed and steel mill would have provided them the major support. But nothing like this did happened & neither such industry for the support of Auto industry was established nor there is any big plant or complex to meet the demands of other engineering industries. Local industries (furnaces) can meet the demand of local consumers like for Building Materials etc. Heavy industries are required to manufacture flat products. If Government would have paid proper attention towards the development of PSM, then there would have been big furnace and factories within PSM for the manufacturing of giant size parts of machinery. But alas it never happened. The last important thing is that we don't have a big market as compared to India and other countries. The core requirement of Iron is almost 50 Lac tons in Pakistan while in India it is 40 Lac tons approximately. Our available steel manufacturing facilities hardly
fulfill the local requirements. As we usually have the shortage of raw material, therefore to support the local industry, only those products will be imported which are not produced here. It has been agreed upon by the government that items which have the demand in foreign countries will not be allowed to export However, some are allowed by paying 25% duty. Q.4: What are the advantages & disadvantages faced by Re Rolling mills by PSM?
Ans.: Whenever we require good quality of raw materials we used to take it from PSM. As a matter of fact by the prices of steel mills products, we could know the mechanism for the prices of other products as well. When steel mills started its operations it had only few consumers for its products. ReRolling Mills didn't have the right kind of machines for producing 100 mm or150mm billets. In the start PSMC also made 50 mm or 65mm Billets. The production was 2 - 2.5 lac tons annually. The total production including other products was up to 70 - 80 Lac tons. PSM introduced them very gradually in
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
the market. The Re-Rolling Mill owners always asked PSM to acknowledge them in anticipation whatever they intend to do. Re Rolling mills need to modernize and will modernize shortly. Today we are making up to the standard of 150 mm billets in bulk. The cost is also much reduced and being at economical we have done installation of plants I industries .But unfortunately PSMC has never shared anything with local industry due to which much loss incurred. The benefits were that local market could be assessed easily and we
could get quality Raw Material. Q.5: What is the role of Re Rolling Mills in the Steel Industry? Ana.: If the total consumption is about 5 million tons then 4.3 or 4.4 million tons is being supplied by these Re-Rolling Mills .It means 92 - 93% of demand is being fulfilled by the re-rolling mills. 40 % of raw material produced by Steel Mills is consumed by the re-rolling mills. Raw Material produced by Ship Breaking industry and Steel Melting units is also being used by ReRolling Mills. So the Re Rolling industry is the final consumer of all
the raw material & is a stake holder. Therefore re rolling holds the responsibility of total output. Q.6: How secure re-rolling mills owners or investors think they are and what benefits they expect in future? Ans.: Steel manufacturing is being done on small scale. If we work at the rate of Rs. 500/ tin & if the contract is of 50 thousand then it comes up to 7%. The turnover is well enough. If we work on 1% and rolling is done thrice or more in a month then annually we get almost 40%. The investment in this sector mainly depends on national crisis and environment. When PSGC is closed the whole industry is affected. The industry has to maintain quality and quantity if the industry wishes to keep on manufacturing. When the govt. based work is in progress for example dams or bridges are constructed then industries are benefited and investors also wish to invest. But we should not ignore the truth that few big investors face certain problems due to which they are less interested in investments. For the past few years there had been an international boom in steel industry. We were demanded by the EDB and industries ministry to modernize our industrial units to meet the international standards. As machinery was old and the energy consumption was also high therefore engineering sector became economical etc. Govt. officials were told that instead of cursing the industry new investors should be introduced to install new and modernized plants. if this is done we will automatically go behind that. The same thing happened. Investments were made with new hopes but result was not as
expected. The demand is of up to 2-10 tons which could be met by 4 - 5 units. The big industries with production of 2-5 Lac tons annually does not match with the scenario. They don't have the mutual understanding with consumers also. So the current production may be counted as low or medium level for the successful match in on going working environment of our country. During the boom era we modernized in terms of production capacity of Iron rods I guard of 1-2 Lac tons annually which means the production capacity of Re-Rolling Industry has become double now. But if our production level does not go above that, while the installed capacity is of 6 million tons, the enhancement raises the expense in terms of taxes etc. Q. 7: Are you not getting raw material to maximize the production or there is other reason behind the issue?
Ans.: Two things have to be seen. Raw material already used to be, is imported. We won't discuss on non- availability but the actual reason is widening gap between "Demand and Supply." The difference of rate required from conversion is hard to gain. In other words production has increased but demand is less or the demand is not growing. Therefore the whole industry is under pressure. Q.8: What facilities are being provided by the government to the new investors in Steel Industry? Ans.: As far as I know besides the PSM there are hardly 2-3 investors from private sector who are supported by government. In Pakistan private sector for steel making has always been to rely on self-support basis and has grown
on its own resources. The govt. has never helped us. Bank provide us loan for the development. Government has not played any role in the progress of industry. Q.9: Govt. has introduced some policies for the investments in private sector. The President and PM have also stated that they are attracting investors. Up to what extent these statements are true? Ans.: All such statements made by the government look very attractive on TV and in newspapers only. But practically nothing is going on in reality. nTuwairqi Steel Mill" Project has been setup for many past years =it is complete now but has not started its operation phase yet. They are not giving any particular dateor month to mark its operation. In Lahore Dost Steel is another project which is not in operation yet. Steel Industry requires high consumption of electricity and Gas. In the rest of the world tariff rates are reduced and has withdrawn from the industry which give incentives to industry to grow. Only melting industry is one whose tariff has been reduced a little otherwise there is no incentive being proposed for the tariff rates for Re Rolling mills of Pakistan? Q.10: What is the function of Coke in Re- Rolling Mills? Ans.: In rolling industry whenever there is a shortage of Gas ( as in Punjab now) Coke is used in furnace to produce heat. It is expensive also. Furnace oil is also used in case of Gas Load Shading. Q.11 : Are you satisfied with the supply of electricity from WAPDA? Ans.: One cannot imagine the loss being faced by the industry nowadays. Load Shading is done
APRIL TO JUNE-2012 EN ERGO STEEL JOURNAL PAKISTAN
as per schedule. But when power is switched off without any prior announcements industry is facing crisis. As a matter of fact expenses have increased and demand is declining. The difference in sales and purchase has gone very narrow. Q.12: How does shut down affect your furnace? Ans.: Re- Rolling mills hardly gets affected by load shading but Melting units does. For example in a furnace 10-12 tons of iron is being melted but due to power shut down the heat would get finish and iron will become cold and solid. To make it usable again the furnace will have to be broken and will be re-built again to melt the iron. We have Furnace linked directly to the grid stations and as mill owners are also being acknowledged about load shading timings so we manage the things like this. Q.13: Does Ship breaking have the value of assets for rolling Mills? Ans.: Yes, most of the raw material for the Re Rolling is provided by ship breaking industry but it is in small quantity. The production is done on small scale. The ship breaker gives us nearly 4- 5 tons. The sector where ship breakers are supplying has 80% effect. Q.14: What Effect ship breaking has on steel sector? Ans.: If we talk about 40 Lac tons in ship breaking it has never given us more than 5 Lac tons for rolling. There fore the share is not more than 10%. They have influence in industries attached with ship plates. Q.15: How much do you depend
on Allied Steel Sector? Ans.: There is no product of ReRolling which is directly related to Allied Steel Industry. Just few items like Guard channels or angles are or fewer of auto industry are associated with the allied steel products industry. The majority production by Re Rolling mill is for Construction sector. Q.16: What is the consumption of Iron in Pakistan? How much of the requirement is fulfilled by Re-Rolling Mills and how much do we import? Ans.: For the last two years the import has become almost negligible. The reason is that the installed capacity is more than 6 millions tons. The nation has wide demand but has fallen from 5 million to 2.5 million tons. The whole pressure is being sustained by ReRolling Sector against the installed capacity. Their manufacturing has come to 50%- 60%. if there is a boom in the sector we assure that re rolling mills will not stand behind. Q.17: How Much Re Rolling Industry depends on Scrap Market? Ans.: There is no direct link up. Re Rolling mills required re Rollable materials which are the finished products of steel mills. Furnace. Scrap is basically the requirement of Melting Units. Re Rolling Mills never use scrap. Q.18: What are the sources to acquire scrap by Melting Units and what is the performance? Ans.: When Re rolling Mills manufactured 42 - 45 Lac tons of their product, the melting industry gave us the Raw Material of 33-
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
34 Lac tons .If the demand is of 4 million tons. Then 2 Lac tons is supplied to Rolling Mills by steel Mills. 5 Lac ton provided to us by ship breaking. Imports are not beyond 2- 3 Lacs. Altogether it becomes 10 Lac Tons. It means the Melting Industry has share of 75% to 80%. Q.19: The consumer items made up of stainless steel like some utensils, or steel made machines in the local cottage industries,. are made in Pakistan or are they imported? Ans.: One thing I should clear is that no such stainless items are manufactured here. Such steel utensils or machinery items are mostly imported from other countries. If some of them are made even here the steel sheet is imported one. There are very few things for which steel mills are providing steel sheets. Q.20: Some Investors/ Entrepreneurs are establishing steel mills in Pakistan. In such a scenario, what will be resources of raw material or Iron ore? Are we again going to depend on imports like past 30 years? Ans.: The iron ore which is being explored in Pakistan is on a very limited base and the government is not fully successful in this regards. The fields of Iron ores discovered in Pakistan have standards of World Class Iron Ore. But our govt. has not done any thing productive for its development. The department of Mines and Minerals is lacking the research and attention of Government. According to the survey done by some foreign surveyors, by the Grace of Almighty
Allah, Pakistan possess reservoirs of Iron Ore for another 200 years and these are spread from Baluchistan to Iran and from Kala Bagh to Chinniot but no work has started upon these reservoirs so far Q.21: Up to what extent India is involved in our Steel Industry in regards to Machinery and equipment? Ans: More than 70% of melting industries has been set up by India. The high frequency furnaces consume less electricity and their output is also more. That's how they are economical. The parts are also relatively cheaper.
Q.22: HMC also happens to be a big industry. The industry hasn't made any machinery or plants for steel sector? Ans.: Molding is mostly done in HMC and it is used for military requirements. In this organization, pig iron is used for molding things like Military Tanks etc. HMC does not make any finished product. Some of the molding work was done by the lttefaq Foundry too. I don't think that there is any prominent role of HMC in rolling, construction or steel industries etc. Q.23: Steel Re-Rolling Mills are being operated so efficiently here? What do you think what steps should be taken to run Pakistan Steel Mills smoothly? Ans.: Pakistan Steel Mills was the profitable investment of government in past as it was manufacturing around 1 Million tons of steel annually; however, the current situation is quite different the
organization which was earning billion in back date now it does not have enough funds even for the salaries of its employees. For the refurbishment of this project Government need to bring stake holders, policy makers and investors on one platform so that the revamp of Pakistan Steel Mills should take place via proper planning as this required huge investments as well. We are hopeful in this way Pakistan Steel will be able to get back to its position sooner; due to this situation of PSM we also have to import raw material not only this is causing problem for us but also it is having a huge negative impact on our revenue. Pakistan Steel Mills is a back bone of our Engineering and Industrial Sectors. Government should appoint unbiased management to straighten the current situation and to run this huge mechanical complex otherwise Private should be involved. For its smooth run there should be no interference of government of political parties in Steel Mills. There are Multinational Investors from China, Korea and Russia they should be welcome for the investment purpose. Q. 24: What is quality of ballet manufactured by Pakistan Steel Mills?
Ans.: The ballet manufactured by Pakistan Steel Mills is of 'JJ\ Class Quality. However the ballets prepared locally other than PSM are of different qualities. Twisted bar which we manufacture with the ballet made in PSM cost us around Rupees 65000 I ton. Bars we make from scrap material cost to us Rupees 56000/ton. The difference is due to change in quality.
Q.25: Steel rods or bars being used in the foundation of any building; are they manufactured in Pakistan only? Ans.: They are known as D-Bars and yes we do manufacture them in our re-rolling mills. Per ton cost us around Rupees 77000 currently. D-bars are being used in the foundation of any factory, plant or overhead bridges etc. Q.26: For the new investors will it be beneficial for new investors to invest in Pakistan Steel Mills considering the current situation? Ans.: Considering the current financial situation of Steel and energy and socio-economic crisis of Pakistan it will be a risk for the investors; as even the refurbishment of PSM requires huge investment. However, if you consider the investment made in other steel projects in recent past that are all by the multinational or foreign investment. Furthertheywill be raw material manufacturing units. As they are export oriented so they have registered themselves as Export free zone. They will either export their products or will sale it locally to us. Meanwhile they are beneficial for government as they will cause not only more foreign investment in Pakistan but also will be helpful in employment. Q.27: What is the Sales Tax on Steel Sector? Ans.: To avoid any kind of theft, as per special procedures Steel Sector is paying sales tax fixed through their electricity bills at PKR 6/Unit as full and final tax hability to keep a fair and transparent transaction as perSRO.
APRIL TO JUNE-2012 EN ERGO STEEL JOURNAL PAKISTAN
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News Bulletin ESJ Pakistan
Islamabad-South Korea is prepared to assist Pakistan in its efforts for overcoming the energy deficiency and other economic endeavors. The two countries are enjoying excellent ties and cooperating with each other in number of regional and international affairs. This has
been stated by Ambassador Choongjoo CHOI of republic of Korea in an informal dinner at his residence in the diplomatic enclave that he hosted in the honor of senior journalists of the capital. The ambassador had candid chat with the media persons and expressed hope that Pakistan would overcome its current difficulties as the people in Pakistan are very resilient and hard working. He further added that his embassy has planned to
82
enhance the people-to-people contacts of the two countries and for the purpose he has already send extensive recommendations to his government. Both the governments are also interested to increase the interaction of the people of their respective countries with each other. Karachi-Recognizing the important role being played by Pakistan in the contemporary world, Russia has offered assistance in the face of oil and gas supplies to the energyscarce South Asian country. On the stratego-diplomatic front, Moscow confirmed that President Putin would visit Pakistan soon , and that his role in ensuring regional stability, security and economic integration, particularly in the settlement of Afghanistan issue, must not be underestimated. Russia has also offered help to Pakistan in modernizing the ailing Pakistan Steel Mills (PSM) project inaugurated by then USSR some three decades back. We all know that Pakistan is experiencing energy deficit. But let us not forget that Russia is the world's biggest energy supplier, said Russian Consul General Andrey V Demidov while talking to media on the occasion of the Russia Day. Our assistance in the field of energy can be rendered in the
form of oil and gas supplies, he added. Urging the two sides to take their bilateral relations beyond the PSM cooperation, Demidov said his country was ready to help Pakistan in the modernization of PSM that, he said, required up gradation and new machinery for enhanced production. We are prepared to come and modernize the project, the CG said adding The machinery built in the Soviet Union, although old, is still working without any serious technical problem . He further added that the fields of energy, steel production, telecommunications, space technologies, oil and gas were mentioned as leading areas of cooperation. Islamabad - On the demand of Steel Melters Association of Pakistan, Federal Minister for Finance and Economic Affairs Dr. Abdul Hafez Sheikh directed the Federal Board of Revenue (FBR) to revise sales tax on electricity for steel mills to 7 per cent against the proposed 8 per cent in the Finance Bill 2013. A meeting of Federal Minister for Finance Dr. Hafez Sheikh with Imtiaz Safdar Warraich, State Minister for Interior, along with the delegation of Steel Melters Association of Pakistan was held to discuss different issues and
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
concerns of steel Melters industry. The chairman Steel Melters Association informed the meeting that their industry is going through a very difficult time in which they are unable to survive. They specifically pointed out the issues of sales tax, withholding tax, fuel adjustment surcharge and requested the Finance Minister to allow some relaxation so that they could survive in the most competitive market. The delegation of Pakistan Steel Melters Association requested to reduce of Sales Tax on electricity for steel mills from 8pc to 6pc proposed in Finance Bill, on which, Finance Minister advised FBR to revise Sales Tax from 8% to 7%. In the same way, the demand of reduction of Withholding Tax from 3% to 1%, Finance Minister asked FBR to look into this matter in consultation with the representatives of Steel Melters Association in order to materialize their demand and present a report shortly. Islamabad - Urging China for greater investment in mega energy projects, President Asif Ali Zardari proposed setting up and Energy Fund for the ventures like hydro-powerprojects. The Pakistani president held a meeting with Chinese President Hu Jintao on the sidelines of the SCO summit, discussing the whole gamut of bilateral relations to the recent developments taking place at the regional and international level. According to presidential spokesperson Farhatullah Babar, President Zardari besides articulating Pakistan s position on various
education, health and infrastructure projects in the country, USAID Acting Country Director Karen Freeman told newsmen after function at National Institute of Health. US
issues of interest to the region and the world sought Chinese assistance in overcoming the energy crisis. The Pakistani president said that people of Pakistan greatly value the unparalleled friendship with China and appreciate in big way their assistance at every hour of suffering. Islamabad wanted to transform its traditional equation with China into economic affairs and wanted to learn from the Chinese experience of growth and progress. The presidential spokesperson quoted the president as saying that the government was interested to see Chinese investors and business community playing active role in the socio-economic development of the country. ISLAMABAD: United States Agency for International Development (USAID) disbursed to Pakistan over $2.6 billion in economic, energy, health, education and infrastructure projects under Kerry-Lugar-Berman (KLB) Bill. The main emphasis of USAID assistance was on energy production, economic growth, agriculture improvement,
ENERGO STEEL JOURNAL PAKISTAN APRIL TO JUNE-2012
want prosperous, secure, stable Pakistan with improvement in all basic needs of life available to people at grassroots level. All USAID funded projects are on track, she said adding besides producing 400 megawatts (MW) through new projects, assistance is being provided for improving existing energy projects.Ê She said US government through USAID provided assistance to help strengthen energy sector, enhance economic and educational opportunities available to Pakistanis, improve health care services and meet critical infrastructure needs in remote mountain areas. It also provided substantial relief, recovery assistance, such as when floods devastated the country in year 2010.
83
News Bulletin ESJ Pakistan
Corporate
Jotun, a leading manufacturer and supplier of high performance coatings, is launching two revolutionary new coatings specifically developed for the offshore industry. Barrier Plus is a new twocomponent zinc-rich epoxy primer based on revolutionary technology, providing optimal cathodic corrosion protection of steel substrates for offshore structures in atmospheric conditions. Another new product, Penguard Pro, can be applied for use in both atmospheric and submerged conditions, in a single coating, as a primer or mid-coat solution. Jotun has developed Barrier Plus and Penguard Pro over a number of years and, at launch, both products have been fully tested and approved to industry-recognized ISO 20340 and NORSOK M501 standards. These standards provide owners with the utmost confidence in the quality of these Jotun coating systems. Jotun chemists have been working on new epoxy binder combinations and tailored in-house curing agent technologies, and have discovered a solution that combines new and previous in-organic zinc primers properties. Barrier Plus zinc coating protects well and is easy to apply to superstructures above the waterline. By investing in a high quality coating at the building stage, Barrier Plus will ensure longer intervals between maintenance. Penguard Pro offers a wide dry film thickness range between 100 and 500 microns unique in the industry. Used as a mid-coat or primer both above and below the water, the thickness range means the number of coats can be reduced. It can also be applied in temperatures from as low as -5°C to as high as +40°C,
84
making it a true all-season applicationfriendly product.
Gold slipped by Rs258 to close at Rs49,542 per 10 grams in the local market Monday as its international price dropped to $ 1,622 an ounce, market sources said. According to Karachi Saraf Association official, tola (11.664 grams) price also dipped by Rs300 to Rs57,800. However, silver closed unchanged at Rs848.57 per 10 grams.
SINGAPORE: Oil prices advanced in Asian trade Monday, mirroring gains in broader asset markets after Greece's proausterity parties won a tight general election, analysts said. New York's main contract, light sweet crude for July delivery advanced 90 cents to $84.93 a barrel and Brent North Sea crude for August delivery surged $1.48 to $99.09. Greece's two main parties narrowly clinched enough votes to form a government, giving relief to dealers who had feared a victory for anti-bailout radicals would have led to the country being forced out of the eurozone. After the crucial election it was the second in six weeks in Greece after May 6 polls failed to produce a government, stirring fears that the political stalemate would paralyse efforts to bring Greece back from the brink. Global financial markets have been monitoring the election closely because of its potential domino effect on other economies in the currency bloc and globally.
NEW YORK: A rare surviving first model of the Apple computer -a stripped down, clunky device
that bears no resemblance to today's sleek gadgets -- sold for $374,000 at auction in New York on 15TH June 2012. The price was more than double the pre-sale estimate, reflecting a two-way bidding war eventually won by an anonymous telephone bidder. The Apple I computer was created by Apple co-founders Steve Wozniak and Steve Jobs and sold in 1976 at the birth of Jobs's career as the world's computer design guru. The model auctioned in New York is believed to be one of six of the less than 50 surviving that still works.
Loss-making Finnish cellphone maker Nokia plans to cut another 10,000 jobs globally in its biggest revamp in recent history, while it warned the second-quarter loss from its cellphone business would be larger than expected. The cuts, which include the closure of Nokia's only plant in Finland, bring total planned job cuts at the group since Stephen Elop took over as chief executive in 2010 to more than 40,000. The company, whose cash position is increasingly scrutinized by investors, also said restructuring-related cash outflows would be around 650 million euros in the remaining three quarters of 2012 and around 600 million in 2013. Shares in Nokia fell 9 percent in early trading and were down 6.9 percent. Nokia stock has crashed more than 70 percent since it announced in February 2011 that it was dropping its own Symbian smartphone operating software and switching to Microsoft's largely untried Windows Phone system.
APRIL TO JUNE-2012 ENERGO STEEL JOURNAL PAKISTAN
Import Statistics Pertaining To Iron & Steel Items For the Month of January 2012 Items (‘000 Tons) Country
Afghanistan America Argentina Australia Bahrain Belgium Brazil Canada China Cyprus Egypt Estonia France Germany HongKong India Indonesia Italy Japan Jordan Kenya Korea Democratic Korea Republic Kuwait Malaysia Mexico Morocco Netherlands New Zealand Norway Oman Qatar Saudi Arabia Singapore Slovak South Africa South Korea Spain Sweden Switzerland Taiwan Tanzania Thailand Turkey UAE Ukraine United Kingdom
Galvanized Coils / GP Sheets / Plate & Tin Plates
High Carbon Steel Coil Sheet/Rolls and Wire
Alloy Steel Coil / Sheet / Round Bars
Hot Roll Coil Sheets / Plates and Strips
25.17
Cold Roll Coil Sheets / Plates and Strips etc.
Re-Metable Iron / Steel Scrap / Auto Parts / Compressor Scrap, etc.
207.67
74.93
Steel Billets
39.6 33.31
60.13
231.40 50.01 747.77
10.12
71.52
4.56
105.87
534.66
3,525.15
46.22 110.03 60.00
78.21 18.83 43.84
25.00 96.51
24.86 274.81
60.00
30.00 50.00 196.30
ENERGO STEEL JOURNAL PAKISTAN
199.78 20.08 96.20 300.00
APRIL TO JUNE-2012
564.30
85 |
Import Statistics Pertaining To Iron & Steel Items For the Month of February 2012 Items (‘000 Tons) Country
Afghanistan America Argentina Australia Bahrain Belgium Brazil Canada China Cyprus Egypt Estonia France Germany HongKong India Indonesia Italy Japan Jordan Kenya Korea Democratic Korea Republic Kuwait Malaysia Mexico Morocco Netherlands New Zealand Norway Oman Qatar Saudi Arabia Singapore Slovak South Africa South Korea Spain Sweden Switzerland Taiwan Tanzania Thailand Turkey UAE Ukraine United Kingdom
| 86
Hot Roll Coil Sheets / Plates and Strips
Cold Roll Coil Sheets / Plates and Strips etc.
Re-Metable Iron / Steel Scrap / Auto Parts / Compressor Scrap, etc.
3,289.60 8.99
42.93
54.99
775.67
25.00 4.21 669.03
25.00 541.51
83.07
262.80
575.34
237.97
400.04
874.70
Galvanized Coils / GP Sheets / Plate & Tin Plates
High Carbon Steel Coil Sheet/Rolls and Wire
54.40 1,866.27
394.02
367.43
529.01
Alloy Steel Coil / Sheet / Round Bars
Steel Billets
290.31
2,109.55
128.00 323.28 8.00 285.58
143.12
1,348.43 6.00 42.96
380.53
596.72
55.27 769.20 18.80
274.20 607.14 473.99 22.50 25.00 62.32 274.81
35.10
495.26 147.77
49.25
50.86
22.28 100.00 213.35
29.88
3.00
2,273.75
10.47
72.50
260.93 80.23 257.80
20.08 12.00
9.21
137.78
APRIL TO JUNE-2012
ENERGO STEEL JOURNAL PAKISTAN
Import Statistics Pertaining To Iron & Steel Items For the Month of March 2012 Items (‘000 Tons) Country
Afghanistan America Argentina Australia Bahrain Belgium Brazil Canada China Cyprus Egypt Estonia France Germany HongKong India Indonesia Italy Japan Jordan Kenya Korea Democratic Korea Republic Kuwait Malaysia Mexico Morocco Netherlands New Zealand Norway Oman Qatar Saudi Arabia Singapore Slovak South Africa South Korea Spain Sweden Switzerland Taiwan Tanzania Thailand Turkey UAE Ukraine United Kingdom
| 87
Galvanized Coils / GP Sheets / Plate & Tin Plates
High Carbon Steel Coil Sheet/Rolls and Wire
Hot Roll Coil Sheets / Plates and Strips
Cold Roll Coil Sheets / Plates and Strips etc.
2,236.80 100.00 167.73
663.50
865.12
873.61
491.03
292.18
237.36
2,458.47
124.43 3,741.68
7.64 3,028.53
310.95 3,347.26
158.24 3,430.46
2,266.81
20.27 2,773.52
619.24
245.47 2,444.16
3,289.60 3,701.01 472.02 1.50 1,244.21
489.03
Alloy Steel Coil / Sheet / Round Bars
1,728.90
219.19 204.72
1,579.66 1,649.88
1,739.35
71.68 2,332.40 354.38
50.75 714.11 853.21
85.17
256.45
Re-Metable Iron / Steel Scrap / Auto Parts / Compressor Scrap, etc.
Steel Billets
9,812.63 2,632.93 121.84 815.59 27.77 1,646.66 349.66 675.24 50.20 102.79
2,289.86
153.12 106.09 27.02 162.05
392.31
17,969.00 62.00
122.41 290.37
2,052.25
292.72 204.19 400.010
1,787.81 778.25
241.35
11.88
97.38
16.65 93.47 93.47
36.00
117.60
250.222 250.22 248.72 800.94 266.72 1,079.31 560.01
5,134.72
1,694.90
149.85
9,922.44 458.13
188.16 16.00
322.81 98.27
738.64
113.73 57.17 18.85 368.00
7.40 1.50 43.00 217.75
0.70 7.50 224.30
1,685.49 300.36 490.66
164.50
195.75
279.06
0.70 179.02 619.14
685.47 13.89 3,649.58 5.34
5.65
536.13 8,974.14 354.99
APRIL TO JUNE-2012
72.63 14.21 142.59 172.63
534.97 14.60 9,871.87 203.32 3,717.74
ENERGO STEEL JOURNAL PAKISTAN
Nawab Brothers Steel Mills (Pvt) Limited D-41 , S .I.T.E., Karachi 75730 , Sindh, Pak istan Phone: 9221-2574154 / 2574084 / 2570319 Fax: 9221-2564794
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The partner you need to face new challenges Bureau Veritas is a service company specializing in QHSE management (Quality, Health, Safety and Environment), Social Accountability and Food Safety with a network that covers 140 countries and includes nearly 900 offices and laboratories worldwide. Boasting 40,000 employees, Bureau Veritas serves more than 370,000 customers from numerous different industries across the world, from small local companies to major multinational corporations. The highly decentralized structure allows the Group to supply its day-to-day services with the necessary efficiency and domestic knowledge, anywhere in the world. Bureau Veritas Pakistan offer clients the know-how of its highly skilled engineers and technicians, who have acquired experience in working on major national and international projects and are qualified to handle all the technical aspects of those including application of dedicated computer tools. We have introduced high-powered information systems to respond more efficiently to your requirements. All the Bureau Veritas’ centers throughout the world are interconnected through an intranet system enabling a real-time transmission of information. Services are delivered through Bureau Veritas’ network and through specialized entities. The various technical services and solutions offered by Bureau Veritas cover the activities of certification, conformity assessment, training and consulting. Our Mission is to assist you with the management of your assets, personnel, systems and processes, products and services. for further information please contact at UAN: 111 786 013 E-mail: bv.karachi@bureauveritaspk.com
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