Steel Times International November December 2023 by Quartz Business Media

HANDLING

DECARBONIZATION

USA UPDATE

PERSPECTIVES

Taking the night train to Rovaniemi with Pesmel

The EU’s Carbon Border Adjustment Mechanism

Rising HRC prices – buyers cautious, says Manik Mehta

We talk to Nikunj Mehta, CEO and founder of Falkonry

Since 1866

www.steeltimesint.com November/December 2023 - Vol.47 No8

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CONTENTS – NOVEMBER/DECEMBER

Picture of Badische Stahlwerke (BSW) in Kehl, Germany. Harbour view of the mill, celebrating this year 55 years of Steelmaking.

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

2 Leader By Matthew Moggridge.

31 ESTEP conference report EU steel drives circular economy.

4 News round-up The latest global steel news.

33 Decarbonization CBAM: A new era of emissions reporting.

8 Innovations The latest products and contracts.

35 Decarbonization CBAM: Adapting to new carbon policies.

13 USA update Rising hot rolled coil prices.

38 Health and safety Smoke in the air.

15 Latin America Update Export restrictions on ferrous scrap

40 Rolling Low-emission steelmaking.

19 India update India hardens its stance on Chinese exports.

45 Digitalization The INEVITABLE project

22 Electric steelmaking From green to greenest.

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

28 Handling Night train to Rovaniemi.

50 Perspectives Nikunj Mehta, CEO/Founder, Falkonry. 52 History A tale of two bridges.

Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £226.00 Other countries: £299.00 2 years subscription: UK £407.00 Other countries: £536.00 3 years subscription: UK £453.00 Other countries: £625.00

Single copy (inc postage): £50.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England. Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in England by: Stephens and George Ltd • Goat Mill Road • Dowlais • Merthyr Tydﬁl • CF48 3TD. Tel: +44 (0)1685 352063 Web: www.stephensandgeorge.co.uk ©Quartz Business Media Ltd 2023

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LEADER

The wheels of a greener UK steel industry are in motion...

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

Many moons ago, when it was ﬁrst mooted that electric cars were going to be the big thing, I’ll admit I was pretty sceptical. I remember, after an air crash, there was talk about making the airlines rearrange their seats and have them all facing the rear of the plane. A safety expert had said it was safer for some reason. Perhaps it is, but either way I’ve never been on a plane where the seats face the rear and, if I’m honest, I’m not sure I’d like it. So when people started talking about EVs, my initial view was that they would never see the light of day. I was wrong. There are now a lot of them and I’ve transferred my feelings of doubt to driverless cars and airborne taxis of which I’ve seen none. We hear a lot these days about ‘transitioning’ and in steel circles the word describes the transition from traditional blast furnace steelmaking to cleaner and greener electric steelmaking, made possible by the increasingly sophisticated electric arc furnace (EAF). Electric steelmaking is already a reality in the USA where, as I’ve said many times, over 70% of steel production is electric. On a global level, however, it’s the other way around: 70% plus of steelmaking is still

blast furnace-based and there are more BFs in the process of being built, much to the dismay of climate groups; but things change – and quickly. The recent announcement from British Steel that it will be closing its blast furnaces and replacing them with electric arc furnaces brought it all home to me and made me realise that change (outside of the USA where it’s already happened) has to start somewhere. Yes, there will be job losses, but also job creation. The Mayor of the Tees Valley, Ben Houchen, pledged to bring steelmaking back to Teeside and now that British Steel has conﬁrmed it will locate one of its new EAFs at Teesworks, he can claim (quite rightly) that he has delivered on his pledge. Teesworks is the UK’s largest freeport and is described as ‘the... largest and most connected industrial zone, home to diverse, sustainable and lowcarbon activitiy’. Suddenly, I thought, it’s becoming a reality. There are also, of course, moves afoot at Tata Steel in Port Talbot in South Wales to replace two blast furnaces with EAFs so it’s fair to say that the wheels of a greener, cleaner steel industry are deﬁnitely in motion.

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NEWS ROUND-UP

The US Department of Energy (DOE) has announced $19 million in funding over four years for its Argonne National Laboratory to lead the multi-institutional Centre for Steel Electrification by Electrosynthesis. The centre’s goal is to develop an innovative and low-cost process that would replace blast furnaces in steelmaking and reduce greenhouse gas emissions by 85%. Source: Green Car Congress, 1 October 2023

Brazilian iron ore miner Vale has signed an agreement with Brazilian state-owned energy company Petrobas to develop low carbon solutions. The partnership is for two years, and will assess joint decarbonization opportunities, including the development of sustainable fuels–such as hydrogen, green methanol, green ammonia, and renewable diesel–as well as carbon capture and storage opportunities. Source: Steel Orbis, 3 October 2023

South Korea's Hyundai Steel Co. is aiming to reduce its dependence on its affiliates Hyundai Motor Co. and Kia Corp. to become one of the world’s top three automotive

steel makers, its chief executive said. This year, it plans to supply 1.2Mt of steel sheet to foreign automakers other than Hyundai Motor and Kia to increase its proportion to 20% of sales from 17% last year. It aims to further raise the proportion to 30% within the next two-to-three years and ultimately 40%, for which it did not give a time frame. Source: The Korea Economic Daily, 5 October 2023

The owner of an Orlando steel company has pled guilty to purchasing $150 million worth of steelmaking materials from a sanctioned Russian oligarch at the ‘expense of national security.’ On 3 October, John Can Unsalan pled guilty to engaging in a conspiracy to commit money laundering. Unsalan admitted that his company, Metalhouse, acquired over $150 million in metal products from companies owned by Sergey Kurchenko, a Russian oligarch who had been sanctioned by the United States. Source: Orlando News, 4 October 2023

Outokumpu, a Finland-based stainless-steel manufacturer, has reached an agreement with Fissler, a manufacturer of premium cookware, for the delivery of the first shipment of its Circle Green® steel. According to the steelmaker, Circle Green® steel has a 92% lower carbon footprint compared to the industry average. Under this cooperation, the two companies will ‘jointly aim to develop things that last and carbon emission reduction toward the appliance industry’, as stated in a press release. Yieh Corp Steel News, 5 October 2023

Nippon Steel has recently shut down the manufacturing base at its Kure plant in western Japan, ending 72 years of operations, and the facilities

at the site will be closed permanently in response to declining domestic demand and intensifying import competition in Japan. Nippon Steel is now operating 11 blast furnaces in Japan, with a total annual production capacity of 50Mt of crude steel. The company currently plans to reduce its annual capacity to 40Mt by 2025. Source: Yieh Corp Steel News, 6 October 2023

Thyssenkrupp Steel has invested tens of millions of euros in the development of new crane infrastructure at the Port of Rotterdam. The new infrastructure will be established at Ertsoverslagbedrijf Europoort CV, a new unloading facility designed to handle fuels and resources for a cutting-edge DRI (direct reduced iron) plant powered by hydrogen, as stated in an official announcement. Once operational, the unloader is anticipated to enhance efficiency, environmental sustainability, and safety measures. It is projected to handle a capacity of up to 2.6kt of iron ore per hour by the end of 2025. Source: Yieh Corp Steel News, 6 October 2023

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Air Water subsidiary Air Water India has been awarded an on-site gas supply contract by state-owned steelmaking company Steel Authority of India Limited (SAIL). According to the deal, the Japan-based company will design and manufacture a ‘state-of-the-art’ large cryogenic air separation plant led by its engineering divisions in Japan, the US and India. The project ties in with Air Water’s aim to build a network of manufacturing, transportation and sales infrastructure in India, with a focus on the business of onsite gas supply to steelmakers in the country. Source: Gasworld, 9 October 2023

US Steel’s operations in Arkansas, which includes Big River Steel in Osceola, and Wheeling Machine Products in Pine Bluff, contributed more

German machine building company Sennebogen has opened a new steel plant in Hungary to expand its capacity for steel assemblies and welded construction. The 29,000 square-metre manufacturing facility and modern office complex was built on a 32-acre site close to the first Sennebogen steel plant in Balatonfüred. Designed for handling large and heavy components up to about 30 metres long and weighing in at 25 tonnes, the new facility will produce 18 tons of steel structures per year in its current configuration. Source: Equipment Journal, 9 October 2023

than $383.2 million to local and state economies in 2022, according to an economic impact report released by the company. The study also concluded that US Steel’s economic activity supported or sustained 1,747 jobs. The study, commissioned by US Steel, was conducted by Parker Philips, a consulting firm specializing in economic impact analysis. Source: Business Wire, 11 October 2023

NEWS ROUND-UP

Voltalia, a France-based renewables developer, has sold a 420MW solar project under development in Brazil to Newave Energia for an undisclosed amount. Newave Energia is a partnership between steelmaker Gerdau and Newave Capital, a Brazilbased equity investor. It will be located in the state of Minas Gerais in south-east Brazil. Voltalia will support the solar plant’s construction, operations, and maintenance. Source: Power Technology, 10 October 2023

A memorial is to be built in Teesside, Northern England, to provide a lasting tribute to workers who died on the former steelworks site. The remembrance garden will offer a place of quiet reflection for loved ones while honouring those who have died in the 170 years of iron and steelmaking on Teesside. The design of the memorial has been developed with the support and co-operation of the family of John Mackay, who died alongside colleague Tommy Williams in an incident during the demolition of South Bank Coke Ovens, in September 2019. Source: Tees Business, 10 October 2023

Tesla is sourcing stainless steel panels for the exterior of its new Cybertruck from Finnish supplier Outokumpu, which has worked to

accommodate the electric vehicle’s unconventional design, according to people familiar with the matter. The materials will be shipped to Tesla’s assembly factory in Austin, Texas. The Helsinkibased company is Europe’s largest producer of stainless steel, and is well known for working with automakers on exhaust systems. Source: Bloomberg, 11 October 2023

Emirates Steel Arkan, one of the largest publicly traded steel and building materials manufacturers in the region, announced that it has become a member of the multi-stakeholder standard and certification initiative, ResponsibleSteel, under the business category. ResponsibleSteel serves as a driving force in the socially and environmentally responsible production of net-zero steel globally by providing certification for responsible steel products and advocating for responsible steel policies. Source: Zawya, 12 October 2023

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Chinese government officials have said that European Union plans to investigate its steelmakers over subsidies will disrupt global supply chains and ‘fly in the face of international trade norms.’ Brussels is reportedly planning anti-subsidy investigations of steelmakers producing excess in countries such as China, as part of a pact with the United States. In return, the US will not re-impose Trump-era tariffs on EU steel and aluminium. "The Chinese side believes that the abovementioned actions of the European Union will disrupt the order of international trade," said a spokesperson from China's commerce ministry, He Yadong. Source: yahoo!finance, 12 October 2023

Russian steelmaker Severstal is set to construct a 10Mt/ yr iron ore pellet complex at the Cherepovets Metallurgical

NEWS ROUND-UP

US Steel hosted a ribbon cutting ceremony for the opening of its new, non-grain oriented electrical steel line at its Big River Steel facility in Osceola, Arkansas. According to the steelmaker, the line has the capacity to produce more tons of NGO electrical steel per year in the United States than any other domestic steelmaker. “The American manufacturing renaissance continues in Osceola today, thanks to the innovative minds and hard work of our employees,” said US Steel president and CEO David B. Burritt. Source: US Steel, 12 October 2023

Plant, a ‘pivotal asset’ of Severstal, to supply its blast furnace, according to a press statement from the company on 18 October. The complex, currently in the engineering and key design solution development stage, is scheduled to be constructed between 2024 and 2026, with an estimated cost of around $995 million. Source: Kallanish, 18 October 2023

Newfoundland and Labrador's occupational health and safety office is investigating the sudden death of a 38-yearold man at a Tata Steel mine in the region. The provincial police force was called to the site on 12 October and secured the area with assistance from the Sureté du Québec in Schefferville. The police force says the Office of the Chief Medical Examiner has also been engaged in the investigation. Source: Canadian Occupational Safety, 13 October 2023

Two consortiums, which include members such as steelmaker ArcelorMittal and renewable energy company EDP Renewables, have been awarded €2 billion for the development of two clean hydrogen hubs in the USA. The partners will receive €950 million in government aid, while the alliance in which the renewable energy company has a stake will receive more than €1.1 billion. The MTS consortium, called the Midwest Clean Hydrogen Alliance (MachH2), includes oil industry giants such as BP and Exxon Mobil, as well as leading US steel producer Cleveland-Cliffs. Source: The Corner, 22 October 2023

Liberty Steel’s Romanian steelworks has been hit with insolvency claims from a number of suppliers, in the latest sign of payment problems in owner Sanjeev Gupta’s industrial empire. The company, which is part of GFG Alliance, faces more than a dozen claims from local suppliers for unpaid invoices, according to filings at the local court of appeal reviewed by the Financial Times. The claims add to the criticism facing Gupta who has been battling to hold together his business since the collapse of its main lender, Greensill Capital in 2021. GFG has this year faced winding up petitions in the UK courts from creditors, including a landlord claiming one of its businesses ‘never paid a penny’ on the lease for its corporate headquarters. Source: Financial Times, 13 October 2023

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NEWS ROUND-UP

The leader of the UK opposition Labour Party has announced plans to invest $3.6 billion to decarbonize the country's steel industry over the next decade if his party wins the next election. "A bastion of UK industry, British Steel is integral to our growth and prosperity as a nation. From Port Talbot to Rutherglen, to Scunthorpe, it's been the fabric of our society for generations," said Sir Keir Starmer. "But for far too long, our steel industry has been left behind while our European allies forge ahead. We must make Britain a world leader again," he added. Source: S&P Global, 24 October 2023

Swedish marine energy specialist CorPower Ocean has inked a deal that will see it develop what it claims will be one of the world’s first wave energy power plants made using fossil-free steel. CorPower announced that it will use fossil-free steel delivered by Swedish steelmaker SSAB to ‘build a wave energy system with significantly lower carbon emissions than what is currently on the market.’ Source: Recharge, 24 October 2023 Sandvik Mining and Rock Solutions and steelmaker SSAB have signed a letter of intent for the supply of fossilfree steel, which will be used in the production of Sandvik loaders and trucks for the mining industry. SSAB aims to deliver fossil-free steel to the market in commercial scale during 2026. The signed letter of intent ensures that Sandvik will receive deliveries of fossilfree steel from SSAB, within the company’s production capacity. Source: Global Mining Review, 2 November 2023

Indian steelmaker JSW Steel plans to set up a green steel manufacturing facility by 2030 in response to the European Union’s Carbon Border Adjustment Mechanism (CBAM). The lower carbonemitting facility for steel, with a capacity of 4Mt/yr, is expected to be built in western India. Planned for production by 2030, it would cater to both the international and domestic markets, the company has said. JSW Steel is seeking board approval, and has proposed to complete the project in two phases. Source: Projects Today, 25 October 2023

ArcelorMittal has filed motions in at least two jurisdictions seeking to force United Kingdom-based fellow steelmaker Liberty House Group to pay $148.4 million.

At least 45 people died after a mine fire in Kazakhstan, the Ministry for Emergency Situations announced. Operator ArcelorMittal Temirtau, the local unit of ArcelorMittal, said 206 of 252 people at the Kostenko mine had been evacuated after what appeared to be a methane blast. It said 18 people had sought medical attention. Kazakh president Kassym-Jomart Tokayev, who expressed condolences to the victims' families and declared a national day of mourning on 29 October, ordered his cabinet to ‘stop investment co-operation’ with ArcelorMittal Temirtau. Source: Reuters, 29 October 2023

The payment claim is a result of the latter’s purchase of ArcelorMittal’s steel mills in the Czech Republic, Italy, Macedonia, and Romania. A London court recently ruled in favour of ArcelorMittal, putting further pressure on Liberty to resolve the claim. Source: Recycling Today, 2 November 2023

Australian mining company Magnum Mining & Exploration has entered a non-binding memorandum of understanding (MOU) with Saudi Arabia-based Middle East for Metallic Industrial (Midmetal) with the aim of producing pig iron. The partnership will focus on developing Magnum’s magnetite mine and processing plant at its Buena Iron Project in Nevada and HIsmelt facilities in the US. As per the MOU, Midmetal will become an offtake customer of the magnetite concentrate produced at the Buena Vista mine and beneficiation plant, which is in development. Source: Mining Technology, 4 November 2023 November/December 2023

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INNOVATIONS

‘World’s first’ dual operational sideloader from Combilift Irish materials handling manufacturer Combilift has launched its first autonomous vehicle at the annual Fabtech trade show. Developed by Combilift’s automation team, the Combi-AGT is a 4-wheel electric stand-on model, which is the world’s first autonomous dual operational sideloader for long loads. Combilift’s automation team has spent three years liaising with specialist steel suppliers to identify the best specifications for the Combi-AGT. The new model, with a lift capacity of 5,000kg/11,000lbs and various lift heights, addresses the requirements of steel service centres and the metal industries, which typically handle long loads. Combilift worked in tandem with IMR (Irish Manufacturing Research) during the development process to enable seamless integration with multiple client warehouse management systems. Its design is based on the electric manually operated Combi-GTE model, due to its ability to work efficiently in rail-guided narrow aisles. The first Combi-AGT was supplied to Kansas-based Steel and Pipe Supply 18 months ago, and since

then Combilift has collaborated with a number of metal service centres across North America during the development process. The laser-based sensors, fitted at various positions on the chassis, constitute an anti-collision safety system, as required by the American National Standards Institute. If the machine senses an obstacle or pedestrian that has entered its path, it automatically slows down and will, if necessary, stop in cases of emergency. It will then continue to drive automatically when the obstacle has cleared its safety sensor area. The natural feature navigation system uses naturally occurring features in a warehouse – walls, racking, and columns for example, avoiding the need to add to or change the warehouse infrastructure. Combilift CEO and co-founder Martin McVicar said: “We have deliberately not rushed into incorporating autonomous products into our portfolio. As with any new launch we have carried out extensive field tests to make sure it is fit for purpose by liaising with a number of leading customers in the metal service industry during

the product development stage. We are fortunate to have a very motivated group within our autonomous team of software and mechatronics engineers who are committed to scaling this business unit. The Combi-AGT signals a new milestone in product development with further expansion of our autonomous range in the pipeline.” For further information, log on to www.combilift.com

KOCKS supplies 3-roll intermediate block at Nucor Steel Nebraska in the USA Nucor Steel’s Nebraska division has rolled the first bar on its new KOCKS intermediate Reducing & Sizing Block. The iRSB® represents one of the latest advancements in KOCKS’ long product production technology and has been designed to increase flexibility in Nucor’s rolling mill. Its design minimizes potential trouble spots and improves safety for operators. Following successful commissioning, the Final Acceptance Certificate (FAC) was signed only three weeks after the first bar was produced through the block. Nucor Steel Nebraska is a division of Nucor Steel Corporation. The selection of the iRSB® was based on the improvement of the whole rolling mill concept with regard to quality, flexibility, productivity, and process safety, says KOCKS. The KOCKS 3-roll iRSB® 370++/8 replaces eight traditional 2-high stands, providing pre-sections in a tandem arrangement for the existing RSB® 370/5. KOCKS also supplied the roll-shop equipment and its software solutions. Furthermore, the RSB® is equipped with the KOCKS profile measuring gauge 4D Eagle® and is also connected to KOCKS’ Size Control System (SCS®), which allows real-time adjustments of the operating parameters of the rolling block. According to KOCKS, this enables transparent process monitoring and the quickest possible process adjustments. November/December 2023

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For further information, www.kocks.de www.steeltimesint.com

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INNOVATIONS

Sarclad launches coating line monitoring system Industrial technology supplier Sarclad has announced the launch of a Contamination Monitoring System (CMS) for strip coating lines, that the company says will revolutionise capability in this field. The CMS utilises Laser Induced Breakdown Spectroscopy (LIBS) to provide strip producers and line manufacturers with an automated, non-contact, online measure of very low levels of iron fines and carbon contamination on coils after the cleaning section on the galvanising line. According to Sarclad, it is the first continuous monitor of strip cleanliness providing real time data with precision that distinguishes between oil and iron fines contamination. Introduced under licence from CRM, the CMS is designed to be positioned post-cleaning and pre-furnace. The ability to distinguish between oil and iron fines will allow steel strip galvanisers to target the core parameters of each component of the cleaning section, says Sarclad, in order to ensure

product quality and optimise overall process efficiency. Head of product development at Sarclad, Dr David Egner, stated: “Given the ‘scotch tape test’ is still a prevalent measure of strip contamination levels post cleaning, the CMS offers transformational capability and a 21st Century solution.’’ The system has been designed in a compact format to ensure that it can be fitted to any line, either new build or retrofitted to existing lines. The sensor can be fitted to an automated and integrated traverse to allow measurement at various points across the width of the strip. For further information, log on to www.sarclad.com

Fives upgrades NAS reheating furnace North American Stainless (NAS) needed to update its reheating furnace to Level 2 due to the amount of manual intervention required for thermal process control. Plant supplier Fives provided the original reheating furnace in 1997 which produced 200 tons of slabs per hour. The project targets were to: • increase heat efficiency • improve energy consumption • make the interface more user-friendly A Virtuo™-R system was installed in 2019 and upgraded remotely during COVID in 2022 to incorporate new features. According to Fives, the upgrade demonstrates a commitment to customized servicing for customer needs. “This solution has proven to be beneficial for our hot rolling mill at NAS. Virtuo™-R provides better consistency of discharge temperature, gas savings of up to 4%, and faster transitions between different steel grades. We wanted to achieve a stable process and we obtained a great result,” commented Andrea Kent, process engineer, HRM at NAS. The system also enables flexible operation, pace optimization, and bottleneck and delay management. www.steeltimesint.com

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“Thanks to Virtuo™-R, furnace operation is under fully automatic control,” said Bryan Bond, operations group leader, HRM at NAS. “It is favourable for operators because it frees up their time for other processes. It also provides us the freedom to adjust settings points on our own. This allows for ﬂexible, repetitive, and reliable operation.”

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USA UPDATE

Rising hot-rolled coil prices – buyers cautious Some steel buyers are taking a ‘wait and watch’ approach to rising hot-rolled steel prices. In other news, automakers are opposing Cleveland-Cliff’s acquisition bid for US Steel. By Manik Mehta* THE news seemed to have taken the steel consuming industries by surprise, though there had been some speculation in steel industry circles about the impending rise in prices. Nevertheless, steel buyers hoped that the price hike would be ‘bearable’, as one steel analyst explained the market sentiment. Prices for hot-rolled coil (HRC) in the US in the last week of October rose to $850900 per short ton, up from the $750-830 range in the week earlier. But some buyers, reacting to the hike, said that they had not seen a higher price jump than what the steel mills announced at the end of October. Buyers are said to be taking a wait-and-watch approach, and see how long they can wait to avoid the adverse effect of losing money, if prices dropped, some analysts say. The new prices have affected the order books of some steel manufacturers, showing low levels of orders placed based on the new prices; but steel suppliers are confident that there will be good demand from a number of key consuming markets such as automotive and energy. HRC prices in the US rose for the third

week. There is speculation that HRC will be in short supply until the end of this year, with some lead times increasing from eight to 8.5 weeks falling from the end of December or even January 2024. Facing rising domestic materials prices, buyers are showing an increased tendency to look beyond the borders for suppliers; the rise in the cost of HRC in the US market has led to increased sourcing from foreign markets. Integrated steel producer Cleveland-Cliffs had made its second price increase, by end October, for HRC, raising it to $900 per ton, $100 more than the previous one set by the company on 19 October. Cleveland-Cliffs seemed to have followed the example of rival US Steel which had raised its HRC price to the same level. Automakers oppose Cleveland-Cliffs’ acquisition of US Steel Attempts by Cleveland-Cliffs to acquire US Steel are facing opposition from automakers. A group representing the major players recently said that the industry opposed Cleveland-Cliffs’ attempts to acquire the North American steel giant,

arguing that it would only trigger an increase in the auto industry’s costs and slow down electric vehicle sales. The group, Alliance for Automotive Innovation (AAI), represents major carmanufacturing companies such as General Motors, Toyota Motor, Volkswagen, Hyundai and other major automakers. Writing to Congress and US regulators, the AAI said that the combined steel companies’ held a dominant market share for steel used to produce vehicle structural frames, for automotive surface panels (doors, hoods and fenders) and also for electric vehicle motors. The letter from AAI chief executive John Bozzella said that the merger would ‘increase costs across the industry for both materials and finished vehicles’, noting that 100% of the metal used for electric vehicle motors, known as e-steel, would be concentrated in the combined company. “Without competition in the US for the production of e-steel, automakers face an increase in the cost of materials which could ultimately increase the cost of finished EVs for customers,” the letter to the lawmakers said, and called on the

*US correspondent, Steel Times International www.steeltimesint.com

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13/11/2023 14:41:43

USA UPDATE

government to ‘examine the potential for anti-competitive pricing of materials used by steel-reliant automotive manufacturers’. Cleveland-Cliffs had proposed a price of US$ 7.25 billion which was rejected by US Steel last August. Carbon border fees on some imported goods There had been some discussion on the introduction of a so-called Foreign Pollution Fee Act of 2023 by Senator Bill Cassidy (R-LA). This piece of legislation purportedly aims to establish carbon border fees on some imported goods generating higher greenhouse gas (GHG) emissions intensity than those of similar US-manufactured goods. Commenting on the legislation, Kevin Dempsey, the president/CEO of the American Iron and Steel Institute (AISI), which describes itself as the steel industry’s ‘voice’, said in a statement that the ‘most effective way to reduce global greenhouse gas (GHG) emissions is through policies that hold the most GHG-intensive producers in the world accountable’. The American steel industry, he added, is the cleanest of the leading steel industries in the world, with the lowest GHG emissions per ton of steel produced and competes with imports of more GHG-intensive steel from every region of the world. According to Dempsey, the introduction of a comprehensive GHG border fee that requires higher-emitting imports to pay for those emissions will help level the playing field and ensure US producers investing in cleaner production processes are not undercut. But Dempsey also pointed out that further work still needed to be done in regard to the country coverage of the new GHG border fee. “(The) AISI is concerned that this legislation, as currently drafted, would exempt some countries from being November/December 2023

USA Update – read MM..indd 2

subject to the border fee, even if products made in those countries have higher GHG emissions intensity than that of comparable American-made goods.” Indeed, he called for a GHG border fee structure that applied to all imports of steel products with higher GHG emissions intensity than those manufactured in the US, regardless of the country of origin of those imports. Dempsey had also expressed ‘disappointment’ – he expressed this in a statement following the US-EU joint statement after a meeting between President Joe Biden and the European Commission President Ursula von der Leyen regarding ongoing negotiations to establish a Global Arrangement on Sustainable Steel – that the EU had not agreed to date with US proposals to establish new trade measures to address two key issues of non-market excess capacity in steel and the carbon intensity of steel imported from around the world. “We will continue to advocate for an agreement that provides for meaningful and enforceable measures to restrict steel imports from all countries that contribute to non-market excess capacity and that also provides for tariffs on imports of higher carbon emissions intensity steel products,” Dempsey said in the statement. Meanwhile, the AISI reported that US steel imports in September had declined to 2.18Mt (net tons) including 1.57Mt (net tons) of finished steel (-4.1% and -15.1% respectively) compared to August 2023. Total and finished steel imports had declined by 9.8% and 15.0% respectively year-to-date compared to the corresponding period in 2022. The market share of imported finished steel was an estimated 20% in September, but stood at some 22% over the first nine months of 2023. In September, the largest suppliers to the US were Canada at 537kt (net tons) –

down 2% compared with August; Brazil at 452kt (net tons) up 116%); Mexico at 358kt (net tons) – down 2% – and South Korea at 331kt (net tons), up 30%. Supreme Court rebuffs tariffs challenge The US Supreme Court recently rebuffed a bid by steel importers to revoke steel tariffs; the latter had argued that then President Donald Trump exceeded his authority to impose them. The court rejected the appeal by Irving, Texas-based PrimeSource Building Products of an earlier ruling by a lower court to uphold a 25% tariff on some steel derivatives such as nails and fasteners. The tariffs, which Trump had introduced on national security grounds, were continued by his successor President Joe Biden. In March 2018, Trump had invoked a Cold War-era trade law to impose a 25% tariff on a number of imported steel articles, including ﬂat-rolled products, tubes and pipes. In January 2020, Trump imposed tariffs on derivatives of the earlier-covered steel articles. PrimeSource, along with St. Louis-based Huttig Building Products and Omani company Oman Fasteners, challenged the tariffs on steel derivatives, arguing that the US Congress never granted the president broad power over foreign trade to impose them. While the Manhattan-based US Court of International Trade had struck down the steel derivatives tariffs in 2021, saying that statutory deadlines to impose them had been missed, the Washington-based US Court of Appeals in February reversed that decision, citing its own 2022 ruling that presidents are authorized to impose ‘contingency-dependent’ tariff increases to fulfill their original national security objectives, if those objectives remain valid. � www.steeltimesint.com

13/11/2023 14:41:46

LATIN AMERICA UPDATE

Export restrictions on ferrous scrap Latin America is witnessing a growing amount of export restrictions on ferrous scrap, with a number of ‘temporary’ measures, becoming effectively permanent in their terms of renewal. By Germano Mendes de Paula* GLOBAL exports of ferrous scrap increased from 84Mt in 2015 to 102Mt from 20182019, but reduced to 99Mt in 2021-2022 (Graph 1). Meanwhile, consumption of ferrous scrap by the global steel industry grew from 554Mt in 2015 to 701Mt in 2022 (according to McKinsey) and in terms of the foundry industry, went from 83Mt in 2015 to 87Mt in 2021 (estimated by Bureau of International Recycling, BIR). With the optimistic assumption that the latter demanded 90Mt of ferrous scrap last year, the export ratio would have still diminished from 13.2% in 2015 to 12.5% in 2022. Part of the explanation of such a low and decreasing value can be attributed to a variety of measures implemented by governments aiming to restrict the exports of ferrous scrap. The Organisation for Economic Cooperation and Development (OECD) created a comprehensive inventory on export restrictions on industrial raw materials, which is freely available on the institution’s website. OECD compiled a list of 65 strategic, industrial commodities including 58 mineral and metals, six wood

products, and metallic waste and scrap for all minerals and metals covered in the inventory. Eighty countries producing industrial raw material commodities have been surveyed. These nations accounted for 97% of the world production of minerals and metals and 82% of global production of wood in 2018. In this article, we pay attention to measures imposed on ferrous scrap. By analysing OECD’s database, it is possible to verify that the trajectory of restrictions on ferrous scrap exports in the world has been predominantly upward, from 373 in 2009 to 579 in 2021, implying a CAGR of 3.7%. The creation of almost 580 restrictions in just one year is representative of the increasing relevance of this public policy instrument. Considering the period 2009-2021 as a whole, ferrous scrap corresponds to 9.6% of all restrictions on raw materials for industrial use. In all likelihood, it is the material with the highest relative importance in the database. The left axis of Graph 2 shows the evolution of heavy ferrous scrap prices in the USA (deflated by the consumer price

index/CPI, at 2021 prices). The right axis demonstrates the number of restrictions on ferrous scrap exports worldwide, which predominantly increased over the same time period. It can be concluded, therefore, that such restrictions do not follow their respective price cycle. The number of nations that adopted measures to curb exports of ferrous scrap increased from 35 in 2009 to 42 in 2021, so that the average restrictions per country expanded from 10.7 to 13.8 respectively. More importantly, in 2021, the nations that were imposing some measure restricting the exports of ferrous scrap collectively produced 1.34 billion tons of crude steel, which was equivalent to 68.5% of world steel production. This is perhaps the most incisive indicator of the relative importance of such restrictive measures. Also, according to the OECD’s database, in only two cases, (Angola and Qatar), some restrictions were no longer imposed on ferrous scrap exports over the period 2009-2021. This suggests that most countries continued to restrict exports throughout 2022-2023. The continued

* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br www.steeltimesint.com

Latin America – read MM.indd 1

November/December 2023

13/11/2023 14:43:50

LATIN AMERICA UPDATE

Graph 1. Global exports of ferrous scrap, 2015-2022 (Mt). Source: worldsteel

Graph 2. Heavy ferrous scrap prices in the USA (US$/t, deflated by the CPI, at 2021 prices) and worldwide measures to restrict exports of ferrous scrap. Source: US Geological Survey and OECD

Graph 3. Latin American exports and imports of ferrous scrap, 2015-2022 (Mt). Source: worldsteel

imposition of restrictions on scrap exports is a case in point: in 83.9% of cases, they were maintained in the same way as in previous years, while only 0.5% of the measures were completely and partially eliminated. Latin America The Latin American international trade of ferrous scrap has shown a non-linear trajectory along the period 2015-2022. The exports varied from 2.2Mt in 2015 to 4.1Mt in 2019, reverted to 2.3Mt in 2021 and rose to 4Mt in 2022. The imports increased from 2.1Mt in 2015 to 3.0Mt in 2018, decreased to 2.5Mt in 2019, rose again to 4.1Mt in 2021 and reduced to 3.3Mt in 2022 (Graph 3). According to OECD’s database, Argentina adopted the ban (or embargo) on ferrous scrap exports from 2009-2021. As if this measure were not enough, it also imposed an export tax in 2009 and 2015-2021. In the latter, the rate was 9.5%. Argentina renewed the prohibition of banning the export of ferrous scrap until December 2024, through Decree 70/2023, published in the Official Gazette in February 2023. It is interesting to note that this decree contains the history of renewals of the embargo. The original measure was dated January 2009, effective November/December 2023

Latin America – read MM.indd 2

for 180 days. It was later renewed in July 2009, December 2009, June 2010, August 2012, March 2014, June 2015, June 2016, October 2017, October 2018, September 2019, December 2020 and December 2021. The embargo, therefore, has already been extended 13 times. This is further strong evidence of the inertial nature of restrictions on ferrous scrap exports. Decree 70/2023 justifies the renewal of the ban based on several factors, of which it is worth highlighting three of them, namely: a) the recovery of metals is a desirable objective from an environmental point of view, while the international trade has increased significantly in recent years; b) the 1994 General Agreement on Customs Tariffs and Trade, approved by Law 24,425, makes it possible to temporarily restrict exports in order to prevent or remedy an acute shortage of essential products for the development of a country’s economy; c) Law 22,415 and its amendments authorize the National Executive Power to establish

bans of an economic nature on the export of certain goods, on a temporary basis, in order to promote, protect or preserve national productive activities of goods or services. It should be highlighted that the last two justifications are associated with the temporary and transitory nature of the measures. However, as documented in the previous paragraph, Decree 70/2023 itself makes it clear that, as a result of the recurrent renewal of restrictions, they have become, in practice, permanent. Colombia initially established temporary quotas, covering the period from August 2020 to February 2021 (six months) on six tariff codes. The combined quotas were equivalent to 28.4kt. After a sevenmonth hiatus, the government once again imposed export quotas on ferrous scrap in September 2021. It justified the measure as a way to guarantee local access to this raw material, since ferrous scrap is the main input of the Colombian steel industry and has been experiencing a rapid increase in exports in recent years. A quota of 80kt was determined and distributed between five customs codes. The new restriction was valid for one year until September 2022. After an eight-month break, Colombia resumed imposing quotas on ferrous scrap exports, starting in May 2023, for a duration of two years. The federal government established annual quotas of 61kt, levied on five tariff codes. The decree mentioned that it is a transitional measure and that, for this reason, it would be consistent with the rules of the WTO. It can be concluded that restrictions on export of ferrous scrap is a very disseminated policy worldwide. In the case of Latin America, such measures have been adopted only by Argentina (continuously since 2009) and Colombia (intermittently from 2020 onward). However, comparative to other developing nations, the region has employed relatively few restrictions. � www.steeltimesint.com

13/11/2023 14:44:10

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INDIA UPDATE

India hardens its stance on Chinese steel imports In line with its ‘Make in India’ initiative, India is reducing its reliance upon imports of Chinese steel. By Dilip Kumar Jha* A month after extending anti-dumping duties on specific grades of steel imports from China, India is considering a similar action against the increasing arrivals of other types of Chinese steel. The move aims to curb growing steel imports from China, promote domestic producers under the ‘Make in India’ initiative and reduce India’s dependence on imported goods, thereby limiting foreign currency outflows and preserving ‘dollar reserves’ for other purposes. The move was prompted by China emerging as the second-largest exporter of finished steel to India in the first five months (April-August) of the current financial year (April 2023 - March 2024). According to data compiled by India’s Ministry of Steel, Beijing’s exports of finished steel to India increased by a staggering 69%, reaching 0.8Mt during the April-August 2023 period, marking the highest level so far this year. China, the world’s largest steel producer, primarily exported cold-rolled coils or sheets to India. India has been exploring various options to reduce business ties with China and is actively seeking technology imports from Western nations for various industries, since the military clash at India’s eastern border in 2020.

Trend in steel scenario in India (million tonnes) Financial year (April-March)*

Crude steel production

Finished steel production

Consumption

2023-24

57.26

54.48

52.36

2022-23

51.22

48.66

46.28

2021-22

47.83

44.61

41.26

2020-21

35.06

30.72

28.08

2019-20

46.23

43.51

42.54

Source: Ministry of Steel, Government of India; *April-August period

Trend in steel scenario in India (million tonnes) Financial year

Crude steel

Finished steel

(April-March)

production

2022-23

125.32

121.29

2021-22

120.29

113.60

2020-21

103.54

2019-20 2018-19

Consumption

Exports

Imports

119.17

6.72

6.02

105.75

13.49

4.67

96.20

94.89

10.78

4.75

109.14

102.62

100.17

8.36

6.77

110.92

101.29

98.71

6.36

7.84

Source: Ministry of Steel, Government of India

Producers seek government interventions India’s finished steel imports from China surged by a staggering 69%, reaching 0.8Mt, marking a five-year high during the aforementioned April-August period. In August alone, India’s steel imports increased by 0.2Mt compared to the 0.6Mt reported in the previous sequential month of July. India primarily imported mostly

cold-rolled coils and sheets from China to meet growing domestic demand. This import volume accounts for nearly a fourth of India’s overall finished steel imports, which totalled 2.52Mt, the highest level recorded since 2020. Over the April-August 2023 timeframe, total finished steel imports in India surged by 22.3%. A substantial quantity of China’s imported steel was categorized as ‘sub-standard’ in quality and

*India correspondent, Steel Times International www.steeltimesint.com

India Update – read MM..indd 1

November/December 2023

13/11/2023 14:48:04

INDIA UPDATE

‘cheaper’ in price, effectively substituting demand from domestic suppliers. However, increasing imports, especially from China, raised concerns for domestic steel producers who were still recovering from two years of economic weakness induced by the Covid-19 pandemic. Consequently, Indian producers filed several complaints with the Ministry of Steel, seeking government intervention to curb imports from China. A senior official from the Steel Ministry confirmed having received several complaints from domestic steel producers who are urging the government to take ‘urgent steps’ to safeguard domestic suppliers that have invested billions of dollars over the years and are awaiting recovery. Nagendra Nath Sinha, India’s Steel Secretary, stated, “The steel industry has submitted several requests seeking government assistance to safeguard against increasing Chinese imports.The government is closely monitoring the steel import situation. While there is no immediate measure warranted, we will intervene if the inward shipments continue.” India itself is the second-largest steel producer after China and is a surplus country, with an annual finished steel production volume standing of 121.29Mt, compared to consumption of 119.19Mt for the financial year April 2022 – March 23, according to data compiled by the Joint Plant Committee, under the Ministry of Steel. India’s finished steel imports and exports stood at 6.02Mt and 6.72Mt respectively, in the financial year 2022-23. Additional imports, therefore, result in swelling inventory and create undue pressure on domestic steel prices, despite robust demand due to significant government infrastructure spending. During the April-August 2023 period, November/December 2023

India Update – read MM..indd 2

India produced 58.2Mt of crude steel, reflecting a 13.6% increase from the same period of the previous year. Consumption of finished steel also increased by 14%, reaching 52.8Mt over the same period. The uneven distribution of monsoon rainfall is expected to have temporarily reduced India’s steel demand, but it is anticipated it will pick up with the resumption of stalled infrastructure and housing projects, with expectations of a proportionate increase in imports from China. Control measures A notification from India’s Ministry of Finance reveals that India has extended the imposition of an anti-dumping duty on certain Chinese steel for another five years. The anti-dumping duty, amounting to $613 per tonne, was originally levied in 2018 on flat-based steel wheels imported from China. The levy was set to expire in October 2023, but the extension of five years will maintain the same duty until September 2028, as stated in a Finance Ministry notification. The Directorate General of Trade Remedies (DGTR) recommended continuing the levy for another five years. The notification further reads, “There is healthy competition in the Indian market, and the continuation of the duties would not deprive the domestic industry of any requirements. Simply put, anti-dumping duties are taxes imposed on imported goods in order to compensate for the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing countries.” Anti-dumping duty is imposed when a foreign company exports items to another country at prices lower than their home market pricing or below their

manufacturing costs. The purpose of imposing an anti-dumping duty on Chinese steel is to reduce imports from China. Therefore, the present imports also align with the same principle of restricting the influx of Chinese steel. China has become the second-largest steel supplier to India for April-August 2023, following South Korea as the largest. The Steel Ministry official stated that the Indian government is considering safeguard measures to protect the interests of domestic producers. On 25 September 2023, the government of India imposed quality regulations, under which all domestic producers of steel cylinder pipes, steel pipe flanges, and utensils used for packaging food and beverages, are required to obtain mandatory registration from the Bureau of Indian Standards (BIS), the country’s quality regulator. Effective from January 2024, producers, distributors, wholesalers, and retailers of these products are required to handle steel products only after obtaining a BIS license. Conclusion Under the leadership of Prime Minister Narendra Modi, India has been steadfastly pursuing the ‘Make in India’ policy and has devised several strategies to curtail imports. Several large multinational companies, engaged in the manufacturing of steel derivatives, have already announced their plans to establish manufacturing units in India, aiming to tap into the world’s most populous country, with 1.4 billion citizens. However, India is a surplus country in terms of steel production, with a requirement for specialized-grade steel with value-added features. A restriction on steel imports from China would undoubtedly assist Indian producers in enhancing its financial performance. � www.steeltimesint.com

13/11/2023 14:48:07

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20/09/2023 11:51

ELECTRIC STEELMAKING

From green to greenest

The US steel industry is proud of its overwhelmingly EAF-based production, giving it hefty sustainable status in the sector. On top of this, its focus on decarbonization is showing no signs of diverting, with further investments into routes that utilize renewable energy and carbon capture. By Myra Pinkham* WHILE already having a much lower carbon footprint than others in the industry, US electric arc furnace (EAF) steelmakers, sometimes still referred to as mini mills, continue to make several moves to be even greener. This push, however, isn’t all that new. Over the past 50 years basic market forces in the United States have spurred the rise of EAF steel producers as well as incentivizing more efficient and better performing integrated producers as well, Ron Ashburn, executive director of the Association for Iron & Steel Technology (AIST) pointed out. He said, “Although the adoption of this divergent EAF process here in the US wasn’t motivated by today’s decarbonization movement, it has, by the nature of circumstances, positioned the US steel industry to be one of the world’s cleanest.” “Good business and being green don’t have to be separate concepts,” Skip Herald, EVRAZ North America’s president and chief executive officer, stated. “Even before green was in everyone’s vocabulary our company was looking for ways from a technology perspective to improve the efficiency of our

facilities and furnaces, and in many ways those technologies lowered our emissions as well.” In fact, Philip Gibbs, a senior equity research analyst with KeyBanc Capital Markets, maintained that most of the recent moves by the US steel industry to decarbonize production were actually more profit-driven, given that EAFs are much less labour-intensive, and enable companies to produce steel at a dramatically lower cost. “It just happened that the lower capital intensive steel was also a lot less energyintensive. Becky E. Hites, president of Steel-Insights LLC, however, sees it somewhat differently. “Setting and achieving environmental goals has been intentional and a priority of US EAF steelmakers,” she declared. Philip Bell, president of the Steel Manufacturers Association (SMA), agreed, but he said that push has been at least partially operational in nature, “given that it is clear that any time you can reduce your carbon emissions, your overall efficiencies and profitability are going to increase.” And with over 70% of the steel produced

in the US today being done so through EAFs, compared with about 29% globally, Kevin Dempsey, president and chief executive ofﬁcer of the American Iron and Steel Institute (AISI) said that the US currently produces the lowest carbon dioxide emission steel compared with that from other major steel-producing countries. For example, he said that carbon emissions from Chinese steel production are almost double that from US-produced steel. Bell said that one reason for that is because EAF steelmakers are already starting with a tremendous carbon footprint advantage, given that, according to CRU’s Climate Leadership Council, EAF-produced steel could be between 75 and 320% less carbon-intensive than steel produced ‘traditionally’ via blast furnaces. “But despite this, US EAF steelmakers are being further motivated by customer and societal demands, as well as their own sense of responsibility to seek even greater carbon emissions reductions,” AIST’s Ashburn said. “Customers who are looking to decarbonize their own value chains want green steel. So do members of the public

*US correspondent, Steel Times International November/December 2023

Myra.indd – read MM.indd 1

www.steeltimesint.com

13/11/2023 14:54:08

ELECTRIC STEELMAKING

“And with over 70% of the steel produced in the US today being done so through EAFs, compared with about 29% globally, the US currently produces the lowest carbon dioxide emission steel compared with that

”

from other major steel-producing countries. Kevin Dempsey, president and CEO of the

American Iron and Steel Institute (AISI)

who are demanding that the industry lives up to its societal obligations and operate in a manner that doesn’t harm the planet.” Amid the growing concerns about climate change, KeyBanc’s Gibbs noted that the US Environmental Protection Agency (EPA) is putting increased pressure on companies, including steel companies, to control their emissions. But while some recent governmental policies – such as the Inﬂation Reduction Act (IRA) – have provided some incentives, he maintains that the industry doesn’t need such incentives to make moves to improve its carbon footprint. While it has become very political – not just in the US, but in Europe as well – Gibbs said that the real incentive is making money. He noted that the recent surge in investments in new production capacity is also helping US EAF steelmakers to get greener. “Not only do these new facilities and upgrades to existing facilities have newer technologies that allow them to be more efﬁcient and lower carbon emitting, but some are also incorporating, or could eventually incorporate, some alternative energy power. This, he said, could not only include renewable energy sources, such as www.steeltimesint.com

Myra.indd – read MM.indd 2

solar and wind, but hydrogen and nuclear power, and ﬁts with the general desire by the US steel industry to be less dependent upon pig iron. At the same time, the SMA’s Bell pointed out that the new steelmaking capacity coming online will support the kinds of steel products – such as plate, SBQ, merchant bars and electrical steel – that will be used to support alternative energy generation, storage and transmission. There have also been moves to use alternative energy sources at existing facilities. For example, Herald pointed out that in 2019, before the green push was that evident, EVRAZ reached a long-term power take-off agreement with Xcel Energy and Lightsource BP from the 300 MW Big Horn solar farm that Xcel has since built on EVRAZ’s Rocky Mountain Steel property in Pueblo, Colorado. The solar farm currently meets about 99% of the electricity needs of that steel plant. SMA’s Bell said that should allow that facility to emit about 433kt less of carbon dioxide every year, which he maintains is the equivalent of taking about 92,000 internal combustion engine (ICE) cars off the road. Recently other EAF steelmakers have

announced similar moves. In August, Nucor announced a 250 MW solar power purchase agreement with NextEra Energy Resources’ Sebree Solar subsidiary, which is building a solar farm in Henderson County, Kentucky, near Nucor’s Gallatin mill. Also, in late September, Alton Steel announced a 25-year power offtake agreement with Qcells for a 6.5 MW solar project to be constructed on the steelmaker’s property that, according to Jeff Hoerr, Alton’s general manager for sales and quality, will provide about 10% of his company’s power needs. There, however, are some challenges related to renewable energy, John Tumazos, president and metals analyst at John Tumazos Very Independent Research, noted, including what he maintains is a general lack in confidence in electricity suppliers. He explained that while EAF steelmakers have so much demand for electricity, sometimes renewable energy doesn’t arrive on time and some companies don’t trust storage batteries. “Increasing energy efficiency and economization may be the lowest risk carbon strategy,” Tumazos said, noting that given that US EAF steelmakers are already pretty energy efficient, anything they do to improve energy efficiency might be simpler than building a solar and wind farm. Ashburn said that steel producers who do not invest now in reduced carbon emitting processes will be put at a competitive disadvantage, as it could limit their access to capital as many investors are increasingly asking for transparency in operating in a carbon-constrained world. Gibbs agreed, noting that while the outcome is a greener steel industry, that isn’t necessarily their number one goal. “Their goal is to survive and to be profitable.” “It is also good to see the recent proliferation of environmental platforms and standards that companies can become part of,” SMA’s Bell said. Ashburn agreed that a widely accepted green steel standard would advance the industry’s decarbonization efforts and benefit the producers and their customers alike and that the steel industry should strive for universal adoption. “But what that standard will ultimately look like is anybody’s guess at this point,” he noted. That isn’t surprising, given that there have been about 50 different standards and methodologies proposed globally. November/December 2023

13/11/2023 14:54:10

ELECTRIC STEELMAKING

“ Steel producers who do not invest now in reduced carbon-emitting processes will be put at a competitive disadvantage, as it could limit their access to capital as many investors are increasingly asking for transparency in operating in a

”

carbon-constrained world. Ron Ashburn,

executive director of the AIST

“To get the support of policymakers and stakeholders, it is important that any environmental standard be easy to understand and is based upon the absolute value of carbon emissions reduction,” SMA’s Bell said, stating that one standard that he believes to meet that criterion is the Steel Climate Standard that the Global Steel Climate Council (GSCC) released in August. Based on the International Energy Administration’s methodology and aligned with the Paris Climate Accord, Bell said he believes it is the most ambitious one out there and one that will allow for the reduction of carbon emissions in a simple, straight forward manner. He said that it is being received very positively by the US steel industry, which isn’t surprising given that the SMA, the Institute of Scrap Recycling Industries (ISRI) and some of the largest North American steel companies, including Nucor, Steel Dynamics and CMC, are GSCC founding members. CMC, incidentally, has recently announced that it has updated its branding and logo to, it says, better reﬂect a more diversiﬁed company and will now be known as CMC (from Commercial Metals). But Bell said that the reason it is being received so positively is its straight forwardness, its focus on actual carbon November/December 2023

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reduction, and the fact that it is process agnostic. “It doesn’t care what production route is used or what region in the world that the steel is made in,” he explained. “It creates a goal and a standard that everybody can aspire to.” AISI’s Dempsey said that while a significant opportunity to reduce the carbon emissions related to steel production is through the greening of the electricity grid, it has helped that US steel producers have developed, and are continuing to develop, projects that employ renewable energy to supply all or most of their specific facilities’ energy requirements and to continue to make other key investments to further decrease carbon emissions. “For example, American steelmakers have made investments to increase the use of direct reduced iron (DRI) and hot briquetted iron (HBI), which can lower emissions for both EAF and integrated steel mills when displacing other virgin iron inputs,” Dempsey said, adding that also some new DRI and HBI facilities have been designed, and recently built to be hydrogen-ready once clean hydrogen is available on an industrial scale and is commercially viable. The development of the necessary hydrogen production technology for this, however, is still in its early stages. Tumazos said there continues to be significant challenges, including its cost and the fact that it takes as much as six times the energy to make than electricity, with types such as green hydrogen requiring energy to come from such clean sources as solar, wind or hydro power. However, the recent announcement by the US Department of Energy that it has

awarded funding for several hydrogen hubs under the bipartisan Infrastructure Investment & Jobs Act (IIJA), might accelerate this movement. In fact, Lourenco Goncalves, president and chief executive ofﬁcer of Cleveland-Cliffs, whose Indiana Harbor and Burns Harbor plants are near the Midwest Alliance for Clean Hydrogen hub, said this move ‘marks the very beginning of a new era in steel producing,’ producing a new byproduct that doesn’t contribute to global warming – water. There are several other somewhat unconventional routes that US steelmakers, including EAF steelmakers, are taking to become greener. For example, while he admits it is still at a very early stage, SMA’s Bell said it appears that the North American industry is leading the way in the use of carbon capture and sequestration (CCS). Bell noted that as of last year, about 37 commercial scale CCS projects were operational worldwide – mostly in the US and Canada – and another 20 projects were either under construction or in the development stage. And that number continues to grow, he said, noting that, for example, in June, Nucor entered into a co-operative agreement with Exxon Mobil to capture, transport and store about 800kt of CO2 emissions from its DRI plant in Louisiana once it comes online in 2026. But, at least at this point, there continues to be some reservations about CCS, Tumazos said, maintaining that currently there isn’t precise knowledge of how much carbon you can pump and how deep in the ground it can be stored and what the future environmental impact of that will be. Nevertheless, EVRAZ’s Herald called CCS www.steeltimesint.com

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ELECTRIC STEELMAKING

“Both EAF and integrated producers in the US are committed to, and heavily investedin achieving net-zero one of the more promising technologies. There are, however, others being looked at. For example, Bell pointed out that as part of its sustainability and Scope 1 CO2 emissions reduction strategies, last year Steel Dynamics established a strategic joint venture with Aymium, to build and operate a biocarbon production facility to be called SDI Biocarbon Solutions LLC that, when it comes online in late 2024, will be supplying Steel Dynamics’ Columbus, Miss., mill with a renewable alternative to fossil fuel carbon using Aymium’s patented technology. According to Theresa Wagler, Steel Dynamics’ executive vice president and chief financial officer, the biocarbon facility, which is 75% owned by the steelmaker, is expected to eventually replace nearly 100% of the mill’s anthracite usage. Scope ll emissions reductions Also, Ashburn observed that US steelmakers are not only making moves to reduce their Scope 1 emissions, but Scope II emissions – emissions that are produced in the generation of electricity and other forms of energy used by the mills – as well. Tumazos maintains that Nucor has been the most aggressive in such investments. Also, Steel-Insights’ Hites said that Nucor and Steel Dynamics were among the first to concentrate upon Scope II emissions, noting that by 2020 Nucor, which was already a leading pioneer in using a circular, recycling-based manufacturing process, was the seventh largest corporate buyer of www.steeltimesint.com

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emissions. The US already has one of the cleanest steel industries in the world, and I seet it aggressively defending that leadership position.

”

Ron Ashburn, executive director of the AIST.

renewable electricity through virtual power purchase agreements. Also, over the past three years, Nucor has made investments in various green energy products. Nucor has also circled back to its roots in nuclear power. SMA’s Bell said that last April the steelmaker announced a $15 million equity investment in NuScale, a venture to explore the development of a small modular nuclear technology as a way to generate nuclear energy near, or at, steel mills with a goal to have 16 of these small modular nuclear power modules in operation globally by 2029. That was followed by a late September announcement that Nucor is collaborating with Helion in what it calls a ‘transformational project’, to develop a 500 MW nuclear power plant,

that will offer baseload zero-carbon electricity from nuclear fusion directly to a Nucor steelmaking facility as soon as 2030. The companies say that this fusion energy agreement, which is the ﬁrst of this scale in the world, will pave the way for decarbonizing the entire industrial sector. Helion has already achieved several technology milestones, including the construction of six working fusion prototypes. “When you combine nuclear power with renewable energy and an electric grid that is already getting greener, that is a very important part of the solution,” Bell said. For example, Commercial Metals will be expanding its use of renewable energy in Arizona, Tumazos noted, with its AZ2 micro-mill expansion project receiving power from a solar farm. Renewable energy Bell said that renewable energy is also expected to play a role in SSAB Americas’ commitment to produce fossil-free steel by 2026 in their Montpelier, Iowa, mill. There has also been a push by steelmakers to brand new green steel products, Gibbs said, noting that Nucor’s Econiq™ product is said to have been the world’s ﬁrst net-zero carbon steel to be produced on a commercial scale. But there are several other net zero steel products that have recently been introduced with some other examples being the SSAB ZERO™ plate product and Commercial Metals’ RebarZero™ rebar product. “Both EAF and integrated producers in the US are committed to, and heavily invested in achieving net-zero emissions, AIST’s Ashburn said, adding, “The US already has one of the cleanest steel industries in the world, and I see it aggressively defending that leadership position.” He said there is a need for the global steel industry to clean up its act given that it accounts for approximately 7-9% of all carbon emissions. “The US steel industry is a willing role model for what the global industry can achieve in terms of carbon emissions for the greater good of all humanity,” he said. Bell says that decarbonization of the US steel industry will continue and that the energy grid is getting cleaner every year. “But even though the US industry, and US EAFs in particular, are a long way ahead on the journey, we still have work to do,” EVRAZ’s Herald declared. � November/December 2023

13/11/2023 14:54:35

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HANDLING

Night train to Rovaniemi The night train to Rovaniemi, aka the Santa Claus Express, was my main mode of transport to Tornio, home of Outokumpu’s flagship steel plant – the only fully integrated stainless steel facility in the world – and home to an impressive Pesmel high bay storage system. By Matthew Moggridge*

YOU simply can’t beat an overnight train, a sleeper, but in some countries they’re better than others… like in Finland. My rule is simple: if you don’t have to fly somewhere, don’t. Take the train and save the planet; and that was my thinking when I jumped aboard the night train to Rovaniemi at Helsinki’s central station. To say I was excited would be an understatement. The trip had been on my agenda for some time and now it was becoming reality. And when it comes to saving the planet, Outokumpu is doing its bit too. The company has a three-pronged approach to sustainability considering the environment, society and people, and governance. The Finnish steelmaker claims to have set ambitious targets and is constantly looking for ways to improve its operations. Even at the company’s 2.7Mt capacity chromite ore mine in nearby Kemi, ospreys, whitetailed eagles, and great cormorants, as well as migrating bird species like geese and cranes, can be found at the mine’s settling ponds where a healthy fish population is guaranteed to attract the aforementioned birds of prey. I was en route to Tornio, home of Finnish stainless steelmaker Outokumpu, and I was being accompanied by Ilkka Hiirsalmi, chief marketing officer of Pesmel, the ‘material flow how’ company, based in Finland, that designs and delivers high bay storage and automated material flow solutions for industrial companies, including steelmakers, but also the pulp and paper industry and

tyre manufacturers. After an enjoyable dinner in the centre of the city – the train is fine but it’s probably best to eat before boarding – we battled a bitter wind and temperatures of minus 10 degrees to reach the railway station, our suitcases trundling along noisily behind us, and soon we were in our cabins on board

the Santa Claus Express, preparing ourselves for the long journey north. It was after dark when the train edged its way out of the station and into the cold night as it embarked upon a journey through the freezing Finnish countryside. When the train arrived at Kemi, home of Outukumpu’s mine, the only place

*Editor, Steel Times International November/December 2023

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HANDLING

in the European Union where Chromite ore can be found, snow was to be seen stacked up high in huge piles. People were understandably few and far between, a phrase which comes into its own when you consider that this vast and beautiful country (it’s bigger than the UK) has a population of only 5.5 million. Overnight the temperature outside plummeted, but when we alighted the Santa Claus Express early the next morning after an extremely pleasant 12-hour journey – it’s Christmas every day in Rovaniemi, even in April – it was a sunny but deceptive minus six degrees and, of course, there was snow on the ground. Time to find a hire car in the icy car park behind the station and drive to Tornio.

(RAP standing for Rolling, Annealing and Pickling) was installed and integrated with a single high bay storage facility. This system takes care of all material handling within the mill’s rolling processes and boasts a length of 500m, a height of 30m and a width of 7.5m; it is capable of handling 2,000 coils be they hot or cold-rolled,

Claim to fame The Outokumpu plant in Tornio has a huge claim to fame: it’s the only fully integrated stainless steel facility in the world. There are two melt shop lines, a hot rolling mill, a cold rolling plant, brushing and polishing lines and slitting and cut-to-length lines. The reason I’m here with Pesmel is because the facility originally took delivery of high bay coil and sheet storage systems from the company way back in 1996 and I had been promised a look around once the pandemic was over. Pesmel describes itself as a material ‘flow how’ specialist and boasts over 40 years of experience developing over 600 fully automated systems designed to improve material flows and logistics efficiencies for the paper and pulp, metals and tyre manufacturing industries. Pesmel’s presence at Tornio consists of a totally automated logistics system comprising hot coil handling, labelling robots, warehouse conveyors, sheet packaging systems, fully automated coil packaging lines and automated sorting, storing and dispatch systems – and in sites across Finland, Sweden and the Netherlands. A long-term relationship Outokumpu’s enduring and fruitful relationship with Pesmel started in 1997 when the former made history when it took delivery of two automated computercontrolled high bay storages with handling systems for stainless steel coils and sheet. Coil storage is serviced by three stacker cranes whereas sheet storage is handled by five stacker cranes. In 2003 a RAP-5 line www.steeltimesint.com

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finished or packaged products ready for delivery. All RAP-5 operations are managed by three stacker cranes and 10 transfer cars. In 2001, the steelmaker added a ‘through eye wrapping’ system otherwise known as a TEW system. This was ‘made to order’ by Pesmel for Outokumpu on the company’s request. In fact, between 2001 and 2003, the Finnish stainless steel company took delivery of three TEW packaging lines

designed for eight hours of uninterrupted packing thanks to a 12-place automated film roll changing magazine. The sheet packaging line has one operator working from inside a control room and is claimed to be user-friendly with downtime kept to a minimum thanks to a malfunction detection system. Pesmel lists many benefits of its Material Flow How systems, claiming first and foremost that modern logistics systems improve plant safety as there is reduced human contact with the products and, therefore, less chance for accidents to occur. They also have low operational costs and can achieve faster material turnover than manual handling with the added and obvious advantage of less handling damage, savings on packing material consumption and full control – meaning no damages, no lost products, and no delivery errors. Operator safety is further enhanced by using environmentally friendly materials. Over the years, Pesmel has been engaged in many different projects at Outokumpu Tornio (at least 17) and there have been many upgrading exercises too, including one ongoing steel coil and sheet storage upgrade that was started almost two years ago and has at least another two years before completion. This particular upgrade will look at general wear and tear as the controls have a limited lifetime, and software updates. Tornio’s original steel coil and sheet pallet cranes are now 25 years old. Pesmel has delivered 11 cranes to the facility in total; eight were installed in 1997 for two separate high bay warehouses, both 100 metres in length, and handling metal sheets and coils respectively. The aforementioned RAP-5 line, is serviced by three stacker cranes operating on one aisle. Outokumpu’s original metal sheet warehouse uses five cranes and the original coil facility three cranes. The ’5’ in RAP 5 relates to their being five lines, four annealing and pickling and one rolling, annealing and pickling. Infeed and outfeed areas on the RAP 5 line are located at opposite ends of the same line and the three stacker cranes handle both incoming black coils and outgoing products. A worthy showcase Outokumpu’s Tornio plant has become a worthy show case for the material flow how specialist as many potential customers visit the site prior to purchasing their own high November/December 2023

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HANDLING

bay system. Pesmel stresses that it has sold ‘quite a few’ systems globally as a result. The focal point of Pesmel’s Material Flow How process, however, is its warehouse management system (WMS), a suite of software developed in-house. You could say that the WMS is the brains. The first WMS was delivered to Outokumpu in Sweden in

2009, but since then it has been extensively upgraded in-house by Pesmel and it is the very latest software that is operational at Tornio today. When the trip was over we flew back to Helsinki. It was strange to look down at the snowy landscape below knowing I would be back in the Finnish capital within

HOW OUTOKUMPU MAKES STAINLESS STEEL Finnish stainless steel manufacturer Outokumpu mines chromite ore from its 600m deep mine in Kemi and transforms it into stainless steel at its nearby Tornio mill. The Kemi mine is just 25km from the mill. Chrome is added to steel to make stainless steel and the Kemi mine, says Outokumpu, is the only place in the European Union where Chromite ore can be found. Tunnels are cut into a seam of ore and explosives are used to bring it down. The ore is then crushed at the bottom of the mine and brought to the surface where it is crushed again and processed into lumpy ore, fine concentrate and pellets before it is transported to Outokumpu’s Tornio mill where the material is formed into pellets and mixed with the lumpy ore in the company’s ferrochrome smelter where molten ferrochrome is produced. When it cools to the right temperature, it is poured into ladles. Slag forms and is cooled down and skimmed off; and once cooled down and crushed the slag can be used to build roads as a sustainable alternative to gravel. Molten ferrochrome is taken to the melting shop and is ready to be made into stainless steel. Using molten ferrochrome not only saves energy, but also increases production capacity. Recycled steel makes up most of the raw materials needed and is melted in Outokumpu’s electric arc furnace along with other raw materials at temperatures exceeding 1,600 deg C. Melted steel is mixed with molten ferrochrome, the alloying is adjusted to create the stainless steel specified by the customer. Final adjustments to the melt are made during the ladle treatment phase and the molten steel then moves forward to the continuous casting phase where it November/December 2023

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the hour and that two days earlier it had taken 12 hours to travel north across land, on the Santa Claus Express from Helsinki to Roveniemi, seeing for myself not only Pesmel’s impressive high bay storage system in action at Outokumpu’s flagship steel mill, but also the steel mill itself – the world’s only integrated stainless steel mill. �

is cast and cut into slabs that measure around 14 metres in length and weigh up to 26 tonnes. Each slab of stainless steel produced has its own special code to identify the order and the customer and is then moved along the line to the hot rolling mill while still hot and is reheated to 1,200 deg C. The width of the product remains the same, but the stainless steel becomes thinner until it is transformed into long strips. When the strips of stainless steel are thin enough, they are coiled and cooled ready for cold rolling in two buildings at the Tornio site; one of these buildings is over a kilometre in length and has the claim to fame of being the longest building in Finland. When coils emerge from the hot rolling mill they are covered in black scale. In Tornio’s cold rolling plant, the stainless steel is uncoiled and passed through an annealing and pickling line which removes scale and changes the surface from a dull black colour to a silvery grey. Annealing is when the stainless steel is heated to improve its formability. The pickling process treats the steel with acid to remove scale and the steel band is then rolled to the customer’s required thickness before being annealed and pickled again and then rinsed in water. Finally, the now shiny and flat product is cut to size and shape either as coils or sheets depending upon customer requirements. It is then packed and loaded on to trucks, trains and ships. In Tornio, the seaport is owned by Outokumpu. It is here that raw materials arrive for processing into stainless steel and where stainless steel and finished products are transported to customers around the world. www.steeltimesint.com

13/11/2023 14:58:42

CONFERENCE REPORT

EU steel drives circular economy At its recent conference in Barcelona (3-5 October 2023), ESTEP set out its vision to reshape industries and lead the EU green transition. By Akhilesh Swarnakar*, Delphine Snaet** and Klaus Peters***

ESTEP’s annual conference, held between 3 and 5 October 2023, brought together the steel community to discuss the issues surrounding “the circular economy driven by European steel”. The Celsa Group invited the steel community to the Gallery Hotel in the heart of Barcelona, Spain, for an event that showcased contributions to ensuring the development of a made-in-Europe, sustainable EU cleantech value chain with steel at its core. Prominent speakers from the European Commission, leading research institutes, steel companies, innovationawarded start-ups, and key actors from the steel value chain participated in the conference. Following a long series of events on innovation, research, and technology, the aim of this year’s ESTEP annual conference was to support the transformation and position of the EU as a global circular economy powerhouse.

ESTEP, a non-proﬁt European association according to Belgian law (international ASBL), consists of the major stakeholders in the European steel industry, such as steel producers, technology providers, universities, RTOs, and suppliers. ESTEP membership is open to all steel stakeholders who are eligible for European funding. As an organization, ESTEP aims to engage in collaborative EU actions and projects on technology, addressing the challenges of creating a sustainable steel industry in Europe. The six working groups are the core elements of ESTEP, providing the main contributions to organizational outcomes (circular economy, low carbon & energy efﬁciency, people, smart factory, transport and mobility, energy market application and engineering). All these activities are within the scope of ESTEP’s strategic research agenda (SRA). From this perspective, ESTEP is

continuously engaging in communication and dissemination of various activities and challenges faced by the European steel sector. ESTEP’s annual event in Barcelona has attracted more than 100 participants, with more than 30 innovative projects from all over the world, to discuss the future scope of the circular economy with steel at its core. The ESTEP conference was sponsored by Celsa Group, SMS Group, and the European Commission. On 3 October, the ﬁrst day of the conference started with a visit to Celsa’s facilities in Barcelona, giving participants an opportunity to witness circular steel in action, starting with steel scrap melting in an electric arc furnace (EAF). In huge continuous casting machines liquid steel was solidiﬁed before the long products received their dedicated shape in the hot rolling mill. The most important aspect of this visit was demonstrating a recycling

*Project manager, ESTEP. **Project manager, ESTEP. ***Secretary-general, ESTEP www.steeltimesint.com

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CONFERENCE REPORT

path, starting with steel scrap as a raw material to transforming steel (again) into many valuable products. Circularity is at the heart of sustainability, fueling future innovation and ensuring that the EU green deal forges a climate-neutral and resilient future. The conference kicked off in the late afternoon with a high-level session entitled Driving the Circular Economy: Unleashing Innovation and Reshaping Industries in the EU. ESTEP’s president and head of R&D and Innovation, Franz Androsch from voestalpine Group, said that the steel industry had always been at the forefront of reuse and recycle. Back in 2013, the ESTEP SRA dedicated a chapter to the closedloop economy. This year’s event marks the fourth signiﬁcant gathering on sustainable steelmaking, he said. Peter Dröll, director for prosperity, DG Research and Innovation, European Commission, gave the key note speech in which he stated that “as the backbone of the EU economy and our clean technology efforts, the steel industry has the unwavering support of the Commission on its way to circularity. We know what we need to do, and we know we have to do it together”. The high-level session continued with a panel of experts from the public and private sector, steel companies, customers, and innovators discussing a collaborative approach to transformation, the need for innovation to facilitate a sustainable impact, and making products circular by eco-design in the initial phase of technology development. The session was concluded by Klaus Peters, ESTEP’s secretary-general, emphasizing the main statements of each

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panelist. He invited everyone to deepen the discussion in the following two days of technical sessions and get-togethers and acknowledged and thanked the participants, the sponsors and the ESTEP team for their contribution to the high-level meeting and for making this year’s ESTEP event possible. The second and third days of the conference were divided into four technical sessions focused on the objectives of recycling, recirculation and resource efficiency to fulfill the goal of circularity of steel. For example, steel slag is a wellknown by-product created due to the separation of molten steel from impurities during the steel-making process. Various technical contributions were presented for creating a better understanding of the morphology of the slag structure and its recycling and re-use. Ideas to reduce the use of fossil carbon in multiple ways were quite promising. Several examples of replacing fossil carbon with hydrogen, recycled carbon, or bio-carbon, were presented. The conference also served as a platform to learn about innovations implemented in the US and Asia that could be implemented in the EU too. Another key topic was mastering the technical challenges when using more scrap and biocarbon. There were multiple keynote speakers who presented their views on the circular economy. One aspect, for example, was more digitalization of production, data analysis and machine learning as important tools for improving the circular economy and more efficient production. The twin transition is a challenge of industrial transformation towards sustainability.

However, it needs an integrated approach. Industry 5.0 is based on the humanization of the technological environment in a system called the Human Cyber Physics System (HCPS), integrating humans, cyber systems, and physical systems to achieve precise industrial goals at an optimized level. The opportunity to interact between academic, research, and industrial partners to pitch for new research and innovation ideas was ample and clearly evident in the conference networking events. ESTEP also provided information on how to partner up for upcoming research funding from the EU for next year, which includes Horizon Europe and Research Funds for Coal and Steel Big Tickets (RFCS-BT). In this context, the European Commission is also inviting more proposals from the steel community, with a high impact towards the net zero goal set by the EU. This joint private and public sector goal needs further effort. A dedicated roadmap was introduced by REA, the European Research Executive Agency. ESTEP expects to increase the number of Clean Steel Partnership projects, which require an increase of successful proposals. The concluding remarks from the conference were very positive, emphasizing optimism from both the private and public sectors to engage the best synergies to achieve net zero emissions in steelmaking over the coming years. ESTEP provides a new opportunity for collaboration, facilitating, and contributing to the events. There are multiple opportunities in the coming months listed below that can serve the goal of collaboration. � For further information on ESTEP activities, log on to www.estep.eu.

REA workshop for RFCS-BT at Brussels Green steel deﬁnition workshop and info section, dissemination at Venice, Italy (to be conﬁrmed). Digital-4-Environment ESTEP workshop ESTEP spring dissemination day

www.steeltimesint.com

13/11/2023 15:02:17

DECARBONIZATION

CBAM: a new era of emissions reporting The recent implementation of the Clean Border Adjustment Mechanism (CBAM) will carry impacts throughout the supply chain, and offers commentary on the increasing globalisation of carbon markets. By Urszula Szalkowska* IN May 2023, the European Union (EU) implemented the Clean Border Adjustment Mechanism (CBAM), a ground-breaking regulation to control embedded emissions in imported goods, including steel and iron. CBAM requires importers into the EU to measure, monitor, and report greenhouse gas (GHG) emissions embedded in imported products. It will subject foreign manufacturers to the same emissions limits as domestic manufacturing within the European Union. A wide array of manufacturing outside EU borders, including foreign producers of metal roofing, frames, vehicle parts, trains, pipes, nuts, and bolts, will all be impacted. Importers must accurately identify whether their imported products fall under the specific Combined Nomenclature (CN) codes, which are the EU’s version of HS (Harmonized System) codes for international trade classification. The initial implementation of CBAM, in addition to steel and iron, requires cement, aluminium, fertilizers, and hydrogen imports to report emissions as well.

precursors (see Fig 1). The regulation also recommends that foreign manufacturing facilities voluntarily have their emissions data and embedded emissions data verified by independent verifiers. From 2026 onwards, if a carbon price has been paid by the foreign manufacturer in a foreign country, for producing goods and precursors, it may lead to a reduction in CBAM prices. During the transitional phase, information on foreign carbon taxes must be reported by the importer, so the European Commission can analyze the data and avoid double taxation as CBAM enters the definitive period in 2026. If no information is reported, it will be assumed that there were no carbon taxes on the goods and precursors in their country of origin. Levelling the playing field and addressing carbon leakage The EU’s Emissions Trading Scheme (ETS) was the world’s first emissions trading programme, and it has resulted

in approximately a 35% reduction in emissions within the EU since 2005. However, it only tells a partial story. The full story is that many industries fled ETS’s regulatory requirements and set up shop outside EU borders – and they continued to manufacture and export to the EU without reducing their emissions and without penalty. Thus, manufacturing facilities in countries with lax environmental regulations gained an advantage over EU industries who were subject to more stringent GHG-reduction requirements. Carbon leakage prevention To prevent this carbon leakage, the EU had initially relied on free ETS allowances for industries deemed at risk of flight. However, critics argued that this approach compromised the goals and principles of the EU ETS and failed to reduce carbon intensity (CI) of foreign manufacturing. In fact, Europe became the largest importer of CO2 emissions embedded in imported

Direct and indirect emissions During the transition period of CBAM, which spans from October 2023 to December 2025, importers are required to report direct and indirect emissions resulting from the production of the imported goods and production of input materials (precursors). Detailed reporting is specified for steel and iron, covering, among others, fuel combustion, reduction of iron and steel by reducing agents, from the thermal decomposition of carbonate raw materials, heating, and cooling. Direct emissions must be correctly attributed to imported products, and importers should also report quantities of raw or semi-finished material inputs and determine embedded emissions of these

Fig 1

*Managing director and senior consultant (Europe), EcoEngineers www.steeltimesint.com

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DECARBONIZATION

goods, a major obstacle to becoming a carbon-neutral continent by 2050. CBAM attempts to fix this problem and level the playing field between domestic and foreign manufacturing with respect to emissions. CBAM complexities and timeline The CBAM system tries to mirror the EU ETS. Starting in 2026, importers will be required to purchase CBAM certificates for the embedded carbon in steel imports that are above the limits set by the rules less any carbon price paid in the country of origin. The price of a CBAM certificate will be based on the weekly average price of the EU ETS allowance. An independent accredited verifier must verify the reported emissions’ accuracy. By 31 May, importers will surrender the purchased CBAM certificates and thus ensure all the steel and iron consumed in the EU has the same emissions from manufacturing. Acknowledging the challenges associated with implementing such a complex rule, the EU is requiring importers to only report data in 2024 and 2025 without a requirement to

importers with relevant emissions data. This impact on economic operators in third countries highlights the far-reaching effects of the EU’s climate policies. CBAM also demonstrates how carbon markets are maturing and becoming globalized. It is not unusual for foreign producers to place an EU-specific quality or safety label on automobiles, electronics or food that is being exported for European consumption, but it is a first for carbon emissions. CBAM will require an EU-specific ‘low-emissions’ label on steel and iron. As more manufacturers across the globe comply with these rules, it will have a far-reaching effect on global steel supply chains.

purchase CBAM certificates. Steel and iron importers are required to submit their first reports by 31 January 2024. During the reporting period, importers can use emissions calculations from foreign countries to report embedded emissions, but starting in 2026, the EU calculation methodology with its emissions factors must be used. Unilateral regulatory globalization and CBAM reach CBAM exemplifies the EU’s approach to unilateral regulatory globalization, a concept that has been called The Brussel’s Effect. Instead of negotiated standards under treaties or international agreements, the EU uses its buying power to externalize its regulations beyond its borders through market mechanisms. The CBAM regulation indirectly dictates how foreign producers must measure their emissions. While reporting requirements are binding for importers in the EU, the regulation also impacts operators in third countries, who are required to provide the

Understanding the complexities As the CBAM enters into force, foreign iron and steel companies must navigate the complexity of the system and its timeline to ensure compliance. Understanding these key requirements and the depth of the regulation is crucial for exporters looking to participate in the EU markets. �

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20/11/2023 11:04:12

DECARBONIZATION

Adapting to new carbon policies In a world increasingly focused on mitigating climate change, regulation often acts as the hand steering the wheel of industry towards more sustainable practices. The European Union’s recently enacted Carbon Border Adjustment Mechanism (CBAM) exemplifies this. For steel producers based outside of the EU which import into the EU, and EUbased importers, understanding and adapting to this new regulation will be pivotal in retaining the ticket to trade. By Timothy Bankroff*

CBAM, or the Carbon Border Adjustment Mechanism, is a new regulation introduced by the EU as part of its ‘Fit for 55’ package. CBAM aims to tackle carbon leakage and encourage cleaner industrial production worldwide. It will initially impact non-EUbased producers in hard-to-abate sectors, including steel, iron, aluminium, cement, fertilizers, hydrogen, and electricity, which import their products into the EU, and it will also affect EU-based importers of these products. Carbon leakage occurs when businesses move their production to countries with less stringent climate policies, or when EU products are replaced by more carbon-intensive imports, shifting emissions outside Europe, and undermining global climate mitigation efforts. Quarterley reporting in early 2024 CBAM addresses carbon emissions from the manufacturing of goods imported into the EU. The initial transition period began on 1 October 2023, with the first quarterly reporting due in January 2024. Non-EU based steel producers will be required to provide quarterly reports on carbon emitted during the production of their goods, known as embedded GHG (greenhouse gas) emissions. Then, from 2026 onwards, EU importers will have to pay a carbon tax by

purchasing carbon certificates equivalent to the carbon price that would have been paid if the goods had been produced under the EU’s Emissions Trading System (ETS). Challenges and opportunities The steel industry has already been facing a rollercoaster of challenges. The market has been witnessing a slowdown due to various factors, including the war in Ukraine, supply chain disruptions, and a cooling global economy. Amidst these challenges, CBAM adds another layer of complexity that can’t be ignored. This mandatory reporting places a new burden on steel producers, necessitating additional resources and efforts to accurately track and measure embedded emissions. Immediate challenges include the added costs of the CBAM reporting process, requiring an investment in technology and human resources. Next comes the need for robust data management systems for accurate reporting, which will also add operational costs. Finally, there’s the price pass-through factor – the carbon tax is likely to result in higher product prices, affecting competitiveness in the EU market. Adaptation is crucial for long-term strategy and the first step towards this is having a transparent supply chain.

Companies need to collaborate closely with suppliers to provide accurate emissions data, which is key to meeting CBAM requirements. Technology plays a pivotal role, and investment in innovative techniques to reduce embedded emissions will not only aid compliance but also provide a competitive edge. Market dynamics are shifting with global steel demand slowing down, particularly from China. This, coupled with the possibility of regional overcapacities, makes it even more vital to focus on producing greener steel. Demand for more sustainable products across all industries means that it is really time to act. Furthermore, companies that embrace supply chain transparency by employing more digital methods to understand the impacts of business activities across the world, as well as by adopting thirdparty verification for their emissions data, also find themselves increasingly aligned with crucial elements of many emerging regulations around sustainability. Trustworthiness and accountability are becoming vital factors for consumers and investors when making purchasing decisions and can enhance credibility in the marketplace. By demonstrating a proactive approach to CBAM compliance

* Senior sustainability consultant, DNV www.steeltimesint.com

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DECARBONIZATION

and wider sustainability topics, companies can enhance their brand image and attract customers that are also aiming to become more eco-conscious, leading to a potential expansion of their market share. How should companies in the steel industry get ready for CBAM? Preparation for CBAM compliance should begin with an assessment phase where companies evaluate their current emission reporting capabilities and identify gaps. Secondly, steel producers must take steps to collaborate with stakeholders along their supply chain to gather accurate data required by the EU’s CBAM reporting obligations to ensure continued market access to EU countries. Investment in robust data collection systems will follow. Expert consultation should also be sought to ensure full compliance and to navigate the intricacies of CBAM requirements. Seeking the assistance of expert advisors to help collect, verify, and report the data to the EU will ensure a smoother compliance journey, and pave the way for a more sustainable future for the steel industry.

While CBAM does pose immediate challenges in terms of compliance and costs, it should not be viewed in isolation. Part of the bigger picture Ongoing volatility in the steel market and other long-term challenges, like decarbonization and overcapacity, make

CBAM just a part of the larger tapestry of changes affecting the industry. Companies that view this regulation as a catalyst for broader business transformation – focused on sustainability, operational excellence, and market adaptability – will likely emerge stronger in the rapidly evolving landscape. �

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21/11/2023 11:49 22/11/2023 11:42:33

HEALTH AND SAFETY

Smoke in the air Steelmaking has a dirty habit: its carbon-rich emissions are widely known to intensify the effects of climate change, but with reports focusing on its need to decarbonize, serious medical consequences to the fumes have been sidelined, argues Catherine Hill*

THE steel industry is no stranger to risk. For decades, campaigns by various organizations, from associations such as the World Steel Association (worldsteel) to steelmakers themselves, have focused on health and safety – and the industry’s commitment to ensure a harm-free environment. Data emphasises ‘Lost Time Injuries’ (incidents that cause an injury that prevent a person from returning to their next scheduled shift or work period) and recognises the five most common causes of safety incidents as moving machinery, falling from height, falling objects, on-site traffic, and process safety incidents. Walking round a steel mill, it isn’t difficult to imagine why safety is so important. Railings are hot to the touch, furnaces periodically erupt in vault-high flames, and the noise is brutal, shattering. Within the industry, there are stories of missing fingers, singed hair, and broken toes. Former workers often frame anecdotes as hallmarks of a bygone era, before companies brought in tight regulations and stringent codes of management. The stories are gruesome, but romanticise the smokestack past of steelmaking, frequently given as part of a premogenitive legacy, one that harks back to tradition, unionised power, and working-class identity. These stories represent a deep nostalgia of a past that appears to have left its labour

force largely unscathed. Workers represent these incidents in a physicalised catalogue, whether it is a crooked digit, a fading scar, or a hairless patch on their forearm. These serve as palpable reminders of hard work, extreme conditions, and survival. Other stories have different endings. Between the 1940s to 1970s, asbestos was used heavily in steel production, to protect machinery and workers from high heat. Asbestos fibres, inhaled by workers, would become lodged in their lungs, often causing scarring and damage that led to tumour formation later in life. Many workers were eventually diagnosed with mesothelioma cancer. According to a 2022 report by the European Commission, over 70,000 steel workers died in 2019 from past exposure to asbestos. Family members were forced to draw together employment history and diagnosis; most were aware it was a dangerous job, but the danger was seen in terms of the heat, the machinery, the heavy loads; not the air itself. Airborne toxins Reports on the risk of airborne toxins in steel plants for have been in circulation for decades. In the 1990s, a negligent council clear-up of British Steel’s demolished Corby site resulted in rates of upper-limb defects in babies born in Corby found to be almost three times higher than those

of children born in the surrounding area and 10 times higher than a town with a population of 60,000 should expect. The area near the site, from which toxic waste was being transported, was ‘constantly coated with a thick, red dust, including an open-air market selling vegetables and other produce.’ The waste had accumulated from around 50 years of steel production, and was carried in open lorries, which spilled sludge into the surrounding area. In 2009, the court found Corby Borough Council guilty, citing negligence, public nuisance and a breach of statutory duty for its reclamation of a Corby Steelworks in the town of Corby, Northamptonshire, between 1985 and 1997. There was a rousing public response, partly due to the case’s similarity to the 2000 film Erin Brockovich, starring Julia Roberts as an activist who was instrumental in winning a lawsuit on groundwater contamination. The focus was mostly on Corby Borough Council for its unimaginable carelessness, resulting in widespread human cost; less attention was paid to the destructive chemical potential, still present in steelworks across the world. In 2009, reports began to emerge about Tata Steel’s IJmuiden site, with residents and health authorities accusing the steelmaker of being the main source of contamination in the air, soil, and water. Less than a decade later, information

*Assistant editor, Steel Times International November/December 2023

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HEALTH AND SAFETY

was publicized of the company having released 180 billion litres of wastewater containing arsenic, chromium, mercury, zinc, lead, nickel, and cyanide into surface waters . The National Institute for Public Health and the Environments’ samples in the nearby village of Wijk aan Zee showed that the factory produced ‘graphite rain’ – graphite dust ejected into the atmosphere, which subsequently falls in rain. Far from being the result of a lack of knowledge, or post-demolition mismanagement, the steel plant at IJmuiden is still allegedly spilling toxic waste as a direct result of its production, with residents of IJmuiden, also allegedly, facing a 25 to 50% larger likelihood of developing lung cancer, which can be traced back to the carcinogenic dust emitted by Tata Steel. A 2020 study found that general cancer rates in Beverwijk, a town located under 4km from the plant, exceed the national average by 5%, with lung cancer rates exceeding national levels by 15%. Locals have urged the steelmaker to switch to greener production methods, such as replacing the blast furnace with an EAF, which recycles scrap, and doesn’t run on coke ovens. However, making this switch wouldn’t necessarily solve the health issues experienced by workers and residents. A 2016 study on the health status of male steel workers at an electric steelmaking facility in Trentino, Italy, showed a ‘significant increased risk of lung tumours, diabetes, rheumatoid arthritis, hypertension www.steeltimesint.com

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and cardiovascular diseases as compared to the general population.’ According to the authors, the outcome could be attributed to working conditions in the electric steelmaking facility, where the ‘numerous toxic and carcinogenic substances contained in the foundry dust/diffuse emissions represent the most important risk factors for quantity and biological plausibility.’ Another study written in 2020 reported results that showed people living near electric arc furnaces (EAFs) were exposed to an increased risk of ‘adverse health problems, including atherogenic dyslipidemia, hypertension, and chronic kidney disease associated with exposure to PM2.5 and particle-bound metals.’ A year after this study was published, another researcher stated that the ‘estimated lifetime excessive lung cancer risk..[of melting, casting and ladling EAF workers] were all higher than the significant risk level defined by the US Supreme Court in 1980.’ In Don Delillo’s 1985 novel, White Noise, midwestern America is part horror-struck, and part spell-bound by a looming ‘toxic airborne event’, caused by a chemical spill from a rail car collision. The tropey suburban setting of the protagonist’s family home in ‘Blacksmith’ is a short drive away from ‘Iron City’. Delillo draws us toward a dystopia that is paralleled to reality; with fictional locations referring to America’s rustbelt and spreading clouds of contamination drawing closer to the town’s borders. There is a point to be made between human industry and human consequence; the contents of the train brim with fatal possibility, but it is not until the particles of ‘Nyodene Derivative’ threaten the town’s domestic order, that people are really, truly afraid. The knowledge, in other words, of the chemical’s existence and, by extension, danger, is not what enacts transformation, it is the symptoms themselves; the fluorescent skyline, the induced aphasia, the fear of impending death. And once again, the residents turn to the misguided attempts at clear-up, the patchy TV signal that fails to report updates at the evacuation site, the reporters themselves – criticized for their inability to fully represent the fear and chaos that the cloud has caused. Attention strays from the rail car, from the chemical’s origin. It is not the fault of the chemicals, but their mismanagement. But, the boundary between the sealed containers and the open air is awfully thin.

Research has recommended various measures to combat the multitude of health risks associated with working in a steel mill; ‘effective ventilation systems, proper personal respiratory protection equipment, medical examinations, and strict laws’. These, however, fail to address the fumes that are being emitted from the plant which – with blast furnace numbers increasing in countries such as China – will continue to contaminate air with carcinogenic dust until processes are put in place to capture the toxic materials, and prevent their risk to resident’s health. It’s not only climate change, therefore, that serves as the impetus to decarbonize our steelmaking processes – but the impacts it holds on those who happen to live nearby. Residents are at the mercy of the mill’s productivity, which given the current economic climate, strives for increased output, and raised capacity. And with the focus on worker safety continuing to emphasize easily evidenced injuries, such as cuts and sprains, longer-term health issues associated with working in a mill receive little representation, as they are harder to quantify and record. Many other factors, such as smoking, diet, and general physical health can exacerbate statistics – but the significance of increased diagnosis rates, as stressed by researchers, points to a concerning revelation on the longer term reaches of an industry still in the infancy of its global green transition. Appetite for survival The steel industry has a remarkable appetite, and ability for survival. It has weathered out wars, market crashes, recessions, and supply shortages. It thrives off its inherent recyclability, strength, and prevailing usability. Its weakness lies in the unceasing economic need for expansion and growth – which without adjustments to key processes, will continue to leave its mark on generations to come, in the form of air pollution, severe weather, and even disease. Encounters with its dangerous potential, like the narrative of White Noise, force engagement with the global issue of industrial emissions – and climate change. But the source has to be reached; and the industry itself must carry responsibility for its impacts, not only the councils and the rail car drivers. Without its transformation, criticism will remain frozen to the point of crisis, and the origins of the cloud will dissipate – without ever having been seen.� November/December 2023

13/11/2023 15:09:07

ROLLING

Low-emission steelmaking Sustainability and achieving the lowest carbon footprint while maintaining high productivity are the current and future critical challenges facing the long products steel industry. SMS group has developed an inline endless casting and rolling process known as Continuous Mill Technology (CMT®). By Carlo CASCINO*, Marco ABRAM*, Andrea LANARI** and Filippo Verlezza VERLEZZA** Fig 1. 3-D model of a CMT® layout

CONTINUOUS Mill Technology (CMT) enables a low-emission steelmaking facility to supply liquid steel to a high-speed continuous caster, which directly feeds the rolling mill, eliminating the need for a traditional fossil fuel-fired re-heating furnace. The liquid steel is produced and refined by an advanced steelmaking plant, based on SMS group’s ALLCHARGE® design and coupled with the company’s X-Pact® AURA IGBT electronic power modules, which ensure the lowest possible environmental impact in terms of CO2 and NOx emissions. The CMT® plant’s design can connect with renewable power sources and will eventually completely eliminate the use of combustion gas during the melting process and further reduce its carbon footprint. Due to the high casting speeds permitted by the CMT® process, special attention has been given to mold and strand guiding design, using CONREX technology and CONDRIVE mold electromechanical oscillation. The flexible nature of the CMT® process foresees a wide range of finished products, from straight bars, rebar in coil, and wire rod. An additional key element in ensuring

efficient and cost-effective production is the X-Pact® automation system, which can manage any aspect of the production process from scrap yard logistics to the mill finishing area. CMT – a signiﬁcant achievement The CMT® process represents a significant achievement in the steel industry’s efforts to achieve environmental sustainability while maintaining superior quality, high yields and productivity goals, Fig 1. Depending on the final productivity requirements, different CMT® configurations are available which result in the following annual capacities if linked with a nominal casting speed of 6.5m/min, Table 1. CMT®350

Low-emission steelmaking plant With regard to sustainability and a low carbon footprint, SMS group has introduced ALLCHARGE® EAF technology in order to minimize carbon dioxide emissions and improve control over dangerous pollutants like NOx, CO, Dioxins and VOC. Fig 2. ALLCHARGE® technology incorporates a flat bath process with continuous scrap charging without the need to open the roof. There is a separate extraction line for off-gases. This new design is claimed to be more sustainable than conventional preheating systems, which rely on scrap being preheated by off-gas in counter flow. The choice of decoupling the off-gas CMT®550

CMT®700

Heat size

35t

50t

70t

Productivity

51t/h

82t/h

108t/h

350,000t/y

550,000t/y

700,000t/y

Cast section

CONREX 130

CONREX 165

CONREX 190

Nominal casting speed

6.5m/min

Process

Continuous mill technology from caster to rolling mill, through induction equalization furnace

Finished product range

Straight bar: 8 to 63mm, 6 to 24m bundle, 2 to 4t VCC Coil: up to 25mm, 8t Wire rod: 5.5 to 25mm

Table 1. Comparison of different CMT® concepts

*SMS Concast AG, Zürich, Switzerland **SMS group S.p.A., Tarcento (UD), Italy November/December 2023

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ROLLING

Fig 2. ALLCHARGE® EAF charging

Fig 4. CONREX section, the mold technology for high speed casting

Fig 3. X-Pact® AURA system for DC EAF

suction line from the scrap conveying line is driven by the following factors: • the preheating effect given by a sidewall charging is well known to be limited, reaching, in the best case, a saving of only 15 kwh/ton, but in most cases below 10 kwh/ton; • a relevant electrical saving is granted by the flat bath operation with closed roof: this pillar is kept in the proposed design; • an efficient preheating effect calls for energy-rich off-gas, provided in most cases by the post-combustion of CO: this is against the ALLCHARGE® driver of carbon footprint reduction; • even a partial scrap preheating causes a temperature drop in the fumes and, consequently, emissions with a higher carbon monoxide content in atmosphere and difficulty controlling VOC/Dioxines. Keeping off-gas temperatures high before the quenching tower improves the emissions quality of the ALLCHARGE® process when compared with conventional preheating systems; • continuous charging is recognized as the best design to minimise NOx emissions; The scrap conveying sectors do not need to be water-cooled or refractorylined, except for the last part of the system entering the shell: a short-length, covered www.steeltimesint.com

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vibrating module equipped with sealing to prevent air entering from the sidewall opening. Less water/refractory consumption and less equipment installed are key aspects for sustainable and low-maintenance operations. Additionally, the automation system belonging to the X-Pact® platform tracks the material flow from the yard area to the EAF and detects any irregularity. DC EAF technology has been selected for its lower electrode consumption compared with any AC furnace, resulting in a reduction of direct CO2 footprint. DC arc technology is now coupled with a disruptive power feeding concept based on IGBT electronic modules named X-Pact® AURA. Fig 3 The use of modular concept and stateof-the-art electronics guarantees best efficiency and highest power density, with a minimal impact to the grid, says SMS group. Proprietary control algorithms and modulation technologies is claimed to ensure high power transfer and fast control. The combination of DC technology with X-Pact® AURA is further claimed to add several benefits to the steel production process, such as: • a new concept for feeding power to the EAF: modular electrical panels of

Fig 4. See caption above

Fig 5. CONDRIVE mold oscillation

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ROLLING

Fig 6. 3-D model of a 9-m radius CMT® caster

defined rated current, each equipped with rectifier, DC bus and IGBT chopper • the power factor of the EAF on the network side is always more than 0.92 on the full range of power: the furnace is seen by the network as a clean load • the power quality of the network meets the standard requirements of GB14549 and IEEE519 and results in extremely low harmonic distortion • the power rate of the rectifier transformers can be reduced by approximately 20% compared to a conventional AC or DC • the rectifier transformers do not need to be expensive heavy duty machines: all the disturbances are stopped and filtered by the X-Pact® AURA system • the rectifier transformers do not need to be equipped with a costly and high maintenance On-load Voltage Tap Changer, since the arc voltage is adjusted by the X-Pact® AURA system • no need to install a high-cost and high-maintenance medium voltage breaker: the AURA system is in charge of switching

ON/OFF by triggering the pulses of IGBT • extremely low DC current ripple < 1 -1.8% for a stable current input • high switching frequency for the IGBT electronics: faster electrode control system for a smoother melting process • beneficial effect to flicker reduction: with most of the network, X-Pact® AURA does not require an SVC (Static Var Compensator) or STATCOM. The ALLCHARGE® and AURA concept reduces CO2 emissions directly by 40 kg/ ton compared to conventional preheating systems. High-speed continuous caster In a combined casting and rolling process, a careful synchronization of the casting and rolling processes needs to be assured to maintain a continuous flow of material. To achieve this, the steel flow from tundish to mold is controlled by a tundish slide gate or stopper mechanism, which must be designed to optimize casting speed and preserve a stable and flat mold level.

The caster operates in submerged casting mode, using a submerged entry shroud or a submerged entry nozzle (both of which can be specially designed for high-speed casting) and mold lubricating powder to ensure uninterrupted casting for long sequences. These technologies are known from CSP® thin slab casting and are adapted to high-speed billet casting. The closed loop control of the powder level CONFEED, in combination with any automatic powder feeder, reduces any mold powder entrapment in the strand shell and enables an optimal lubrication throughout the casting process. Casting billets at high speeds requires modifications to the caster’s design and operation procedures to maintain stable and safe operation while meeting product quality requirements. SMS group has set the main design focus on the proper formation of the strand shell, avoiding any bulging, cracks, and subsequent break-outs. High-speed casting leads to significantly increased heat loads in the mold, which can result in overheating of the mold hot face if standard mold tubes are used. CONREX (CONcast Round invEX ) mold technology provides optimized cooling conditions, resulting in lower temperatures and reduced thermal stress throughout the mold tube. Moreover, the special section profile provides minimized containment length, improved performance in the induction heating process and less roughing mill rolls wear. Fig 4 and Fig 5 The grooves on the outer wall of the mold tube help to lower the hot-face temperature by decreasing the local thickness of the copper wall. Additionally, they increase the surface

Fig 7. Induction heater

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ROLLING

Fig 8. HL mill with FastChange automatic stand changing system

Fig 9. Multistrand Thermoprocessing box installation

available for heat transfer between water and copper, enhancing the mold’s heat transfer capability. Mold oscillation accuracy at high speed is guaranteed by coupling leaf spring oscillation design with the CONDRIVE system. CONDRIVE is a new electric oscillation drive based on torque drive technology, which enables online independent adjustments of amplitude, frequency and oscillation profile. In many references the CONDRIVE has proven its optimized operation cost compared with hydraulic-driven oscillation. Even though the caster generates only a small amount of the plant’s emissions, this part of the process has been designed with sustainability in mind. Thanks to the use of the latest refractory materials, which require lower drying temperatures and times, and the cold tundish practice at the start of the cast – which eliminates the need to preheat – the use of natural gas is minimized throughout the casting cycle. CMT® continuous casters feature different radii depending on plant size, providing longer spray cooling and a thicker strand www.steeltimesint.com

SMS rolling.indd 4

shell during straightening to reduce unbending strains. Fig 6 Only in emergency a hydraulic shear, located after the point of final solidification, will cut the billet and permit separation of the two plant areas. Downstream of the shear, a small discharge table is provided to evacuate billets if necessary. Ultra-flexible rolling mill The cast strand runs endlessly into the rolling mill in normal conditions, and an induction heater is placed in front of the mill to provide additional heating or temperature equalization when needed. In steady state, the temperature of the strand entering the rolling mill ranges from 1150°C (in the centre) and 1050°C (on the surface, excluding the corners), and, therefore, is suitable for direct rolling without additional energy input. Fig 7 The rolling mill at the CMT® plant is highly flexible, producing a wide range of finished products including straight deformed bars, rebar-in-coil and wire rod. The mill is equipped with the HL stands

featuring the FastChange automatic cartridge-changing system for quick and easy roll unit replacement. One notable technology used at the CMT® plant is the Thermoprocessing system for rebars, which is a standardized process in Europe that achieves the necessary physical properties without the need for expensive micro-alloy or low-alloy grades. In Asia, the TMbaR® process is used for the same purpose. Fig 8 The Thermoprocessing system has been continuously improved by SMS group to meet market demands and customer requirements. The newly redesigned equipment provides greater efficiency and lower water consumption, following stringent regulations on pollution, emissions, and industrial water use. The Thermoprocessing system consists of three stages: quenching, semi-tempering and core transformation. The process produces a product with good ductility (El >10%) and high yield strength values (>550 MPa), with lower production costs due to the reduced volume of alloying elements in the steelmaking plant. Fig 9 A dedicated cooling bed, high capacity cold shear, twin-ABC automatic bar counting systems, automatic lance-system bundling, tying, weighing, labelling and storage all contribute to fast and efficient product delivery. Automation concept The automation system for an endless inline casting and rolling processes requires not only strong capabilities for designing the November/December 2023

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ROLLING

Fig 10. SMS Digital DATA FACTORY

melting-refining-casting-rolling process, but also has to cover the overall production process spanning all individual plant units. The X-Pact® automation system provides the integrated controls – from L2 to L0 – and equipment for the whole CMT® plant. In addition to seamlessly integrating itself with the mechanical equipment, the automation system can meet all possible market demands with built-in capabilities for plant-wide production planning, scheduling, tracking and reporting. Operators and scientists will benefit from advanced process data analysis and simulation tools provided to fine-tune the various optimization models assisting the operators during production. Finally, the automation system is complemented by business intelligence capabilities for statistical analysis and advanced reporting for product certification. Fig 10 Water treatment plant The treatment of the water used in the CMT® takes place inside the specific water treatment plant with the aim of cooling and cleaning the water according to the strict requirements of the CMT® equipment. The water treatment plant is an integral part of the CMT® process and with the water facilities (scale pits) inside the CMT® plant, grants a precise co-ordination between CMT® performance and WTP operation. Fig 11 The special features of the water treatment plant include: • the use of high-efficiency dry cooling technologies for the reduction of the makeNovember/December 2023

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up water. • the reduction up to complete elimination of water discharge using modern Zero Liquid Discharge (ZLD).

Conclusion SMS group is fully engaged in transforming the steelmaking process towards being green and environmentally friendly. From scrap to high-end final products, the plant integrates steelmaking, continuous casting and rolling into a highly reliable single process, minimizing carbon footprint, OPEX and CAPEX. Some central features include: • No reheating furnace. • The ALLCHARGE® DC green solution in the CMT® concept represents a 60% reduction in CO2 emissions • Using green electric power from renewable sources to enable a reduction of combustion gas usage of 99% • Modern water treatment options to allow the reduction of up to 70% of the make-up water requirements • A 100% reduction of the process water discharged! The CMT® process is one of the most environmentally sustainable steel production methods available for long products, asserts SMS group. �

Fig 11. SMS water treatment plants

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DIGITALIZATION

INEVITABLE project: digitally upgrading metallurgical processes This paper presents the approach implemented in the EU-funded project INEVITABLE to digitally improve performance of various processes in the metal industry. Dejan Gradišar1, Miha Glavan1, Christine Gruber2, Maria Thumfart2, Johannes Wachlmayr2, Birgit Palm3, Bernd Kleimt3, Sudhanshu Kuthe4, Björn Glaser4, Vito Logar5, Igor Škrjanc5, Pavel Ettler6, Matjaz Demsar7, Izaskun Alonso8, Roman Rössler9, Mojca Loncnar10 Zdravko Smolej10 THE INEVITABLE project focused on improving performance indicators in the steel and non-ferrous metals sector. The project results were achieved by the project consortium formed around the metasl industry and consisting of industrial

end-users (SIJ Acroni, voestalpine Stahl, Sidenor Aceros Especiales and Eibar Precision Casting), institutions specialized in metallurgy and related control technologies (BFI, KTH, K1-MET, and Azterlan) and process control and automation providers

and research institutions (SIEMENS, COMPUREG, University of Ljubljana and the Jožef Stefan Institute). The first step of the process transformation was to retrofit existing production sites targeting sensors and

1. Institut Jožef Stefan, Ljubljana, Slovenia, 2. K1-MET GmbH, Linz, Austria 3. VDEh-Betriebsforschungsinstitut GmbH, Düsseldorf, Germany 4. Kungliga Tekniska Högskolan, Stockholm, Sweden 5. University of Ljubljana, Ljubljana, Slovenia 6. COMPUREG Plzen s.r.o., Plzen, Czech Republic 7. Siemens d.o.o., Ljubljana, Slovenia 8. Sidenor Aceros Especiales SL, Basauri Bizkaia, Spain 9. voestalpine Stahl GmbH Linz, Austria 10. SIJ ACRONI d.o.o., Jesenice, Slovenia www.steeltimesint.com

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DIGITALIZATION

visualization). The analysis is followed by a visual benchmarking of the company’s digital situation, the definition of priority criteria, and an action plan. To further support the implementation of these steps, a Digital Readiness Diagnostic tool was created with several forms to collect the data and provide feedback. The tool provides visual aids to clearly identify the current status and its possible evolution in the future, and prepares concrete activities needed to improve the level of digitalization of the processes considered.

control technology upgrades, and also increase the overall level of digitalization, which was achieved through the adoption of newly developed high-level supervisory control systems for different processes in the metals production industry and their integration into the appropriate digital infrastructure. Finally, the overall approach and new technologies were demonstrated and validated in a real operational environment within various metallurgical processes. In this paper, an overall approach to the digitalization of existing processes is presented. General approach for digital upgrades The INEVITABLE methodology can be grouped into four crucial steps for the development of digitalization solutions as shown in Fig 1. Starting with a digital upgrade and an assessment of the existing and required data availability, appropriate sensor solutions and data acquisition strategies are designed. With the utilization of historical process data and metallurgical process knowledge, models for process monitoring and prediction are developed. Finally, high-level decision support solutions for management using developed models are integrated into the digital infrastructure of the production plants. When working on the development of enabling technologies and digital upgrade approaches primarily intended for the optimization of selected pilot processes, we learned some lessons that could be useful for other industries regarding digitalization and process retrofitting. In the following, an overview of the key enabling technological

Fig 1. A generalized INEVITABLE approach for digital upgrade of existing production processes

areas is presented. Requirements and specifications for digital upgrades To support the preparation of requirements and specifications, the methodology, consisting of systematic steps, was developed. The approach consists of a plan preparation, a process and digital system audit, consolidation meetings and a final diagnostic overview (Fig 2). Here, analysis of the level of digitalization is performed from two different perspectives: the quality of the data in terms of process and product variables (traceability, frequency and precision) and the digitalization of the data (access to data, capture and storage, and

Data collection and sensor technologies With this step, data collection and sensor technologies are explored based on the digitalization needs (Fig 3). The key aspects addressed were (i) data acquisition through new or upgraded sensors and (ii) design and set-up of appropriate data communication and storage infrastructure. Digital upgrades and retrofits performed include the installation of new sensors that were not previously incorporated into the process surveillance chain. A prerequisite for all of these applications is to evaluate the capabilities needed and define the required precision, measurement frequency, availability, and practicability of the solutions. The upgrade of the traditional sensorics can help to improve the process insight, while implementation of smart sensorics (e.g. soft sensors) can help with extracting hidden process information. To integrate all data sources into one monitoring system and to effectively use plant data, several different issues must

Fig 3. Upgrade of data collection and sensor technologies in the metal producing Fig 2. Steps to prepare requirements and specifications for digital upgrades

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industry

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DIGITALIZATION

Fig 4. Digital infrastructure selection approach

be considered when designing and setting up the data communication and storage infrastructure: • identification of data sources (direct measurements from sensors and data from different PLCs and local databases) • unification of data handling systems and implementation/adjustment of several acquisition agents • implementation of data interfaces and communication infrastructure using standard communication protocols (e.g. OPC-UA, MQTT) • capturing specific process characteristics using different data aggregation techniques (Fig 3). Data analysis, control, and optimization Process chains for metal production (such as steel, aluminium) are complex and include numerous metallurgical and physical subprocesses. Knowledge of process behaviour is required for effective on-line monitoring, control and decision support systems. This requires analytical tools and predictive process models. Various models are needed to support parallel simulation with digital twins and soft (virtual) sensors to estimate unmeasured process behaviour. Processes in the considered domain are assumed to have known physics for which firstprinciple models are well-known or can be derived. However, to improve knowledge of process behaviour under operating conditions, statistical and AI-based modelling techniques are promising and both approaches have been adopted within the INEVITABLE project. Due to high differentiation of the use-cases, a problem www.steeltimesint.com

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tailored approach was used where each solution differed in the taken approach and tools used. Digitalization infrastructure When setting up digitalization infrastructure, technical requirements need to be aligned with process and organizational requirements, to ensure the proper platform for digitalization. Choosing the right platform for digital infrastructure can be challenging, and appropriate steps need to be taken to make sure the selected platform can fulfil the actual requirements. Existing digitalization solutions used by companies are very often the result of years of evolution, rather than planned implementation. The methodology shown in Fig 4 was developed as part of the INEVITABLE project and aims to guide the companies over several steps to select the appropriate digital infrastructure. The approach consists of several steps where the needs of the digital platform are systematically reviewed by collecting and validating information. With it, the company can review the digital maturity of their processes, formalize targeted objectives, and prepare proof of concept for the required digital infrastructure. The steps are performed sequentially with multiple checkpoints that provide the necessary verification and acceptance. The approach integrates tools already available (such as. DMA tools and Digital Readiness Diagnostic) and proposes an additional tool for infrastructure information collection, as well as integrating the whole process into a systematic step-by-step approach.

Implementation of developed technologies and approaches Within INEVITABLE, the developed enabling technologies and approaches for a digital upgrade were implemented and tested on selected use-cases in the metal industry. This chapter provides an overview of the implementation process and highlights the key findings and outcomes of each use case demonstration. Optimization framework for EAF First, the project focused on optimizing the electric arc furnace (EAF) at the SIJ Acroni plant. The objectives here included reducing electrical energy consumption, CO2 equivalent emissions, and bath temperature sampling [1], [9]. The first step involved reviewing the production process and developing action plans. Access to several process variables was identified as crucial, requiring improvements in MES and PLC connectivity, as well as protocol upgrades. In the next step, the process was equipped with additional sensorics and data collection systems, together with developed strategies for data collection and storage. A comprehensive list of necessary EAF inputs and outputs was defined, and data acquisition from various PLCs and databases was unified into a common database. Data storage integration solutions were implemented, including upgrading the data collection system for developed EAF models and establishing a future-proof and secure industrial network design. Data analysis, control, and optimization tools were developed to monitor and predict EAF process behaviour. First, all collected data needed for online monitoring November/December 2023

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DIGITALIZATION

and prediction were analyzed. Later, predictive process models were developed, providing parallel simulation as a digital twin. Soft sensors were developed to estimate unmeasured process variables. The models and algorithms were integrated into the EAF tool. The digital infrastructure was defined, based on an industrial cloudbased infrastructure (MindSphere) and an Edge computing platform (SAS Edge Stream Processing). The data processing solution was integrated into the industrial IT infrastructure and executed on an Edge PC, while a dedicated user interface for data selection, user-defined settings and displaying calculated results was established on the MindSphere platform. System for supervision, optimization, diagnosis, and condition monitoring of cold rolling mills The second task was focused on optimizing the cold rolling mill at SIJ Acroni. The objectives included improving product quality, increasing productivity, and enhancing energy efficiency while reducing GHG emissions. The digitization action plan involved a complete process retrofit with basic automation upgrades. Access to all process variables was crucial, necessitating improvements in MES and IBA connectivity, as well as protocol and sensor upgrades. A platform for data collection and storage was implemented, enabling the measurement of 440 timeseries and 335 discrete variables at a high sampling rate (2ms). Data storage integration solutions were established, ensuring the archiving of ZRM process data. Communication interfaces and data transfer protocols were implemented, including OPC-UA, ODBC, and MQTT. Long-term data sets were stored, enabling offline exploration, DSS operation and monitoring of production assets. Data analysis, control and optimization tools were developed to monitor and optimize the cold rolling mills. The collected data on process behaviour was analyzed, and steps were taken to prepare the data for further analysis. Several models were developed to monitor rolling processes [3] and predict product quality, utilizing soft sensors and models for recipe adaptation [2]. A decision support system was developed to detect process equipment operation deviations and select optimal rolling recipe parameters. November/December 2023

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The digital infrastructure combines a newly digitized process and an industrial Edge (SAS), and cloud-based solutions (MindSphere). The measurement data was accessible through OPC-UA or SQL, and the platform provided sufficient sampling frequency and processing power. The digital solutions were deployed into the cloud platform, enabling system monitoring dashboards and interactive graphical user interfaces. Decision support and optimization systems in refining and continuous casting The third phase focused on refining and continuous casting processes at SIDENOR, aiming to achieve premium meso and micro

cleanliness and avoid cast bloom rejection. The digitization action plan involved the identification of several variables needed for process optimization. Strategies for data collection and storage were implemented, primarily focusing on capturing vibration signals using triaxial accelerometers to assess the stirring intensity during secondary metallurgy treatment. Data storage integration solutions were established to store raw vibration signals and selected processed parameters in the plant databases. Communication interfaces and data transfer protocols, such as OPCUA and ODBC, were implemented. Longterm data sets were stored in SimaticNET databases and the Mindsphere Data Lake, enabling the use of data for current and

future solutions. Tools for data analysis, control, and optimization were developed to monitor and optimize the refining and continuous casting processes. Vibration signal analysis was conducted to better describe the variance of models for desulfurization in the ladle furnace (LF) and hydrogen removal in the vacuum degasser (VD). Soft sensors were developed to estimate melt temperature in the tundish, and data-driven models were developed to estimate the castability of steel. Although this technology needs fine tuning to get closer to all the phenomena impacting on castability, models were useful in predicting situations that led to poor quality and operational results [8]. The decision support system was implemented on an intermediate level between SCADA and PLCs, ensuring security and process management. Predictive process models for refining and continuous casting of liquid steel Phase number four focused on refining and continuous casting processes at voestalpine to reduce product downgrading, achieve premium micro cleanliness, and optimize process parameters. The digitization action plan involved the identification of several variables required for process optimization. Strategies for data collection and storage were implemented, with a particular focus on capturing image data of the melt bath surface to detect stirring intensity using cameras. Data storage integration solutions were established, allowing for the capture of raw image sequences, online data processing, and storage in plant databases. Communication interfaces and data transfer protocols, including OPC-UA and SQL, were implemented. Long-term data sets were stored in Simatic/WINCC databases, the MES Oracle database, and the Data Lake. Tools for data analysis, control, and optimization were developed to monitor and optimize the refining and continuous casting processes [5]. Image analysis concepts were developed using commercial and in-house tools, facilitating the analysis of LF and RH degassing treatment processes. Soft sensors were developed to estimate melt temperature and slag composition, and models were created to estimate castability and cleanliness levels. The digitalization infrastructure included an online software system for stirring process monitoring at the LF, an optical process www.steeltimesint.com

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DIGITALIZATION

evaluation tool for RH degasser anomaly detection, and a ClogCalc optimizer, useful for online optimization of calcium additions ([6][8]). Cognitive system for non-ferrous investment casting process Demonstration number five aimed to reduce rejection rates, increase productivity, reduce costs, enhance aluminium elongation, and minimize maintenance costs in the non-ferrous investment casting process of EIPC. The digitization action plan involved the identification of necessary process variables and actions to improve data quality and digitalization. Strategies for data collection and storage were implemented, ensuring the integration of data from various sources and formats. Data storage integration solutions were established, capturing data from different systems and storing them in a central SQL database. Communication interfaces and data transfer protocols were implemented, allowing data to be collected and transmitted by developed processing and communication agents. Tools for data analysis, control, and optimization were developed to optimize the non-ferrous investment casting process. Bayesian network mathematical models were used to identify critical variables and generate optimal parameters. Models were developed to estimate trends of KPIs and to correct the potential deviations (MPC) to achieve final objectives. A methodology for multi-criteria optimization was developed to support a multi-objective scenario including product and service aspects. The digital infrastructure comprised various systems, including data processing agents connected to a general orchestrator (SENTINEL), including a digital twin (PDVIEWER) and MPCs for on-line prediction and prescriptions generation. Conclusion The INEVITABLE methodology together with the developed new digital highlevel solutions have demonstrated their effectiveness in digitally upgrading processes in the metal industry. With the development and deployment of new sensor technologies, data analysis tools, predictive models and the adoption of digital infrastructure, significant improvements in process performance, product quality, energy efficiency, advanced scheduling and overall productivity have

been achieved. The project’s use cases showcased the diverse applications and benefits of digitalization. By combining domain knowledge, advanced data analytics, and control technologies, the project has successfully optimized various metallurgical processes and provided decision support systems for operators. The lessons learned from the INEVITABLE project emphasize the importance of systematic planning, data collection and integration, model development, and infrastructure selection in the digital upgrade of industrial processes. The developed methodologies, tools, and approaches offer valuable guidance to other industries embarking on their digital transformation journey. � References [1] A. Blažič, I. Škrjanc, V. Logar. Soft sensor of bath temperature in an electric arc furnace based on a data-driven Takagi–Sugeno fuzzy model. Applied Soft Computing. 113:B, 2021. [2] K. Cuznar, M. Glavan. Optimization of cold rolling process recipes based on historical data, MELECON 2022. [3] P. Ettler, M. Glavan. Detection and isolation of oscillation sources in cold rolling mills, IFACPapersOnLine, 2022. [4] D. Gradišar. Optimising performance in the metal industry, Projects magazine, Issue 43, Insight media, 2022. [5] C. Gruber, B. Bückner, M. Schatzl, M. Thumfart, R. Eßbichl, R. Rössler. Big Data Handling in Process Surveillance and Quality Control of Secondary Metallurgical Processes, Steel research international, 2022. [6] C. Gruber, et al. Optimization and performance improving in metal industry by digital technologies, ESTAD conference, Düsseldorf, Germany, 2023. [7] https://inevitable-project.eu [8] S. Kuthe, B. Glaser, I.Alonso Oña and R. Roman. Self-adaptive data-driven models for process monitoring during ladle refining and continuous casting. [Conference presentation]. The European Oxygen Steelmaking Conference (EOSC), Aachen, Germany, 2023. [9] S. Tomažič, G. Andonovski, I. Škrjanc; V. Logar, Data-Driven Modelling and Optimization of Energy Consumption in EAF, Metals, 2022.

Excellence in Oxygen lancing www.beda.com

Acknowledgment The work in presented in this article is funded by the EU’s Horizon 2020 research and innovation programme, the SPIRE initiative and the INEVITABLE project.

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14/11/2023 08:31:29

PERSPECTIVES Q&A: FALKONRY

Delivering the digital The future looks promising, says Nikunj Mehta*– with the steel industry’s increasing interest in all things AI driving sector-wide change, from productivity gains, to operational optimization. 1. How are things going at FALKONRY? Is the steel industry keeping you busy? We are highly motivated by the accelerating adoption of AI by industrial organizations into their core plant operations. It’s been a remarkable year as we’ve more than doubled our customer base since the start of the year. The steel industry has been a key contributor to this success and an important focus area – we are now proud to serve leading steel producers from North America, Latin America, and Europe. What’s more, the recent announcement of IFS acquiring Falkonry has provided our customers and partners with added confidence in our ability to meet their longterm technology needs. The future looks promising, and the steel industry’s trust in our AI-driven solutions continues to keep us actively engaged and inspired. 2. What’s on the horizon for FALKONRY now that the company is set to join IFS? We see a unique opportunity to enhance enterprise applications for asset-heavy businesses with AI. The technological strides of the past decade have made it costeffective for customers to derive actionable insights from industrial automation data, and IFS is at the forefront of bridging the gap between AI and asset/service management. Our aim is to provide an end-to-end solution encompassing asset performance management, maintenance optimization, and configurable workflows, built on the foundation of anomaly detection and pattern recognition. Our immediate goal is to continue delivering meaningful productivity gains to enterprises in manufacturing, energy, and metal production. 3. Can you tell us a bit more about recent advancements the company has made in AI? Recent innovations in AI include creating

significant value for steel manufacturers. A key breakthroughs is the ability to implement ‘No Setup AI’ for anomaly detection and ‘no code’ pattern recognition, allowing manufacturers to optimize their operations teams’ attention without necessitating substantial upfront investments or IT efforts. This approach has proven effective in building trust in AI through in-depth operational reviews to prepare for improved and timely decisionmaking. We are seeing the successful deployment of our AI and resulting value creation across various stages of steel manufacturing, including blast and electric arc furnaces, melt shops and casters, hot mills, annealing and pickling lines, and cold mills.

Nikunj Mehta

4. What is your view on the current state of the global steel industry? The global steel industry seems to be mirroring the resurgence seen in global manufacturing, as numerous countries, including the US, embrace a reshoring trend. What’s notable is that despite not being the most technologically advanced sector, the steel industry is swiftly adopting successful practices in AI-based anomaly

detection. This adoption extends to effectively bridging the gap between IT and OT (Operational Technology) while meticulously aligning AI adoption with their core business objectives. 5. In which sector of the steel industry does FALKONRY mostly conduct its business? Ours is a versatile technology that can be applied across the entire steelmaking value chain – from blast furnaces and vertical continuous casting to various rolling mill processes and beyond. Its process-agnostic nature enables application in areas such as tandem rolling, pickling, and finishing mills, where it excels in facilitating efficient anomaly detection and operational optimization. While we take pride in our comprehensive steel industry coverage, our recent successes in the hot mill have highlighted Falkonry’s expertise solidifying it as our forte, if you will. 6. Where in the world are you busiest at present? This year we find ourselves significantly engaged in the European Union. It is indicative of a growing trend, as our partnership with IFS intensifies, and together we deploy our combined offerings to an increasing number of steel plants in the region. The heightened activity within the EU underscores growing demand for our solutions in Europe and the pivotal role that this region is poised to play in the improvement of industrial productivity through AI-based anomaly detection. 7. What trends are you seeing in steel manufacturing? The steel industry is now rapidly deploying these technologies throughout manufacturing. This expansion is seen across various applications, including moisture content estimation of iron ore green pellets, dynamic control of slag properties in processes like argon-

*CEO and founder, Falkonry November/December 2023

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PERSPECTIVES Q&A: FALKONRY

oxygen decarburization (AOD), predicting chemical element and impurity content in steelmaking, and even flatness prediction in cold-rolled strips. Based on our discussions with steel manufacturers it is evident they want to move from usage at the equipment level, mainly for predicting downtime, towards broader plant-level implementation. This involves integrating SCADA, sensor, and MES data into AI cloud solutions to drive plant-scale productivity and sustainability improvements. 8. What are your views on Industry 4.0? Industry 4.0 has given rise to a wealth of operational technology (OT) data in the form of extensive data lakes. Leveraging AI and machine learning, manufacturers hope to progress from run-to-failure maintenance to preventive and ultimately predictive maintenance. However, this transition has been somewhat sluggish due to the challenges of dealing with a ‘datarich but label-poor’ environment where failures don’t tend to repeat identically. Recent advancements in the form of fully automated AI Copilots are making substantial strides in overcoming these challenges. In this era, workers are digitally integrated, and Industry 5.0 introduces a personal touch to the pillars of automation and efficiency that defined Industry 4.0. 9. In your dealings with steel producers, are you finding that they are looking to companies like FALKONRY to offer them solutions in terms of energy efficiency and sustainability? Many steel companies have set aggressive sustainability targets for lowered GHG emissions and vastly improved efficiencies to reduce environmental impact. Falkonry AI helps achieve these goals in two ways: By analyzing operating parameters, it can be applied to calculate equivalent GHG emissions, allowing companies to gain insight into how different plant operations affect emissions levels. Secondly, it identifies early indicators of deterioration and reduced efficiency in vital components of the steelmaking process that directly affect emissions, such as the DeNOx system. 10. What common misconceptions surrounding AI do you face when dealing with steelmakers? Firstly, there is a prevailing belief that www.steeltimesint.com

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AI necessitates a large number of data scientists. This is not the case when leveraging automated solutions designed to be accessible (and usable) without a data science team. Another prevalent misconception is that AI requires a wealth of labels for predicting failures, which steelmakers often lack. However, there are AI techniques that prove invaluable when working with unlabelled data, allowing

the system to learn the requirements independently. Finally, steel manufacturers are often concerned that maintenance, reliability, and process engineers will need extensive re-skilling in AI and data science. This is why we offer an AI Copilot designed for direct use by operations teams, eliminating the need to hire AI experts and making AI adoption within the industry more accessible. 11. What differentiates FALKONRY from other AI/ML companies? Falkonry is unique in its ability to uncover those elusive problems lurking within your operations that you were unaware of, enabling us to address latent challenges before they become operational disruptions. Falkonry does not require any set-up effort. An activation time of just two weeks allows organizations to transition from data to actionable anomalies swiftly. The speed at which we deliver results ensures that companies reach payback within six months, significantly accelerating their ROI. 12. How optimistic are you for the global steel industry going forward? Setting aside local constraints and geopolitics, the steel industry has demonstrated resilience and adaptability over time. That’s why my optimism about

the industry extends beyond the initial post-pandemic recovery phase. However, we must acknowledge several ongoing challenges, including labour shortages, growing complexity, disruptions in the supply chain, and stringent environmental regulations. Fortunately, AI can play a crucial role in addressing these hurdles. 13. What exhibitions and conferences will FALKONRY be attending over the next six months? We’ve just wrapped up Metec 2023 and the Future Steel Forum – two fantastic steel industry events. We’re looking forward to Expo Acero and the AIST DX Forum in Q1 next year, followed by Hannover Messe in Q2. 14. How will FALKONRY attract new talent to the industry? Falkonry’s focus on accelerating the rampup of new personnel by reducing the time required to understand event behaviour directly addresses the consequences of the ongoing talent shortage and ensures that the workforce adapts to the demands of the digital era. Our approach leverages the digital proficiency of Gen Z, effectively bridging the cultural gap toward a more digitized industry. This infusion of new blood is essential for driving transformative change and managing AI governance. 15. Apart from strong coffee, what keeps you awake at night? While AI can discover insights and trigger automated alerts, the ultimate success of plant production improvement depends on people taking the right actions on the plant floor. We want to simplify smart manufacturing and drive increased productivity and sustainability across the entire industry. However, it’s this very last step of nurturing a cultural change to ensure seamless adoption and execution that occupies my thoughts as we strive to create a more productive and sustainable industrial landscape. 16. If you possessed a superpower, how would you use it to improve the global steel industry? With my superpower, I would take all the guesswork out of the steel industry. This ability would allow me to remove and mitigate surprises while simultaneously incorporating expert knowledge into a computerized system. � November/December 2023

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HISTORY

CONWY BRIDGES The down-line tube of Stevenson’s rail bridge (left) and Telford’s suspension bridge (right)

A tale of two bridges While not as well known as their other work, Telford’s Conwy bridge, and Stevenson’s Menai bridge are fine examples of engineering originaility, says Tim Smith*. THOMAS Telford’s (1757-1834) suspension bridge completed in 1826, connecting the island of Anglesey in North Wales to the mainland across the Menai Strait, is known the world over. Likewise, is Robert Stevenson’s (1803-1859) tubular railway bridge completed 18 years later in 1844 for the Chester to Holyhead Railway. Both bridges were needed to make it easier for Irish Members of the then united Ireland, to attend the Westminster Parliament in London. Less well known are the two ‘little sisters’ of both bridges which span the River Conwy at Conwy. These bridges are far more original than their more famous counterparts. Telford’s bridges Telford’s Conwy bridge, also completed in 1826, still has its original ductile cast iron chain links from which the deck is suspended by wrought iron hangers hinged top and bottom by wrought iron bushes. In contrast, the ductile cast iron chains of

Telford’s Menai bridge were replaced with steel in 1938-40 and the hangers with wire rope. To be fair, the Menai bridge is longer and wider and still takes traffic while the Conwy bridge was closed to vehicular traffic in 1958. In both cases, the original wooden roadway has been replaced – in 1893, with steel for the Menai and, in 1896, with iron, for the Conwy. Also, an additional suspension cable of wire rope was added to the Conwy in 1903. The chains for the Conwy and Menai suspension bridges are made up of solid cast iron links each 2.7m long. Each section consists of five parallel links through which two wrought iron bushes pass at each end to make a chain. The links were cast by Shropshire ironmaster, William Hazeldine (1763-1840) and tested under tension by him prior to supply. Such was the quality of his castings that only 6% failed the test. In all, for the Menai Bridge, 35,649 components were manufactured by Hazeldine, mainly in wrought iron, apart from the cast iron chain links.

Robert Stevenson’s four-span tubular railway bridge across the Menai strait – the Britannia Bridge – opened in 1850. It benefitted from techniques gained during the earlier construction of his single-span tubular bridge in Conwy, erected between 1846-48. In both cases, each railway line runs through a box girder constructed by riveting wrought iron plates together to form a tube and strengthened top and bottom by longitudinal cells just large enough for a man to crawl through during construction and for maintenance. The Conwy bridge still carries trains today, although additional cast iron piers were added near each end in 1899 to cope with heavier trains. Each tube was built on the bank of the river and, when completed, floated into position on pontoons. Once positioned it was raised up the pillars in 2m steps by hydraulic jacks. A similar approach was used for the Menai bridge but not without some mishaps. During the positioning stage, the first tube was struck by the fierce

*Consulting editor, Steel Times International November/December 2023

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HISTORY

CHAIN DETAIL CONWY TELFORD Detail of ductile cast iron chain links with later added wire rope on Telford’s Conwy bridge

tide when a stay rope snapped – and was only saved by the crowd of onlookers who grabbed the end of the rope and brought the tube back under control. A further mishap occurred when raising the tube to its height 40m above high tide when one of the hydraulic jacks burst, causing the tube to drop. Fortunately, Stevenson had guarded against this by building up packing under each end of the tube following each incremental lift so the fall was a mere 22cm. Sadly Stevenson’s Menai bridge was destroyed by fire on 25 May 1970 cutting the only rail link with the port of Holyhead. It was rebuilt using the remaining three masonry pillars and two end abutments as a steel arched bridge. Ironically, an arched bridge was first proposed by Stevenson but turned down by the Admiralty who wanted a high ‘square’ bridge to ensure navigation by sailing ships. The replacement bridge was reconstructed as a double decker with a road running above the railway. It reopened to rail traffic in 1972 after just 30 months. During construction, with no rail link, all traffic had to come over

Telford’s bridge – even railway rolling stock which had been stranded at Holyhead. The overhead road bridge took longer to construct and opened to traffic in June 1980, providing much needed relief to the now heavily congested Telford bridge. See table. � Vital dimensions Telford

Menai

Conwy

Length (m)

417

~110

Span (m)

176

99.5

Width (m)

2.5

Length (m)

461

~121

Max Span (m)

140

121

No. Tubes in pairs

Stevenson

Telford’s Conwy bridge is now in the care of the National Trust. Open to pedestrians from 28 February to 31 October. The toll house open at restricted times. www.nationaltrust.org. uk/conwy-suspension-bridge Telford’s Menai Bridge Visitors’ Centre is open Wednesdays and Thursdays between 10am to 5pm from the end of May, and weekly through August (check www.menaibridges. co.uk for details). The bridge is open at all times.

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