Steel Times International April 2016

ENVIRONMENTAL

EXCLUSIVE INTERVIEW

METALLURGY

PERSPECTIVES Q&A

Carbon Capture and Storage, and the wonders of steel can packaging

We talk to Chris McDonald, CEO of the Materials Processing Institute

The first in a series of articles on the role of metallurgy in steelmaking

Ben McGhee, director of global electrode provider, UKCG

www.steeltimesint.com April 2016 - Vol.40 No.3

STEEL TIMES INTERNATIONAL – April 2016 – Vol.40 No.3

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CONTENTS - APRIL 2016

ENVIRONMENTAL

EXCLUSIVE INTERVIEW

METALLURGY

PERSPECTIVES Q&A

Carbon Capture and Storage, and the wonders of steel can packaging

We talk to Chris McDonald, CEO of the Materials Processing Institute

The first in a series of articles on the role of metallurgy in steelmaking

Ben McGhee, director of global electrode provider, UKCG

www.steeltimesint.com April 2016 - Vol.40 No.3

STEEL TIMES INTERNATIONAL – April 2016 – Vol.40 No.3

Picture courtesy of Midrex.

Hadeed Mod E in Saudi Arabia is the world’s largest operating DRI/ HDRI Plant. The 1.78Mt/yr MIDREX plant established a new annual production record produced from a single direct reduction module with more than two million metric tons of DRI products produced in 2013.

WORLD STEEL CONFERENCE 2016 STI cover ad 4.2016.indd 1

4/7/16 9:21 AM

EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com

2 Leader 4 News The latest steel industry news from around the world 10 Latin America update The Brazilian rail market

15 USA update US steel industry is still uneasy 17 Japan update Top gear for Japan’s car makers 19 Iron ore Baffinland’s commitment to CSR

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

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10

15

17

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Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117

21 Materials Processing Institute Exclusive interiew: Chris McDonald 27 CRU Worldsteel Conference 2016 – steel’s ‘year of destiny’ 34 Metallurgy Masterclass An introduction to metallurgy

Managing Director Steve Diprose stevediprose@quartzltd.com Tel: +44 (0) 1737 855164 Chief Executive Officer Paul Michael

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SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com

49 Digital manufacturing Helping to shape Industry 4.0

Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £173.00 Other countries: £247.00 2 years subscription: UK £311.00 Other countries: £445.00 ) Single copy (inc postage): £39.00 Email: steel@quartzltd.com Published by:

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Quartz Business Media Ltd,

Environment 37 Carbon Capture and Storage 43 Canning the circular economy

Quartz House, 20 Clarendon Road,

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Redhill, Surrey, RH1 1QX, England.

Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034

59 Electric Steelmaking Process improvement with EMS

www.steeltimesint.com

Perspectives 64 Ben McGhee, UKCG. 66 Iain Scott, Ametek Land

Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437.

Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2016

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66

68 History The Wealden blast furnace

ISSN0143-7798

www.steeltimesint.com

Contents.indd 1

April 2016

5/6/16 9:59 AM

2

LEADER

‘I was virtually hijacked in space and brought here’.

When the Mekon’s spaceship landed in Port Talbot, UK, and an alien emerged in a tailored suit, wearing a bush hat with corks dangling from the brim, steelworkers in high visibility clothing watched on in awe.

“Are you real? I mean, we’re not imagining you, are we?”

“I’m real enough,” replied the alien.

“You speak English, earth person?”

“Yes, I’m Sajid Javid, the Business Secretary.”

“Get him, lads!”

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

Well, perhaps they might have changed their minds on Mr Javid’s commitment to the British steel industry now that the British government has announced it will stump up a 25% stake in any rescue deal for Port Talbot – not quite nationalisation or playing the Chinese at their own game, more of a commercial arrangement, but it’s better than nothing.

That said, Javid’s announcement does not absolve the British Government from responsibility for supporting China’s

wild claim for Market Economy Status (MES) and doing little to bolster the UK’s indigenous industry as it fights for survival against a flood of cheap steel imports and all the rest of it.

It is disappointing that it has come to this: a board meeting in India deciding the future of one of the UK’s foundation industries and the community it supports.

The Chinese problem, of course, is global and that is what prompted US Steel’s Mario Longhi to accuse the British government and the EU of negligence in their approach to steel dumping.

Europe’s steel industry warned politicians about taking a softly softly approach towards China, but in the same way that social workers send vulnerable children back to abusive parents or the authorities ignore known terrorists until it’s too late, politicians in the UK and Europe are still not listening. Unfortunately, they are still highly likely to grant MES to China in December, despite risking the loss of up to 3.5 million jobs.

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4 NEWS IN BRIEF Ferriola for Steelmaker of the Year

John J. Ferriola, chairman, CEO and president of the North American steelmaker, Nucor Corp, is to be named Steelmaker of the Year at the forthcoming AISTech 2016 conference in Pittsburgh, USA, next month.

The award is presented annually and recognises notable leaders for their impact on the steel industry.

The award will be presented on 17 May.

MMK wants all Russian car makers Russian steelmaker OJSC Magnitogorsk Iron and Steel Works (MMK) wants 100% of car manufacturers operating in Russia to use its metal.

The company claims that its rolled steel has already been approved by 80% of car makers in Russia and that 60% of those manufacturers are regular customers.

Essar Steel turns things around Essar Steel, a leading Indian integrated steelmaker, has reported an operational turnaround since November last year.

The company reports that production has doubled and the company is currently operating at a 70% capacity utilisation rate. This in turn has resulted in a significant improvement in the company’s EBITDA, which has improved by 1820%, up from 5%. In the financial year 2016/17 Essar Steel hopes to boost its capacity utilisation rate to 80-85%.

INDUSTRY NEWS

Greybull’s £400 million rescue plan The good news for employees of Tata Steel UK’s Long Products Europe division, based in Scunthorpe, is that Greybull Capital, a British-based family investment business, has, according to a recent announcement, reached a binding sale and purchase agreement to buy the business in North Lincolnshire.

Included in the deal are the LPE steelworks in Scunthorpe, two steel mills in Teesside, an engineering workshop in Workington and a design consultancy in York, not forgetting the Hayrange steel mill in France. The deal also includes LPE’s associated sales and distribution network.

In roughly eight weeks from now, when the deal is completed, the business will be known as British Steel, rekindling memories of more optimistic times.

According to Greybull, a £400 million investment and financing package for the new business is

being arranged by the company.

“The financing, provided principally by a combination of banks and shareholders, will be available

to fund working capital and future investments,” the company announced. “An agreement to reset the cost base of the business has been reached with key suppliers and, importantly, trade unions.”

Mark Meyohas, a partner of Greybull, commented: “We are delighted to have reached agreement for the acquisition of LPE, which we believe can become a strong business, with a highly skilled

NLMK’s electrical steel boom Russian steelmaker NLMK doubled the volume of container deliveries of electrical steel to 100kt in 2015.

By expanding the range of its container cargo handling operations, the company saved roughly 110 million rubles, it is claimed.

Whereas NLMK’s finished products were previously transported via road and rail to the ports, before being loaded into containers, they are now loaded into containers on-site.

Containers significantly cut transportation costs for key destinations, reduce lead times and minimise the risk of damage during transportation.

Last year, NLMK became the first Russian steel company to be granted the right to receive and process containers with a gross weight of up to 41 tonnes. The use of large tonnage containers is in line with Russia’s railways strategy for the ‘comprehensive development of

April 2016

Industry news new file.indd 1

the domestic container business’.

At present, 20% of all electrical steel deliveries are shipped in containers.

Sergei Likharev, NLMK’s group vice president for logistics, said, “Transitioning to container deliveries is one of the most promising areas of improvement. In the course of 2016, we plan to grow the share of electrical steel shipped in containers to no less than 50% of total shipments.”

Mario lambasts the EU and UK

SMS group’s Chinese slab caster Hebei Puyang Iron and Steel has issued a Final Acceptance Certificate to SMS group for the supply of a single-strand slab caster. The equipment is described as a ‘tailormade and fully integrated concept that perfectly fits into the existing structural situation of the works.”

workforce and great potential.”

The news that Greybull had effectively ‘signed on the dotted line’ means that more than 4,000 jobs will be saved, although workers have been asked to accept a 3% pay cut and, according to a news report on the BBC News website, ‘less generous pension arrangements’.

Connor Campbell, a senior market analyst, commented: “There was tentative good news for the UK’s steel industry this Monday, with investment group Greybull Capital set to buy Tata Steel’s works in Scunthorpe, Teesside, Workington and York, saving 4,400 jobs in the process while also reviving the British Steel brand. Yet there is still a long way to go before the steel sector can have a caveat-less smile on its face, the issue of Port Talbot and the rest of Tata’s UK presence (which accounts for around 15,000 jobs) still being up in the air.”

Baoshan Iron & Steel Co of China has awarded Primetals Technologies the contract to modernise an old DC twin electric arc furnace at its Shanghai plant. The project involves redesigning both the upper and lower vessels and installing new anodes in both cases.

The modernisation, once completed, will make the equipment more energy efficient and enable the plant to use raw materials more flexibly, claims Primetals.

It means that the furnace will be capable of operating with a hot metal content of up to 90%. The project will be completed by the year-end 2016.

Mario Longhi, CEO of U S Steel has branded the EU and the UK a ‘negligent’ over the issue of Chinese dumping. Speaking to Shawn Donnan of the Financial Times in Washington, Longhi said he hoped that David Cameron’s government would learn from Tata Steel’s decision to withdraw from the UK. He accused both the EU and the UK of negligence over their approach to steel dumping by China on world markets.“The Europeans have been more negligent than anybody,” Longhi told the Financial Times. He said the problem was ‘blowing up in their face.’ www.steeltimesint.com

4/21/16 12:27 PM

INDUSTRY NEWS

Latin America’s trouble with China Declining Latin American exports of raw materials and a corresponding growth of steel products imports from China are to blame for a US$31 billion trade deficit recorded for 2015 – up 21% on 2014.

China benefited from plummeting raw materials costs last year and acquired 4% more in tonnage terms when compared with 2014.

It also paid 38% less last year, in dollar terms, compared with the previous year.

Latin America shipped 217 million tonnes of iron ore to China, up 9% on 2014. Most of it (88%) originated in Brazil.

Shipments from China to Latin America grew 66% in volume and 5% in dollar terms when compared to 2014. Coke was the main steelmaking input sent by China to the region (1.7Mt, up 83% on 2014 figures).

China exported 9.4Mt of steel to Latin America in 2015, up 1% on

2014. The range of exported products included finished steel (long and flat products and seamless pipes) as well as steel derivatives (wire products and welded tubes).

Latin America exported just 15.1kt of finished steel and steel derivatives products to China, down 65% on 2014.

Most Chinese finished steel exports landed in Central America (1.8Mt); Chile (1.3Mt); and Brazil (1.2Mt). Mexico received 1.1Mt, up 18% on what it received in 2014. The figures for Central America, Chile and Brazil were down 44% on 2014 figures.

Flat products accounted for 49% of finished steel and steel derivatives arriving in Latin America from China – down 17% on 2014 figures. Steel derivatives imports reached 1Mt, accounting for 11% of total steel.

Other alloyed steel sheets and coils (1.6Mt) and hot dipped gal-

vanised sheet (1.1Mt) were the most representative flat products arriving in Latin America from China. Bars (1.6Mt) and wire rod (1.3Mt).

Where steel-containing products were concerned, the deficit between China and Latin America remained at 2014 levels. The volume of steel content that arrived from China dropped 1% while the dollar value increased 5%.

China exported 6Mt of steel content in 2015 compared with just 76.7kt travelling the other way – down 28% on 2014.

According to Alacero, the Latin American Steel Association, ‘raw materials trade between China and Latin America showed a surplus for the latter in 2015’.

Unfortunately for Latin American nations, the surplus is declining annually and is not sufficient to offset the deficit in finished steel and indirect trade products.

Russian steelmaker NLMK has started to install equipment for a pulverised coal injection (PCI) unit at blast furnaces number six and seven, its two largest and most productive blast furnaces at its Lipetsk plant. Blast furnace 6 has a capacity of 3.1Mt of pig iron per annum while blast furnace 7 has a capacity of 4.3Mt per annum.

5

NEWS IN BRIEF Euro stainless steel price falls

Weak demand, decreasing alloy surcharges and high import volumes from Asia have all led to falling prices for European stainless steel.

Domestic selling figures throughout the region have slipped across flat and long products and basis values have remained largely unchanged. A negative trend in alloy surcharges, however, marked down transaction values.

MMK-TMK partnership continues Russian steelmaker MMK’s partnership with TMK, a global manufacturer and supplier of steel pipes, has proved fruitful.

Throughout 2015 MMK shipped 744kt of steel to TMK and both are now in discussion about new products, including those to be used within the implementation of major gas pipeline and infrastructure projects, such as Nord Stream 2.

Fine Tubes secures ONGC approval Precision tube manufacturer Fine Tubes has been granted approval

by India’s Oil and Natural Gas Corporation Limited (ONGC) to supply instrumentation tubing for offshore applications.

The approval was secured with the assistance of a dedicated local agent and, as a result, Fine Tubes will now be able to tender for all relevant ONGC contracts.

While the current approval covers offshore applications only, there are plans to secure similar approvals for onshore projects.

India investigates dumping allegations

Furnace revamp success SMS group has received the final acceptance certificate for its revamp of a walking beam furnace from ArcelorMittal Asturias.

The revamp involved the integration of a new combustion technology and combustion optimisation system, called SMS Prometheus, which combines blast furnace and natural gas and has resulted in savings of up to 80%.

Ramon Garcia Castaño, ArcelorMittal’s project manager, said www.steeltimesint.com

Industry news new file.indd 2

that SMS Meer SpA had shown ‘remarkable commitment’ in respecting the time schedule and the short-planned furnace startup. He also praised the ‘competent and proactive’ crew of skilled engineers supplied by the company.

The revamp involved the redesign and turn-key reconstruction of ArcelorMittal’s 150 tons/hr walking beam furnace’s combustion equipment servicing the steel-

maker’s wire rod mill.

The combustion system allows targeted improvements of metallurgical properties, such as increased temperature uniformity or minimised negative effects, such as steel decarburisation or high scale formation. It helps reduce fuel consumption by adopting heating strategies that minimise temperature set points and guarantee required final stock target temperature.

JSW Steel and SAIL (Steel Authority of India Limited) have prompted India’s Directorate General of Anti-dumping & Allied Duties to investigate possible dumping of cheap steel from China, Japan and South Korea, according to a report by the Economic Times.

Other countries under investigation include Russia, Indonesia and Brazil.

For more steel industry news and features, visit www.steeltimesint.com

April 2016

4/21/16 12:27 PM

6 NEWS IN BRIEF

Primetals signs Iranian deal Primetals Technologies and Fakoor Sanat Teheran have signed a co-operation deal worth 1.8 billion euros for steel projects in Iran. It is likely that the agreement will be extended to cover further projects.

Yasukuni Yamasaki, CEO of Primetals Technologies, said the agreement was an important milestone ‘on the path to enhancing the position of Primetals Technologies as a leading technology supplier to the steel industry’.

According to Yamasaki, Iran is one of the world’s 15 biggest steel producers with large deposits of iron ore and plentiful energy resources. “The economic development of the country suggests that demand for steel will increase in many sectors, especially in infrastructure,” he said, adding that the Iranian government plans to more than double its steel production capacity over the next decade.

The deal struck between Primetals and Fakoor Sanat Teheran will cover all stages of the value chain in steel production

ArcelorMittal finishing line from Danieli A new ‘finishing end’ will be added to ArcelorMittal Long Products’ existing rolling mill in Canada, courtesy of Danieli Automation.

The new equipment has been installed for two reasons: one, to increase capacity; and two, to enable the plant to produce new added value products.

According to Danieli, products will be straightened, cut to a final commercial length from 14’ to 62’ and processed by the stacker in up to 5 sht bundles at a maximum rate of 125 tonnes/hr.

Danieli Automation will supply all electric motors and automation systems – designed for optimal plant management – and plant start-up is expected to be March 2017.

April 2016

Industry news new file.indd 3

INDUSTRY NEWS

Liberty’s green steel strategy A plan is underway to develop Britain’s largest low-carbon steel melting operation in Newport in South Wales.

The first step is to transform the existing 395mW Uskmouth power station in Newport into a centre of excellence for advanced conversion technologies using biomass, waste and other sustainable energy sources in order to guarantee clean, cheap power for an adjacent electric arc furnace that will recycle domestic scrap and supply up to 20% of Britain’s entire steel market.

The Gupta Family Group (GFG), which embraces SIMEC and Liberty Steel, is the company behind the project. So far, GFG has invested in the acquisition and restart of the power station and Liberty’s 1Mt/yr rolling mill next door.

Liberty’s purchase of the mill has saved 250 jobs, but ultimately 4,000 jobs could be created if all goes to plan, as SIMEC and Liberty are planning to expand the rolling mill and the power plant, which is currently reliant upon coal-fired power generation until such time as the facility is converted in to the aforementioned advanced conversion technologies centre of excellence.

Liberty has bought a 1.2Mt/yr steel-melting furnace with a view to increasing the scrap melting capacity of its Newport mill to 2Mt/yr – 20% of the UK market.

According to the company, a lot depends upon the Government making energy prices competitive against other countries.

For SIMEC, the plan is to turn its Uskworth facility into a major

Liberty saves Scottish steel plants Sanjeev Gupta, executive chair of Liberty House Group (left) with Scottish business minister Fergus Ewing following a deal being struck over the future of the Dalzell and Clydebridge plants of Tata Steel UK. The deal involves the Scottish Government buying the plants from Tata Steel and immediately selling them on to Liberty for the same terms, incurring no cost to the taxpayer.

Liberty in turn takes responsibility for re-opening, operating and investing in the two sites as part of its wider strategy to build an integrated and sustainable steel business across the UK.

After almost 15 years of operation, Tata Steel Group’s existing recoiling line number one at its Jamshedpur Works in India, is to be revamped by Danieli, following several rounds of detailed discussions with the Indian steelmaker. To renew the existing line Danieli will supply a new side trimmer with scrap baller, a horizontal and vertical inspection station, hydraulic power unit and a new CPC and steering roll unit.

Danieli Automation will also supply and upgrade the electrical and automation systems.

The Jamshedpur Works was India’s first integrated steel plant and was established in 1907.

power-generating plant powered by syngas (a zero emissions process based on waste conversion) and reliant upon ‘new and emerging technologies’ through its eNET programme.

Pending the conversion of the power station, SIMEC’s short-term plan is to rely upon coal-fired generation. Uskworth will power the Liberty Steel plant and wider industry needs via the electricity grid.

“Green steel, produced by recycling UK scrap using low-carbon energy generation methods, represents the future of the steel industry in Britain,” said Sanjeev Gupta, executive chair of Liberty House, part of the Gupta Family Group. “We are eager that these installations in Wales will form the heart of what will be a new, clean and profitable era for the sector.”

US steel imports fall 17% The February 2016 steel import figures from US Census Bureau data show that preliminary imports fell 17% and that the USA imported 2.2Mt (net tons) of steel, which included 2Mt of finished steel.

Year-to-date (January and February 2016) total and finished steel imports were 4.8Mt and 4.3Mt respectively, down 40% and 34% compared with 2015.

Annualised total steel imports for 2016 would be 29.2Mt and 25.8Mt respectively – down 25% and 18% against 2015.

The finished steel import market share for February was an estimated 26% and is estimated at 26% year-to-date.

Rebar imports were up 32%; tin plate up 53%; structural pipe and tubing up 12%; and sheets and strip all metallic coatings up 11%.

South Korea, Turkey, Japan, Germany and China were responsible for the largest volumes of finished steel imports into the USA. South Korea exported 374kt (up 55%); Turkey 207kt (down 16%); Japan 114kt (down 40%); Germany 80kt (down 33%); and China 80kt (down 12%). Year-to-date, the largest offshore suppliers were the same countries. www.steeltimesint.com

4/21/16 12:27 PM

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8 DIARY OF EVENTS April 2016 25-27 EuroCoke 2016, Novotel Barcelona City, Spain Organised by Smithers Apex, the annual EuroCoke conference is always well-received by delegates.

The programme will tackle the technical advances and market drivers affecting the industry.

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

May 2016 16-19 AISTech 2016, Pittsburgh, USA A premier steel industry event that takes place annually in the USA. There is both a conference and an exhibition as well as various official events and plant tours.

For further information, www.aist.org

17-20 Metal Metallurgy China 2016, Beijing The largest exhibition in the hot metal processing industry in Asia and the second largest in the world, according to CIEC Exhibition Co. For further information, log on to www.mm-china.com

June 2016 06-09 Metallurgy Litmash Expo Centre, Moscow.

Organised by Messe Dusseldorf

INDUSTRY NEWS

World crude down 3.3% World crude steel production for February 2016 was 120Mt, down 3.3% compared with the same period in 2015, according to figures published by the World Steel Association (worldsteel) and based on figures submitted by the 66 countries reporting to the organisation.

China produced 58.5Mt of crude steel, down 4% on February 2015. Japan produced 8.4Mt,

which was down by 1%.

In Europe, Germany produced 3.4Mt of crude steel, down 4.3%; Italy produced 1.9Mt, down 2.1%.

The French produced 1.3Mt, up 2.6% and Spain’s crude steel production for February was 1.1Mt, down 8.9% compared to last year.

The Russians produced 5.7Mt of crude steel, down 2.7%, while the Ukraine produced 2Mt, up 24.1%.

For a full country-by-country listing visit: www.worldsteel.org/statistics/crude-steel-production.html

Latino finished steel consumption drops 15% Finished steel consumption in Latin America dropped 15% in January this year while production fell 9%, according to figures released

by Alacero, the Latin American Steel Association.

Regional crude steel production fell 17% (to 4.6Mt) and finished steel 9% (to 4.1Mt) year-on-year.

According to Alacero, 36% of regional consumption is being met by imports and the share of imports in local markets is advancing. While the regional trade balance remains negative, the deficit in tons for January was down 32% when compared with the same period in 2015.

In terms of finished steel consumption, the largest increases in absolute and percentage terms, were recorded in Mexico (88kt, up 5%) and in Guatemala (51kt, up 89%).

In Peru the figure was 18kt, up 7%.

Rolled steel consumption in Brazil shrank by 699kt, down 34% when compared with January 2015 figures. Columbia recorded declines of 6%.

Alacero claims that 54% of Latin American total steel consumption is flat products (2.9Mt) while 45% is long products (2.4Mt) and 1% seamless tubes (32kt).

06-09 Rolling 2016 Graz, Austria. Organised by the Austrian Society for Metallurgy and Materials

For more steel industry news and features, visit www.steeltimesint.com April 2016

Industry news new file.indd 4

Latin America imported 1.9Mt of finished steel, down 23%, when compared with January 2015.

Of this, 65% was flat products (1.3Mt) and 32% long products (627kt). Seamless tube imports accounted for 3% of imports (48kt).

The region exported 691kt of finished steel, up 2% over January 2015 (680kt) of which 52% was flat products (362kt) and 33% long products (232kt). Seamless tube accounted for 14% of exports (98kt).

In January 2016 there was a trade deficit of 1.2Mt of finished steel, which was 32% lower than that of January 2015 (1.8Mt).

ArcelorMittal sells to Black Diamond

An international trade fair for the metallurgy, machinery, plant technology and products market.

For further information, log on to www.metallurgy-tube-russia.com

Rolling 2016 is basically two events: the 10th International Rolling Conference; and the 7th European Rolling Conference.

The conference brings together rolling practitioners, steel producers, plant designers and researchers and will provide a forum for best practices and stateof-the-art technology.

For further information, log on to www.rolling2016.org

In the USA, 6.4Mt of crude steel were produced in February, up 2.9%, while the Brazilians managed 2.4Mt, down 8.7%.

The crude steel capacity utilisation ratio of the 66 countries in February was 66.2%, 5.7 percentage points lower than in February 2015 and 0.9 percentage points higher than the figure for January 2016.

A tandem reversing mill at Hyundai Steel’s Pohang works has been brought back on stream after a successful revamp carried out by the German SMS group. Commissioning was completed two days ahead of schedule. The revamped mill rolls products such as beams, rails, sheet piles and special sections to improved final geometric tolerances.

SMS installed a new automation system and introduced hydraulically actuated roll adjustment equipment. The project also included various revamping measures on the reversing roughing stand and the tandem group. According to SMS group, Hyundai Steel’s tandem reversing mill was the first of its kind in the world built in the XH® design and featuring just one tandem reversing group.

ArcelorMittal, the world’s largest steel producer, has decided to sell its LaPlace and Vinton Long Carbon facilities in the USA to an affiliate of Black Diamond Capital Management (Black Diamond).

The terms of the transaction are confidential and, therefore, are not being disclosed.

The LaPlace, Louisiana, and a rolling mill in Harriman, Tennessee, produce billets, angles, flats, channels and beams. The Vinton facility, in El Paso, Texas, produces rebar and grinding media.

ArcelorMittal has also entered into a transition services agreement with Black Diamond to facilitate a smooth transition period and eliminate any business disruption. www.steeltimesint.com

4/21/16 12:27 PM

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10

LATIN AMERICA UPDATE

The Brazilian rail market Brazil has the largest rail market in Latin America, with a 55.5% share over the 2010-2014 period.

By Germano Mendes de Paula*

THE first attempt to fabricate rail in Brazil was in 1943 at Monlevade steelworks, belonging to Belgo-Mineira, an Arbed subsidiary that is now part of ArcelorMittal.

Monlevade steelworks was commissioned in 1937 and its focus was the construction and agriculture markets. Import difficulties during the Second World War meant that the Brazilian government pressured BelgoMineira –the largest mill in operation in Brazil at the time – to produce rails.

Belgo-Mineira acquired a rail mill from the USA, but the ship that was carrying the equipment sunk, so the steel company produced it, although the Brazilian Navy Arsenal fabricated some pieces. The amount of rail steel produced by this equipment has been disputed. Some historians believe it was up to one third of Monlevade’s output in the 1940s, while others mentioned that the volume was minimal. It is also not clear for how long Belgo-Mineira stayed in the rail market.

More importantly, Companhia Siderúrgica Nacional (CSN), a greenfield state-owned enterprise (SOE) project started up blast furnaces and a steel shop in 1946; a hot strip mill, cold strip mill and rail mill in 1947; and galvanising and tinning lines in 1948. Since then, CSN became the largest (and afterwards, the only) rail producer in the nation, until it shut down its 120kt/ yr capacity rail mill in 1996, four years after privatisation. In Argentina, Somisa,

originally a SOE, fabricated rails from 1964 to 1992. It interrupted this line immediately after being privatised.

Fig 1 demonstrates the evolution of Brazilian rail production for the period 1970-1996. Its volatility was quite considerable, as it amplified from 36kt in 1970 to 195kt in 1975, but decreased to 29kt in 1978. On average, the country produced 85kt/yr in the 1970s, 79kt/yr in the 1980s and 23kt/yr in the 1990s.

Rail demand Fig 2 shows the evolution of apparent consumption between 1970-2015. It is crystal-clear that there were two booms.

National demand skyrocketed from 153kt in 1972 to 391kt in 1975, but soon declined to 250kt in 1976 and to 116kt in 1979. The annual average of 188kt/yr was observed in the 1970s, 107kt/yr in the 1980s and 55kt/yr in the 1990s. In this context, CSN decided to shut down its rail line in 1996.

The second boom was in 2010, with a massive 501kt of apparent consumption.

Again, it was a short-period bonanza, since it plummeted to 207kt/yr in the period 2011-2015. On average, national demand achieved 115kt/yr in the 2000s and 256kt/yr in the 2010s.

It is important to stress that rail has played a minor role in Brazilian steel demand, accounting for 2.3% in the 1970s; 1% in the 1980s, 0.5% in the 1990s, 0.6%

in the 2000s and 1% in the 2010s. Despite the recovery in this decade, the relevance of rail has decreased in the long-term (Fig 3). Even during the two booms, its relative importance in terms of the country’s steel consumption was relatively modest: 4.4% in 1975 and 1.9% in 2010.

Apparent consumption will be lower than 200kt/yr in the 2016-17 period, due to various problems. On the macroeconomic environment, there are a lot of negative factors, such as: a) a severe recession diminishes the volume of transported goods; b) high interest rates; and c) the impact of political crisis on funding.

At the sectorial level, it is important to highlight that Brazilian railways are experiencing: a) low cash generation; b) high debt-equity ratios; c) delays in awarding environmental licenses; d) uncertainties regarding regulatory framework. Summing up, the railways are expecting a low volume of rail demand at least until the end of this decade.

Rail imports Fig 4 demonstrates the evolution of Brazilian rail imports since 1970. The trajectory has been quite unstable, varying from 125kt in 1978 to 16kt in the following year. Further evidence of instability is that the co-efficient of variation, which is the ratio of the standard deviation to the mean, for the whole series is 1.0. Fig 5

* Professor in economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br April 2016

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4/21/16 12:28 PM

12

LATIN AMERICA UPDATE

200 160

600

5.0

500

4.0

400

120

3.0

300

80

2.0

200

40

1.0

100

0 1970

75

80

85

90

0 1970 75

95

80

85

90

95

00

05 10

15

0.0 1970 75

80

85

90

95

00

05 10

15

Fig 1. Brazil’s rail production, 1970-1996 (kt).

Fig 2. Brazil’s apparent rail consumption, 1970-2015 (kt).

Fig 3. Rail as a proportion of Brazil’s apparent steel con-

Source: Brazilian Steel Association

Source: Brazilian Steel Association

sumption, 1970-2015 (%). Source: Brazilian Steel Association

600

1,300

30

400 300

1,200

20

200

1,100 1,000

10

100 0 1970 75

1,400

40

500

9000

0 80

85

90

95

00

05

10

15

1970 75

80

85

90

95

00

05 10

800

15

2010

2011

2012 World

2013 2014 Brazil

Fig 4. Brazil’s rail import,1970-2015 (kt).

Fig 5. Rail as a proportion of Brazil’s steel imports, 1970-

Fig 6. Average unit price, 2010-2014 ($/t).

Source: Brazilian Steel Association

2015 (%). Source: Brazilian Steel Association

Source: UN Comtrade, Brazilian Steel Association

examines the relevance of rail on Brazil’s total steel imports. The ratio has oscillated substantially, with a minimum of 2% in 1986 and a maximum of 36.7% in 1988.

The share was equivalent to: 1970s (7.0%), 1980s (6.3%), 1990s (10.3%), 2000s (8.7%), and 2010s (6.3%), and the whole period of 1970-2015 (7.3%).

Brazil’s unit price for imports was, on average, 17% lower than the world value over the period 2010-2014. As expected, the variation for the country’s unit prices followed the trend observed globally (Fig 6). It is worth mentioning that the Brazilian average unit price diminished from $1,029 per ton in 2014 to $875 in 2015.

China was not a relevant exporter of rail

April 2016

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2015

50 40

Fig 7. Chinese partic-

30

ipation in Brazil’s rail

20

imports, 2005-2015 (%).

10

Source: Brazilian Steel Association

0 2005

2006

2007

2008

209

2010

2011

to Brazil until it entered the market in 2005, with a 9% share (Fig 7) dropping to 0.2% in 2006 and then increasing significantly to 28% in 2007 and even to 48% in 2006.

A decrease was verified in 2009, but since 2010, its share has fluctuated around the 30% mark. However, it is understood that

2012

2013

2014

2015

this participation would be amplified in the coming years because: a) Chinese rail’s quality has been improving; b) higher material availability; c) lower prices; and d) longer payment terms.

Resuming fabrication?

Since CSN interrupted its rail production in 1996, the Brazilian government has, on many occasions, declared that the country should resume fabrication of this product and has tried to induce companies to invest in the relevant equipment. Vale, Gerdau, ArcelorMittal and Evraz considered this opportunity, but decided against it. The Algerian company Cevital, however, wants to produce rails in Marabá (State of Pará), as part of a greenfield project, which will be constructed from 2017 onwards and commissioned in 2019. If this investment goes ahead, it will satisfy both Federal (because it will diminish rail imports) and local governments (due to vertical integration from Carajás iron ore into steel production). t www.steeltimesint.com

4/21/16 12:28 PM

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USA UPDATE

15

US steel industry is still uneasy Despite declining overall steel imports, the US steel industry is still worried and uneasy over foreign imports and has made representations to the administration to curb them through higher import duties or by imposing other restrictions. By Manik Mehta* ONE big challenge facing US steel companies is rising steel imports. Overall steel imports into the US declined 13% in 2015 compared to the previous year, according to the American Iron and Steel Institute (AISI). In December 2015, total US steel imports fell by some 5% from the previous month. The December decline had followed a 23% drop in November.

The biggest volumes of finished steel imports in December came from South Korea with 235kt (net tons – down 25% from November), Turkey with 167kt (net tons – up 8%), and Japan 144kt (net tons – down 13%). The three leading offshore suppliers in 2015 were South Korea with 4.8Mt (net tons – down 11% year-to-year), Turkey with 2.8Mt (net tons – up 28%) and China with 2.3Mt (net tons – down 25%).

The AISI criticises the fact that unfairlytraded, subsidised imports continue to flow into the US market resulting from foreign producers’ overcapacity. China, which accounts for around half of global steel output, is perceived as a ‘serious threat’ to the US steel industry.

US steel industry circles complain that the Chinese steel industry continues to reel under massive excess steel capacity and a worsening gap between supply and demand with barely any signs of recovery.

With its currency devaluation, China has

triggered accelerated steel exports amid shrinking domestic demand and a cooling economy. China’s total steel exports surged 20% year-over-year to 112.4Mt in 2015, according to data released by the General Administration of Customs. Steel exports from the country topped 100Mt for the first time last year. US steel producers have suffered heavily due to high levels of cheap steel imports, reflected in declining orders, idling of mills and layoffs across the nation.

Low production costs have enabled foreign producers to sell their products at cheaper rates, leading to an industry-wide price decline, hurting the margins of American steel makers.

Meanwhile, two US senators – Roger Wicker (R-MS) and Thad Cochran (RMS) – joined 23 colleagues in a letter to Commerce Secretary Penny Pritzker calling for an administrative review of a countervailing duties order on governmentsubsidised Turkish rebar to ensure the assessment of accurate penalties against the product.

Complaints against Turkish imports are part of a long-drawn effort by the US steel industry to persuade the US Court of International Trade and the US International Trade Commission to pursue penalties against unfair rebar imports.

“Mississippi steel workers deserve to

know that their government is fighting to ensure that unfair trade practices will not be tolerated,” Wicker said. “The administration needs to protect American companies and jobs from being directly undermined by imports of steel rebar subsidised by foreign governments. Taking action now would allow our workers to remain competitive globally.”

Rebar imports from Turkey, despite rulings favourable to the US industry, have doubled since 2010 and continue to grow, accounting for approximately 80% of rebar imports to the US. “We must ensure that our anti-dumping and countervailing duties accurately reflect unfair trade practices so that US workers and businesses can compete on a level playing field and are protected from unfairly-traded imports,” the letter to Pritzker said.

The Nucor Corporation, with operations in Starkville and Flowood, is a member of the Rebar Trade Action Coalition, which is the primary petitioner filing countervailing duty and anti-dumping cases on Turkish rebar imports. Kevin Van de Ven, general manager of Nucor Steel Jackson, Inc., noted that the “unrelenting flood of imports” threatened the “livelihoods of our 278 teammates and must be addressed by our government as quickly and strongly as possible”.

* USA correspondent www.steeltimesint.com

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USA UPDATE

On another note, the US International Trade Commission (USITC) will hold a hearing on 26 May, 2016 on the final phase of anti-dumping and countervailing duty investigations on certain corrosion-resistant steel products from India, China, Italy, Korea and Taiwan.

Cheap imports, market contraction and declining earnings plagued US steelmakers last year. ArcelorMittal, the world’s largest steel producer, saw a decline in earnings in 2015, which it described as a “very difficult year”. Its group earnings in the fourth quarter of 2015 fell by 40% over the previous year’s quarter, due to falling prices and excess capacity in China.

In its fourth-quarter and full-year financial results, ArcelorMittal announced an overall $7.9 billion loss for 2015, and said it had suffered in North America a $741 million operating loss during Q4 2015, including impairments of $507 million, $200 million of which is related to the intended sale of the three long product mills.

The company, which sold its 35% stake in Gestamp Automocion, the Spanish car parts’ manufacturer, said that it intended to sell three long-steel mills in the USA with a view to cutting down its debt and containing the huge losses there. The three plants are long-carbon facilities, including ArcelorMittal LaPlace, Steelton and Vinton.

“ArcelorMittal is in discussions concerning the sale of certain long product mills in the United States, including Steelton,” a statement issued by the company said. It was not known, at the time of filing this update, if there was any interest forthcoming from buyers.

A new animal in the global trade jungle causing concern to US steel companies is the Trans-Pacific Partnership (TPP).

The TPP agreement was recently signed in New Zealand by 12 member nations of the Asia-Pacific region. The AISI contends that the agreement will come up for voting in Congress after the presidential election in November; however, AISI president Tom Gibson said that the AISI has not yet taken an official stand on the TPP issue.

Aggressively promoted by the US administration as a vehicle for opening new markets and raising the level of fairness in trade, the TPP members are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, USA and Vietnam.

The steel industry, in its initial reaction, feels that the TPP does not provide a remedy for currency manipulation. Also, the automobile rules of origin in the agreement are less stringent than the North America Free Trade Agreement (NAFTA) rules.

Gibson recently pointed to the lax rules of origin, for example, for automobiles, allowing for a high degree of content from non-TPP countries to produce a vehicle that would be considered a TPP product, and thus creating job losses in the steel and automobile industries.

The AISI will likely take a stance when the legislation comes to a vote, but the TPP could look different by then.

The United Steelworkers union has rejected the TPP. "Whether lacking provisions to adequately address currency manipulation, labour standards and environmental degradation, to limit the anti-competitive actions of China's state-owned entities, as well as domestic content standards in the automobile sector, the TPP would further shrink a working American middle class and perpetuate growing disparities in income and wealth," USW President Leo Gerard said. t www.steeltimesint.com

4/21/16 12:30 PM

17

JAPAN UPDATE

Top gear for Japan’s car makers While the economy in Japan shows signs of gentle recovery after the 2011 earthquake and the Fukushima nuclear power plant accident, Japanese car manufacturers are steaming ahead despite increasing uncertainty in global financial markets. By Nobuhisa Iwase*

FIVE years have passed since 11 March 2011 when the Great East Japan Earthquake, and the subsequent Fukushima nuclear power plant accident, brought about a shocking, negative impact to Japanese society and the Japanese economy. After five years, the country’s economy is recovering and showing signs of modest growth. Given the sharply increasing demand-supply gap in China, several industrial sectors and global manufacturing companies in Japan have suffered in terms of declines in their operational rate and worsening financial performances. However, Japanese automobile manufacturers – the most important customers for Japan’s integrated steel mills – are exceptions. While the global economy and financial markets are characterised by increasing uncertainty

Production (million units)

Sales in Japan

Japan

Change*

Overseas

Change*

Total

Change*

Million units

Change*

Toyota

3.19

-2.4%

5.74

0.0%

8.93

-0.8%

1.50

-3.6%

Nissan

0.87

-0.9%

4.30

1.9%

1.40

1.4%

0.59

-12.1%

Honda

0.73

-23.8%

3.81

7.2%

4.54

+

0.73

-14.4%

Mazda

0.97

4.1%

0.57

45.0%

1.54

16.2%

0.25

9.4%

Mitsubishi

0.64

-0.9%

0.58

-6.1%

1.22

-

0.10

-18.4%

Subaru

0.71

2.0%

0.23

18.5%

0.94

+

0.16

-4.3%

Others

1.63

-

2.38

-

7.78

-

1.25

-

TOTAL

8.74

-5.1%

17.61

3.7%

26.36

0.6%

4.57

-10.2%

Note: change*: % change from the previous year

Fig 1. Production and sales by Japanese passenger car manufacturers (total year for 2015)

and vulnerability, the production and profit levels of Japanese car manufacturers continue to be the highest in 2016.

The business performances of Japanese car manufacturers have been bright. Total production by Japan’s eight passenger car makers in 2015 reached to 26.36 million

units globally (Fig. 1). The figure increased 0.6% over the previous year, recording its historical high. The trend is typical in overseas production. Backed by strong demand for ‘Japanese brands’ in advanced economies such as North America and Europe, almost all Japanese car makers succeeded in increasing production, mainly in the USA and Mexico. Total figures for overseas production reached to 17.61 million units in 2015, up 3.7% from the previous year. Mazda (+45%), Subaru Planned sales Units (million)

Change*

Toyota

1.15

2.4%

Nissan

1.30

4.0%

Honda

1.07

6.3%

Mazda

0.24

2.0%

TOTAL

3.76

+

Note: change*: %change from the previous year

Fig 2. Passenger Car Sales Plan for China by the Japanese Makers (Total year for 2016)

* An independent steel economist, Karuizawa, Japan, E-mail: nobykaru@seagreen.ocn.ne.jp www.steeltimesint.com

JAPAN.indd 1

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4/21/16 3:15 PM

18

JAPAN UPDATE

(Fuji Heavy Industries: +18.5%) and Honda (+7.2%) showed remarkable progress. Mazda’s huge jump was brought about by its successful start-up of the recently built assembly plant in Mexico, which is positioned as a strategically important supply base for North American and European markets. New car sales in the USA last year reached to 17.47 million units, a 5.5% increase compared to 2014 and also a record high historically. Fuji Heavy Industries with its Subaru brand name plans to invest in capacity expansion of its factory in Indiana, USA, doubling current production capacity of 200,000 units per year to 394,000 by starting the venture this summer. Honda is also reported to be increasing its export of smallscale passenger cars to the US market by increasing production in factories located in Japan.

Meanwhile, domestic production and sales volumes of Japanese car manufacturers declined last year. The total number of production units by Japan’s eight car makers stayed at 8.74 million units in Japan, a 5.1% decline from the previous year and almost half the production volume of their foreign manufacturing bases.

Domestic sales also remained sluggish, recording only 4.57 million units with a double-digit percentage decline of 10.2% compared to 2014. While the prospect for the US market this year is still seen as bright, those for the Japanese and emerging economies will remain sluggish. However, the situation is not so pessimistic for Japanese car makers in the Chinese market. While the Chinese steel market has stagnated due to excessive over capacity, auto sales for consumers are still booming. Moreover, the Chinese government has introduced a new consumption stimulus package such as a tax reduction for small-scale passenger cars, which has created a tail wind for Japanese car brands. In January 2016, new car sales in China recorded a 7.7% increase over the same month of 2015, in which Toyota, Honda and Nissan recorded sharp increases of 32%, 21% and 9%, respectively. According to Chinese automobile associations, new car sales in China this year are expected to increase 5.9% to 26 million units. All major Japanese car makers are positive about increase sales in China this year (See Fig. 2).

During the first six months of the fiscal year 2015 (AprilSeptember), Toyota recorded an historical high net profit of 1.258 trillion yen (around US$11 billion). The company expects to have the record high profit of more than 2.2 trillion yen in the whole fiscal year 2015 by the end of March 2016. Other Japanese car manufacturers will keep their highest level of financial performances at least in to the first half of 2016.

However, the financial performance of Japanese integrated steel mills has stagnated due to a continuously weakening Asian steel market. Spot prices of steel sheet in Asia, including Japan, have plunged to their lowest level for 12 years. Despite a slightly declining trend, Japanese crude steel production still maintains a relatively high level, while figures for both fiscal 2015 and 2016 are estimated to be around 105Mt, according to the Japan Iron and Steel Federation. Nippon Steel & Sumitomo Metal and JFE Steel expect that they may suffer from reducing their annual current profits by around 50% for the fiscal year 2015. Kobe Steel has a more pessimistic forecast – that it will fall into the red – due to weakened market conditions, particularly from the company’s construction machinery manufacturing segment. While the Japanese economy as a whole is expected to experience modest growth, the business environment for Japanese car manufacturers will continue to be strong, while Japanese steel producers will find things more difficult in 2016.

April 2016

JAPAN.indd 2

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Baffinland’s commitment to CSR Corporate Social Responsibility – or CSR – is something that Baffinland Iron Ore Mines Corporation takes very seriously. Michael Schwartz* talks to the company’s sustainability and reporting specialist, Jennifer St Paul Butler BAFFINLAND Iron Mines Corporation’s (Baffinland’s) engineering and environmental teams operate at its Mary River property, located within the Qikiqtani Region of Nunavut and on Baffin Island.

Baffinland is a joint venture 47%-owned by ArcelorMittal and 53%-owned by Nunavut Iron Ore, an indirectly controlled company of The Energy and Minerals Group.

Baffinland completed its first shipping season as of October 2015, with shipments of just under 1Mt of lumps and fines. As of the end of 2015, an installed capacity of 4.2Mt/yr will be close to finishing construction of the Early Revenue Phase at Mary River, situated 72 degrees north by 79 degrees west on Baffin Island. The property is an open-pit iron ore resource comprising nine high-grade lump and fine iron ore deposits. Currently, Baffinland mines crush and screen the ore on-site; direct shipping to markets from the company’s port site can then proceed.

Jennifer St Paul Butler, Baffinland’s sustainability and reporting specialist stresses the qualifications of her company’s executives and just how important CSR is to Baffinland and other local interests: “All of our executives have many combined years of experience in both mining and the Canadian Arctic, which is a highly regulated place to operate. Local people, government, NGOs, and industry take CSR – including an operation’s ‘social licence’ and environmental management – very seriously.

“In particular, as most of our CSR and environmental management initiatives have centred around permitting and constructing the Mary River project to date, the VP of sustainable development, health, safety and environment, Erik Madsen, and

his team, which includes me, focus most on these business areas. We promote social and environmental responsibility throughout the organisation and our executive management team, including human resources, operations, and finance are all involved.

In fact, Erik Madsen, who joined Baffinland in June 2011, was born and raised in the Northwest Territories, and has over 25 years of northern experience in mine operations and regulatory permitting, including engagement with aboriginal and non-aboriginal governments.

The role of First Nations Jennifer St Paul Butler stresses that Baffinland is using its best efforts, “to ensure as many Inuit as possible are actively engaged in the project. This information is reported annually to regulators, and fluctuates depending on the stage of the project.

“Baffinland is party to an agreement with the Qikiqtani Inuit Association (QIA), an elected organisation that represents the Inuit of the Baffin Region. The partnership agreement between the QIA and Baffinland is named the Inuit Impact and Benefit Agreement. This agreement, signed in 2011, provides for employment, royalties and other benefits, to the people most impacted by the mine’s operations. In turn, this includes scholarships for Inuit (to any discipline), and apprenticeship and training programmes for Inuit hired into the company who want to continue to develop skills and abilities and be promoted up through the organisation.

Education “In addition, Baffinland has run Mining

Matters programmes in North Baffin schools, which educate young people on career opportunities in the mining industry, with the hopes of instilling an interest to continue their studies and apply to be part of our workforce later in life. Skills shortages are a challenge in the territory and so the company takes a long-term view on developing interest and providing skill-building opportunities. We currently have Inuit in senior or supervisory roles, including our northern affairs manager and site services supervisor.

Local knowledge Here, Jennifer Butler is direct: “The local knowledge of social and environmental conditions has been tremendous in the success of this project. In fact, the permitting of this project would not have been possible without it. The mine is in a remote region where baseline environmental studies were not widely available through government or university level research. We used peer-reviewed research combined with traditional knowledge that we assembled between 2006 and 2009.

“This has continued through engagement with the Mary River Community Group, based in Pond Inlet, the nearest community to the mine. It comprises key members in the community including representatives from the Hamlet and Hunters and Trappers Organisation, the Qikiqtani Inuit Association, and our Baffinland Community Liaison Officers (BCLOs) who are hired in their home communities to assist Baffinland in communicating with the communities, taking concerns and questions and assisting community members in their job applications.”

* Mining correspondent www.steeltimesint.com

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21

INTERVIEW: MPI

Making a difference

Chris McDonald, CEO MPI

High energy costs, a strong pound, cheap Chinese imports – all big issues for Western European steelmakers – but Chris McDonald, CEO of the UK-based Materials Processing Institute, argues that if producers can offer low cost, high quality products and the best customer service on the planet, they’ve won the battle. By Matthew Moggridge* “IF we’re going to bring the developing world out of poverty we can only do that with steel,” said Chris McDonald, chief executive officer of the Teesside-based Materials Processing Institute (MPI). “Steel is absolutely essential to sustain human life and human existence,” he added, “but the industry is often trapped in a business model that is very difficult to make money from, so it’s very interesting for me to hear from people with ideas to do things differently.”

Steel Times International met McDonald a few days after SSI UK announced that it had gone into liquidation – and months prior to the recent announcement by Tata Steel (in March this year) of its intention to withdraw from the UK. For McDonald all major UK steel producers are facing difficulties involving soaring energy prices and a strong pound.

He is fully conversant with the view that a level playing field is a pre-requisite going forward, but is more concerned with what the steel companies can do for themselves.

“And there is quite a lot we can do collectively as an industry,” he said.

Low cost and high quality According to McDonald, it is all about where you can make a difference and what you can do to influence the margin. “There aren’t so many big levers you can pull, but what you can do is innovate faster than your competitor. That’s kind of obvious, but what concerns me is that, sometimes, steel companies are trapped in ‘Porterian’ management economics.

Porter said there are two strategies a company can have: lowest cost or best quality. In the steel industry, that’s too simplistic, as you don’t have that choice.

“You have to be the highest quality and the lowest cost at the same time and I am concerned when I see a steel company that thinks it doesn’t have to worry about cost or volumes as a proxy for costs. Focusing on quality alone is not enough as a steel company is much more complex. They have to offer low cost, high quality and best customer service and in those three areas there’s plenty of room for innovation,” he said.

McDonald cited Austrian steelmaker Voestalpine: based in Linz, accessible

only by river and producing steel in small batch sizes. “By all the laws of economics it shouldn’t work, but they run the plant flat out so they get low cost; they produce high quality steel and they deliver excellent customer service – and that’s about constant and continual innovation in those three areas,” he said.

“To be a successful steel company in the UK you don’t have to be better than the steel company in China, you have to be better than the steel companies in the Netherlands, France and Germany – you compete with the other guys in the high cost locations.”

McDonald argues that the macro stuff – the elusive ‘level playing field’ and business rates – are for UK Steel and the EEF who lobby and attempt to influence UK government policy. While steel companies should engage with the lobbying process, it’s very difficult to make a case to politicians if you’re not doing everything you can in your own back yard. “In the UK there is public funding available to support innovation. How many steel companies are accessing it? Or, if they’re having difficulty

* Editor, Steel Times International

www.steeltimesint.com

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INTERVIEW: MPI

accessing it, how are they making that case back to government?” asks McDonald.

He urges British steelmakers to benchmark their processes with other companies and be active on international committees. He stresses the importance of networking and drawing information back into their own businesses and then innovating from that point onwards. “And if businesses are doing that they’ve got a really strong case for lobbying – and if they’re not they are immediately on a back foot,” he said.

The narrative of decline McDonald believes it is easy to be obsessed by the narrative of decline in the steel industry. “What people are generally looking at is the number of people employed and if you look at international

to invest in a country where it can’t buy raw materials. If you’re a hi-tech manufacturer you need a secure supply chain and you need to work with your supplier to innovate,” he said.

He cited the car industry as an example of how manufacturers and the steel industry work closely together on new grades of steel. “If the steel industry isn’t local, the whole supply chain collapses. Maybe it’s not possible to fundamentally fix this problem, but if it’s not there and the rest of the supply chain collapses, we have a massive economic problem,” he said.

Creating value Having a steel industry purely as a matter of national pride is nonsensical when the only reason to have one is because it adds a massive amount of value to the economy.

Students from Leeds University visit MPI’s Teesside headquarters in the UK

statistics, particularly for the UK from the 1970s to the present day, it’s pretty much a straight line graph with the exception of the financial crisis,” he argued. “It demonstrates that the industry is continuing to invest in new and more efficient ways of making steel and yes, that results in fewer people being employed.”

The steel industry, said McDonald, invests in greater efficiency, but fails to capture the value itself. It immediately passes it on to the customers and that is why the steel industry pursues a productivity curve, invests in new technology, becomes increasingly ‘hi-tech’ but fails to make money because the value is passed further into the supply chain.

There was something spookily prescient about his next comment, bearing in mind recent events in Port Talbot. “We should all hope that there is not a fundamental collapse in the steel industry in the UK because if the steel industry collapses, the UK will lose its manufacturing economy and there is no reason for any outside investor April 2016

MPI interview.indd 2

“Not directly through the people it employs, but indirectly through the value it creates in the supply chain,” McDonald continued.

“Value cannot be measured in terms of the profitability of the steel company because it’s very difficult for a steel company to make a profit, but it’s seen everyday in the profitability of companies in the aerospace industry, engineering, defence and so on,” he said. “That’s why a developing nation feels it must have a steel industry, because it can’t have a thriving economy without one.”

EUROFER, the European Steel Association, has argued that the greatest test for the steel industry going forward is the need to secure continued and adequate financing for investment into the deployment of much-needed technologies for reducing CO2 emissions.

Gordon Moffat, a former director-general of EUROFER, once commented in Steel Times International, “You cannot have targets without technology” referencing the EU ETS and arguing that the technology

doesn’t exist yet to enable the steel industry to meet stringent EU emissions targets.

“It all comes down to finance,” McDonald said. “Steelmakers could switch tomorrow to an industry that’s based entirely on electricity generated by nuclear power stations – then there would be zero carbon emissions. So I think it’s a bit of a simplification to say that the technology isn’t there – technology comes at a price.”

Policy makers and industry, he argued, should put their heads together, agree on essential targets and achievable timescales and then develop the technological implementations to take things forward.

“A target developed in collaboration with industry is far more likely to succeed than a target issued by diktat,” McDonald said.

Industry know-how He argues that, during discussions with the UK government around the Kyoto protocol, there was a real danger that carbon emissions targets were going to be set for the steel industry that were way below the level of what was thermodynamically achievable. “But by lobbying and discussion and debate we reached a position that was more sensible. So you could say that’s democracy in action, that’s the way it’s supposed to work. What I would like to see is more people in those positions who maybe have a scientific and technical background,” he said.

“I want to demand more of politicians and civil servants and I think we need to give more in order to bridge the gap and explain how important the material is, how essential it is, and identify the issues surrounding it,” McDonald said.

That Europe must take action on carbon is a no-brainer, but not unilateral action, said McDonald. “Action must be taken, but it needs to be globally co-ordinated or the European industry needs to find a way to produce low carbon electricity that is internationally competitive. So there’s kind of a nice sweet spot there where MPI makes a technology intervention that benefits the competitive position of the industry,” he explained.

McDonald argues that almost every project MPI engages with results in an energy benefit to the company concerned.

“Anything that gives an energy benefit, gives a CO2 benefit, so it’s really driving towards that sweet spot,” he said.

“Before the idea of carbon reduction became such an imperative, we could www.steeltimesint.com

4/21/16 12:36 PM

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INTERVIEW: MPI

point to a whole range of products that just happened to do that because the three main drivers in terms of process development for the industry, are: reduction of energy; reduction of raw materials; and improvement of yield, all of which reduce cost and carbon emissions,” he said.

More effective communication McDonald is often frustrated by the way the steel industry fails to communicate the cutting edge nature of its production technology. “The steel industry has a lot to teach other industries about how to be more efficient and it can drive a lot of innovation, but the onus is on us to be effective communicators,” he said.

Describing steel as ‘a smokestack industry’ is appalling to McDonald. “It’s pretty poor to have to say: ‘here is an industry that is essential for our quality of life, but somehow we find it slightly distasteful’. But if we adopt the world’s best practice, then this need not be considered a smokestack industry,” he said.

The industry has been hard at work dispelling the ‘smokestack’ myth and working on new and radical technologies.

For McDonald, collaboration is crucial, as an individual or a single company cannot solve the problems.

In addition to what McDonald calls the historic centres for innovation – Japan, South Korea, the UK and the super universities – MPI works closely with its European partners and the respected metallurgical institutes of Eastern Europe.

Low capital-intensive solutions are the way ahead for new and radical technologies. “Nobody will ditch a £3 billion steel plant to build another one for a marginal increase in productivity,” he said, explaining how making continuous improvements to existing technology is the way ahead.

Emissions reduction Viewing emissions as a valuable resource is important and there are ample opportunities, claims McDonald, for existing steel plants to be fitted or retro-fitted with technology that derives value from waste streams. MPI was working on numerous projects and not only those concerning gas emissions but also solids and liquids.

“Steel plants produce a lot of low grade waste heat which they can’t use. We can think of many opportunities to use that low grade waste heat by transforming it into April 2016

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the size of the steel industry in 10 years based entirely on conventional technology,” he said. “So that conservative nature of the industry means that it could be difficult for such technology to be adopted.”

The Materials Processing Institute

The UK-based Materials Processing Institute (MPI) is all about doing things differently through the use of innovation and technology. It provides industrial research and development services to industry.

Established in 1944, a key function of MPI is to help business enterprises bring their technology to market. It has a strong reputation as a steel research centre and has identified some clear areas where there are applications it can support in the energy and metal processing sectors.

Around 90% of MPI’s £6.5 million turnover comes directly from industry and steel accounts for 50% of its activities.

MPI harbours ambitions to become part of the UK’s network of ‘Catapult Centres’. Catapult Centres are designed to transform the UK’s capability for innovation in specific areas and help drive future growth.

MPI has established strong links with Rolls Royce and Land Rover – key players in the automotive and aerospace sectors – and is currently working directly with the former.

For further information, log on to www.mpiuk.com electrical power or transferring it directly to an adjacent industry,” McDonald said.

The Hlsarna project The well-documented Hlsarna project, based on high smelt technology developed in Australia and a cyclone converter furnace developed in Western Europe, produces iron without the need for pellets, sinter or coke production and thus reduces the amount of CO2 produced. “It stands every chance of being successful,” according to McDonald. “And there are clear CO2 benefits with or without carbon capture, but a steelmaker is unlikely to dismantle a blast furnace to install a Hlsarna plant.”

It would be unlikely for Hlsarna technology to be implemented in Europe, but it could appear in Brazil or Iran. “Let’s not forget that the Chinese have doubled

Carbon Capture and Storage McDonald believes that carbon capture and storage (CCS) is not an unreasonable thing and would be a good mid-term goal for the steel industry, paving the way for carbon capture and utilisation (CCU).

“Maybe the steel industry would evolve to a position where it doesn’t use carbon as a reductant, but then we’re talking about electrolysis or hydrogen reduction and they are generations away,” he said.

Smart manufacturing McDonald is pro-smart manufacturing, arguing that the steel industry generates an overwhelmingly large amount of data.

“A lot of what we would want to achieve from a ‘factory of the future’, such as latestage customisation and added value, are all possible and, to a great extent, happen because they’re driven by the normal drivers of reducing cost and adding flexibility. But they’re not talked about in those terms, so some of it is about shifting the language. If we can get the steel industry to understand that some of the things they’re doing, or want to do, fit really well into that agenda, then there would be an increasing chance of a buy-in,” he said.

McDonald wants to be optimistic about the European steel industry, but he is only too aware of the different scenarios that could be painted for the future. “We could be in a position where Europe is almost entirely dependent upon steel imports – which would solve China’s overcapacity problem – and there are people who regard this as a valid strategy. I think it is an unsustainable argument.”

McDonald believes that achieving a level playing field in Europe is ‘incredibly difficult’ and argues that the chips are stacked against the industry for many reasons, including the much maligned EU State Aid Rule, which makes it harder for the British Government to bail out Tata Steel UK. “You have two choices: throw up your hands and walk off the stage – go work somewhere else – or say, ‘is there anything I can do?’ And the answer is yes, there are many opportunities for innovation and intervention around quality, service and cost,” McDonald concluded. www.steeltimesint.com

4/21/16 12:36 PM

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WORLD STEEL CONFERENCE

27

2016 – steel’s ‘year of destiny’ One subject dominates most international steel conferences: China. CRU’s 2016 World Steel conference was no exception to the rule, but it offered some lively debate as ThyssenKrupp Steel Europe AG’s CEO Andreas Goss pulled no punches and told it like it is – ‘a very serious situation’.

By Matthew Moggridge* IF you don’t blow your own trumpet, who will? In short, nobody will do it for you. So, my next sentence will throw in something you all need to know. When I appeared on the BBC’s news channel on the day that Tata Steel announced it was going to pull out of the UK, I managed to tell the world at large that I travel extensively around the world attending steel conferences and that China is always on top of the agenda.

The reason I was on the television – and let’s not forget four radio interviews on the same day – was that I had to explain the reasons (or some of them) behind Tata’s decision to pull out of the UK. And it goes without saying that ‘the usual suspects’ were mentioned. Overcapacity in China, the EU state aid rule, the EU’s lesser duty rule, the prospect of China being granted ‘market economy status’ in December, it was all on the table.

But rewind to that bit about my extensive world travel and the many steel conferences I cover for Steel Times International. This article is about one of them. I was in Düsseldorf last month attending CRU’s World Steel conference and guess what?

The event, unsurprisingly, kicked off with China. CRU’s research manager Chris Houlden reminded delegates that last year he was the bringer of bad tidings and this year? Well, more of the same – and it was all China, China, China.

While Houlden spoke of a lack of demand, low margins and overcapacity, ThyssenKrupp Steel Europe AG’s CEO Andreas Goss reminded delegates that China was a threat and that the situation was very serious. 2016, he said, was our ‘year of destiny’ and there was a big question: will we be producing steel in Europe in 20 years from now?

He spoke of an import surge into the EU 28 and accused the EU of putting climate policy ahead of industrial policy. Goss spoke of happier times 10 years ago when a boom time in steel was down to China’s

Andreas Goss

unflinching demand for heavy metal. But China has moved on as an economy; there has been an intensive transition, he said.

“China is undergoing changes that other nations have had decades to deal with,” he said, but more importantly, China is NOT a market economy.

In 2015 there was a steel surplus of 400Mt in China. “You could supply everybody with that,” said Goss. “The whole northern hemisphere, and it’s not going to change. Unprofitable mills will be kept afloat and I would not rule out an expansion of capacity.”

“China is dumping and we’re buckling under the pressure,” Goss added, claiming that China’s government is planning to reduce capacity over the next five years, but adding the telling phrase ‘they say’.

Goss said that the EU must do everything it can to avoid disaster on its doorstep, but with the EU lesser duty rule resulting in import tariffs of between 13-16% (when compared with the USA, which is hammering the Chinese with anti-dumping duty of up to 265% on cold-rolled coil) they were really giving China nothing more than a slap on the wrist.

Goss was adamant about many things, one being that the EU’s anti-dumping laws must be more forceful. The EU must act more like the USA. In short, we need to kick some ass [mine, not Andreas

* Editor, Steel Times International www.steeltimesint.com

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“China is dumping and we’re buckling under

”

the pressure,”

Andreas Goss

Goss’ words]. Last year at a conference in Cleveland (AISTech) Andrew Harshaw, CEO of ArcelorMittal, told the assembled global steel media, “At the end of the day the only thing they’re going to respect is the law,” bringing a touch of ‘High Noon’ to the proceedings. By ‘they’ he was referring to the Chinese and at least the Americans mean what they say.

Fair market conditions need to be restored, said Goss. “We can compete,” he said, adding that it was counter productive to award market economy status to the Chinese as China barely meets one out of six criteria that defines MES. According to Goss, bestowing MES on China will have dire consequences.

Thousands of jobs will be lost, value chains will be damaged or broken and there will be ‘substantial negative impact’.

And if China isn’t enough, there is European climate policy to contend with.

Goss quite rightly pointed out that the steel industry has developed cutting edge technology that has helped lower emissions by 20% over the last decade. However, “Over regulation makes it difficult for industry to operate properly,” he said, and European climate policy places unilateral burdens on companies.

Goss urged delegates – and, therefore, the global steel industry – to come back to dialogue with politicians in order to press home the importance of the steel industry within the value chain. “We’re not calling for government protection,” he said.

“We want fair conditions because we are competitive.”

For Goss, cost-cutting is not enough. “We must win the battle with decent products,” he said, echoing very much the words of Chris McDonald, chief executive officer of the UK-based Materials Processing Institute, who was recently interviewed by Steel April 2016

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Times International (see page 21).

Goss went on to discuss ThyssenKrupp’s InCar plus initiative, which is focused upon the automotive industry and aimed at helping car manufacturers manage the challenges presented by fuel economy directives, scarce resources, climate change and the need to develop efficient and sustainable technologies.

Alan Price

He said that digitalisation was a big challenge for the steel industry and that companies who fail to engage with smart manufacturing (as it’s known in the USA – or Industry 4.0 in Germany) will, quite simply, fail.

Reverting back to the big issue – China – Goss said that the situation requires the steel industry to take action as dumping and price undercutting was illegal.

“The future is uncertain. It isn’t what it used to be,” he said, finishing his presentation how Tata Steel’s chief commercial officer, Henrik Adam, started his, by saying that a global level playing

field is needed.

Adam, if anything, was a little more optimistic. He said that the steel industry was strong and innovative and could withstand the headwinds it was currently facing.

Steel, he said, was a great, sustainable material, but the inequities introduced by carbon pricing mechanisms could jeopardise everything. He argued that the steel industry had improved it’s CO2 emissions by 15% between 1990 and 2010, going from 1.508 to 1.293 tonnes CO2/ tonne of steel produced. The EU, he said, was leading research and development efforts in terms of innovative options to reduce emissions, but echoed Andreas Goss’ call for a level playing field.

Andrea Lovato, CEO of Tenova, a leading supplier of advanced technology and engineering services for the metals and mining industries, said that the industry must focus on quality and not compete on price. He argued that premium quality steel was Europe’s only hope and concluded that DRI (Direct Reduced Iron) was the future – a pertinent point when you consider that two weeks after the conference closed, Tata Steel announced its plan to withdraw from the UK and Liberty Steel has hinted that if it bought in to Port Talbot the production model would be EAF-based.

One of the most vocal and outspoken member of the keynote panel discussion entitled The Steel Makers’ Perspective was ThyssenKrupp Europe AG’s CEO Andreas Goss. He was particularly forthright about China’s intentions, arguing that the Chinese have a clear political agenda – to ransack the palace in Europe. He questioned their motivation and asked: why would they show restraint?

When it comes to China and MES, Alan Price, a partner at Wiley Rein, who chairs www.steeltimesint.com

4/21/16 12:40 PM

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WORLD STEEL CONFERENCE

“A global level playing field

”

is needed,”

Henrik Adam

the firm’s International Trade Practice, always has a thing or two to say and he didn’t disappoint CRU’s 2016 delegates.

For Price, China will insist that it is a market economy ‘but it’s not, it’s a socialist economy’. He argues that while China will say it has fulfilled its obligations to the World Trade Organisation, it hasn’t and if MES is granted then China will be exempt from dumping laws.

Price claimed that by granting MES status to China, the EU would put between 1.7 million to 3.5 million jobs at risk. “Entire industries could disappear,” he said, adding that it would amount to ‘unilateral disarmament’. Furthermore, the EU’s lesser duty rule and any countervailing duties would be ineffective and China would seek a WTO dispute resolution against any WTO members who do not treat it as a market

economy. To paraphrase Ed Gentry (Jon Voight) in the John Boorman classic movie Deliverance, “You make that sound rather shitty, Alan.”

The truth of the matter is this: it is shitty.

The steel industry in Europe is moving towards a position where it looks as if it will accept what some believe is inevitable – that China will have MES bestowed upon it in December and the floodgates will open further to cheap Chinese steel imports. If Tata Steel hadn’t pulled the plug on its UK operations last month, you can bet that it would be pulling it on 11 December 2016.

As ThyssenKrupp’s CEO Andreas Goss quite rightly commented, 2016 is the year of destiny for the European steel industry – and, indeed, the global steel industry – and the big question is this: will we be producing steel in Europe in 20 years?

Henrik Adam

Normal service might never be resumed...

When Tata Steel’s top executives met in Mumbai recently to decide the future of Tata Steel UK, the industry waited with bated breath for an official announcement.

When it came there was uproar from the steel industry. The media had a field day.

China was the villain of the piece – cheap steel imports were to blame for Tata Steel UK’s demise, but don’t ignore punitive business rates, high energy costs and a strong pound.

Plenty of vitriol was thrown at Business Secretary Sajid Javid, who was in Australia at the time and on the verge of taking a holiday with his daughter – arguably the most badly-timed vacation ever.

When he returned, he was driven straight to Port Talbot where, like an alien emerging from a spaceship – many have likened Mr Javid to a Mekon – he April 2016

world steel conference.indd 3

took nervous steps towards a group of steelworkers in hard hats and ‘highviz’ jackets to explain the government’s ‘support’ for the industry.

The government has been heavily criticised for cosying up to China and supporting their undeserved demand for ‘market economy status’ (MES) which many believe will be bestowed by the EU in December.

The EU’s ‘state aid rule’ – which, broadly speaking, means that the British government is not allowed to prop up its indigenous steel industry financially (that’s not what market economies do!) has been like a red rag to a bull for ‘Brexit’ campaigners. Likewise the ‘lesser duty rule.’

When the Panama Papers arrived David Cameron – or ‘Dodgy Dave’ as Labour MP Dennis Skinner called him in the House of

Commons – found himself at the centre of a row concerning the ironically named Blairmore Holdings, an offshore company owned by his late father, that was busy avoiding UK taxes. The big question? Did the PM benefit financially? The answer?

Yes, of course he did.

And then, as if to pile on the misery, Mario Longhi, CEO of US Steel, branded European officials and the British government as ‘naive’ over their willingness to bestow market economy status (MES) on China. He had a very good point.

Back in the UK, news emerged that Greybull Capital, the buyer of Tata Steel’s Scunthorpe plant, which is to be rebadged ‘British Steel’, isn’t very British. Greybull has confirmed to Private Eye magazine that the holding company will be registered in Jersey! Last one out, switch off the lights. www.steeltimesint.com

4/21/16 12:41 PM

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STEELMAKING

An introduction to metallurgy It is common today for many managers in the steel industry to have little or no academic background in metallurgy. This series of articles aims to provide a basic understanding of the metallurgy of steel with minimum complexity. Part one covers some of the main principles. By Keith Walker* MOST people could tell you that steel is an alloy of iron (Fe) and carbon (C) and this is the basis for many of the most common grades of steel. However, it is scant knowledge, since there are over a thousand grades available, most of which contain other alloy elements serving various purposes in terms of the properties of the steel products.

Indeed, for many grades of steel, the lowest possible carbon content is desirable and great effort and expense is required to achieve it.

The first thing that needs understanding is that iron is allotropic, which means that its crystal structure changes with temperature. One does not need to understand the detail to comprehend the importance of this. At room temperature it is body-centred cubic (BCC), a phase called alpha ferrite (and often just called ferrite, since the other ferrite phase, delta, only appears at very high temperature close to the melting point of 1530 celsius).

As the iron is heated to over 910 celsius, the structure changes to face-centred cubic (FCC), a phase called austenite. It is this structure that is, therefore, found during hot rolling or forging. It is a completely different material from ferrite in terms of its properties. For one thing it is denser, so there is a contraction during the phase change, something which surprises many people. Of course, the reverse change happens upon cooling the iron.

If carbon is added to the iron (so it is now called steel), this process still occurs, although the transition from ferrite to austenite takes place at slightly different temperatures depending on the carbon content. With the addition of carbon also comes the possibility that, over a range

of temperature, the steel will consist of a mixture of ferrite and austenite. As the steel is heated, austenite starts to form in the ferrite and increasingly so until all the ferrite is turned to austenite. Again, the reverse occurs upon cooling the steel.

Representation of the structure of Pearlite

Fig 1.

In a cross section through pearlite, the ferrite laths are around 7 times the thickness of the cementite laths. The actual thickness of both is variable depending on processing.

Ferrite laths (virtually no carbon)

Cementite laths Fe3C

One of the key differences, a crucial one to understand, between ferrite and austenite is the solubility of carbon.

Austenite can dissolve enough carbon such that it can be considered to dissolve all that is in the steel for most practical purposes.

This is a solid solution and it is homogenous – the carbon content is the same even at atomic scale.

However, something which is rarely understood is that carbon is virtually insoluble in ferrite, so, therefore, there is only a tiny amount present in solution in most steel grades at room temperature. It is sensible to ask the obvious question: so, if it is not in solution, where is it? The answer is that it is present as a second phase, cementite, which has the composition Fe3C

and is an inter-metallic compound.

When the steel is cooled from austenite to room temperature and ferrite starts to form, the carbon in it diffuses (moves) and concentrates to form cementite in sufficient amounts to contain almost all the carbon in the steel. So, therefore, there is more of it present at higher carbon contents.

For technical reasons associated with diffusion characteristics, an intimate mixture of ferrite and cementite is produced. In some of the grains of steel, ferrite and cementite exist together in alternate flat plates, usually called laths (Fig. 1). This structure is called pearlite for convenience, owing to its iridescent appearance under the optical microscope, when the steel is etched with acid to reveal the different phases present. One observes a mixture of grains, some ferrite and some pearlite (Fig. 2).

Generally speaking, the strength of the steel increases with the amount of pearlite present (that is, higher carbon content), but there is a limit. This limit occurs when there is enough carbon in the steel such that all of the grains are pearlite and it is around 0.8% carbon. Unless metallurgical precautions are taken, above this limit cementite forms as a primary phase during cooling and makes the steel brittle and unfit for many purposes.

It is the difference between the solubility of carbon in ferrite and austenite that makes it possible to give the steel heat treatment. If steel is heated to the austenite phase and then quenched (in oil or water), it cools too quickly for the carbon diffusion required to form cementite to occur.

Instead, the ferrite’s BCC crystal structure is forced to deform and accommodate the carbon in solution, and this very hard phase is known as martensite. It is usually

*Steel consultant. Email: keith.walker@steelfolk.co.uk April 2016

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STEELMAKING

too brittle to be of use in service, but by heating the steel to a high temperature (but not enough to change it back to austenite) for a length of time, it will go through a softening process known as tempering. It is then possible, by tempering at the correct time and temperature, to obtain the desired mixture of strength and toughness. Note, then, that tempering is a softening process, something not often understood.

Although it will be covered later in this series of articles, it is worth explaining some terminology. The strength of steel is a measure of how much stress, or load, is required to deform it permanently. Not to break it, which explains the often-used term of yield strength.

The toughness of steel is its resistance to loading under impact, and it is measured by the amount of energy required to break it. This varies with temperature so testing is often conducted at temperatures likely to be encountered when the steel is in service.

Even in the most basic structural or strip grades of steel, there are elements other than carbon present. Some are desirable and others are not, due to their effect on the properties. The ones most commonly met are silicon, manganese, phosphorus, sulphur and aluminium, although there is almost always a level of nitrogen and oxygen present, and usually some so-called residual elements, especially in steel made entirely from scrap. For example, copper and tin are very difficult to remove from steel (some would argue impossible) and come from the scrap. Thankfully, they are not a problem at the reasonable levels usually seen, in terms of the steel properties in service, but can create problems during hot rolling or forging.

The sulphur and phosphorus arise from the materials used in steelmaking and are not desirable in most steel grades.

Phosphorus is expensive to reduce to the low levels required for some grades, but can be controlled to reasonable levels that most common grades can tolerate. Manganese is added purposely to many grades, partly for its effect on strength, but also because it reacts with sulphur to form particles of manganese sulphide. These take the sulphur out of solution in the iron and it is not then a major problem for most grades.

Aluminium is present in many grades and is added for two reasons. One is to remove most of the oxygen from liquid steel during steelmaking (which otherwise causes a wide range of problems), and the other

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is to encourage a small grain size in the steel product, which enhances its strength without making the steel more brittle, of which more in a later article.

Nitrogen can enter the steel during steelmaking from the atmosphere, and in some grades it can cause problems, and is therefore removed to very low levels using an expensive process.

Oxygen content is not often measured, but is present as very small particles of metallic oxides embedded in the steel.

These are so-called oxide inclusions, and in some grades they are very detrimental to product properties, and in other grades they hardly matter at usual levels.

Many other metals are used as alloys in even the most common steel grades, and they are added in order to produce the mechanical and other properties desired in the final product. In deciding on the metallurgical composition, it is not only strength and toughness that are considered, but other properties too. This Fig 2.

Thickness measurement of heavy plates, plates, coils and roll clad products Flatness measurement on cold or hot rolled sheets and strips Profile and Shape measurement of rails, tubes, bars, pipes or slabs

could include corrosion and fire resistance, and how easily the steel can be processed downstream before entering service.

Examples include machining and drawing.

It is not only the composition that affects the properties of the steel product, but also the rolling processes. For plates, rod, bar and strip, it is possible to alter radically the strength and toughness by control of temperature during rolling and also rate of cooling afterwards. The chemical composition produced during liquid steelmaking will take account of the intention to do this during rolling.

It is worth noting that this article covers the most common steel grades, the structural and strip types. Special steels may have a more complex metallurgy due to their high alloy content, and stainless steel is a case in point.

It is hoped that this article has provided a basic understanding of what metallurgists do in the steel industry and will be expanded in later articles.

April 2016

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ENVIRONMENT

Large-scale emissions reduction Carbon capture and storage is enabling a long-term, low-carbon future for the steel industry, says Andrew Purvis* of the Global CCS Institute STEEL has experienced more than its fair share of frustrating false dawns in the global debate about reducing industrial carbon dioxide (CO2) emissions. A carbon capture and storage (CCS) project based on a French blast furnace was proposed for European Union funding, but was cancelled in 2012, while in the north-east of England, a substantive amount of work was undertaken at SSI’s Teesside Works, before the plant’s unfortunate closure in 2015.

It’s now the year 2016, and from the desert sands of the United Arab Emirates, a shining mass of pipes emerges next to the Emirates Steel Factory in Abu Dhabi.

CCS is, in the steel industry, on the verge of becoming a reality.

Conceived under the auspices of Abu Dhabi’s clean energy industry, this groundbreaking CCS project will capture more than three-quarters of a million tonnes of CO2 from Emirates Steel Industries each year. Importantly, it marks the first project of its kind anywhere in the world – the application of CCS technology on a commercial steel plant.

But there’s even more to this story. This ‘anchor project’ is slated as just the first in a number of planned projects, which will form an Abu Dhabi-wide carbon capture, utilisation and storage (CCUS) network. In the CCS industry this collaborative approach to emissions reduction is known as the ‘hub and cluster’ approach.

Steel and cement did for the Industrial Revolution what fire and the wheel did for humanity’s first foray into civilisation.

As more nations strive to elevate their

populations out of poverty and into a more technologically advanced and decarbonised way of life, the role of these materials in society will become even more essential.

For the global steel industry, 2016 should be just the latest step on the journey of sustainable growth.

Steel is an established industry around the world, and despite the impacts of the global financial crisis, it’s an industry that continues to grow. In 2015, more steel was produced than at any time in history

Industry and other transformation

Power 50

0

100

150

200

250

300

GtCO2 Renewables

CCS

Fuel switching

Energy efficiency

Nuclear

Fig 1. Cumulative CO2 emissions reductions in industry and power (2012 to 2015, 2DS)5 . Source: Global status of CCS: 2015, provided by the Global CCS Institute

* General manager, Global CCS Institute www.steeltimesint.com

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ENVIRONMENT

Project Details The leading light: United Arab Emirates The Abu Dhabi CCS Project involves the capture of CO2 from the Emirates Steel Factory in Abu Dhabi and its transportation to the ADNOC reservoirs for the purpose of enhanced oil recovery (EOR).

The source of CO2 for this project, ESI, was established in 1998 and in 2001 it commenced manufacturing a range of industrial-purpose steel products. A two-stage expansion of the plant was completed in 2012, increasing its Direct Reduced Iron (DRI) capacity to 3.2Mt/yr.

The DRI process employed at ESI produces a pure stream of CO2 (greater than 98%), which is currently vented to atmosphere.

The CO2 capture rate from the DRI process is greater than 90%, resulting in a total

capture design capacity of 0.8Mt/yr CO2.

The project scope includes design and construction of a green field CO2 Compression Facility (CCF). Captured CO2 is transferred at low pressure to the CCF where it is dehydrated, compressed, metered and exported to the CO2 pipeline.

The CO2 is transported 43 km (27 miles) through an eight-inch steel pipeline for injection into ADNOC oil reservoirs at Rumaitha for EOR. In November 2013 ADNOC and Masdar formalised the joint venture agreement and awarded the Dodsal Engineering and Construction Group with a Dh450 million (US$122.5 million) EPC contract to build the CO2 dehydration and compression facility and the 43 km (27 miles) pipeline to Rumaitha.

Watch this space: China The world’s single-largest steel-making nation, China, is also rapidly becoming a world leader in CCS technologies. With substantial domestic reserves of coal and oil, many of China’s near-term CCS projects focus on using captured CO2 for EOR. Within the steel sector, the Shougang Jingtang United Iron & Steel Company (Shougang Jingtang) has provided a research base for Toshiba’s work on

the state-of-the-art Caofeidian steel plant. The project’s aim is to apply post combustion carbon capture technology onto an existing steel works in China, with captured CO2 expected to be used for EOR at a nearby oilfield.

This initial research has identified that the application of CCS to an existing Chinese steelworks is technologically feasible, and commercially competitive as a source of CO2 for local EOR.

– helped along by enormous production volumes from China.

Against this backdrop though, is the ever-present spectre of climate change. The science is in – greenhouse gas emissions from human activities have set us on a course that will see a significant change in global average temperatures. Much is made of the consequences of climate change. We hear media reports about ice caps melting, oceans becoming more acidic, and weather patterns changing. And we read about the impacts of these events on society, through floods, the loss of low-lying inhabited islands, or the diversity of animal and plant life.

For years, the global steel industry has played a leading role in helping to steer the world economy towards a lowercarbon future. Significant R&D investment has already been sunk into developing advanced strong and lighter steels, and the longevity and recyclability of steel plays

a key role in minimising emissions. The European Steel Association (EUROFER) report: A Steel Roadmap for a Low Carbon Europe 2050 highlighted that the ability to almost endlessly recycle steel, along with growing use of innovative grades of steel to multiple applications, led to an outcome where steel can “be justifiably classed as a CO2 mitigator.”

However, the embedded carbon ‘savings’ that can be attributed to wider application of more innovative steels will not, in their own right, provide a sufficient proportional reduction to global CO2 emissions.

While steel is an essential material for both developed and emerging markets, the industry faces significant challenges to decarbonise in a relatively short time-frame.

In light of increased national commitments to greenhouse gas emissions reduction, pressure from governments and other stakeholders is only likely to increase over time.

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Watch this space: Japan As the second-largest manufacturer of iron and steel globally, Japan has a significant interest in decarbonising its domestic steel industry. Listed by the Global CCS Institute as a Notable project, COURSE 50 is a major Japanese initiative that comprises six companies: Kobe Steel, JFE Steel Corporation, Nippon Steel Corporation, Nippon Steel & Sumikin Engineering, Sumitomo Metal Industries and Nissin Steel.

COURSE 50 aims to develop technologies that can reduce CO2 emissions by approximately 30% through the reduction of CO2 emissions from blast furnaces, and through the separation and capture of CO2 from blast furnace gas. Two different carbon capture technologies are being evaluated through this project, one at the Kimitsu iron works of Nippon Steel & Sumitomo Metal Corporation, and the other at JFE Steel Corporation’s Fukuyama iron works.

Development of technologies for CO2 separation and capture from blast furnace gas is planned to continue at a scale of around several dozen tonnes per day by 2020. Between 2020 and 2030 the capture capacity is planned to increase to hundreds of tonnes per day, with wide-spread deployment expected from 2030 onwards.

Carbon dioxide emissions from industrial sources are considerable, contributing around 25% of global emissions. While emissions from power can be reduced through a transformed energy mix, or incremental gains in energy efficiency, these industrial process emissions are much more problematic. Carbon dioxide is a by-product of a number of manufacturing processes, including steel, but also cement and chemicals production, all of which are necessary in a modern society and will need to be decarbonised. CCS is the only technology that can directly reduce emissions on a significant scale from these industrial processes.

The challenge for industry across the board is to find a route to decarbonise its operations voluntarily, before the decision is imposed through regulation and legislation.

It’s in this arena that ADNOC, Al Reyadah (the Abu Dhabi CCS company) and the www.steeltimesint.com

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ENVIRONMENT

Abu Dhabi Steel CCS Project lead the way for steel. The opportunity is to implement a carbon transition plan that provides competitive advantage for the visionary companies in the industry that move first, and a sustainable growth trajectory for those operators that follow the plan to completion.

CCS has a vital role to play. As a proven technology that is already reducing carbon emissions in a range of applications, CCS represents the single largest technological opportunity to achieve deep cuts in emissions at the lowest cost of implementation. While energy efficiency will deliver greater gains overall, it will be done through incremental stages and depends on as-yet unidentified technical advancements.

A 2015 study by the Chalmers University of Technology in Gothenburg, Sweden, identified that applying current end-pipe technologies to existing blast furnaces could capture approximately 30% of overall CO2 emissions from a conventional integrated steel plant. The capture potential for direct reduced iron (DRI) plants is even more

promising, with CO2 separated as part of the usual operating process of a gas-fired DRI plant.

Globally, the IPCC, in its Fifth Assessment Synthesis Report, reported that, in the absence of CCS, only a minority of climate model runs could successfully produce the kind of emissions reductions required to avoid climate change. Crucially, without CCS, the cost of mitigation would more than double – rising by an average of 138%. It is clear that for CCS to play its part in helping industry meet emissions reductions targets around the world, action is needed now.

It is also important to note that renewable technologies are not mitigation substitutes to CCS in the industrial sector.

To achieve the global goal to limit temperature increases to well below 2°C, and following the Paris climate talks in December 2015 the ‘aspiration’ is 1.5°C of warming, the scale of transformation in energy use and generation, and the required level of low-carbon technology deployment, is enormous. All emissions

reduction solutions are necessary, in all sectors of the economy.

Switching to renewable or zero-carbon energy sources is part of the solution, as is improving energy efficiency. However, neither of these approaches deals with the fact that virgin iron and steel making processes simply must involve a reduction process at some point, and this step inevitably leads to CO2 production. There’s an adage in business that you “can’t cut your way to growth”. For steel, that’s as true of capital investment as it is of emissions management.

No solution comes cheaply, but voluntary, strategic investment is always preferable to implementing a mandatory solution imposed by regulators. It is this foresight that has seen ADNOC, and the partners for the Abu Dhabi CCS project, taking the global lead on implementing CCS on an operational steel plant. Continuing investment by other R&D leaders in steel will help ensure that the global industry is well-positioned to manage its own decarbonisation in the years ahead.

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ENVIRONMENT

Canning the circular economy Steel is by far the most versatile material on the planet. Without it society would cease to exist as it can be found in use in all aspects of our daily lives – and that includes canned food. By Alexander Mohr* THE announcement of the European Commission’s (EC) circular economy package (CEP) in December 2015 sparked a wave of debate across the packaging industry and beyond.

By catapulting sustainability, recycling and the entire culture of how Europe uses its natural resources into focus, it is widely expected to be a catalyst for change.

When it comes to the environment, the need for change is beyond dispute.

But the Commission has also recognised the outstanding economic opportunity it presents.

Promoting sustainability Changing the way we use natural resources, manufacture goods and keep resources in the loop through recycling could promote greater economic sustainability too.

But why are we at APEAL particularly excited about the CEP? APEAL is made up of the four major producers of steel for packaging in Europe – ArcelorMittal, Tata Steel Packaging, thyssenkrupp Packaging Steel and US Steel Košice.

Our members are confident that the package can be the key driver to make steel one of the packaging materials of the future.

So what makes steel packaging so suited to a circular economy?

A sustainable circular economy is widely

agreed to be one in which society reduces the burden on nature by ensuring resources remain in use for as long as possible.

Once the maximum value has been extracted, the resources are then recovered and reused, remanufactured or recycled to create new products.

As a ‘permanent material’ that can be recycled over and over again without losing any of its properties, steel is the ideal packaging material to enable a circular economy.

The concept of ‘permanent materials’ is still relatively new, but it is gaining ground in policymaking circles backed up by new technical research.

‘Permanent materials’ are officially defined as materials that, once produced, can be recycled or reused without loss of quality, regardless of how often the material is recycled.

“Permanently available materials are those for which efforts are made to retain for use in society the energy and raw materials invested in their production at the end of the product life, either through reuse or recycling, with no loss of quality no matter how many times the material is recycled.”

British Standards, BS 8905:20 As far back as 2012 the European Parliament voted to categorise steel alongside other metals in a new resource

category of ‘permanent materials’.

This new resource category effectively recognised the positive role of permanent materials such as steel in society, alongside the existing resource categories of ‘renewable’ and ‘non-renewable’.

More recently a detailed and precise categorisation of packaging materials has been identified by the Swiss consultancy Carbotech together with an expert group from the metal packaging sector.

This 2015 Carbotech study examined both the chemical and physical properties of a material to help define what is permanent and non-permanent.

The research elaborated on the differences between materials that lose their inherent properties when recycled (ie. they degrade) and materials that do not (ie. recycle infinitely, such as steel).

This new categorisation and the technical research backing it are a breakthrough.

Furthermore, the ‘permanent materials’ concept of infinite recycling perfectly matches society’s vision for a circular economy.

Which gives us, at APEAL, another reason to make our case for the relevance of steel as a model material for the circular economy.

Inside the recycling numbers The CEP is currently with the European Parliament for its approval.

*Secretary general of the Association of European Producers of Steel for Packaging (Apeal) www.steeltimesint.com

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ENVIRONMENT

2.58 2.33

2.27 -46%

1.23 APEAL 2012/13 (cradle to gate)

1.5

APEAL 2008/10 (cradle to gate)

GWP (kg CO2 eq.)

2.0

Worldsteel 2006

2.5

Evolution of global APEAL 2012/13 (cradle to gate)

3.0

1.0

0.5

2006 (for 1 kg of tinplate coil) including EoL recycling credit (@2012 recycling rate)

EoL recycling credit

-0.5

warming potential since

-1.0 -1.04 -1.5

We are hoping that it will be approved in, or near to, its current form. If this happens, the CEP will give the political impetus needed to push national governments towards improving waste collection systems and recycling processes.

They will also be forced, in turn, to increase the pressure on manufacturers to privilege recyclable materials in their design and production processes.

A key component of the CEP is a higher recycling targets for packaging waste materials, notably 75% for steel packaging by 2025 and 85% by 2030.

The circular economy – getting closer At APEAL we believe that the new steel packaging recycling targets are ambitious but achievable. Our current recycling rates show that moving closer towards a circular economy is more realistic than many think – and steel for packaging is leading the way.

The average recycling rate for steel packaging in Europe is currently 75.2% (based on 2013 figures), which makes it the most recycled packaging material in Europe.

Steel has maintained its position as the most recycled packaging material in Europe for many years now, making year-on-year improvements at a time when recycling rates for other packaging materials appear to stagnate. Plastic, beverage cartons, aluminium beverage cans and glass are recycled at rates of 35%, 39%, 69.5% and 70% respectively.

And the CEP split recycling target for metals will foster greater understanding April 2016

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of the recycling performance of individual metals.

We will soon announce the 2014 recycling figures. But we won’t stop there.

The steel packaging industry has declared its own objective, above and beyond the CEP. We have our own industry commitment to reach an average steel recycling rate of 80% by 2020 and zero steel packaging to landfill.

And we are confident that, by sharing best practices in Europe, we can achieve that commitment too.

Some countries, such as Germany, Belgium and the Netherlands, already recycle more than 90% of the steel packaging they use, and other nations are closing in on the 75% mark.

More importantly those with lower rates, such as Poland, are engaging in the process

of improving their infrastructures to help bring their recycling levels up.

Another way for the different packaging materials to position themselves effectively is through life cycle thinking and the provision of detailed, quality-reviewed and transparent life cycle inventory (LCI) data.

Creating a clear record of a material’s environmental profile throughout its entire life cycle gives businesses and brands the full picture, allowing them to make informed and sustainable choices about packaging.

Since 2006, APEAL has established and communicated a comprehensive life cycle analysis (LCA) for tinplate production in Europe.

The latest figures use data collected from 2012/2013 and indicate continuous improvements in a range of areas, including a reduction of 12% in CO2 emissions from production and a 2% drop in energy usage since 2006.

When the 2012 recycling rate of 74% is taken into account, primary energy demand drops by 30% and emissions are reduced by 46%.

The boundaries of the study can be further extended past the steel factory gate to include downstream activities, particularly in collaboration with customers who are applying LCAs to their own product systems, and the use phase of their product.

Publishing the dataset ensures steel’s environmental profile is communicated in a totally transparent way and further improves the understanding of the environmental credentials of steel for packaging among key stakeholders.

The LCI dataset is available from APEAL upon request.

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ENVIRONMENT

canned vegetables than their freshly prepared counterparts.

In addition, it found that steel cans not only protect valuable mineral nutrients, they also help retain product freshness as well as flavour. Canned food has an unrivalled shelf life of up to three years and there is no need for any added preservatives.

We don’t just see the CEP as a potential positive influence on governments and manufacturers – it could also filter down all the way to the end consumer too.

Indeed, consumers are increasingly aware of sustainability issues as manufacturers and brands accentuate their environmental credentials.

Key to the ongoing success and growth of the steel packaging industry will be our ability to engage with all relevant stakeholders and advocate steel’s sustainability performance.

The creation of the ‘Recycles Forever’ identifier by Metal Packaging Europe, of which APEAL is an active member, is a great example of a consumer-facing focus on sustainability being met by the collective metal packaging industry.

The European Metal Packaging Industry developed the ‘Metal recycles Forever’ identifier for both on and off pack use to help consumers better understand their role in keeping metal in a ‘forever loop’ by recycling their empty packaging.

Once consumers catch-on and drive the demand then real progress will undoubtedly be made. And our vision for a closed steel loop can start to become reality.

Protecting today, preserving tomorrow There is a current and necessary focus from legislators, brand owners, manufacturers and consumers on food waste and food security.

Steel offers a unique total barrier against light, gas and liquids, with the overall effect of protecting products and prolonging shelf-life. It is also impact and punctureresistant in the supply chain and single portion dispensing options are already widely used, meaning that product loss and consumer waste is also further reduced.

In addition, fruit and vegetables are canned for a maximum three hours after April 2016

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the crop, which avoids food waste while retaining all the nutritional benefits.

At APEAL we believe that steel packaging has an important part to play in the drive to save food.

The ability for consumers to purchase portion sizes appropriate to their needs makes food more affordable in some instances.

In addition, the vitamin content of canned food is proven equal to or better than its fresh equivalent and can ensure long-term access to healthy foods at ambient storage conditions.

An interesting new report from Germany has highlighted how steel cans protect valuable nutrients in food, retaining product freshness as well as flavour.

The research, led by the SGS Fresenius Institute in Germany, confirmed that vegetables stored in steel cans contain vitamin and mineral levels that are just as high as freshly cooked vegetables.

The 2015 study was carried out on behalf of ‘Initiative Lebensmitteldose’ (food can initiative), a partnership between 10 German manufacturers in the food and packaging industries whose goal is to inform consumers and nutrition experts about the benefits of canned food. The report clearly demonstrates that in some cases nutrients were even higher within

Exceptional performance The report concluded that steel had exceptional performance capabilities with a loss of nutrients after canning deemed ‘practically impossible’.

These findings come as no surprise to APEAL, of course; they only reinforce the arguments we have been making for some time.

However, it could prove another vital step in getting this information across to brands and, ultimately, consumers.

As the year progresses at APEAL, we must look to the future of steel packaging.

To mark 30 years as the go-to reference for steel packaging in Europe, APEAL has commissioned a series of thought leadership articles about how the industry can do just that.

In partnership with leading experts in the field of the circular economy we will explore the next 30 years of steel packaging, focusing on how the industry can adapt to and support a circular economy.

Look out for them as the year progresses.

We are currently running our ‘30 years, 30 facts’ campaign on our social media pages which tells the story of steel for packaging through sharing a fascinating fact each day.

The facts, which are being published one per day throughout our birthday month of April, help tell the story of our industry in a bite-sized form.

To check out the campaign, follow us on Twitter at @APEAL_EU or search for APEAL on LinkedIn or visit www.apeal.org. t

www.steeltimesint.com

4/21/16 12:52 PM

Customized stirring solutions – guaranteed performance and payback within a year

We understand that you are looking for performance solutions that give you a return on your investment. That is why our products consist, not only of electromagnetic stirring (EMS) equipment, but include an all-important performance warranty. Our job is done when we have delivered a full range of process improvements for your business. Without compromising on the quality of your product, you can achieve optimized performance and typically benefit from payback within 12 months. With the world’s most comprehensive range of EMS products we provide energy efficient, tailored solutions for melting and holding furnaces up to over 200 tons, side and bottom mounted, and air and liquid cooled systems for all process steps. For more information visit abb.com/metallurgy

ABB AB Metallurgy Products Phone: +46 21 32 50 00 Fax: +46 21 14 83 27 E-mail: info.metallurgy@se.abb.com (products) E-mail: service.metallurgy@se.abb.com (service)

Liftec Translifters and Cassettes for All Transports in Steel Industry For additional information please contact: Tel. +358 3 3140 1400 | sales@tts-liftec.fi

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Tel: +353 47 80500 UK: 07870 976 758 E-mail: info@combilift.com

49

DIGITAL MANUFACTURING

Helping to shape Industry 4.0 Industry 4.0 – or ‘smart manufacturing’ as it is known in the USA – involves the digital transformation and networking of production processes and is progressively taking shape, says Günther Winter* THE visionary concept of Industry 4.0, that is the digital transformation and networking of production processes, is progressively taking shape. From a technical viewpoint this is an evolutionary development. The concepts required are already available and the necessary IT and automation platforms are under development. It is important that the metal industry makes an active contribution to implementing Industry 4.0 in its production plants. This will provide valuable experience with the new technologies and kick off a learning process.

It will also form the foundation for the radical approach of Industry 4.0, the future adaptation of business models and sector limitations and the holistic optimisation of the entire metals value chain.

New business models will be based on a combination of data analytics and software as well as the linking of intelligent machines with physical and digital services, so-called Smart Services (Fig. 1).

The anticipated advantages of Industry 4.0 are: • More transparency in production thanks to networking of data • Optimum decision-making support for human operators by means of data Today

analysis, simulation and optimisation (in real time) • Enhanced flexibility for small lot sizes and individualised products • Reproducible product quality at a consistently high level • Avoidance of production disturbances thanks to predictive maintenance and diagnostics • Improved planning certainty for production and quality, meaning enhanced delivery reliability and reduced number of non-conformance issues • More safety for personnel and machinery

Intelligent machines Optimised decisions

Data analytics

Structural transformation Digital Transformation calls for a technical structural transformation in IT and automation. Today's hierarchical automation pyramid will be replaced with a flat structure of intelligent, flexible and autonomous units. In the Internet of Things, every unit can communicate directly with other units such as Smart Sensors.

This means that the pyramid levels and the related organisational and technical barriers are overcome.

This enables efficient implementation of functions for intelligent production (Fig. 3) by: • Vertical and horizontal networking of data and functions • New data-based services (i.e. smart services) • Function-oriented, integrative applications (i.e. so-called cyber-physical systems) The structural transformation of existing production installations will largely take place in steps within the scope of modernisation projects. Plant manufacturers must provide suitable upgrade solutions to achieve this.

Internet of things

Fig 1. Digital transformation by Industry 4.0

Internet of things and services

Sync. Data

Vertical integration

Level 4 Level 3

Primetals Connected Plant

Level 2 Level 1 Field Horizontal integration

Fig 2. Structural Change in Automation

Smart Services

Smart Factory

Smart Work

Smart Factory

Cyber-Physical Systems

Smart Sensors

Smart Machine

Fig 3. Elements of future Intelligent Production

* Günther Winter, chief technology officer, electrics/automation, Primetals Technologies Germany GmbH guenther.winter@primetals.com www.steeltimesint.com

IT Feature primetals.indd 1

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DIGITAL MANUFACTURING

a) Intelligent Scrap Shute

b) RFID Ladle Tracking c) FRIS Roll Tracking

d) Strip Steering Cameras

e) Looper Shape Meter f) Transformation Monitor

Fig 4. Application of Smart Sensors

Fig 5. Sensors for predictive maintenance with the BOX concept

Simulation

Virtual Plant

Real (Physical) Plant

Optimisation

Model-based Control

Fig 6. Cyber-physical systems (CPS)

Below, we would like to explain the essential elements of future intelligent production (Fig. 3) with reference to specific examples of Primetals Technologies that are already being implemented or have successfully commenced operation.

Smart sensors In future, production is to be monitored and optimised holistically. This calls for: • Improved tracking and identification • Improved data accuracy • Traceability of products • Extended monitoring and analysis of machines, processes and products for continuous improvement and holistic optimisation This requires extensive provision of data from smart sensors.

Smart sensors are capable of networking and can be administered remotely. RFIDs support tracking and assignment of measured values. Compact designs, wireless communication and integrated power supplies are paving the way for new fields of application such as monitoring of mobile plant sections.

Smart sensors improve data accuracy: Important goals are to improve data accuracy, for example, of the input data of April 2016

IT Feature primetals.indd 2

Heat Transfer Model

Water Supply Model

Vertical Integration

Phase Transformation Model

Modelling

Horizontal Integration

Fig 7. Cyber-physical system for the cooling section

process models, and to enhance tracking.

See Figs 4a to 4c for examples.

• Intelligent scrap chute with integrated weight measurement and wireless communication • Advanced tracking system for ladle and temperature tracking in a steel plant with RFID • Roll data management in the mill and in the roll shop with RFID Innovative measurement systems as a basis for new automation functions: Another field of application involves innovative measurement systems such as optical image processing or magnetic measurement processes as in Figs 4d to 4f.

These serve to implement new automation functions.

• ShapeMon for automatic strip steering control in rolling mills using camera systems • Looper Shape Meter (LSM) for automatic strip steering control and flatness control in hot strip mills by measuring strip tension • Transformation Monitor, for improved adaptation and calibration of the cooling section models by magnetic sensing of the transformed phase fraction in the hot strip.

Smart sensors for condition monitoring: The third application area is all about assessing the ‘health’ of a machine for predictive maintenance and holistic monitoring of complex systems using the BOX concept (Fig. 5).

It consists of mechatronic modules (e.g. the stand box for mill stands or the EAF box for electric arc furnaces) and functional modules (for vibrations, torsional vibration, temperatures or contamination). Existing process data from the automation system and, depending on monitoring, additional special sensors (acceleration sensors, for example) are used to calculate the state of a machine. Examples of further packages containing complex analysis models (soft sensors) and special measuring procedures are: • Acoustic Expert for automatic detection of defective valves and the torn hoses of bag filter systems in steel plants by acoustic analysis • Nozzle Expert, a soft sensor for automatic detection of clogged nozzles or interrupted supply lines in continuous casting plant • Hydraulic BOX, a soft sensor for automatic detection of wear and leaks in hydraulic systems, i.e. servo valves and cylinders www.steeltimesint.com

4/22/16 9:51 AM

BRAUN Innovations tions for Steel Cutting-edge technology chnology for cutting and grinding ding

B Want to Measure Your Products with the Highest Accuracy and Reliability?

Introducing NDC’s Metals Gauging Systems

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SCANMET V 5th International Conference on Process Development in Iron and Steelmaking Including: 2nd International Process Integration Forum for the Steel Industry

12–15 June 2016 Luleå, Sweden

SCANMET V MAIN SPONSOR

www.scanmet.info ARRANGED BY

52

DIGITAL MANUFACTURING

Slab 1 Process data Customer Order

Production Order

events sample results

after each production step

inspection

On-line quality evaluation

Quality definitions

Actual quality

Decision tables

Order quality

Finished coils Slab 1

?

GO

Correct, repair, reassign, reject

Hold, Inspect

Cold coil

Fig 9. Product genealogy across the entire production chain

Fig 8. Through-Process Quality Control (TPQC) Hot iron

DeS

DeP

1320°C

1340°C

DeC

LF

CC

Reduce caster speed

1620°C

Fig 10. Example of a compensation measure in a steel plant

The BOX concept has a modular and scalable design and is being continuously expanded with new modules and functions.

Data-based services: In addition to condition monitoring software and hardware products for sensing the "health" of a plant, the BOX concept consists of further physical and digital services. As a lifecycle partner, Primetals Technologies supports plant operators in analysing and optimising their plants with data-based services such as: • Automated analysis with condition monitoring algorithms and tools • Metals plant assessment (MPA) for determining the performance parameters of a plant • Regular review and evaluation of the automated analysis results by Primetals Technologies experts Cyber-physical systems (CPS) Improved vertical and horizontal integration of data and functions with the future vision of ‘self-organisation of production’ is the essential enabler of the fourth industrial revolution.

The goals of vertical integration are: • Perfect mastery of the local production process • Networking of data from the sensor

IT Feature primetals.indd 3

RH-OB

1620°C

1680°C

April 2016

Hot coils

1585°C

1560°C

Fig 11. Pure.hmi – a modern intuitive HMI for a caster

to the planning level as the basis for data analysis, model optimisation and, in future, use of artificial intelligence • Adaptive systems that optimise themselves to the current plant status • Flexible response to disturbances or planning changes • Robot and assistance systems to relieve control personnel by increasing the degree of automation • Automated diagnostics • Modern intuitive HMI for efficient operation and decision-making support (in the case of quality management and maintenance management or by online documentation, for example) The goals of horizontal integration are: • Perfect control and optimisation of the entire process chain ("through-process") • Integration throughout the entire value chain, also cross locations and industry-wide • Modern intuitive HMI to support human beings in decision-making within the production process (planning, planning changes or reallocation) • Expert systems for management of through-process know-how In future, implementation of vertical

and horizontal integration with the aim of self-organisation will call for collaboration of autonomous, intelligent and modular units in networks, so-called cyber-physical systems (CPS). CPS are based on a virtual plant model and predictive simulation of the actual process in real time (Fig .6). This makes it possible to: • Analyse and optimise the process • Adapt production • Interpret and decide • Collaborate with other CPS Fig. 7 shows the example of a cyberphysical system for optimising the material properties of hot strip in a cooling section.

It was specially developed for modern cooling sections with power cooling and high volumes of cooling water. The cyberphysical system is an ideal tool for flexible and low-cost production of a large variety of modern steel grades and dimensions on the hot strip mill: • Flexible, expandable cooling strategy for pipe grades, dual-phase steels and highcarbon steels, for example • Optimum technological co-ordination with the finishing mill (through horizontal integration) • Model-based holistic control of the entire cooling system through vertical www.steeltimesint.com

4/22/16 9:51 AM

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DIGITAL MANUFACTURING

Mobile Computing Augmented service knowledge

PRIMETALS Connect

3D Visual diagnostic

Information on-demand

Any data Anywhere Anytime

Increased efficiency in maintenance

Fig 12. Intuitive diagnosis and information-on-demand to support production and

Fig 13. Primetals Connect Cloud Solution

maintenance

integration • Highly dynamic plant operation with short response times for fast product changeovers • Stable plant operation with high water volumes and strip thicknesses up to 25.4 mm • Stable plant operation in the lowtemperature range • Integrated microstructure monitor for monitoring material properties

Platforms & Connectivity n

n Fu

c Te

ic

log

o hn

Im al

m ve

o

pr

nE

o cti

t

en

sio

n xte

Fig 14. Complete package for the implementation of Industry 4.0

Through-process quality control (TPQC) This serves to monitor, co-ordinate and control an overall process, for example, from the steel mill to the processing line. System operation is data-driven and rule-based in real time. It combines data analysis with an expert system (Fig. 8) and is an important function for horizontal integration in the smart factory.

The main advantages of TPQC are: • Support in quality management and certification (for example ISO/TS 16949) • Reduced manual product inspection and rework overhead, and avoidance of quality downgrades • Reduction of the ‘human factor’ • Consistent, synchronised storage of all product, process and plant data for analysis, control and traceability (Fig. 9) • Automatic detection and classification of process deviations and defects • Automatic generation of compensation measures (feed forward and feedback) • Know-how documentation in a rulebased expert system Fig 10 shows the example of a compensation measure for a process deviation in a steel plant. The expert system detected that the steel temperature was too low. Compensation measures were initiated: April 2016

IT Feature primetals.indd 4

1. Immediate re-blow in the converter to set the correct ladle temperature 2. Reduction of the casting speed in the continuous casting plant (within possible limits) to adapt to changed material flow 3. Adaptation of process times in the planning system ‘Augmented Reality’ in production, maintenance and service A modern, user-friendly, human-machine interface (HMI) enables smoother, more reliable plant operation: • Clear understanding of complex processes in production • Decision support for the operator • Efficiency boost in maintenance thanks to intuitive diagnostics and information on demand It reduces operating errors, thus avoiding negative impacts on product quality, plant availability and productivity.

Primetals Technologies has redesigned its operator stations on the basis of ergonomic criteria and modern software technologies (example in Fig. 11). This permits seamless integration of 2D and 3D information, video images, context-sensitive diagnostics data and thus augmented reality information.

Display is context-sensitive, i.e. only

currently important information is displayed.

Thanks to mobile devices, information can be used locally and virtually.

Augmented reality supports maintenance personnel in the following activities (Fig. 12): • Reliable identification of plant components in the field, for example, with RFID tags or QR codes • Checking the precise installation location of sensors and actuators in 3D displays • Checking of sequences in animated displays • Retrieving live and diagnostics data from the automation system • Retrieving online documentation Seamless linking of data from the HMI, condition monitoring, diagnostics, automation system and online documentation enable efficient troubleshooting and fast, direct access to the required information. This shortens search times and reduces errors and mistaken identities and results in an overall increase in maintenance efficiency.

Smart services In future, data analysis and software will enable plant manufacturers and operators to develop new business models and digital services, so-called smart services.

For plant operators, the benefit could be optimisation of their value chains for an improved customer focus, for example, through individualised products. This calls for the introduction of the described through-process quality control system to ensure reproducible product grades.

For plant manufacturers and operators, new business models can be the basis of a lifecycle partnership, for example, “machine www.steeltimesint.com

4/22/16 9:51 AM

2015-3550-004_LEC_Anzeige_Huettentechnik_EN_70x285 26

DIGITAL MANUFACTURING

55

NOZZLES AND SYSTEMS Lechler nozzles have been setting standards in quality, performance and design for over 135 years.

as a service” with assured machine performance including maintenance support by the machine supplier.

The advantage for machine suppliers lies in the possibility of comparing and optimising the performance of their machines or components installed on the premises of different customers.

This allows them to drive continuous product improvement, enhanced machine performance and to minimise the maintenance requirements of their machines. This entails the introduction of the above-mentioned data-based services for continuous monitoring of machine performance.

The Primetals Connect Cloud solution is an example of plant comparison potential (Fig. 13). In this pilot application, iron making production plants are to be compared and subjected to a neutral benchmark test. The results will be available to plant operators.

Outlook Unfortunately, Industry 4.0 will not be available ‘off-the-shelf’.

Plant operators must define their own particular implementation strategy. Primetals Technologies will actively assist plant operators in the digital transformation of their production plants with portfolio elements and services.

According to our estimations, a pure automation and IT system or platform upgrade is not sufficient for a structural transformation. A complete package is needed, offering additional technological and functional enhancements. Moreover, connectivity with legacy systems must be warranted in a step-by-step modernisation process. (Fig. 14) Technological improvements will be achieved by powerful CPS as well as functional improvements, thanks to modern assistance systems for enhanced efficiency of operation and maintenance and consistent quality control.

The Primetals modernisation portfolio contains all of these elements. This means that digital transformation is ready to begin with small-scale packages and implemented in stages in manageable modernisation projects. The result will be a measurable improvement of plant performance.

Co-existence of legacy plant and new systems will be ensured by interfaces. This will allow plant operators to gain initial experience in pilot projects and actively help shape the digital transformation for their own needs. Primetals Technologies will continue to expand its product portfolio, aligning it to customer demands and ensuring compatibility with future Industry 4.0 platforms.

Now is the right time to start and to implement Industry 4.0 concepts in production and to develop new business models for the future based on them. t

A wide range of specially developed and proven nozzles of many different designs and in a range of materials is available for applications throughout the processes of metal smelting, refining, casting, rolling and processing.

PICKLING LINES

Lechler GmbH Precision Nozzles · Nozzle Systems P.O. Box 13 23 · 72544 Metzingen, Germany Phone +49 7123 962-0 · Fax +49 7123 962-333 info@ lechler.de · www.lechler.de

www.lechler.de

April 2016

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Pagine 2013 A3 esecutivi 2013_08_08_qxd8_A3 esecutivi 23/02/16 11:24 Pagina 12

QSP QUALITY STRIP PRODUCTION THE DANIELI WAY TO BE COST WINNER IN THIN SLAB CASTING-ROLLING

Danieli QSP technological layouts and process know-how fully satisfy the widest market demand in terms of product mix, high productivity and flexibility, tight geometrical tolerances.

> From 1.5 to 4 Mtpy capacity > From 0.8 to 25 mm strip thickness > Coil-to-coil, semi-endless, endless

Four latest references out of total 11 ESSAR ALGOMA CANADA 1998: QSP featuring the world’s first vertical curved flexible thin slab caster, for outstanding hot strip quality production, including Peritectic grades for the automotive American market.

Flat Products Rolling Mills and Strip Processing Lines

OMK RUSSIA The flexibility of the QSP layout allows the production of API X80 grades for Artic applications as well as 1.0 mm thin gauges. The only thin slab-based plant in the world conceived for “top notch” API grades production.

Danieli Headquarters 33042 Buttrio (Udine) Italy Tel (39) 0432.1958111

MMK METALURJI TURKEY With its QSP and downstream Danieli cold mill, it represents the most modern facility for flat products in the Mediterranean area, serving both commodity and quality market segments.

DANIELI TEAM A CENTURY OF PARTNERSHIP EXPERIENCE

NMDC INDIA QSP plant for the widest production range including API X80, HSLA, ULC steels and thin gauges. The first plant in India featuring vertical-curved casters and separation between roughing and finishing stands.

www.danieli.com

Pagine 2013 A3 esecutivi 2013_08_08_qxd8_A3 esecutivi 23/02/16 11:24 Pagina 12

QSP QUALITY STRIP PRODUCTION THE DANIELI WAY TO BE COST WINNER IN THIN SLAB CASTING-ROLLING

Danieli QSP technological layouts and process know-how fully satisfy the widest market demand in terms of product mix, high productivity and flexibility, tight geometrical tolerances.

> From 1.5 to 4 Mtpy capacity > From 0.8 to 25 mm strip thickness > Coil-to-coil, semi-endless, endless

Four latest references out of total 11 ESSAR ALGOMA CANADA 1998: QSP featuring the world’s first vertical curved flexible thin slab caster, for outstanding hot strip quality production, including Peritectic grades for the automotive American market.

Flat Products Rolling Mills and Strip Processing Lines

OMK RUSSIA The flexibility of the QSP layout allows the production of API X80 grades for Artic applications as well as 1.0 mm thin gauges. The only thin slab-based plant in the world conceived for “top notch” API grades production.

Danieli Headquarters 33042 Buttrio (Udine) Italy Tel (39) 0432.1958111

MMK METALURJI TURKEY With its QSP and downstream Danieli cold mill, it represents the most modern facility for flat products in the Mediterranean area, serving both commodity and quality market segments.

DANIELI TEAM A CENTURY OF PARTNERSHIP EXPERIENCE

NMDC INDIA QSP plant for the widest production range including API X80, HSLA, ULC steels and thin gauges. The first plant in India featuring vertical-curved casters and separation between roughing and finishing stands.

www.danieli.com

Roll Wear Consistency – The Key to Increased Caster and Hot Mill Produc:vity.

Avoid conEnuous caster and hot mill down Eme by employing a roll zoning strategy.

• Increase roll wear consistency.

Roll surface integrity and modes of roll surface failure differ considerably depending on the locaEon and environment in which they operate.

The Corewire range of Weldclad roll cladding machines and consumables allow users to select composiEons to suit the mode of failure and opEmise roll surface performance and therefore producEvity.

• Increase caster / mill up Eme. • Increase producEvity.

• Inconsistent roll wear?

• Pulling a segment due to wear on one roll?

Employing a roll zone strategy opEmises the consistency and operaEng life between rolls and therefore opEmises caster / mill producEvity.

• Foot rolls corroding?

• Foot rolls being pulled before mold life reached?

• Drive rolls wearing faster than idle rolls?

• Bender entry and exit rolls suffering high wear?

Significantly higher roll wear / surface integrity faEgue is witnessed on segment drive rolls and foot rolls.

414 Type Material

Weldclad 900 Typical Drive Roll Wear vs. Idle Roll Wear Excessive drive roll wear

1.4

Typical roll life Roll Wear on dia (mm)

1.6 Roll Wear (mm/Mt)

Foot Roll Trial Results 2.5

1.8

1.2 1 0.8 0.6 0.4 Optimised drive roll wear

0.2 0 28

29

30

31

2 1.5 Typical mold replacement schedule

1 0.5

Roll clad with Weldclad 800

Roll clad with Weldclad 900

0 32

33

Roll Number

Follow us on social media:

34

35

0

500

1000

1500

2000

2500

3000

Number of Heats of Steel Cast

www.corewire.com E: info@corewire.com T: +44 1252 517766

59

ELECTRIC STEELMAKING

Process improvement with EMS In the electric arc furnace (EAF) process, there are a number of factors that can impact negatively on productivity and cost-efficiency, many of which can be reduced or completely eliminated with the application of electromagnetic stirring (EMS) to deliver improved productivity, reduced costs and a safer, more reliable and energy-efficient operation. By Lidong Teng1, P채r Ljungqvist2, Helmut Hackl1, Joakim Andersson2 FINDING ways to maximise process output and minimise costs is more important than ever in this competitive and financially challenging landscape. New technologies that provide process improvements can help steel producers make the most of what they already have and contribute to improved profitability. However, with limited investment budgets come higher expectations as well as technology that solves problems and delivers tangible process improvements?

The latest EMS technology for EAF, known as ArcSave, has been applied on a 90-tonne spout tapping furnace for stainless steel production at Outokumpu Stainless Steel AB (OSAB) in Avesta, Sweden, with the aim of delivering improved productivity, lower costs and elimination of furnace bottom skulls, all of which have been successfully achieved.

Uref=1.0m/s Umax=0.735m/s 0

ArcSave electromagnetic stirring for EAF operation ABB has delivered electromagnetic stirring for EAF operation since 1947, enhancing process performance at 150 customer sites worldwide. ArcSave, was developed in response to demand for stronger stirring power that goes further to optimise the EAF process for both plain carbon and high alloyed steel production.

Fig 1. Flow pattern in the melt in a spout tapping furnace fitted with an ArcSave stirrer

Fig. 1 illustrates the flow pattern occurring in a spout tapping arc furnace mounted with an ArcSave stirrer underneath the furnace bottom shell. The stirrer is placed under a non-magnetic (austenitic stainless steel) steel plate bottom or window. ArcSave has no physical contact with the steel melt; therefore the system requires very little maintenance. The low frequency electric current passes through the stirrer windings to form a traveling magnetic field which penetrates the furnace bottom, thereby generating forces in the molten steel[1]. When the traveling field is reversed, the melt will flow in the opposite direction. The melt flow rate is proportionate to the current of the stirrer.

Since the stirrer is extended over the entire diameter of the furnace, effective stirring forces are obtained over the whole bath and the entire melt is stirred.

The melt flow pattern at the steel/slag

Uref=1.0m/s Umax=0.982m/s 2m

0

2m

Fig 2. Melt flow velocity vectors simulated in a 100 ton spout tap EAF [2]

1. ABB Metallurgy, Process Automation, ABB AB, V채ster책s, SE-721 59, Sweden. 2. Outokumpu Stainless AB, Avesta, SE-774 41, Sweden www.steeltimesint.com

ELECTRIC STEELMAKING ABB.indd 1

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100

70

90

60

80 Energy, Kwh/ton

Electrode current, KA

80

50 40 30

Without stirring

20

70 55

60 50 40

With ArcSave

30

10 0

81

20 Without ArcSave 0

5

10

15

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-10 Power on time/min

interface and bottom in a 100-tonne spout tapping stainless steel furnace is presented in Fig. 2[2]. The designed average volume melt velocity induced by the ArcSave is around 0.2~0.5 m/s. It can be seen from Fig. 2 that ArcSave creates a global circulation in the melt and thereby provides efficient mixing of the complete bath. This is one of the major advantages of ArcSave compared to the bottom gas stirring by porous plugs. Mixing the entire melt accelerates homogenisation of the temperature and chemical composition of the steel, as well as the chemical reactions between steel and slag.

ArcSave stirring is automatically controlled by a designed stirring profile which is customised to match the needs of different EAF process steps, such as scrap heating, homogenisation, melting of alloys, decarburisation, de-slagging and tapping.

Operation is characterised by low stirring cost, reliable and safe operation and creates optimum conditions for reproducible production of high quality steel and precise logistics.

ArcSave project objective at OSAB The OSAB melt shop consists of an EAF, AOD, ladle furnace, continuous casting and grinding. The EAF has a 110 MVA transformer and a 90-tonne capacity. The EAF is equipped with a lance-manipulator consisting of four lances to inject O2, N2, FeSi and Carbon. In combination with electric power, three oxy-fuel burners are used. Special steel grades, containing a high amount of chromium, are produced at OSAB. For these steel grades a high amount of FeCr alloys are added in the furnace. Due to the FeCr alloys’ high melting point, problems with skulls in the bottom of the furnace appear. This leads to April 2016

ELECTRIC STEELMAKING ABB.indd 2

25

30

35

Fig 3. (left) Effect of ArcSaveÂŽ on electrode current swings

variations in tapping weight, high electric power consumption and problems when charging the scrap baskets. The objective of the ArcSave installation is to solve the FeCr melting problem, reduce costs and increase productivity. The process benefits due to improved kinetic conditions for heat and mass transfer obtained with ArcSave are discussed in this article. The hot test results at OSAB are based on three months without and three months with ArcSave.

Test results Improved scrap melting and arc stability The main difference between the EAF with and without ArcSave is the intensity of convection in the melt bath. Forced convection induced by electromagnetic stirring enhances the melting of larger scrap pieces and bundles, and makes scrap stratification less significant. CFD simulation results show that melt velocity is increased by a factor of 10 by ArcSave compared with only natural convection in the melt bath[2].

The stronger convection inside the melt contributes to a homogenous temperature distribution and a higher scrap melting rate. ArcSave has also stabilised the arc due to faster melting of big scrap bundles and reduced scrap cave-ins. Fig. 3 shows that current swings were reduced with ArcSave. The standard deviation of current swings is 9.3 without stirring and 3.7 with ArcSave, resulting in a higher power input and, therefore, reduced power-on time. The reduction of electrode current swings with ArcSave has also been observed in the EBT type furnace for carbon steel production[3].

Arc heating efficiency and energy savings Temperature gradients in the flat bath

With ArcSave

Fig 4. (above) Effect of ArcSave on energy loss to furnace water cooling panels

during scrap melting in conventional AC arc furnaces without stirring have been reported to be in the range of 50-70oC[4] and the temperature gradient with EMS is about 25% of that without EMS during the power-on period[1]. This means that stirring reduces the melt surface superheat and the heat from the arc zone is quickly transmitted to the bulk melt[5]. The decreased surface superheat temperature reduces heat losses to the furnace wall and roof during the power-on period, thereby reducing electricity consumption.

Fig. 4 shows that at the OSAB furnace, energy loss to the water-cooling panels is reduced by 26 kWh/tonne with ArcSave, corresponding to more than 5% energy saving. Simultaneously, stirring increases the scrap and/or ferrochromium melting rate and/or decarburisation rate and, therefore, saving time and further contributing to lowering energy losses in the furnace process. The more stable arcing, reduction in superheat, oxidised slag and electrical power consumption results in 9% lower electrode consumption.

Bath homogenisation and tapping temperature reduction The bulk turbulent flow induced by ArcSave stirring brings a thorough mixing of the whole melt, resulting in superior temperature and composition homogenisation. Fig. 5 shows ArcSave temperature distribution when measured in two positions with a 1-2 minute time interval for the same heat after power-off.

The corresponding temperature difference at two positions is less than 2oC on average.

Good homogeneity is important for a number of reasons. It implies a reliable measurement and prediction of bath composition and temperature. Bath www.steeltimesint.com

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1750

100%

1730

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93%

80%

1710

61

69%

60%

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40%

1650 1630

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0%

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With ArcSave

1570 1550 1550 1570

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homogenisation with ArcSave makes it possible to obtain an exact tapping temperature for different steel grades, which is very important for a smooth downstream AOD operation. Tapping temperature is reduced by an average of 20-30oC without any change to the AOD arrival temperature.

Fig 5. (left) Comparison of two temperature measurements in different positions in the bath after power-off

Items Improvements Total energy consumption

-3~4 %

Electrode consumption

-8~10 %

Power on time

-4~5 %

Tap temperature hit ratio

100 %

Tapping temperature reduction

-20~30 oC

Tap weight hit ratio

+24% (reached 93%)

N2

-70%

Table 1 Process improvements after ArcSave® at OSAB

Improved slag-metal reaction and reduced Cr2O3 content in slag ArcSave delivers a stirring effect on the slag due to the steel/slag interface friction bringing different parts of the slag and melt to the reaction zone all the time. In the absence of stirring, transportation of all parts of the melt to and from the reaction zone has to take place by diffusion only. With induction stirring, the bath and slag movements take care of most of this transportation. Diffusion distances are thus reduced considerably and this is an important factor for desulphurisation and Cr2O3 reduction. It is very important when chromium, which has been oxidised during the oxidising period and has entered the slag, is reduced back into the steel. By optimising the stirring profile the slag/metal reaction can be enhanced and efficient slag reduction obtained. It is found that the Cr2O3 content in the slag is reduced by an average of 3.1% with ArcSave together with O2 injection practice optimisation.

Consumption of N2, traditionally injected from the slag door manipulator to improve mixing in the melt, was reduced by around 70%. In fact, there is no need to use N2 at all with ArcSave.

Reduced consumption of FeSi and slag builders During the reference test FeSi consumption in the OSAB EAF was higher than normal www.steeltimesint.com

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for stainless steel arc furnace operation, since O2 was used to create extra energy to help melt FeCr skulls. After ArcSave the addition of FeSi has been tentatively reduced. Of course, reduction of FeSi will increase electrical energy consumption accordingly. With ArcSave overall energy consumption is, however, reduced by 3-4%.

Si reduction reduces SiO2 content in the slag, thereby cutting lime consumption since slag basicity is kept constant.

ArcSave’s positive influence on arc stability makes it possible to reduce slag thickness.

Enhanced ferrochromium melting and tapping weight control High FeCr addition and short tap-totap time (less than 60 minutes) has its drawbacks, including the formation of un-melted FeCr skulls on the furnace bottom. The resulting furnace bottom build-up reduces the effective volume of the bath, making bucket charging difficult.

FeCr, with its higher melting temperature and density, tends to rest on the bottom of the furnace, where the melt is cooler. In the absence of stirring, dissolving can be problematic. Following ArcSave installation the temperature is equalised throughout the entire bath and the melting of FeCr and even heavy scrap pieces is enhanced.

Both temperature homogenisation and forced convection of melt help with FeCr

Fig 6. (above) Tap weight hit ratio without stirring and with ArcSave

dissolution. The furnace bottom is also shown to be cleaner with ArcSave than without stirring and the problem with furnace bottom skulls has been eliminated.

Fig. 6 shows that the tap weight hit ratio is increased by roughly 24% thanks to improved FeCr melting.

Greater process reliability and safety The positive effect of ArcSave on the EAF process discussed in the sections above will have a significant impact on improving process reliability. The fast melt-down of big scrap and ferrochromium provides efficient homogenisation of the melt bath on both chemical composition and temperature, which delivers the targeted steel tapping weight and temperature. Stirring in the melt bath reduces scrap cave-ins, stabilises electrodes, and reduces electrode breakage risk. Homogeneous temperature in the whole bath provides smooth tapping and reduces tapping delays. Elimination of thermal stratification in the melt bath apparently reduces tapping temperature.

ArcSave eliminates hot and cold spots in the bath and didn’t create any negative effects on the bottom hearth refractory lining, but clearly reduced refractory wearing in hot spot and slag-line areas.

AOD operation benefits Improved accuracy in tapping weight and tapping temperature from EAF makes it possible to obtain consistent AOD initial operation conditions. The correct tapping weight will eliminate extra alloying additions in the AOD converter, which would otherwise lead to increased FeSi, lime and O2 consumption in AOD. An initial AOD tapping temperature, which is lower than necessary, also increases FeSi consumption in order to create the chemical energy to April 2016

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TECHNOLOGIST CONTINUOUS CASTING

increase the bath temperature. A consistent AOD operation can also mean increased productivity and reduced operating costs.

The INTECO Group offers continuous casting machines for long products as well as special solutions for the production of special steels. The portfolio covers complete green field projects and revamps of existing casters. INTECO‘s competence center for casting, INTECO TBR, offers based on its long-term experience in engineering and design of individual bloom casters, tailor-made solutions for all kinds of steel producers.

Bloom and Billet Casters The continuous casting of blooms has become a well-established technology for the production of semis for high-quality applications. Similarly, continuous casting of billets is the basis for highly productive steelmaking.

INTECO TBR supplies robust continuous casting machines with highest quality of the final product, low maintenance requirements and high operator friendliness.

Design Criteria • Bow-type or vertical-bending machines • Modular design with the provisions for upgrading features of the caster at a later stage • Operator-friendly casting floor • Advanced mould level control solution • Quick change of mould and segments • High-precision, robust mould oscillator • Mould and final stirrer • Dynamic secondary cooling (water and air-mist) • Customized run-out area configuration • Rigid cooling bed • Performance assurance by integrated automation system • Highest final product quality by quality modules of the Level 2 automation Special Casting Applications Continuous casting machines for special techniques, such as horizontal or vertical casting round up the product portfolio in the field of the production of special steels. A flexible and intelligent design and the implementation of customer demands emphasize our competence in this product segment.

INTECO Group Wiener Strasse 25 = 8600 Bruck an der Mur = Austria Phone: +43 (0) 3862 53110-0 = Fax: +43 (0) 3862 53844 inteco.austria@inteco.at= www.inteco.at

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Conclusion Electromagnetic stirring enhances the kinetics of heat and mass transfer in the arc furnace process and gives a more homogenous melt bath.

The test results at OSAB show that ArcSave enhances scrap and ferrochromium melting and reduces energy consumption. The bath temperature is more homogeneous and tapping temperature is controlled more correctly, providing for smoother AOD operations.

With stirring, the ferroalloy is melted efficiently, thus giving better steel yield and more accuracy in tapping weight. Slag reduction is also enhanced by stirring, resulting in lower FeSi consumption and higher Cr yield.

The reduction in surface superheat temperature and efficient heat transfer under stirring reduces heat losses to the furnace wall and roof and result in lower electricity and electrode consumption.

Shorter tap-to-tap time and consistent furnace operation also greatly increase productivity.

At OSAB ArcSave successfully achieved the customer’s objectives including elimination of furnace bottom skulls, improved productivity and lower operating costs.

ABB’s ArcSave technology is proven to improve EAF process performance. Helping steel producers overcome many of the challenges facing them today, it delivers benefits that simultaneously reduce costs, increase productivity and allow for a safer, more reliable and energy-efficient operation.

References 1. Fornander S. and Nilsson F.: Inductive stirring in arc furnace. Journal of Metals, 188 (1950):1, pp33 and pp.256 2. Widlund, O., Sand, U., Hjortstam, O. and Zhang, X.: Proc. of 4th Int. Conf. on Modelling and Simulation of Metallurgical Processes in Steelmaking (SteelSim), Stahlinstitut VDEh, Düsseldorf, Germany, (2011).

3. Lidong Teng, Aaron Jones, Helmut Hackl, Mike Meador: ArcSave® – Innovative solution for higher productivity and lower cost in the EAF, AISTech 2015 Proceedings. © 2015 by AIST, Cleveland, OH, USA, 4–7 May 2015.

4. McIntyre, E.H. and Landry, E.R.: EAF Steelmaking – Process and Practice Update, Iron & Steelmaker, 17:5 (1993), 61-66.

5. Samuelsson P. Energy saving using induction stirrer in an arc furnace,

ASEA Journal, 1985, (5-6):18-23. www.steeltimesint.com

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64

PERSPECTIVES: UKCG

UKCG – leaner, fitter and busier UK Carbon and Graphite (UKCG) an electrode and EAF technical solution provider, is facing the challenge of a tough global steel market with a dogged determination to win through as its competitors fall by the wayside. Ben McGhee*, a director of the company, argues that UKCG’s ArChecker technology is in high demand and leading the company’s fight for global supremacy

1. How are things going at UKCG? Is the industry keeping you busy?

Global market pressures within the industry are well documented and being felt in all areas. The aim in the last year at UKCG has been focused towards customer and product development while undergoing cost cutting exercises in our UK manufacturing locations; I am pleased to say that our well planned rationalisation has brought the desired cost reductions while allowing increased spending on further automation and development of our manufacturing equipment and capabilities.

UKCG looks and feels leaner and fitter than we have for a long time.

4. Where in the world are you busiest at present?

Demand is high for our ArChecker technology, which allows our customers to monitor, study and make changes to furnace operation and drive down melting costs via remote contact with UKCG technical teams.

6. Where does UKCG stand on the aluminium versus steel argument?

UKCG is an electrode and EAF technical solution provider, so my natural allegiances sway towards steel; from a personal standpoint, the beauty and versatility of steel when I look around my home and go about my daily life never cease to amaze me. Likewise, the abundant qualities of aluminium and in turn its ability to be morphed into aesthetic and technical beauty is difficult not to appreciate.

However, if I had to pick one it would be steel.

7. It is always claimed that aluminium is the ‘greener’ metal when compared to steel. What’s your view?

The forecast for steel production is well known to shift towards greater use of electric arc furnaces (EAFs) as we move into the future. In 2010 EAFs accounted for 42% of EU crude steel production. As time moves on that percentage will grow and thus steel becomes ‘greener’.

2. What is your view on the global steel industry?

With 17 years of working within this field I have not witnessed such flat demand for our products and certainly not on such a global scale. Just yesterday, a UKCG competitor, Superior Graphite, announced the idling of its US electrode production.

We have already seen the closure of GrafTech Brazil, South Africa and Russia coupled with SGL’s rationalisation plans, which have seen closures of two integrated electrode plants in Canada and Italy respectively. It’s tough out there.

The current state of the global steel industry means that we are busy introducing/installing proven equipment that drives down annual steel production costs.

3. Where does UKCG mostly conduct its business?

North America, Latin America and Europe remain our main market demand areas and we are seeing increased interest from the Middle East and Africa where we are focusing time and efforts to build our infrastructure to better serve the markets.

5. Can you discuss any steel contracts?

We have concluded the majority of the major steel manufacturing group tenders.

We will be working on an inquiry for a Turkish mini mill, which will enable us to introduce our UHP electrodes and the benefits of ArChecker technology.

8. “…any hint of doubt when it comes to predictions of climate doom is evidence of greed, stupidity, moral turpitude or psychological derangement.” This is a quote from Bret Stephens writing in The Wall Street Journal. Do you sympathise with his view?

I am unable to say yes or no to whether I share sympathy with the quote. I can offer only the fact that I share some of the fears that seem to drive Bret Stephens to his assumptions. That said, I cannot condemn

* Director, UKCG April 2016

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PERSPECTIVES: UKCG

anyone’s character with such negative character observations, for them simply doubting or disagreeing with his views.

9. In fact, talking of ‘green issues’ and emissions control, how is the steel industry performing in this respect?

I recollect an article in Steel Times International (16.12.12) in which the topic of discussion was the conclusions reached by the European Commissions Joint Research Committee regarding CO2 emissions. The summary offered some grave predictions regarding targets set for 2030 and those actually achievable. I am unsure of the current position or further research findings. However, lower global steel output will naturally lead to a marked decrease in CO2 emissions.

10. What solutions in terms of energy efficiency and sustainability can UKCG offer?

Our ArChecker technology allows customers to record furnace operation logs and make educated changes to their melting operations, which bring long lasting benefits. The ArChecker data logging system offers users information normally obtained by costly technical service visits, installations and reports. We can work with our customers to change melting profiles and practices to reduce electrode, electricity and refractory consumptions.

11. How quickly has the steel industry responded to green politics?

The predicted and already evident increase in EAF steel production will bring benefits to the position of the industry. I would not want to conclude that the industry cannot make some marked and noticeable reductions in emissions, but it may be surmised that the bar has been set too high for real achievement.

12. Where does UKCG lead the field in terms of steel production technology?

UKCG electrode products are recognised and acknowledged to perform to exceptional standards on EAF and LMF applications. Our focus in recent years has been the development and implementation of ‘bolt on’ technologies, developed inhouse, that give our products, and the UKCG brand, an absolute competitive www.steeltimesint.com

perspectives UKCG.indd 2

advantage. The development and launch of ArChecker2 will see UKCG become further recognised as a global leader in after-sales service technologies.

13. How do you view UKCG’s development over the short-tomedium term?

UKCG has undergone some rationalisation and re-focusing exercises over the last 14 months, which mean we are in a position to respond and react to prevailing conditions.

Our logic and planning have lead to us developing some exciting opportunities for progression of our global manufacturing presence and capabilities. We are positive that our short-to-medium term strategic goals will be met. We will continue to show resilience to bad market conditions.

14. How should the global steel industry react to China’s overcapacity?

Recent actions undertaken by the European Commission to investigate Chinese steel dumping should be welcomed. The impact on global markets has taken a welldocumented toll. The EU and other nations

have little choice but to utilise the trade defence options open to them. We support and acknowledge that trade defence remedies are the only logical option.

15. Where do you see most innovation in terms of production technologies – primary, secondary or more downstream?

UKCG has focused largely on the development of systems that enhance customer understanding of the EAF process and how to translate that to cost savings.

65

16. How optimistic are you for the global steel industry?

The industry has been hit with a ‘perfect storm’ scenario that will be difficult to negotiate. Oversupply and decreased demand dynamics are likely to see a ‘survival’ mechanism become more apparent throughout the industry. I have no doubt that 2016/17 will be among the toughest ever.

17. What events will UKCG attend in 2016?

We will be at AISTech 2016 in Pittsburgh, which takes place 16 –19 May. Come see us on booth 2223.

18. UKCG is based in the UK, but what’s happening steel-wise in the country?

The UK steel industry is facing its most challenging time and in the light of Tata Steel’s recently announced plan to sell off its UK interests, pressure is mounting for the government to intervene, even temporarily, to avert mass job losses and plant closures.

19. What keeps you awake at night?

The use of unfair competition strategies and manipulation of national trade defence barriers that damage certain nations’ steel making capabilities and competitiveness.

20. If you possessed a superpower, how would you use it to improve the global steel industry?

‘Crystal-Ball Man’ would have predicted everything and shared it with his drinking buddy, ‘Mega-Mouth’ – and thus it could all have been avoided. t April 2016

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PERSPECTIVES: AMETEK LAND

Boosting steel plant efficiency AMETEK Land operates across all sectors of the global steel production industry where high accuracy, non-contact temperature measurement is critical. Iain Scott, director of product and programme management*, says the company brings value to the global steel producing market by enabling quality control, energy control and process optimisation.

1. How are things going at AMETEK Land? Is the steel industry keeping you busy?

We have seen a significant shift over the last 18 months in the steel industry and a move away from investment in construction grade (Rebar/HRC) steel production lines to automotive high strength steel (AHSS) lines.

AHSS is much more demanding from an instrumentation perspective and AMETEK Land’s latest fixed spot pyrometers are proving to be the ideal solution for these lines.

through European line builders. Globally we are experiencing a strong demand for our thermal imaging slag detection systems as producers look to increase yield and improve product quality.

5. Can you discuss any major steel contracts you are currently working on?

There are several instrumentation supply contracts to new continuous ‘galvannealing’ lines for AHSS automotive grade steel in Asia and Latin America.

2. What is your view on the current state of the global steel industry?

The massive overcapacity in construction grade steel will rebalance at a pace with Chinese plant consolidation projects over the next three-to-five years minimum.

Consumer-driven demand for AHSS, we believe, will continue to grow to a plateau over the next five years.

3. In which sector of the steel industry does AMETEK Land mostly conduct its business?

We operate across all sectors of the steel production industry where high accuracy, non-contact temperature measurement is critical. We bring value to the global steel production market by enabling quality control, energy control and process optimisation.

4. Where in the world are you busiest at present?

Republic of Korea and China are where we are seeing most new line investment, especially in the CGL and CAL categories

so any route to this reduction in the carbon footprint is positive.

7. It is always claimed that aluminium is the ‘greener’ metal when compared to steel. What’s your view?

As we move into a truly circular economy the ‘greener’ material will prove to be the one that can be continuously re-used with the smallest energy input. The metal recycling market favours aluminium due to the price point, but steel has yet to prove it is cheaper to re-use over new production.

8. “…any hint of doubt when it comes to predictions of climate doom is evidence of greed, stupidity, moral turpitude or psychological derangement.” This is a quote from Bret Stephens writing in The Wall Street Journal. Do you sympathise with his view?

I sympathise with his view and we aim to provide the best-in-class instrumentation to ensure plants operate as energy efficiently as possible. Global macro political factors and policies have a bigger influence on steel production and GHG emissions rather than the individual companies themselves.

6. Where do you stand on the aluminium versus steel argument?

Both materials have their place in the market and the recent moves of automotive suppliers to introduce aluminium into mainstream offerings have driven steel producers to improve the grades and offerings of AHSS. In the automotive sector the overall aim is to improve fuel efficiency

9. In fact, talking of ‘green issues’ and emissions control, how is the steel industry performing in this respect?

This varies massively by region, where the carbon impact is priced into the production fully, then the manufacturers have adopted best practice; where this is not the case the steel industry in these regions have a long

*Director of Product and Programme Management, Ametek Land April 2016

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PERSPECTIVES: AMETEK LAND

way to go.

10. In your dealings with steel producers, are you finding that they are looking to companies like AMETEK Land to offer them energy efficiency and sustainability solutions? If so, what can you offer them?

Over the last 65 years the steel industry has looked to AMETEK Land to enable the efficient production of high quality product.

Our pyrometer and thermal imaging ranges offer the customer the best industry and application-specific solutions on the steel line to produce the best quality products with optimum energy input. Accurate and reliable temperature gives you energy control and efficiency.

11. How quickly has the steel industry responded to ‘green politics’ in terms of making the production process more environmentally friendly?

In many eyes, the steel industry is dirty, heavy engineering; so, from a PR perspective, there is still a lot of work to do in the media to educate consumers that the leading producers are at the cutting edge of producing high quality product with as low an energy content as possible. A carbon footprint measure per tonne of steel produced would encourage the consumer market to see the industry shifting towards transparency over energy consumption.

see a lot of reluctance around security in large steel mills.

14. How do you view AMETEK Land’s development over the shortto-medium term?

The business expects to keep developing products to drive efficiency and quality in all aspects of the steel industry.

15. How should the industry react to the overcapacity situation in China?

The cost competitive basis for China’s steel and other Western producers are not like-for-like as the carbon energy content is not priced in on all markets. The industry should react by creating a carbon footprint per tonne that can be used by consumers and governments to set limits on. An independent body, such as the World Steel Association, should independently assess or audit this.

18. How optimistic are you for the global steel industry?

The global steel industry needs to re-size quickly, but I don’t believe the political will in some territories is present to make this happen in the time scale required not to create huge further uncertainty for the next two-to-three years.

19. What exhibitions and conferences will AMETEK Land attend this year?

AISTech 2016 in Pittsburgh, USA, next month (May) and Stahl in November in Dusseldorf.

20. AMETEK Land is based in the UK, but what’s happening steel-wise in the country?

TATA is divesting its UK steel plants to smaller parties who are selecting the nice, smaller scale, high quality product plants and lines.

16. What is AMETEK Land’s experience of China?

Chinese steel producers buy steel line technology from European line builders and engineering procurement companies.

AMETEK Land supplies the majority of its instrumentation to China through this channel.

21. Apart from strong coffee, what keeps you awake at night?

Steel capacity globally not being brought into line with demand quickly enough and the same impact from China on CRC and aluminium strip as China’s manufacturing base moves up the quality chain of products.

17. Where do you see most innovation in terms of production technologies – primary, secondary or more downstream?

We are seeing most innovation in downstream production technologies, especially coating and slitting technologies.

22. If you possessed a superpower, how would you use it to improve the global steel industry?

Capacity re-alignment and international standards and the publication of carbon footprint (ore delivered to site) per tonne of steel product. t

12. Where does AMETEK Land lead the field in terms of steel production technology?

Steel strip production line scanning pyrometers with the ability to fully integrate into a plant’s PLC system, slag detection thermal imaging solutions with over 200 installations globally and our range of digital, short-wavelength, large-span fixed-spot pyrometers designed for AHSS materials and processes. At the coke battery the Cyclops portable pyrometer is still seen as the most accurate, robust, lightweight solution on the market.

13. How much importance does AMETEK attach to digital manufacturing?

AMETEK Land is constantly looking to the leading edge of technology to improve efficiency for the customer. We see early adopters in the aerospace markets, but also www.steeltimesint.com

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HISTORY

The Wealden blast furnace The blast furnace first came to Britain well before the start of its Industrial Revolution of the late 18th century, which changed the face of the Midlands and the North of England. It came to the south of England by technology transfer from the Low Countries of Western Europe, parts of Belgium, the Netherlands and France. By Tim Smith* THE first blast furnace to come to Britain was based upon Walloon technology. It first appeared in 1490, near Buxted in East Sussex, with the building of the Iron Plat (or Queenstock) furnace and continued for 323 years until 1813 when the final furnace, Ashburnham (or Dallington), near Penshurst, East Sussex, closed.

In all, 119 blast furnaces operated over this period on the Weald, a wooded area of clay and sandstone stretching 180km E-W from Hythe to Petersfield and some 45km N-S bounded by the chalk escarpments of the North and South Downs. It encompasses parts of the counties of Kent, Sussex and Surrey.

This area provided all the factors necessary to sustain an iron industry.

Indeed, iron had been made in the area from pre-Roman times in small bloomery furnaces. Ore was abundant in the form of siderite (FeCO3), found at the junction of the clay and sandstone. An easily reducible ore, on roasting this typically contained 50% iron and was easily broken to size.

Lime occurred in the form of shelly deposits, often within the ore, sandstone was there for building and timber abundant for building and coppicing to make charcoal as fuel and reductant. What is more, the market and finance was nearby in London, as well as the seat of government, an agency that required cannon in times of war and to protect the nation’s growing trade routes. Transport was by teams of oxen – restricted to the drier periods of summer because of the thick clay to be crossed – carrying iron products to navigable rivers where boats conveyed them to the coast and hence to London by sea. Water was also a key resource

needed to operate the bellows of the blast furnaces and the bellows and hammers of the forges. Streams were dammed by earth mounds or ‘bays’ to create ponds, a number of which survive today.

A contemporary description of the operation of a Wealden blast furnace and forge, published in 1672 by John Ray – a celebrated naturalist – is an account given to him by Walter Burrell of Cuckfield, described as one of the chief ironmasters of Sussex.

The account describes the preparation of ore, the quantities of iron produced – ‘eight tun every founday’ (six days), the quantity of ‘coals’ (charcoal) charged – 24 loads each of ‘eleven quarters’ (11 hundredweight ie 0.55 ton = 558.8kg) per load of ‘mine’ (ore and lime) of 18 bushels (655 litres = 0.856 cu yard). A campaign normally lasted 40 weeks. During the ‘run in’ period of the furnace, smaller amounts of iron were tapped (700 pounds = 317kg) but eventually ‘sows’ weighing up to 2000 pounds (907kg) were produced as the hearth ‘widened’. Anything weighing less than 1000 pounds (453kg) was called a ‘pig’.

Gun founding Grey iron (containing free graphite) was produced for castings, which included fire backs, dog irons, grave slabs, cannon balls and cannon. Large cannon weighed up to 2.75 tonnes, were nearly 3m long and shot a 32lb (14.5kg) ball. Gun founding was a specialist undertaking carried out by 38 sites over the years. The cannon were cast vertically in a pit before the furnace with a core to make the bore, which was then machined true in a water-powered boring

mill. Each cannon had to undergo a proof test in London to show that it was sound.

To avoid the cost of shipping unsound cannon they were first tested at the furnace site and, today, we still find cannon balls in target banks from these trials.

White irons contain the carbon as iron carbide. Lowering the silicon content of the iron by blending ores and reducing the charcoal-to-ore ratio could produce white iron. White irons are too brittle to make good castings, but the fine dispersion of carbon make it ideal for refining to much more malleable wrought iron, reducing the carbon content from around 4.3% to near zero. This was achieved in a separate forge, St Michel, a preserved Walloon blast furnace built in 1771 near St Hubert, Belgium

the topic of Part 2 of this article (in the next issue).

Today, no extant furnaces survive on the Weald. However, excavations have shown their footprint – typically 5m to 8m square – and bays, (dams), slag and place names reveal their locations. A number of artefacts have been preserved in the town of Lewes, East Sussex. Details at https://sussexpast. co.uk/properties-to-discover/anne-of-cleveshouse

* Chairman Wealden Iron Research Group www.wealdeniron.org.uk/ April 2016

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4/22/16 9:27 AM

Innovative OES The Thermo Scientific™ ARL iSpark™ spectrometer satisfies the most stringent requirements in terms of performance and accuracy for quantitative determination of trace and alloying elements in your steel. It also allows the ultra-fast evaluation of micro inclusions, enabling corrective actions during the production. The new Thermo Scientific™ ARL easySpark™ benchtop CCD spectrometer offers perfect solutions for rapid analyses close to the production floor, for grade identification or alloy verification, for R&D purpose, or as backup of your ARL iSpark. The innovative ARL iSpark and ARL easySpark offer the

Visit us at: AISTech Pittsburgh, USA Booth #2024 16-18 May, 2016

most complete and complementary solutions, adapted to the steel plants that produce reliable quality products and want to improve productivity and profitability.

for reliable quality in the steel plant • see the full capacity of our OES product range at • thermoscientific.com/oes

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ARL iSpark OES spectrometer for uncompromised metal analysis

ARL easySpark OES benchtop spectrometer for easy and reliable metal analysis

Offering the highest quality of service in the graphite electrode industry we provide personalized consultations to maximize the total value for our customers.

We also manage individual partnership projects as ongoing support for your process improvement efforts. Mutually agreed projects, with defined targets and cost impacts, aim to reduce process variability using Six Sigma methodology.

Please visit our website to learn more about the types of services we offer and how we can add value to your operation.

See details under www.ge-competence.com

+ Visit us at

AISTech 2016 Pittsburg, USA Booth 1231

Broad Base. Best Solutions. | www.sglgroup.com