Steel Times International May June 2017

CONFERENCE REPORT

STRUCTURAL STEELS

THE HOUR BEFORE DAWN

PERSPECTIVES

Steel Orbis 2017 Spring Conference & 76th IREPAS Meeting

Is the US construction sector turning the corner? Myra Pinkham reports

Steel – the wonder product investors avoid, argues Mick Steeper

Jouko Salo, chairman of the board of drone tech company Aeromon

www.steeltimesint.com May/June 2017 - Vol.41 No4

STEEL TIMES INTERNATIONAL – May/June 2017 – Vol.41 No.4

THE RISE OF AUTOMOTIVE STEEL STI Cover MAY JUNE.indd 1

18/05/2017 09:19:56

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Automation_A4_e_neu.indd 1

03.05.17 11:07

CONTENTS - MAY/JUNE 2017

CONFERENCE REPORT

STRUCTURAL STEELS

THE HOUR BEFORE DAWN

PERSPECTIVES

Steel Orbis 2017 Spring Conference & 76th IREPAS Meeting

Is the US construction sector turning the corner? Myra Pinkham reports

Steel – the wonder product investors avoid, argues Mick Steeper

Jouko Salo, chairman of the board of drone tech company Aeromon

www.steeltimesint.com May/June 2017 - Vol.41 No4

1

Picture courtesy of: Edwards Edwards’ new large vacuum booster dedicated to steel degassing.

The innovative rotor design enables compact size, high performance and low energy consumption.

STEEL TIMES INTERNATIONAL – May/June 2017 – Vol.41 No.4

THE RISE OF AUTOMOTIVE STEEL STI Cover MAY JUNE.indd 1

18/05/2017 08:58:04

EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Full page.indd 1

4/27/2017 10:57:42 AM

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

16 2 Leader

By Matthew Moggridge, editor 4 News Industry news, diary dates and contract news 6 Innovations The latest new products.

Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117 Managing Director Steve Diprose stevediprose@quartzltd.com Tel: +44 (0) 1737 855164

11 USA update Trump’s indecision cause for concern?

Chief Executive Officer Paul Michael SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com

14 Latin America update Gerdau Summit – a new strategy

Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £178.00 Other countries: £254.00 2 years subscription: UK £320.00 Other countries: £457.00 ) Single copy (inc postage): £40.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England.

16 The hour before dawn The wonder product investors avoid

Automotive steel 20 Motoring ahead 24 Molybdenum and lightweighting 27 Developing automotive steel grades 32 Conference report “It’s all about China.” Or is it?

38 Structural steel If Trump’s as good as his word...

45 Process control Optimising desulphurisation at RSP. 51 Perspectives: Aeromon Focused on emissions monitoring 56 History Early cannon made in England

Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437.

Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2017

www.futuresteelforum.com ISSN0143-7798

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May/June 2017

18/05/2017 11:19:58

LEADER

Matthew Moggridge Editor

matthewmoggridge@quartzltd.com

2

‘Not known for innovation’.

This month I found myself in Nashville, Tennessee, the ‘music city’, and I must say that I was very impressed. What a great place – apart from the food, which was a bit too ‘burger and kettle chips’ for my liking.

I was in town for AISTech 2017 at the Music City Centre, an amazing structure with a curvy roof and a tremendous interior depth (and height) that dominates downtown Demonbreun Street. It was an ideal venue to host a premium get-together of the global steel industry. Next year the event moves to Philadelphia.

I can’t wait as I’ve always been a fan of AISTech, mainly because it offers an unrivalled opportunity to meet the cream of the US steel industry, although last week I never saw the larger-than-life figures of John Ferriola and Mario Longhi.

For me there are three key occasions to this great event: the Howe Memorial Lecture; the President’s Breakfast; and, of course, the Town Hall Forum. I’ll be reporting on the event in our next issue.

For now, though, I thought I’d focus on a comment made by Big River Steel’s CEO, Dave Stickler, who spoke at the aforementioned President’s Breakfast.

Big River Steel is arguably the newest and most technologically advanced steel plant in the world. It embraces technology such as artificial intelligence, it operates the first ‘learning’ mill and its various systems operate ‘in the cloud’. According to Stickler, however, the ‘status quo’ steel industry is not known for innovation.

Having recently developed the programme for Future Steel Forum, a conference devoted to Industry 4.0 and its application to steel manufacturing (www.futuresteelforum.com) I feel I must pass some kind of comment on Stickler’s assertion, although whether I agree with him or not might have to wait until after my conference (14-15 June, Warsaw, Poland). Why? Because while there is a lot of technological innovation going on in the steel industry, the big question must be: Is the steel industry taking full advantage of it?

Big River Steel is new, built from scratch and, therefore, in the perfect position to capitalise on all the latest hi-tech equipment and systems available. My view is that the wider steel industry has embraced the potential of new technology and is in the process of taking digital manufacturing very seriously, judging by the calibre of the Future Steel Forum’s growing list of delegates.

May/June 2017

Leader.indd 1

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4 NEWS IN BRIEF

US Steel close and re-open Midwest steel plant Following the discovery of Hexavalent chromium in a waterway near the Indiana Dunes National Lakeshore, close to Lake Michigan, US Steel shut down operations at its Midwest Plant in Portage Indiana. Less than a week later, and having fixed an accidental chemical leak, the plant was up and running again.

Port Talbot steelworks’ future still in the balance Doubts are being cast over the much-talked-about merger between Tata Steel and German steel giant ThyssenKrupp as concerns over the British Steel Pension Scheme and union opposition in Germany continue to blight any potential deal. The future of the Port Talbot steelworks might still be uncertain, according to online media reports.

Nucor Steel Memphis expansion creates jobs Nucor Steel Memphis is planning to invest US$8.1 million on expanding its operations in Memphis, creating 15 new jobs in the process.

The company has submitted an application for a payment-in-lieuof-taxes (PILOT) to the Economic Development Growth Engine (EDGE) for Memphis & Shelby County.

POSCO forecasts profits rise A rise in protectionism won’t affect POSCO’s fortunes, according to a report in the Financial Times. The South Korean steelmaker has forecast a rise in its 2017 operating profit, says the newspaper, ‘despite… growing trade protectionism and flagging Chinese steel prices’.

POSCO exports 17Mt of steel annually, 6Mt of which is shipped to the USA – but this will change now that President Donald Trump is in charge.

Indian steel output set to rise dramatically Indian steel output is expected to more than double over the next 10 years due to increasing urbanisation and a growing economy, according to a report

by Bloomberg. Production will rise 10% in the year commencing April 2017 and by 2030 will be in region of 240Mt, up from the 101Mt reported over the past 12 months.

May/June 2017

Industry news.indd 1

INDUSTRY NEWS

Get yourself to: Warsaw You know all about geo-political strife, you’ve had your fill of China and its overcapacity issues, you have a pretty good idea about what Donald Trump and so-called ‘Trumponomics’ means for the American and, indeed, the global steel industry and when it comes to CSR and reputation management, well, you’re already top of the class.

What is digital manufacturing?

Are you familiar with Industry 4.0?

What do the Americans mean

www.futuresteelforum.com when they talk about ‘smart manufacturing’ and what exactly is the ‘factory of the future’? These are all questions that need answers and the best place to find them is in Poland at the Sheraton Hotel, Warsaw, where many experts will be gathering (14-15 June 2017) for the much-anticipated Future Steel Forum.

The role of Industry 4.0 in steelmaking is a key theme of the conference and we have brought together leading steelmakers and

technology providers to discuss it. It’s not something you want to miss.

Book your delegate place now before they all run out, and don’t forget that a specially discounted fee of just £495 is being offered, per delegate, for bookings of five or more people.

Future Steel Forum is supported

by Steel Times International.

For further information, log on to www.futuresteelforum.com for programme details.

Global steel contracts in action…

A new twin-head side-trimming unit supplied by the German SMS group is now in action at PAO Severstal’s Cherepovets plant in Russia. It took only 11 days to remove the mill’s old side trimmer and install and wire the new one.

The first strip was trimmed three days after commissioning and the machine has been in use non-stop ever since.

The short install time was because the machine arrived on-site pre-assembled and function-tested with its own electrical and automation systems. The equipment can reach speeds of up to 360 metres/minute and trims the strip edges in the exit section of the pickling line, using two circular knives on both sides.

Severstal’s new side-trimming unit

Hüttenwerke’s modernised converter Hüttenwerke Krupp Mannesman GmbH has given Primetals Technologies the final acceptance for a modernised LD (BOF) converter number two at its Duisburg plant in Germany.

The project involved equipping the converter plant with a new trunnion ring and new suspension, claims Primetals. “The tilting drive was also modernised,” said the company, adding that the modernisation will help lengthen the life of the plant and increase its availability.

The converter itself has been operational since the middle of November 2016. www.steeltimesint.com

18/05/2017 15:23:26

INDUSTRY NEWS

Astounding Facts and Figures...

• With more than 12 million elevators globally transporting over • By 2050, 66% of the world’s a billion people each day, elevator maintenance issues cause 190 population is expected to live million hours of downtime annually. Source: ThyssenKrupp. in cities, up from 54% in 2016.

DIARY OF EVENTS

5

June 2017 05-08 Metallurgy-Litmash, Expocentre, Moscow.

Thermo process technology, foundry machinery, sheet metals, welding, cutting, joining technology, information processing and many other products for metallurgical plants.

For further information, log on to http://10times.com/metallurgymoscow 13-16 Metal & Metallurgy China, Shanghai New International Expo Centre.

Organised by Hannover Milano Fairs Shanghai A mixture of events including the 17th China International Metallurgical Industry Expo as well as a furnaces and a foundry event.

For further information, log on to www.mm-china.com/EN/

• China’s automotive industry is the second largest consumer of steel next to real estate.

Source: Market Realist.

• Globally, construction is expected to rise 20% to US$10.3 trillion by 2020, compared to just US$8.5 trillion in 2015.

• It is estimated that 75% of new pick-up trucks in the USA will have aluminium bodies in the not-too-distant future.

• Global sales of Advanced High Strength Steels are expected to reach US$21.17 billion by 2021. Source: Market and Markets.

• Greenhouse gases (GHGs) from the transport sector currently account for some 14% of global emissions. In Europe, emissions from road transportation alone are higher still at around 20%. www.steeltimesint.com

Industry news.indd 2

• In 2016 United Airlines booted 3,765 passengers off of flights because it sold more tickets than there were seats on the plane – they just didn’t get as much publicity as the man dragged off a United flight at Chicago O’Hare recently. Source: Telegraph. co.uk

• One fifth of global car production is made from ArcelorMittal steel.

Source: ArcelorMittal (the world’s largest steelmaker).

14-15 Future Steel Forum, Sheraton Hotel, Warsaw, Poland. Organised by Quartz Business Media Fed up with Chinese overcapacity, geo-political strife and the price of hot-rolled coil? Cheesed off with Trumponics? Then come to Warsaw to find out more about how Industry 4.0 (or smart manufacturing) can be applied to steel production.

For further information, log on to www.futuresteelforum.com 14-17 3rd ESTAD 2017, Austria Centre, Vienna. Organised by ASMET Another major European steel industry event, this time billed as a ‘technical exhibition’. Delegates will acquire knowledge of new ideas and developments in the field of process technologies.

For further information, log on to www.estad2017.org

November 2017 14-17 Metal Expo, Hall 75, VDNkHa, Moscow, Russia This is one of those big, mustattend events. Last year the event attracted 530 companies from 32 countries, including steelmakers, tube and pipe manufacturers and distributors and engineers.

Expect a similar deal this year. In fact, there’s so much going on, you’d better check the website.

For further information, log on to www.metal-expo.ru

May/June 2017

18/05/2017 15:23:33

6

INNOVATIONS

ABB’s Ability Smart Sensor is a remote condition monitoring solution that enables users to check the status of their LV motors from a smartphone or dedicated web portal. The compact sensor is the size of a smartphone and can be attached to motors to pick up operating and performance data, which can then be transmitted to the cloud and processed to produce motor health and performance information. The processed data is supplied in an easy-to-understand format and enables predictive analytics that can boost uptime and reduce energy consumption.

Otto Preiss, managing director of ABB’s motors and generators business unit, says he is proud that the new sensor is entering the European market and will soon be available in the USA. “It has been successfully trialled with many of our customers around the world. This solution is truly a quantum leap for millions of LV motors”, he said. “It enables plant operators to do effective maintenance planning for their motors, assess the efficiency of their operation and prevent costly downtime. We are confident that this solution will not only transform maintenance approaches but also create added operational value for our customers.”

Jonas Spoorendonk, global product manager of ABB Ability Smart Sensor, reported positive results from pilot testers.

“In a typical example, a sensor at a chemical plant in Germany indicated that a pump motor was running in overload every time it started. The problem turned out to be the incorrect operation

Honeywell

ABB’s Smart Sensor available in Europe of a valve. This was causing high pressure in the system and a great deal of stress on the pump and seals – a situation that the plant’s regular maintenance had no way to detect. In many other cases sensors have provided early warnings of bearing problems, enabling motors to be replaced well before they failed.”

Predictive maintenance based on data from the solution can help to reduce downtime by up to 70%, extend motor lifetime by as much as 30% and cut energy consumption by up to 10%.

Sensor units can be factory fitted on new motors or retrofitted on installed motors within minutes.

They are available for both ABB and non-ABB motors.

According to ABB, the sensors in the first release are CE certified and compatible with safe-area induction motors for direct on-line S1 duty, ABB IEC sizes 160-450 and ABB NEMA sizes 140-449. Quick installation of the sensor unit is

products.indd 1

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

puts new boots on the ground Honeywell has introduced two new products that it claims will provide workers with the best foot protection in harsh and tough environments.

Energic and Synergic footwear offer workers the right balance between modern design, durability in extreme environments, strong grip on any surfaces and excellent all-day comfort, says Honeywell.

Aurélie Zucco, senior product manager of Honeywell Industrial Safety EMEA, said that the footwear was developed in response to a growing demand for stylish, comfortable and high-performance footwear.

“By incorporating innovative features, this footwear provides those who work in challenging outdoor environments with the comfort, durability and protection they need, whether on an offshore platform, a construction site or working for a utility,” Zucco said.

The new range incorporates full-grain leather into the design to provide water abrasion resistance in wet and dirty locations.

3D Poromax lining ensures that feet remain dry and absorbs perspiration while the polyurethane (PU) coated scuff cap is resistant to abrasion. The footwear has

May/June 2017

made easy as no additional wiring or machining is required. Initial monitoring functionality will cover bearing health, vibration, surface temperature, speed, supply frequency, and number of starts. Later releases will expand the range of functionality, adding energy consumption monitoring during Q3 2017. A firmware update will be provided to bring this function to already installed sensor units. The first systems will utilise a smartphone app to transfer data. A gateway unit for automated data uploading will become available later in 2017.

Smart sensor condition monitoring is part of ABB Ability, which brings together all of ABB's digital solutions and services, each built from a unique combination of sector knowledge, technology leadership and digital expertise.

been specifically designed to facilitate fluid evacuation and has reinforced stitching on quarter and upper areas to ensure durability. A gusseted tongue provides improved protection against fluids while an ergonomic and padded collar ensures optimal comfort when used in any position.

The range conforms with EN ISO 20345: 2011 for safety footwear and has a reflective piping on the heel or lateral side.

The Energic features front lacing and a side zipper, which enables workers to unzip the laced boot and step in and out quickly. It also helps them to lace the boot tightly while providing the necessary ankle support. Energic’s non-metallic safety components, including the toe-cap and anti-puncture mid-sole, have been designed to ensure lightness and thermal insulation for improved comfort.

Energic and ankle-length Synergic both benefit from Honeywell’s injected moulding techniques, which, claims the company, create a flexible and lightweight product. Dual-density polyurethane (PU2D) injected outsoles provide freedom of movement and strong grip on any surface as well as shock absorption that workers need in tough conditions.

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

www.steeltimesint.com

18/05/2017 09:26:58

Going downhill at last ‌

8

INNOVATIONS

New concept for hoist and crane control Hoist and crane systems specialist J D Neuhaus (JDN) has developed the JDN-RC (radio control) receiver for controlling hoists and cranes. The system is designed for long-lasting performance in rigorous operating environments, JDN claims, such as industrial and offshore applications, including ATEX (explosive atmosphere) zone 2/22 conditions.

The equipment features a solid and compact receiver (w = 250 mm, d = 120 mm, h = 200 mm) to suit all kinds of hoists including those with a low-carrying capacity. All components are accommodated in a shock-resistant GRP casing, which means that the device is protected against the ingress of dust and can withstand low-pressure water jets from any direction and is seawater resistant. Breathable membranes help guide any condensation from the interior to the exterior.

JDN claims that ‘the meticulously-designed device’ can be quickly installed. The receiver can be mounted on the hoist or trolley, or at a separate location, in line with customer requirements. Furthermore, a standardised interface on the JDN-RC means it can be offered as a retrofit solution too.

At the transmitter, single or two-step

commands are supported by control elements that include a key switch, start and stop buttons, joystick, LED operating status display and LED low-voltage indicator. The JDN-RC control allows users to work at a safe distance from the load and take a better viewpoint during operations, claims the company. Here, the signal and selected command is transmitted and transferred into the controls of the crane or hoist by the receiver to ensure instantaneous performance.

The company claims that its new equipment is ideal for spanning long distances between the hoist and the operator, and represents a sensible alternative to applications demanding a long control hose. “The design also facilitates use in

hard-to-access locations, while multiple hoists can be controlled simultaneously if required. A charger for the external battery and a leather strap are supplied with every unit, says JDN. Both transmitter and control receiver are rated for tough working conditions and are claimed to be insensitive to dust and humidity. The transmitter has a working temperature range of -20 to +55°C while the receiver operates within a -25 to +55°C range. A transmitter Ex classification is provided of Ex II 3G Ex ic IIB T4 Gc and Ex II 3D Ex ic IIIC T95° C Dc for zones 2 and 22 respectively and Ex II 3G Ex nc [ic] IIB T4 Gc (zone 2) Ex II 3D Ex tc [ic] IIIC T135° C Dc (zone 22) for the receiver.

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

May/June 2017

products.indd 2

18/05/2017 09:27:01

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USA UPDATE

11

Trump’s indecision cause for concern?

After initially requiring US government-funded projects to use American steel, US President Donald Trump recently retracted from this stipulation and said that steel produced outside of the US could be used for the ambitious Keystone XL pipeline project. By Manik Mehta*

THE Trump administration reconsidered the domestic steel requirement for the Keystone XL project, apparently, because of negative reaction, particularly from the energy sector, to the domestic steel requirement. Among those who had voiced their discontent were Dakota Access pipeline-owner Energy Transfer Partners, the Russian-owned pipe producer Evraz North America and TMK IPSO, and pipeline giant Williams Companies and EQT Midstream.

The oil and gas industry expressed its discontent through its trade associations and lobbying groups such as the American Petroleum Institute (API), Independent Petroleum Association of America (IPAA), Association of Oil Pipelines, American Fuel & Petrochemical Manufacturers (AFPM), and Magnolia LNG. The argument put forth by the White House is that the steel needed for construction was already purchased and the southern part of the Keystone project had already been completed and started pumping oil in 2013. Indeed, some parts of the pipeline connecting Alberta with Nebraska had been already built.

The Keystone project has had a chequered history. Trump’s predecessor Barack Obama rejected TransCanada’s multi-billion dollar pipeline with the argument that it did not benefit US industry, not to mention the environmental damage it would cause.

In a twist to his ‘America First’ slogan, Trump has excluded the Keystone project but insists that projects using state funds would have to use domestic steel.

But many say that the ‘America First’ goal does not make any economic sense for

builders because the costs of domestic steel would be much higher than imported steel, besides incurring production delays and cancelled projects.

The Trump administration’s inconsistencies, manifested in its “yesno-yes” kind of responses on steel usage, are worrisome for the energy sector which has conveyed this sentiment to the Department of Commerce through its industry associations, warning that such a plan would lead to disruption of existing supply chains and a surge in prices which were already rising. Furthermore, American steel providers would not be able to meet the demand.

The US steel industry does not presently produce the type of steel used in pipelines, but it has emphasised its capability and willingness to do so. Doug Matthews, senior vice president of US Steel recently told CNBC that first “we’ve got to have a level-playing field to compete”.

The oil and gas associations recommended that steel suppliers could be encouraged to manufacture the quality of steel needed for pipeline by offering them incentives; steel products of this specific category are considered to be “among the slowest, most expensive products for domestic mills to produce”. Besides, the number of American manufacturers that can produce the large, technically sophisticated pipes needed for transporting oil and gas, is small.

There is demand in the US for pipes for oil and gas, but there are also fears that Trump’s call for domestic raw steel in manufacturing such products could further raise price levels because of taxes. In short, the associations argue that a decrease in the availability of these imported steel products could affect the production capabilities and the economics of the domestic pipe mills and, eventually, even impact jobs.

Despite the misgivings of environmentalists against the Keystone XL project, already signed by Trump, US steel manufacturers are positively inclined to Trump’s executive order.

ArcelorMittal’s US chapter has said that it supported the president’s efforts to increase the quantity of domestic steel in infrastructure projects.

Meanwhile, shares of steel companies showed an improvement in recent

* USA correspondent www.steeltimesint.com

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May/June 2017

18/05/2017 09:34:18

12

USA UPDATE

times, particularly with Trump’s plan to upgrade the infrastructure, an endeavour which pundits argue, will cost $1 trillion.

Infrastructure modernisation is expected to boost steel demand. Trump’s aggressive trade policies are also anticipated to provide more protection to the US steel industry. The performance of stocks of steel companies such as US Steel Corp. reflects this trend.

China, a thorn in the steel industry’s side is in the news again this time because of its attitude in a cyber theft lawsuit filed by US Steel.

The US steel giant has complained of a lack of co-operation and stonewalling

by China against a Chinese governmentowned steel company forcing US Steel to temporarily withdraw part of its case.

US Steel has alleged that China’s stateowned Baosteel had hacked into US Steel’s computers and stolen trade secrets for advanced, high-strength steel (AHSS).

But that’s not all: China is now allegedly making high-strength steel and shipping hundreds of thousands of tons of it to the US via third countries to avoid tariffs. The US steel industry has felt the impact of this development.

May/June 2017

USA.indd 2

While US Steel’s legal action was widely applauded in this trade-secret case, sources familiar with the litigation say China has tried very hard to ignore, dodge or reinterpret requests from US Steel for information to pursue the case. The difficulties were further compounded when experts and witnesses from China needed to pursue the lawsuit were not available.

In addition, the administrative judge did not agree with US Steel’s plea for fair treatment, forcing the latter to withdraw one of its claims, but it moved forward with two other claims against Baosteel and other Chinese companies.

US steel companies, in general, are not happy that President Trump did not forcefully discuss the cyber crime issue during his recent talks in Florida with visiting Chinese President Xi Jinping.

But the US also faces the ire of the European Union, with Germany urging the EU to consider filing a complaint with the World Trade Organisation against the US plan to impose duties on steel-plate imports from five EU member states.

The US Department of Commerce recently released a finding that European and Asian producers had indeed been

dumping certain carbon and alloy steel cutto-length plate in the US market, prompting it to impose duties ranging from 3.62% to 148%.

The Commerce Department’s finding was in response to a petition filed by Nucor Corp and US subsidiaries of ArcelorMittal SA and SSAB AB This will affect companies in Germany, Austria, Belgium, France and Italy, as well as Japan, South Korea and Taiwan. Turkey, whose steel pipe and tube products faced a US anti-dumping investigation, has challenged the latter’s anti-subsidy duties at the WTO. In Brussels, a spokesman for the European Commission, describing the proposed duties as “artificially inflated”, said that the final duties were in many cases higher than the preliminary duties set in November.

German Economics Minister Brigitte Zypries reinforced that Germany would, along with the European Commission, continue to campaign for Washington to comply with WTO rules.

“The signals the US is sending in the steel sector really worry us,” said Zypries who will raise this issue during her US visit in May. �

www.steeltimesint.com

18/05/2017 09:34:19

Excel under pressure.

Hydraulic systems experience constant pressure, but it’s the maintenance managers who feel it.

Mobil DTE 10 Excel ™ withstands high pressure and endures up to three times longer drain intervals compared to conventional hydraulic oils. Which translates to less maintenance – and a bit of relief for your business. Learn more at mobilindustrial.com

© 2017 Exxon Mobil Corporation. All rights reserved. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its affiliates unless otherwise noted.

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Design

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Project Leader (Master only)

Account Management

ADAPT

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LATIN AMERICA UPDATE

Gerdau Summit – a new strategy Gerdau Summit, a joint venture between Gerdau, Sumitomo Corp. and Japan Steel Works (JSW), dedicated to the manufacture and sale of forged wind power generation products, was launched on 28 March 2017. The following day Gerdau announced its agreement to sell Putney Capital Management (PCM) a 50% stake in its Colombian steel operations, transforming it into a strategic alliance. It seems like more than a coincidence that both events happened almost simultaneously, writes Germano Mendes de Paula* GERDAU Summit is a joint venture between Gerdau (59%), Sumitomo Corp (39%) and JSW (2%). Gerdau’s contributions are related to assets for the production of rolling mill rolls, a strong presence in the rolls market, and management/industrial expertise, but without any cash expenditure.

The Japanese investor provides both financial and technological contributions (vast expertise in the global wind power industry and technological mastery of processes for industrial components).

This strategic alliance is based at Gerdau’s Pindamonhangaba mill (formerly Aços Villares) in the State of São Paulo.

Pindamonhangaba is located between São Paulo City (146km) and Rio de Janeiro City (287km). Therefore, it occupies a favourable position in relation to the country’s industrial hub.

The Pindamonhagaba works, part of Gerdau Special Steel Division, incorporates a mini-mill with a 620kt/yr crude steel and 1.2Mt/yr rolling mill capacity. In addition, it has a 40kt/yr rolling mill rolls capacity.

The new JV hopes to diversify into new markets and develop more technologically sophisticated products with higher profit margins.

Gerdau Summit is planning to invest, until 2020, roughly $78M on new equipment, including a forging press and manipulator, a machine tool vertical lathe, a ring rolling mill, a quenching tank and deep hole machine (see image right). Total capacity for the production of parts for the wind power industry and of rolling mill rolls should reach 50kt/yr. This project will create approximately 100 new direct jobs.

In phase one, the partnership is already producing forged steel parts to supply the

mining and steel industries, as well as the local sugar and ethanol sectors. Production of steel parts for wind turbine towers is expected to start in 2018. The key products will be main shafts (6t to 14t) and forged rings (1.5t to 2.1t).

Considering that Gerdau’s global steel product dispatches totalled 15.6Mt in 2016, it can be concluded that Gerdau Summit is relatively small. Indeed the JV is dedicated to a technology-oriented niche, in comparison with more commoditised products (such as rebar, wire rod, MBQ and so on) that are the company’s core business. In this way, for Gerdau, the partnership is a way of accessing new markets, via the optimisation of its current industrial assets and without investing fresh money.

Gerdau machine tool, vertical lathe

Gerdau Diaco Gerdau entered the Colombian steel market in 2005, when it purchased a 57% stake in Diaco, the country’s largest rebar producer.

In 2008, it acquired an additional interest of 40%, increasing its participation to 99% of the capital stock. In December 2016,

Gerdau Diaco sold its Yumbo long steel unit to local producer Siderurgica del Occidente (Sidoc). It retains three plants in Colombia: two in Cundinamarca and one in Boyacá, with a combined 674kt/yr crude steel and 545kt/yr rolled product capacity.

It is interesting to look at Colombian apparent consumption since the acquisition of Diaco (Fig. 1). It improved from 2.4Mt in 2005 to 2.8Mt in 2006-2007.

After declining to 2.2Mt in 2009 due to the global financial crisis, it regained its positive trajectory up to 4.0Mt in 2015.

Nonetheless, it showed a retraction of 9.2% to 3.7Mt in 2016. Colombian steel demand expanded at 4.0% per annum.

Fig. 2 shows the evolution of long steel products output, which amplified from 0.9Mt in 2005 to 1.3-1.4Mt between 2011 and 2016. In fact, it diminished 6.6% in 2016 compared with the previous year. For the entire period, it had a 3.5% compound average growth rate (CAGR). However, if the 2005 performance is excluded, this rate is adjusted to only 1.7%, which suggests that long steel producers are facing a mature stage. The sale of 50% of Gerdau Diaco to PCM should be analysed in this context.

PCM is already a partner of Gerdau in its Dominican Republic steel operations.

It is an asset management company with investments in the Caribbean and Central America. The joint venture transaction was valued at $165M, helping Gerdau to reduce its financial leverage. Considering Gerdau’s market capitalisation at the time of the announcement ($5.6bn), the transaction is relatively small, but yet another step towards lower debts.

* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br May/June 2017

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LATIN AMERICA UPDATE

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1400 4.0 1000 3.0 800

2.0

400

1.0 0.0

0 2005

2007

2009

2011

2013

2015

Fig 1 Colombia’s apparent steel consumption, 20052016 (Mt)

According to bank BTG Pactual, Gerdau is de-consolidating a low margin business in Colombia, which was accounted for in equity income.

This will slightly improve the EBITDA margins in its Latin American Division.

While details on cash injection from the transaction were not disclosed, the bank estimates that the transaction would reduce Gerdau’s consolidated net debt by $120M, which is equivalent to 3% of the current net debt.

General speaking, Gerdau’s previous growth strategy was centred on some pillars: a) expansion based on acquisitions rather than organic growth; b) resistance

2005

2007

2009

2011

2013

2015

Fig 2 Colombia’s long steel product output, 2005-2016 (kt)

to sell steel assets; c) strategic alliances are exceptions, mainly because it inherited stakes from a larger acquisition.

Nevertheless, in August 2015, Gerdau said that it was open to discussing potential asset sales in light of the challenging conditions in the global steel market.

The company’s portfolio review could result in the partial sale of stakes, the establishment of joint ventures or mergers.

The two joint ventures discussed, even relatively minor ones, are good examples of the new strategy carried out by Gerdau. �

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16

THE HOUR BEFORE DAWN

The wonder product investors avoid This second essay in the Hour Before the Dawn series introduces steel’s greatest paradox: how come it’s so hard to make money out of manufacturing the most useful material known to man?

By Mick Steeper*

STEEL fully deserves that accolade. It’s the most versatile, reliable and affordable general-purpose engineering fabric that mankind possesses, and it’s a safe bet that future civilisation will never devise anything to replace it. But at the same time, the businesses that manufacture steel struggle to make money, pretty well without exception and all over the world. Even when we take the long-term view, steelmaking is revealed as having been a poor investment for at least the last 50 years.

How can both these facts be true at the same time? The fundamental reason is that overcapacity in the global steel industry is endemic. This is because a developing economy needs a domestic steel industry to furnish the building of its infrastructure, but about 10 to 20 years later and with that infrastructure by now substantially complete, the capacity of this industry outstrips national consumption. The new economic power then turns to export, fuelling overcapacity and driving global prices down. The world is currently enacting this cycle in an extreme form, because the rising exporter is by far the largest productive economy to have emerged in modern times – China.

Overcapacity, the excess of supply over demand, can’t be easily or quickly corrected. The problem is a topical one, with a new administration in the United States determined to insulate its national industry against low-priced imports.

The overwhelming economic consensus, however, is that protectionism is a zerosum game at best, merely redistributing the impacts of overcapacity while frustrating a natural redress through competition by defending otherwise unsustainable producers. There are moreover true competitive responses to overcapacity, by which the ways in which steel is both made and used are changing to reflect aspects of the oversupply, and there are two ways in particular that will bear on future technology. The more obvious one is the search for differentiation by steelmakers.

The subtler, but deeply significant, one is an impending change in the scrap balance. We will return to these two technology drivers in later essays.

Free competition It’s important to remember meanwhile that free competition is what drives innovation.

That illusory alternative in protectionism will

do nothing for technological development either, because it implicitly defends the existing assets and their processes. Until a few years ago, the world believed that it could tolerate a technologically-stagnated steel industry, because the inefficiencies weren’t apparently hurting anybody too much. As the last quarter of the last century dawned, we could envisage running out of oil and we feared it. There was no equivalent problem in steel, though, because global reserves of iron ore, as well as the coal to reduce it, were recognised to be all but inexhaustible. Extraction of these resources was moreover considered to be both technically and politically straightforward – nobody ever described the regions that made steel as either “running out or running wild”.

Technological change Today however we recognise an imperative for technological change in steelmaking, because the carbon footprint of the steel industry is intolerable. The molar chemistry of the reduction reactions shows that the blast furnace makes about 80% more carbon dioxide by weight than it makes iron, and when the additional burdens of

* Chair of the Iron and Steel Society (steel division) May/June 2017

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THE HOUR BEFORE DAWN

ore shipment and sintering are added the ratio approaches 2:1. One way or another, this has to be addressed – by increased recycling, alternative reductants, resort to carbon capture or simply making less steel, or more likely a combination of all of these. Once again, present-day America brings the issues into sharp relief: a policy of protectionism for a carbon-based domestic steel industry arguably requires a parallel denial of climate change to make it credible. The position is ironic, since it’s American enterprise that has led the world in demonstrating the competitiveness of electric steelmaking.

The remaining potential justification for protecting a national steel industry is the strategic one. There certainly was a time, when steel was the fabric of war, that making the metal was unquestionably a strategic activity for any nation resolved to defend itself. For at least the last half-century though, the munitions have decisively prevailed over the armour, and so the case for steel as a military necessity

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no longer stands up. Some cultures have moved on from the old mind set more than others. In some parts of the world, steel still symbolises a kind of economic virility, and this idea evidently carries weight among a democratic electorate. It doesn’t appeal to the pragmatism of the investor, though, and the steel industry has long since lost its value to politicians, democratic or otherwise, as a guarantor of high levels of employment. The modern steel industry requires very low levels of operational manpower per unit capital employed when compared with most other kinds of economic activity.

A low-carbon future We could now perhaps recast our paradox in a different form. Mankind needs the global steel industry to step up and reinvest in a low-carbon future, but we must also concede that the steelmakers themselves might never again be able to afford to do so. Moreover, external financiers aren’t motivated to put the money in either,

because the return on their investment will inevitably be poor. And although the world has embraced the value of collaborative global research in many fields, with health an established example and energy a rapidly developing one, there is little to suggest that the processing of commodity bulk materials like steel is next on the list of collective priorities for the likes of UNESCO. The steel industry hasn’t stagnated yet, however. Steel’s dominance as an engineering material was born of innovation, and years of refinement of product and process have defied this kind of economic pessimism.

From this point too, the series will take on a more direct technical focus, and the third essay will look at how innovation is approached by the various players in steel, contrasting the research objectives of the established steelmakers with those of the disruptors, and highlighting the way in which process “sea-changes” have historically refreshed and regenerated the industry. �

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AUTOMOTIVE STEEL

Motoring ahead IT is estimated that more than 75% of new pick-up trucks in the USA will have aluminium (or ‘aluminum’) bodies in the not-too-distant future. The Ford F150 pick-up truck, for example, now sports an aluminium body.

With the threat posed by ‘the miracle metal’ looming large, there has been considerable research and development by the steel industry over the past five years into advanced high-strength steels (AHSS) and it would be fair to say that, as a result, steel is still very much in the frame when it comes to supplying the automotive industry with metal.

According to the World Steel Association (worldsteel) advanced high-strength steels are now used for nearly every new vehicle design. It is claimed that AHSS enables carmakers to reduce vehicle weight by 25% to 39% when compared to conventional steels and that the overall weight of a typical five-passenger family car can be reduced by between 170g to 270g, that’s a lifetime saving of 3 to 4.5 tonnes of greenhouse gases (GHGs). Amazingly, this figure represents more than the total amount of CO2 emitted during the production of all the steel in the vehicle, worldsteel claims.

Automotive is a key market for steelmakers worldwide; it is so important that major steelmakers are investing heavily in developing facilities at home and abroad and, where necessary, setting up joint venture companies to service the automotive industry.

AHSS in the ascendancy In the USA, market research company Market and Markets claimed recently that AHSS accounted for US$14.27 billion of sales worldwide and is expected to grow to US$21.17 billion by 2021.

AHSS are lighter and stronger than conventional steels, which can only mean lighter cars and fewer emissions.

In the USA, Corporate Average Fuel Economy (CAFÉ) standards, introduced in 1975, are designed to improve the average fuel economy of cars and light trucks.

Under President Barack Obama, the US

Environmental Protection Agency (EPA) set a target (for cars and light trucks) of a fleet-wide average of 54.5 mpg by 2025; but now that Donald Trump has taken the reins of power it looks as if that rule might be revised downwards as ‘the Donald’ attempts to make the American car industry ‘great again’.

Trump has already announced that he plans to re-examine Obama-era fuel efficiency rules for cars and trucks, a move welcomed by the American Iron and Steel Institute (AISI).

AISI president and CEO Thomas J Gibson, said that the AISI was pleased the Administration had withdrawn the final determination of the EPA Light Duty Vehicle Emission Standards issued in January.

He said he looked forward to a dialogue between the EPA, National Highway Traffic Safety Administration, California Air Resources Board, auto manufacturers and other relevant stakeholders on the Mid-Term Evaluation.

According to Gibson, the steel industry is investing in new grades of lightweight, high-strength steels to assist its automotive customers in reducing emissions and improving fuel economy performance. “We are confident that getting the partnership between the government and stakeholders back on track will result in a plan for the future which protects the environment by establishing a common sense, implementable single national programme for CAFE and GHG standards,” he said.

In the UK car production reached a 17-year high last year (2016) due to exceptional global demand, according to recent figures released by the Society of Motor Manufacturers and Traders (SMMT).

The figures show that 1.7 million cars were produced in the UK last year and that 78.8% were exported (to Germany, France and the Netherlands).

Car production in India is expected to jump from 3.6 million units to 7.3 million units between 2014 and 2020. At the same time, the Indian steel industry is planning to triple steel production value and acquire the technology to produce higher value products, such as automotive steel.

Joint venture ArcelorMittal is said to be in the process of setting up a joint venture with Steel Authority of India Ltd (SAIL) to jointly develop an auto-grade steel plant in India before May 2017, although there have been production-related issues that are delaying progress.

Plans between the two companies have been in the pipeline for some time. The objective is to construct an $897 million automotive steel plant combining a coldrolling mill and downstream facilities in India – possibly within one of four major ‘auto clusters’ in the country – with a view to tapping India’s fast-growing automotive market.

According to an online report by Market Realist, China’s automotive industry is the second largest consumer of steel next to real estate. Car sales in 2016 totalled 28 million units and represented an increase of 13.7% on 2015 sales figures. It is argued that higher automotive sales in China bode well for global steel demand.

‘A technological leap forward’ For proof that the steel industry is investing in automotive steel plants, look no further than Austria where worldleading steelmaker voestalpine recently opened the world’s first phs-directform facility in Schwäbish Gmünd in Germany.

The company describes the facility as ‘a technological leap forward in lightweight automotive construction’ and claims that a European premium automobile manufacturer is relying upon the process for manufacturing its ultra-high-strength body-in-white parts in a single step.

According to voestalpine, its new technology enables press-hardened, ultra high-strength and corrosion-resistant bodyin-white parts in galvanised steel strip to be produced using a ‘direct process’, meaning a single step including heat treatment and final forming. The end result is extremely lightweight, tough and safe components such as stiffeners, side panels and door elements.

Voestalpine is planning further investment to expand the new facility, which is located

* Editor, Steel Times International May/June 2017

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AUTOMOTIVE STEEL

There’s a lot happening in the world of automotive steels. While many people have highlighted aluminium – the ‘miracle metal’ – as the next big thing for car manufacturing, the steel industry hasn’t ignored the clear and present danger to its livelihood. By Matthew Moggridge*

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in Baden-Würtemberg, in order to handle the aforementioned premium automobile manufacturer’s EUR 250 million order.

Peter Schwab, member of the management board of voestalpine, said that his company’s intensive research and development work has given it a ‘technological edge,’ enabling it to meet the ‘ever-growing demands of the automotive industry’.

“The current major order confirms our global leadership role in developing premium automotive components in lightweight construction,” Schwab said.

The order is for a range of premium structural and exterior body parts for a series of sports cars and electric vehicles, which will start production this summer.

Schwab said he was delighted that voestalpine’s directform technology had enabled the company to secure such a major order so soon after the facility became operational. “We are able not only to produce ready-to-install components, but also complex body modules according to our customers’ designs,” he added.

New automotive steel In the Czech Republic, ArcelorMittal Ostrava has announced that it is producing ‘new steel’ to be used in the automotive industry.

The plant’s medium section rolling mill is producing flat bars that will be used to make leaf springs, which are used in a vehicle’s suspension system. While flat bars for leaf springs are already being manufactured in ArcelorMittal facilities in Canada, South Africa and Brazil, the Ostrava plant is the first in Europe.

For ArcelorMittal Ostrava it’s all about increasing its competitiveness and underlining the company’s commitment to research and development in the automotive market, according to CEO Vijay Mahadevan. “The production of bars for the automotive industry represents another step in our efforts towards extending the portfolio of high added value products,” he said.

The Ostrava medium section rolling mill can produce 750kt/yr of steel products, including a variety of hot-rolled long products for the construction industry.

A recent EUR 7.4 million investment has

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AUTOMOTIVE STEEL

enabled the site to produce threaded bars ranging in size from 15mm to 75mm and these are used in buildings, underground construction and geotechnical structures, the company claims.

For the production of leaf springs and other spring-like components, Ostrava will be manufacturing its flat bars from lowalloy chromium vanadium steel. According to the company, “the required hardenability and resilience are achieved by special heat treatment – quenching and tempering.”

Three basic profiles of flat bar will be offered – for parabolic and multi-leaf springs and air linkers – in sizes of 50mm to 100mm width and 5mm to 50mm thickness.

ArcelorMittal claims to be a technology leader in AHSS products and says that

one fifth of global car production is made from ArcelorMittal steel and that 19% of revenues were contributed by the company’s automotive business.

Hungary for automotive business Hungary, according to Karsten Kroos, CEO of German steelmaker thyssenkrupp’s (TK’s) component technology business, has developed into an important European location for the international automotive industry. He said that car production in the country had doubled to over 500,000 light vehicles (produced in 2016) and with this in mind TK’s components business is pursuing a ‘profitable growth strategy’ in the country.

In addition to a chassis and components plant being built by TK near Budapest, the company is planning to build a further automotive and components plant in Debrecen, eastern Hungary, with construction starting in the spring on a site of roughly 20,000 square metres.

The plant will produce over six million coil May/June 2017

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springs and stabilisers from 2018 and will supply ‘renowned OEMs’ according to the company.

TK, which claims to be one of the world’s leading suppliers of materials and components to the automotive industry, believes that Hungary is of growing importance – and not just for production.

The company also operates a software development centre for steering technology in Budapest where 500 software engineers are hard at work developing solutions for electro-mechanical steering systems as well as steer-by-wire and driver assist systems in preparation for driver-less cars.

Innovation Innovation is crucial for any self-respecting steel company hoping to drum up business

within the automotive sector. Speaking at the opening of Tata Steel’s latest line for tailor-welded blanks at Tata Steel’s automotive service centre in Wednesfield, West Midlands, UK, Laurence Davies MBE, CEO of the Automotive Investment Organisation at the Department for International Trade, commented: “It’s fantastic to see companies, such as Tata Steel, investing in state-of-the-art downstream facilities.”

Tata Steel’s automotive activity in the UK stretches over a number of sites. Hotand cold-rolled steel is produced at the company’s Port Talbot plant in South Wales and is galvanised in nearby Llanwern at the ‘world-class’ Zodiac Plant. Process-ready steel is then supplied direct to automotive manufacturers or sent to sites like the Wednesfield service centre for further processing.

The Wednesfield site is claimed to be one of only a few in the world with a robotic welding line capable of trebling the site’s production capacity of tailor-welded blanks,

which enable manufacturers to make lighter vehicles with lower emissions. They are often used on car door panels. Tata Steel says the new line is the fastest, biggest and most efficient in the world and can weld more than a 1,000 car parts every hour.

In February, when Tata Steel opened its Wednesfield service centre, it was also finalising a big deal with UK-based Liberty House Group (LHG). LHG has acquired Tata Steel UK’s Speciality Steels business for £100 million and is now perfectly placed to expand its product range significantly.

Tata Steel in Europe was recently announced as the winner of the Volvo Cars Quality Excellence award, marking 60 years of co-operation between the steelmaker and car manufacturer. Tata is the first steel producer to win the award.

Johan Casparsson, global account manager (automotive) for Tata Steel, said: “It is crucial for us to consistently focus on the high quality of our steel, alongside the exceptional levels of our technical support.

That is our highest priority,” he said.

Automotive ‘centre of excellence’ Liberty Vehicle Technologies, part of Liberty House Group, plans to invest £10m on an automotive centre of excellence in Leamington Spa. The 50,000 square-foot facility opens early in 2018 and is designed to ‘boost the Group’s technological development firepower and expand and enhance its current manufacturing capability in the advanced autocomponents market’.

LHG also unveiled the ‘T1 Evo by Liberty’ – a ‘hyper car’ that showcases the engineering strengths of the business.

Sanjeev Gupta, executive chairman of Liberty House Group and the GFG, of which Liberty House Group is a member, said that Britain has a vibrant vehicle manufacturing industry that made over 1.7 million cars and 93,000 commercial vehicles last year. The development of an automotive centre of excellence, he said, signalled his company’s intention to lead a renaissance of the UK auto-components section.

Gupta has just launched a new speciality steels business, Liberty Speciality Steels, headed up by prominent international metals industry figures, such as Jon Bolton, the company’s CEO. Pushing the envelope South Korean steelmaker POSCO has developed ‘giga steel’ – a product www.steeltimesint.com

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AUTOMOTIVE STEEL

claimed to be lighter and stronger than conventional steels. Kwon Oh-joon, POSCO’s chairman, claims that giga steel is three times stronger than aluminium and lighter than regular steel.

Right now there are 17 giga steel products ready for commercial use. Giga steel is ultra-high-tensile and rated at more than one gigapascal.

POSCO claims to be the only steelmaker to commercialise twining-induced plasticity (TWIP) steel, aka ‘dream steel’, because of its high strength and formability. TWIP is a kind of giga steel and it is used for front and rear car bumpers. It is strong enough to endure 100kg pressure per square millimetre.

The South Korean steelmaker also produces hot press forming steel (HPF), a type of giga steel, rated at 2 gigapascal, which can endure up to 150kg per square millimetre of pressure. HPF production is exclusive to POSCO. Last year POSCO sold 9Mt of automotive steel, which is roughly 10% of the market, according to an online report by The Investor. After 2018 it plans to sell 10Mt.

South Korea is the 10th largest automotive market in the world and was the fifth largest car manufacturer on the planet in 2015.

In China Baotou Iron and Steel Group (BISG), otherwise known as Baogang Group, has contracted the French steel production technology specialist Fives to commission two continuous galvanising lines to produce a wide range of high valueadded automotive steels.

Fives has designed and supplied two

23

complete continuous galvanising lines and furnaces for two continuous annealing lines and is providing long-term technical support to the Chinese steel giant.

Fives holds a leading position in strip processing lines, according to Wang Jian Gang, BISG’s plant manager.

“Fives has been a strategic partner of Baotou Iron and Steel Group for many years, and it lays a great foundation for us to enter a high-end automotive steel market,” he said. �

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AUTOMOTIVE STEEL

Molybdenum and lightweighting Molybdenum-containing automotive steel is highly effective in delivering weight reduction as well as increased strength and safety at neutral or reduced cost.

GREENHOUSE gases from the transport sector currently account for some 14% of global emissions. In Europe, emissions from road transportation alone are higher still at around 20%, with cars responsible for 12% of total emissions of CO2. Regulators and governments are setting increasingly stringent emission limits which vehicle manufacturers must adhere to. European law currently requires that all new cars do not emit more than an average of 130 grams of CO2 per kilometre. By 2021, a manufacturer’s fleet average for new cars must be 95 grams or less of CO2 per kilometre. This compares with average emissions of 123.4 grams per kilometre for a new car sold in 2015.

Reducing the weight of a vehicle is one of the most effective ways to lower fuel consumption and emissions, with a reduction of 100 kilograms producing fuel savings ranging from 0.1 to 0.5 litres per 100 kilometres, equal to a CO2 emission saving of between 8 and 12 grams per kilometre. Manufacturers must attempt to achieve further weight reductions in larger, competitively priced vehicles which meet or exceed increasingly high safety standards.

Lighter, high-strength steel has been used to construct automotive bodies and chassis for decades, largely replacing traditional mild steel with high-strength low alloy May/June 2017

Automotive - molybdenum.indd 1

(HSLA) and advanced high-strength (AHSS) steels. Unlike lower density materials, highstrength steel is readily processed using established manufacturing technologies at similar or lower cost. Car bodies and chassis are now mostly constructed from high-strength steel, contributing a weight share of between 60% and 80% of the ‘body in white’. Compared to previous conventionally constructed vehicles, the intensive use of high-strength steels has cut body weight by more than 100 kilograms.

Automotive steel must combine high strength with good formability and weldability. The specific metallurgical effects of alloying steel with molybdenum allow the formation of hard phases that have exceptionally high strength.

The mixture of hard and soft phases in the steel matrix provides the desired combination of high strength and good formability. Molybdenum is particularly effective in regulating the co-existence of these different phases in a stable and reproducible manner in a range of production conditions. This means that such steels can be made in less sophisticated processing lines, allowing greater flexibility in logistics and production.

While similar metallurgical outcomes can be achieved with other alloying elements, molybdenum has the strongest effect per

added percentage by weight.

The production and environmental benefits of using molybdenum-alloyed steels to replace key car components were recently modelled using a new production vehicle in which the B-pillar, previously manufactured from boron steel, was replaced with a hydroformed part made from a mix of molybdenum-containing dual-phase (DP) steels, DP800 and DP1000, which resulted in an 8kg weight saving per car.

Life cycle assessment (LCA), which assesses total lifetime environmental impact, was used to analyse the ‘old’ and ‘new’ B-pillars, assuming a lifetime vehicle mileage of 200,000 kilometres. Using environmental metrics most relevant to the automotive sector, analysis indicated that the new hydroformed DP800/1000 B-pillar design had significantly lower impacts than the previous boron steel design. The 8 kg weight reduction led to considerable savings, driving the difference in total impact between the two parts and resulting in a 29% reduction in attributable greenhouse gas emissions. The saving in Global Warming Potential (GWP) for both B-pillars in a car over 200,000 kilometres was 165 kg CO2e (equivalent) for a petrol drivetrain and 141 kg CO2e for diesel, equivalent to driving the vehicle for more www.steeltimesint.com

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AUTOMOTIVE STEEL

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Materials handling solutions for your industry than 1,000 kilometers. Looking solely at the impacts of production, the small increase due to alloying elements was far outweighed by the savings in ironmaking and secondary steelmaking due to the lighter weight of the part.

While HSLA and DP steels account for the majority of lightweighting applications, some components require even higher strength, especially in safety-critical areas such as the floor and bumper beam. Engineers have traditionally used thicker gauges of medium to high-strength steels in these areas, but the need to reduce weight further has necessitated the introduction of ultra high-strength steels over the last decade.

Press-hardening steel (PHS) is particularly favoured for automotive use, a fully martensitic steel obtained by hot-stamping with subsequent quenching, a technique which overcomes the limited cold formability of ‘as delivered’ martensitic steel. Stronger than AHSS, practically every new vehicle uses some PHS components, reducing structural weight by a further 5-10% and contributing to an annual global consumption of some three million tons. Current trends indicate that the use of PHS will rise to 30-40% of vehicle body structure in future. The body of Volvo’s latest XC90 model contains 38% PHS components.

PHS can be vulnerable to bending deformation, cracking under impact and delayed cracking. Molybdenum, along with other key alloying elements, plays an important role in optimising its microstructure to greatly reduce the likelihood of failure. In particular, regulating the austenite grain size prior to quenching is key to improving ductile fracture behaviour, promoting high energy absorption and resistance to hydrogen embrittlement.

Reinforcement of grain boundary cohesion and dispersion of nano-sized precipitates also improves performance. Alloying with niobium and molybdenum in combination with optimised thermomechanical processing achieves all these improvements, borne out by laboratory simulations and full-scale industrial trials.

This demonstrates the potential improvements that can be achieved by using advanced high-strength steel grades with innovative manufacturing techniques, and the contribution that molybdenum can make in supporting such innovations. �

• Improved storage utilisation • Safer product handling • Increased productivity • Indoor / Outdoor

May/June 2017

Automotive - molybdenum.indd 2

18/05/2017 09:44:54

FIVES TECH + FIVES TEAM

FIVES ENGINEERED SOLUTIONS COMBINED WITH TEAMS’ EXPERTISE Fives’ global offer for the steel industry covers: — Metallurgical and process consultancy; strip processing line design and supply — Bronx straightening machines for bars, sections and rails — DMS mechanical equipment; Stein thermal technologies; CELES induction heating solutions — Surface treatment solutions — Electrical and automation systems; COMPASS software package for long product straighteners — Full range of services: upgrade, modernization, repairs, training, assistance, feasibility studies, etc.

tand Fives s 2403 ech at AIST 017 -11, 2 May 8 , USA lle Nashvi

www.fivesgroup.com

AUTOMOTIVE STEEL

27

Developing automotive steel grades Carmakers are continuously evolving and developing new solutions to make better cars, which are more fuel efficient, affordable and safer. The development of steel grades is a key contributor towards the evolution of the automobile industry. There has been a sea change in automotive steel grades over recent years, and steel makers should be prepared to serve the growing automobile industry, especially in Asia, where the light vehicle market has gained popularity. Alain Genaud* highlights how materials and steel grades have changed and how demand is expected to change in future.

OVER several decades, the car industry has been under continuous pressure to develop a new concept for the improvement of performance and customer satisfaction.

Steel became, very quickly, the material of choice. Simultaneously, the priority of automobile manufacturers for the material properties of steel has progressively changed over almost 50 years.

Priorities change In the 1970s, the priority was formability to achieve proper design. In the 1980s corrosion resistance became a key parameter for better durability. The 1990s were dedicated to safety as more and more drastic safety standards were introduced.

With the new millennium came a greater concern for global climate change, prompting carmakers to address emissions

control issues (Fig. 1).

Current trends for steel Formability and corrosion issues can be considered solved so steel makers have focused their attention on lightweighting while continuing to improve safety. The issue of weight led to the development of numerous new steel grades (Fig. 2).

New steel grades with very strong mechanical properties allow a significant weight saving. In order to optimise the weight with specific properties, each grade is dedicated to a specific part of the Body in White (BIW). For example, a lateral beam will have to strongly resist lateral shock while a front structural part is designed to absorb a front shock and preserve the interior integrity of the car.

To achieve these goals, the range of high

EURO 4 EURO 3

CO2 EURO 2

FIRST HOMOLOGATION TEST SAFETY EUROCONCAP

12 YEARS EUROPE CORROSION

NORTH AMERICAN TARGET (10-5) CANADIAN ANTI CORROSION CODE

1970

1980

Fig 1. Evolution of standards compared with carmakers’ priorities

1990

2000

2010

strength steel has broadened with several families like Advanced High Strength Steel (AHSS as dual phase grades), Ultra High Strength Steel (UHSS as complex phase or martensitic grades) or Press Hardening Steel (PHS as boron steel).

Steel makers’ answer Tomorrow’s car must be safe, environmentally friendly, durable and cheap. As a result, the requirement of steel for these cars is to be: • High-strength steel to limit weight and preserve safety • Galvanised for durability • Produced with reduced operational costs Production of new steel grades for the automotive industry through robust industrial process in order to ensure consistently identical mechanical properties is itself a challenge to steel producers (Fig. 3).

Technological process Strip processing lines and technological process play a significant role in the development of automotive steel grades. Over years, strip processing line technologies have evolved to match the new requirements of steel grades. To attain the desired mechanical properties of these new steel grades, we need to work across the entire process route beginning with liquid steel making and finishing with cold rolling and processing. At the steel making stage, for example, alloying elements must be properly chosen and also limited for the

*Alain Genaud, Sales Engineer, Fives Stein, a subsidiary of Fives (France), Alain.Genaud@fivesgroup.com www.steeltimesint.com

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28

AUTOMOTIVE STEEL

MS CP

Weight Ref=1980

TWIP EFFECT

100

Si

TRIP EFFECT

TRIP

AI-K

DP

Ai

HSLA

* Discovery

Index (%)

TWIP

LOW C

BF

QUENCHING PATENT

BORON

•

Development

IF

BH V

HSLA

AI-K

Nb

% Coated steel

IF

AI-K

% LSS steel 50

0 80

90

00

10

Year 50

60

70

80

90

00

10

20

Fig 2. Scheme of numerous new steel grades created since the 1990’s

Thermal cycle parameters and influence Each stage of the thermal cycle will influence the mechanical properties of the steel. For heating, the annealing May/June 2017

Automotive - fives.indd 2

zinc pot. In case an over-ageing section is installed in the furnace to avoid extra costly alloying elements, DP should? be overcooled (to about 270°C) and then reheated to 460°C just before reaching the zinc pot • TRIP steel does not need high cooling rates, but does need an over-ageing time (typically 40-60 sec) to stabilise austenite.

• Complex phase, such as Q&P steel needs fast cooling (quenching), reheating and finally over-ageing to stabilise austenite.

temperature is a key parameter. The annealing temperature can be higher than current practices (860°C max) for new HSS (900°C and more). In industrial operation, the way to reach this higher annealing temperature does not influence the mechanical properties of the steel. A very high heating rate (> 600°C/sec) may have an influence, but is not industrially feasible today. Where soaking is concerned, time is not key for low alloy steels, but it is very important for HSS to have a long soaking time (30 seconds and more) to reach proper recrystallisation.

Therefore, a continuous galvanising line (CGL) needs to have enough flexibility to process all these grades (Fig. 5), as things become more complex after the soaking section. Typically, this part should include (as basis or provision): • A slow cooling possibility with provision for dual purpose (slow cooling or pure soaking) • A flash cooling section to reach high cooling rate • One induction heating to reheat CP

Increasing complexity Development of new HSS grades increases in complexity after the soaking stage of the process as the requirements of the thermal cycle are different for every family of HSS (Fig. 4). For example: • Dual Phase (DP) steel grade needs fast cooling to retain its martensitic phase and minimal time after cooling to reach the Austenite AC3

Si, Al, P,Nb

Si, Al, P Ferrite

Temperature

purpose of reducing operating expenditure (OPEX). During rolling, several parameters are critical (for instance, hot rolling temperature, cooling rate after hot rolling or reduction ratio at cold rolling).

Heat treatment during the final stage determines the mechanical properties of coils and this created a drastic change in furnace design in the 2000s. Before this, a simple heat cycle (heating, short soaking and simple cooling) before the zinc pot was enough to attain the desired mechanical properties with most steel grades.

Subsequently, new steel grades demanded more sophisticated thermal cycles and thermal technologies.

Today, we can identify three major milestones: • 2000: dual phase grades requesting rapid cooling stages • 2007: new grades, such as TRIP, must be processed on the same continuous galvanising line (CGL) that processes DP grade steels. This demanded specific additional functions such as over-ageing and induction reheating. Because these new grades of steel have some high alloying elements they also require specific treatment (such as selective oxidation) to allow for proper zinc coating.

• 2012: higher mechanical properties (> 1000 MPa) using multi-phase steel grades, such as Q&P (Quenching & Partitioning), require additional aftersoaking heat treatment together with a higher annealing temperature.

Fig 3. Evolution of automotive steel grades

AC2

Si, Al, P

Pearlite Si, P

Deformation

Bainite

C, Mn, Cr

C, Mn, Cr, Mo, Ni, Al, (P/Nb), B Al, Si Carbide precipitation in the bainite region

M (DP steel) C, Mn, Si, Cr, Mo, Ni, Nb

C, Mn, Cr, Mo, B

Al RA (TRIP) steel

RT DP steel

Martensite

M (RA (TRIP) steel

Time

Fig 4. Influence of alloying elements on TTT

www.steeltimesint.com

18/05/2017 11:15:44

Taking inclusion analysis to the next level Exclusive portfolio and capability for advanced inclusion analysis from Thermo Fisher Scientific Controlling non-metallic inclusions during the steel making process is a key skill for efficient production of modern steels demanded by today’s customers. Thermo Scientific™ FEI™ Explorer with Metals Quality Analyzer™ provides the most exhaustive data on non-metallic inclusions at the lowest cost per inclusion. Thermo Scientific™ ARL™ iSpark™ Optical Emission Spectrometer with Spark-DAT provides the fastest access to data on non-metallic inclusions. Together, the two instruments give the most powerful solution to control non-metallic inclusions, and solve or prevent cost and quality problems caused by inclusions in steel.

Find out more at www.thermofisher.com For Research Use Only. Not for use in diagnostic procedures. © 2017 Thermo Fisher Scientific Inc. All rights reserved. All trademarks are the property of Thermo Fisher Scientific and its subsidiaries unless otherwise specified.

30

AUTOMOTIVE STEEL

Temperature

configuration and design is key to flexible process control in order to adapt to current and future high added-value products. The provision of over-cooling capacity and overageing is a safe decision today for current automotive AHSS grades such as DP, TRIP and Q&P.

DP and TRIP and Q&P on one line

AC3

TRIP cycle DP cycle Q&P cycle

AC1 RTF

SF

SCS

Flash cool

OAS

After pot cooling

MS

Time

Fig 5. CGL to produce DP, TRIP and Q&P

Υ Υ

LG

SG

Zn droplet

Υ LG Υ SG

Steel substrate

Zn droplet Oxides Steel substrate

(a) Good wetting (Θ<90°C)

(b) Bad wetting (Θ<90°C)

Fig 6. Bare spot defect

after quenching • An over-ageing section • One induction heating to reheat DP after over-ageing

operating with air excess • Oxygen spraying on the strip • Water way: • Atmosphere dew point control • Steam injection on the strip

Surface aspect New HSS grades (typically for YS > 800 MPa) include a high content of alloying elements such as Si or Mn. Such alloys are very sensitive to oxidation in a standard HNx furnace atmosphere, so it is very difficult to reduce at subsequent stages. If no counter measures are taken, the result will be bad zinc ‘wettability’ on the strip, which results in the so-called ‘bare spot defect’ (Fig. 6).

A new CGL In today’s challenging market, it is important for steel makers to operate flexible production tools with capabilities to adapt their production to market demands. Therefore, a new CGL should be both flexible and versatile to accommodate new metallurgical aspects and demand for a wide range of products. The furnace

Selective oxidation In order to avoid these defects, selective oxidation must be implemented. The goal is to oxidise Si or Mn alloy inside the strip and not on the surface and/or pre-oxidise Fe (which is easy to reduce afterwards) on the strip to avoid Si-Mn oxides formation on the strip surface.

There are several ways to proceed and the requisite devices are incorporated in the heating section. Different technologies are available according to the steel grades to be processed and with context to site. It includes: • Oxygen way: • With direct flame heating

Fig 7. NeoKoil line at Baotou Iron and Steel Group

May/June 2017

Automotive - fives.indd 3

Thinking ahead Depending on the choice of the initial product-mix, it is wise to make some provisions to be able to implement some additional features in future and develop additional products on the same line, for example: • Space provision for an additional over-ageing section • Space provision for adding GA equipment in case it is not included at the initial phase • Space provision to combine CGL and CAL Fives and Baotou Iron and Steel Recently, Fives (France) and Baotou Iron and Steel Group (China) commissioned two complete continuous galvanising lines to produce a wide range of high value-added automotive steel (Fig. 7). Both continuous galvanising lines (CGL) have 417kt annual capacity and can produce a wide range of exposed and non-exposed steel coils.

Fives’ proprietary technologies and equipment for both lines include complete terminal equipment, degreasing sections, vertical furnaces, combustion and cooling systems, post treatment, skin-pass mills and tension levellers, side trimmers and process management software. Key process equipment features significant advantages that improve performance, operation and maintenance. �

www.steeltimesint.com

18/05/2017 11:15:46

200 YEARS OF FUTURE! The CMI Group proudly celebrates its bicentennial

Innovative technologies for the metals industry

Cold rolling § Strip processing § Chemical processes § Thermal processes Mechanical equipment § Automation § Extractive metallurgy DESIGN

|

ENGINEERING

|

COMMISSIONING

|

TECHNICAL

A S S I S TA N C E

&

TRAINING

|

AFTER-SALES

CMI Group, two centuries of engineering in the service of the industry Cockerill Maintenance & Ingénierie: a long history, inextricably linked to that of the industrial revolution…

In 1817, the British businessman John Cockerill begins his industrial activity in Wallonia by supplying weaving looms to the wool industry. He rapidly diversifies his activities: blast furnaces, industrial boilers, warships…

Passionate about steam machinery, in 1835 Cockerill builds the first working steam locomotive to run on the European continent.

power plants, rolling mills and steel processing lines, reheating and heat treatment furnaces, boilers for thermo-solar power plants...

From the outset, the ‘Cockerill factories’ have been anticipating trends and playing a determining role in worldwide technological advances.

The tone was set. This thirst for innovation has driven the generations of engineers who, for the past two centuries, have been introducing new processes bearing the Cockerill brand onto the market: engine designed by Rudolf Diesel, guns, boat engines, water tube boilers, locomotives, heat recovery steam generators for electric

John Cockerill also laid the foundations of the international vocation of CMI today. A great industrial explorer, he made many visits abroad, always on the lookout for new technologies and new projects. His conquering spirit has thrived through the decades. Thus, in 1890, the ‘Cockerill company’ was involved in the construction of the first major Chinese steelmaking complex, located at Hanyang, designing equipment and assisting the client in raising capital, assembling the installations and training the local workers.

1 In the 19th century, a team from the ‘Établissements Cockerill’ at Seraing (Belgium) receives Viceroy Hung-Chang from the Chinese province of Zhili.

1 In the 21st century, the teams from the CMI Group perpetuate the John Cockerill tradition, sparing no effort to meet the expectations of their clients.

Today, with the benefit of this centuries old understanding of industrial processes, and driven by the conquering and innovative spirit of its founder, the CMI Group continues to design, install, modernize and maintain equipment across the whole world, and to provide its clients and partners with valueadded services and its expertise in international project management.

Technological, international, robust This technology driven group places numerous beneficial assets at the disposal of its client industries: a unique combination of engineering and maintenance expertise, a vast geographic and technological scope, and an ability to innovate in accordance with the operational needs of its customers.

CMI has never stopped enlarging its geographical reach and its portfolio of technologies. The Group today counts operational units in Africa, Brazil, China, Europe, India, New Caledonia, Russia and the United States. In all, some 4 600 members of staff within the Group constitute a pool of talent commensurate with CMI ambitions. With the benefit of this organization, CMI today serves an ever more diversified client base. Whatever their specific needs, in CMI they find a partner of choice, whether as an EPCM services provider across all technologies, for solutions involving reducing the ecological footprint of industrial processes, for specialized services or for the Group’s dynamism in terms of innovation.

www.cmigroupe.com 175422-ann-CMI Metals-200 ans+redaction-A4.indd 1

29/03/17 17:36

32

CONFERENCE REPORT

“It’s all about China.” Or is it?

There was a time when global steel conferences were dominated by one thing: China; and if Stelcor’s Thomas Elford is to be believed, this will always be the case. “It’s all about China,” he told delegates at The Steel Orbis 2017 Spring Conference & 76th IREPAS Meeting. By Matthew Moggridge*

A new word has entered the lexicon of steel ‘convention speak’ and that word is ‘Trump’. There are variations on the theme, like ‘Trumponomics’ – which, some might argue, basically equates to ‘forget the environment, let’s burn some coal!’

With Trump, of course, comes Brexit and then, after a bit of ‘geo-political strife’ we can all get back to worrying about China, unless we’re Thomas Elford, in which case allow me to reiterate: it’s all about China.

March is a good time to find oneself in Budapest, down by the river at the Intercontinental Hotel where, theoretically, there’s very little to grumble about, apart from Trump and Brexit and the Chinese and North Korea and how many Hungarian Florints equal one Euro?

As the Danube sparkled under a Hungarian spring sun, the conference got underway with an opening address by Murat Cebecioglu, chairman of IREPAS, the global association of producers and exporters of long steel products, and export manager of Turkish steelmaker ICDAS. It turns out there’s very little to grumble about. Yes, the global economic problems continue to be challenging, but the steel industry has responded well, business sentiment is positive and multiple markets are gaining strength as global steel production moves in an upwards direction.

According to Cebecioglu, the steel industry has overcome significant challenges. The supply and demand balance in the long steel market has continued to improve in the US, Europe and Asia and prices and spreads are more stable than last year.

The conference attracted almost 400 participants, including 117 steel producers

“The steel industry has overcome significant

“

challenges.

Murat Cebecioglu, chairman of IREPAS. From left: Murat Eryilmaz, Murat Cebecioglu, Thomas Elford and Jens Bjorkmann

and 58 raw materials suppliers all of whom were waiting to hear what Gergely Tardos, chief economist with OTP Bank, had to say about the global economic outlook.

OTP is a ‘major banking player’ with subsidiaries in Croatia, Serbia, Romania and Bulgaria.

Tardos claimed that, since the 2009 recession, the USA has experienced ‘solid growth’ supported by proper policies. He added that, around average performance, there had been strong consumption and that the business cycle in the USA was in the middle of its ‘maturity phase’.

Low unemployment and wage growth in the USA has been accompanied by rising property prices and building permits and this was all good news for the long products industry. Housing starts were also on an upward curve.

Despite a sizeable public debt, Tardos argued that the election of President Donald Trump brought with it a promise of ‘fiscal loosening’, but there were risks, like protectionism, which is on the rise and presents a real danger to the global economy. There is also the possibility of a short-lived recession in 2019, according to some forecasters.

US economic growth is dependent upon household consumption, which is expected to remain above 2% year-on-year. Durable goods consumption, however, is the most volatile and has expanded only 6-7% between 2010 and 2016.

According to Tardos the US experienced slow wage growth for a long period and the labour market is still very tight, despite declining unemployment.

Based on President Trump’s campaign

* Editor, Steel Times International May/June 2017

conference report.indd 1

www.steeltimesint.com

18/05/2017 15:26:42

CONFERENCE REPORT

33

speeches and interviews, Tardos said that cutting taxes formed a strong part of socalled ‘Trumponomics’ with a plan to cut corporate tax rates from 35% to 15% and income tax for high earners from 39% to 33%. People earning below US$25,000 would be exempt from income tax.

Trump plans to loosen financial sector regulations and intensify protectionism, which could prove dangerous, argued Tardos, highlighting Trump’s intention to reduce expenditure on climate change protection.

Tardos described the situation in Europe

an investment/credit-driven scenario has replaced its export-driven growth model.

Around 2012/2013 China focused strongly on consumption supported by public investment programmes from time to time, but there has been low investment in traditionally investment-oriented sectors like the steel industry.

GDP growth in China decelerated from 6.7% in 2016 to an estimated 6.5% in 2017, having hovered around 9-10% for decades. China has been trying to rebalance its economy since 2013 and is ramping up efforts to re-educate its huge industrial

“Cutting taxes is a strong

as a ‘drastic crisis’ with total disintegration on the cards. He spoke of fragile growth, high unemployment and unsustainable debt trajectories, but argued that growth gained momentum and sentiment improved during 2016.

Despite the doom and gloom, Tardos was ‘cautiously optimistic’ for Europe, arguing that Italy and Greece were the main risk areas. He believes the situation in Greece is critical with the country ‘on the edge of default’. GDP has declined 30% in the past six years while in Italy there has been ‘structurally low growth’ since it joined the Eurozone and a high level of government debt, a problem not ignored by the populist, anti-Europe Five Star movement, which has gained ground.

Tardos expects a moderate slowdown in the EU because of the weaker Euro, arguing that the Eurozone has entered the ‘maturity phase’ of the business cycle, which is good for investment and, therefore, the steel industry.

He said tensions were rising in China.

The Chinese had experienced high growth for many decades, up until the financial crash of 2008, but was now finding that

workforce to fit in the consumer-based economy.

With growth slowing, steel consumption is declining and excess capacity is being shutdown, claims Tardos.

bags of positivity surrounding President Donald Trump whose very election is viewed as good news for US construction and the US steel industry.

Globally, construction is expected to rise 20% to US$10.3 trillion by 2020, compared to just US$8.5 trillion in 2015. The pace of expansion will accelerate to an annual average of 3.9% over 2016-2020, up from 2.7% over the preceding five-year period.

By 2050, 66% of the world’s population is expected to live in cities, roughly 2.5 billion people, up from 3.9 billion (54%) in 2016.

Rey quoted World Steel Association (worldsteel) figures for February 2017 and stated that crude steel production globally was up 4.1% compared to last February and that the capacity utilisation rate for the month was 70.3%, four percentage points higher than February 2016 and 1.1 percentage point higher than in January 2017. World steel demand is expected to grow 0.5% in 2017 to 1.51 billion tonnes.

Rey said exports from China have been decreasing since May 2016 but stressed that production was increasing, pointing to a rise in consumption. Steel demand in the

www.steeltimesint.com

conference report.indd 2

Macroeconomics and steel usage Jose Angel Rey, Celsa Group’s international commercial director, argued that macroeconomics and steel usage are linked, claiming that when GDP surpasses 3%, steel demand growth is healthy.

Looking at real GDP growth in 2016, Rey said that there were many African nations and a handful of South American countries with GDP in the region of 3% to 10% and that in India, China and parts of South East Asia, figures upward of 10%. The general pattern remains roughly the same over 2017 and 2018, but as we move into 2020/2021 more South American countries, such as Argentina, will make the grade as well as Kazakhstan and Mongolia (in 2021) although Australia’s GDP will decline.

Rey said that world population in 2025 will stand at 8 billion and will reach 9 billion in 2050 meaning increased steel demand.

He talked of a deceleration in China and

part of Trumponomics.”

Gergely Tardos

May/June 2017

18/05/2017 15:26:47

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CONFERENCE REPORT

NAFTA region was up 2.9% to 137.4Mt. Examining long products consumption, he said that the current figure represented 138% of pre-crisis levels (2007-2008). In 2016 the figure was 794Mt, down from 807Mt in 2015. The 2016 figure was broken down as follows: 173Mt (merchant bar); 54Mt (sections); 211Mt (wire rod) and 356Mt (rebar).

In terms of total long products consumption, rebar accounted for 45% of production, wire rod 27%, merchant bars 22% and sections 7%. Globally rebar consumption dipped 2%; Asian markets represented 65% of long products consumption and China about 55%.

East and South East Asia was the biggest rebar-consuming region, accounting for 67% of total consumption, with the Rest of the World in second place (20%), the CIS and Turkey (6%), the European Union (3%) and North America (4%) – a total of 713Mt. Consumption and production were reasonably well-balanced and Rey said that, with the exception of China, the rest of the world would play a major role in the recovery of global rebar consumption this year.

Comparing 2016 rebar consumption with an estimated figure for 2017, the latter totalled 365Mt, of which 240Mt was accounted for by East and South East Asia.

In 2016, the figure was 357Mt. Rey said rebar production and consumption were reasonably balanced.

Last year, China produced 211.8Mt and consumed 202.3Mt while the rest of the world totalled 96Mt against a consumption of 106.7Mt. Similarly balanced figures were produced for North America (10.9Mt versus 12.8Mt), the European Union (14.3Mt versus 13Mt) and the CIS (12.9Mt versus 9.8Mt).

Rey sees ‘good prospects’ for rebar consumption in the US and EU and said the long-term fundamentals for longs remained May/June 2017

conference report.indd 3

“Chinese long products exports were down globally.“ Simon Yu, Jiangsu Yonggang Group

solid.

He said that the key risk points were overcapacity in China, bearing in mind the country’s growth deceleration and geopolitical tensions.

And talking of China…

Simon Yu of Jiangsu Yonggang Group said that China’s steel price rebounded in 2016 – or started to – and that Yonggang’s rebar price increased 68.5% and by a further 17.7% to March 2017.

Crude steel production in China was up 1.24% to 808Mt, accounting for 49.6% of world crude production; and apparent consumption was 709Mt, up 2.08%.

Between January and February 2017, crude production was 128.77Mt, up 5.5% yearon-year.

On the raw materials front, iron ore imports were up a record-breaking 7.5% while coking coal production was down 9.4% year-on-year, and China reduced inefficient coal mining capacity by 290Mt. Metallurgical coke production in 2016 was up 0.3% to 447.63Mt compared with 0.74% growth of pig iron. Met coke prices were up 183%.

Finished steel exports from China in 2016 totalled 108.49Mt, down 3.48% year-on-year. Exports to the EU were down

24.53% and to the whole of Europe down 20.1%. Long products exports to Europe were down 4.02% and down 44.4% to the EU and 44% to the whole of Europe.

Yu blamed a slowdown in global growth and international protectionism, which he described as ‘continuous aggravation’.

With the exception of the ASEAN region and Korea the year-on-year percentage growth figures for Chinese long products exports were down globally.

Yu said China suffered 119 trade frictions in 2016. There were 49 trade remedy cases against Chinese steel products, including 32 anti-dumping cases, 10 subsidy cases and seven safeguard cases.

China’s economy rebounded during the last quarter of 2016 recording GDP growth of 6.8%. According to Yu, China’s automotive industry will keep growing and while real estate growth might slow a little, infrastructure investment will be positive and domestic steel demand is expected to remain stable.

China reduced inefficient steel and coal mining capacity by over 65Mt and 290Mt respectively last year, with a target for 2017 of 50Mt (steel) and 150Mt (coal).

The long product price is stable, said Yu, and might ‘uptrend’ further, there was a ‘significant’ decrease in steel exports, www.steeltimesint.com

18/05/2017 15:26:51

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CONFERENCE REPORT

especially long products, which were down 3.48% in 2016 and down 25.7% over January and February 2017. More decreases are coming, he added.

According to Yu steel industry mergers, such as Baosteel and WISCO forming the BAOWU Steel Group, will be further promoted and steel consumption will remain stable.

Lack of leadership to blame EUROFER’s Jeroen Vermeij blamed the current wave of populism sweeping through Europe and, indeed, the USA, on a lack of leadership. He spoke of geo-political strife, globalisation, and regionalisation and, of course, Donald Trump, but said that EU sentiment was at a multi-year high.

Europe’s uncertain political backdrop was being shrugged off thanks to accelerated industrial production growth, he said, adding that EU exports have been on a ‘rising trend’ since H2 2016 and that the EU economy was performing well under challenging conditions.

Vermeij told delegates to expect further growth in private consumption and public expenditure and said that tailwinds from low energy prices and low inflation were fading. There was still uncertainty surrounding investment as well intensifying economic and political doubts.

Brexit and the outcome of the EU parliamentary elections are the biggest risks to growth, Vermeij said. ‘Trumponomics’, so far, has proved positive for the US, but the prospect of more protectionism and fading support for free trade and economic integration will pose problems.

According to Vermeij, there is a ‘robust outlook’ for the automotive sector but uncertainties in export markets. The construction industry has exhibited positive signs, but mechanical engineering presents a mixed bag of fortune for capital goods demand. While elections and Brexit could May/June 2017

conference report.indd 4

“It’s all about China, not Trump.“ Thomas Elford

disrupt the business environment this year, a mild recovery is expected for 2018. The metal goods industry has received support from various sectors, including automotive, construction and engineering.

There are regional variations. In 2016 Western EU nations experienced a 2% growth in housing while central EU countries saw an 11% drop in infrastructure spending. Migrant inflows will stimulate social housing investment over 2017/18 and a strong residential sector will continue.

Non-residential demand and investment in infrastructure projects will rise, he said, and EU output will rise 2.1% in 2017 and 2.8% in 2018.

Total EU steel imports rose by 9% in 2016 with Q4 figures the highest since the previous peak in 2007. Steel demand increased 1.8% (2.7Mt) last year.

Vermeij told delegates to expect continued growth, but not higher than 2%, although the outlook was positive for long products. The overall outlook wasn’t bad either, but the key concern was imports.

The EU economy was on track for further

growth, but Vermeij called for stronger leadership in the wake of Brexit and the rise of populism.

Towards the end of Day One three committees representing steel producers, traders and raw materials suppliers met to discuss their respective market sectors. They reported back to delegates the following morning.

Where steel production was concerned, the overall situation was positive in terms of supply and demand balance and economics in general. Steel consumption was increasing in parallel with GDP growth.

Murat Cebecioglu said rising production volumes are not a problem in terms of prices because Chinese exports are down.

Protectionism, import taxes and antidumping duty, however, were major concerns, as they would undoubtedly create problems for the global economy.

Protectionism in particular will hurt the markets and represent an attack on global growth.

But let’s not forget China. It was argued that when China is strong the world is strong (and vice versa). The situation in China was very important for all sides of the steel industry and raw materials companies in particular will be monitoring what happens following China’s ban on induction furnaces.

The supply/demand balance is fine unless China enters the market again with loads of billet, said Stelcor’s Thomas Elford, who argued that everybody is watching China. It was almost, he said, a kind of voyeurism.

Questions were posed about Trump and what his planned US$1 trillion infrastructure spending would mean for scrap flows into the USA. At the moment, the effect was purely psychological and would take a long time to become reality, but Elford questioned the questions about Trump and insisted, “It’s all about China, not Trump”. � www.steeltimesint.com

18/05/2017 15:26:55

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38

STRUCTURAL STEEL

If Trump’s as good as his word…

After lagging the recovery seen by several other areas of the US economy for a number of years, it appears as if the construction sector, as well as the steels consumed by it, is finally turning the corner, especially if infrastructure investment plans, as well as certain other policies being proposed by the Trump administration, actually come to fruition. By Myra Pinkham* “OVERALL the US construction sector is likely to grow at a moderate, but unsteady, pace,” says Ken Simonson, chief economist for the General Contractors of America (GCA). He notes that while put in place construction spending, as reported by the US Commerce Department, was up 4% in 2016 and is likely to increase another 2-7% this year, the market is also mired with more uncertainty than previously anticipated, including whether the new administration will be able to get Congress to approve its promised $1 trillion infrastructure investment plan and how they propose to pay for it.

Due to the nature of recent projects, of those that are anticipated going forward, as well as the influence of non-metal related factors, the steels used by the US construction sector, such as structural shapes, reinforcing bar (rebar), plate and pipe, are actually getting a bigger boost than overall construction numbers would indicate, Christopher Plummer, managing director of Metal Strategies Inc., West Chester, Pa., points out. He says that his company’s steel construction usage index, which is a weighted index of actual steel product consumption by the US construction sector, indicates that after declining 2.1% in 2015, steel use for non-residential and public works, or infrastructure, construction applications was actually up 5.7% last year and is forecast to grow by another 4.3% this year.

This compares with projections of only a 1.9% increase in value put in place for nonresidential construction and a 1.7% decline for public works.

It, however, is much more in line with projections for building construction on

a square footage basis, which, according to John Cross, vice president of the American Institute of Steel Construction (AISC), is expected to see a 5% increase in 2017 overall, resulting in a 6% growth in consumption for structural steel in building applications.

Cross observes that while dollars spent for US buildings construction have already returned to 2006-07 peak levels, that isn’t the case when looking at it on a square footage basis, largely given that so much construction is being done in cities where construction costs are higher. While up

of heavy structural shapes will grow by another 4.7% in 2017 following their 8.4% increase last year. He estimates that US rebar consumption will see a 4% improvement this year following a 4.7% increase in 2016.

This, however, depends upon what happens on the public works side of the equation. Scott Hazelton, managing director of IHS Markit’s economics and country risk service, says that should an infrastructure investment package be passed in its entirety this summer or early autumn, which isn’t very likely, it

President Trump’s plans could be good for the structural steel industry

considerably from the 700 million square foot trough in 2010, the current rate is only 1.2 billion square feet, still only 67% of the 1.8 billion square foot peak.

While up from last year, it still won’t be a boom year either for the domestic construction industry or for those steel products used in construction, maintains John Anton, director of steel analytics for the pricing and purchasing service of IHS Markit.

Plummer estimates that US consumption

could result in as much as 8% growth this year. It is more likely that there will be 3% construction growth this year with potential of 8-9% growth next year should a $500 billion-$1 trillion 10-year package be passed, although it is more likely that Congress will only get through a $250 billion package, Hazelton predicts.

With projected increases in steel-related construction, steel companies will increase their production to meet that demand, but, according to Vinicius Pires, market

* USA correspondent May/June 2017

Myra structural.indd 1

www.steeltimesint.com

18/05/2017 11:40:19

STRUCTURAL STEEL

intelligence manager for Gerdau Long Steel North America, Tampa, Fla., that doesn’t necessarily mean that they will be expanding their production capacity. He says that currently most US long product producers are operating at only 65-70% of their rated capacity. “So there continues to be room for demand to pick up without the need for additional capacity,” he says.

That isn’t to say that there haven’t been any construction/infrastructure-related capacity additions. Commercial Metal Co.’s (CMC’s) 350,000-short ton-per-year rebar micromill in Durant, Okla., is slated to come online this autumn, and there are plans

by JSW Steel North America to install an electric arc furnace at its plate and pipe mill in Baytown, Texas, within the next 20-22 months. But with the current excess in production capacity, Pires says that other construction-related expansion projects aren’t likely to be announced, at least not until the government puts more money into infrastructure.

“In order for our economy to remain internationally competitive, a strong commitment to robust infrastructure spending – which includes long-term transportation funding – is critical,” says Thomas J. Gibson, president and chief executive officer of the American Iron and Steel Institute (AISI).

Philip K. Bell, president of the Steel Manufacturers Association (SMA), says it appears as if the new administration is very serious about boosting infrastructure investment, building upon the $305 billion, five-year Fixing America’s Surface Transportation Act (FAST Act) passed late in 2015.

While the first long term highway bill in over a decade, AGC’s Simonson maintains that the FAST Act largely only “raised false hopes.” Even though it did give state and local governments better certainty of continued funding for their projects than the short-term highway bill expansions that proceeded it, it is only expected to keep this year’s federal infrastructure spending flat at 2016 levels, which were already very low. Simonson points out that total federal, state and local government construction spending was only up 1% in 2016, which is much smaller than the 6% rise in 2015.

It also included only limited funding for port multi-modal projects, as opposed to the 100% intermodal Transportation Investment Generating Economic Recovery www.steeltimesint.com

Myra structural.indd 2

39

(TIGER) grant programme, which was launched under the 2009 economic stimulus programme, observes Aaron Ellis, spokesman for the American Association of Port Authorities (AAPA). Ellis says that his association objects to the contention by the Trump administration that the TIGER grant programme and the FAST Act are duplicative and that, therefore, the TIGER grant programme should be eliminated.

“In order for our economy to remain internationally competitive, a strong commitment to robust infrastructure spending – which includes long-term transportation funding – is critical,” said Ellis.

Gerdau’s Piris, however, points out that federal funding accounts for only 2% of total US construction spending with 77% of all construction projects being private in nature.

Federal funding accounts for only 2% of total US construction spending with 77% of all construction projects being private in nature

May/June 2017

18/05/2017 11:40:23

40

STRUCTURAL STEEL

“That is where there is the greatest potential for growth,” he points out.

“While we applauded Congress for passing the FAST Act, it didn’t provide enough funding to significantly move the needle,” Bell says, adding that he is optimistic that the 10-year infrastructure investment package that Transportation Secretary Elaine Chao says will be unveiled later this year, will have much more of an impact. Not only does it have three times the funding level (assuming that the entire $1 trillion level is passed by Congress, which isn’t a certainty), but it defines infrastructure more broadly.

Alex Carrick, chief economist with Cincinnati-based ConstructConnect, explains that while when most people think about infrastructure, they think about such “hard” infrastructure as roads, bridges, sewers and water mains, as well as certain construction at the ports and airports, infrastructure can go beyond that, to include things like power plants, water distribution systems, the power grid, broadband communications and such alternative energy as wind and solar and could even refer to such “soft” infrastructure as schools and hospitals and liquefied natural gas (LNG) export facilities.

Already some of the new administration’s policies, including some of the executive orders that President Trump has signed, are beginning to have a positive impact upon infrastructure construction, especially under this broader definition of infrastructure. Piris says this includes the executive order that allowed the Dakota Access and Keystone XL pipeline projects to proceed as well as to order the Commerce Department to develop a plan to require any company that builds a pipeline within US borders to use American material and equipment.

Even though about 95% of the steel

Power-related construction was up 4% in 2016

May/June 2017

Myra structural.indd 3

for the Dakota Access and Keystone XL pipelines have already been purchased, Mario Longhi, chief executive officer of Pittsburgh-based United States Steel Corp, says it will benefit steel suppliers for future pipeline projects.

Piris says given that oil prices have been recovering since last September and have been consistently maintained at $50-$55 per barrel in recent months, this is likely to help support further pipeline projects.

Also, AGC’s Simonson points out that a number of Federal Energy Regulatory Commission (FERC) approved natural gas pipeline projects that had previously been put on hold could possibly be revived.

“I think we will also continue to see growth in power generation, including natural gas-fired power plants and wind and solar energy,” Simonson says, observing that overall power-related construction was up 4% in 2016 and should see another 5-10% improvement this year.

According to their most recent Port Planned Infrastructure Investment Survey, released a little over a year ago, AAPA’s member ports and their private sector partners were planning to invest $155 billion in capital investment projects in 2016-20, which is a three-fold increase versus the $49 billion level in 2012-16. Ellis says the majority of these investments are expected to be steel-intensive.

Plummer says as of February on a value put in place basis, highway and street construction was down 5.1% year-on-year, power was up 4.5%, transportation was

down 10.6%, sewage and waste disposal was down 27.7% and water supply was up 15.4%.

According to Carrick, on the same basis, total public non-residential construction was down 8.1% year-on-year while total private non-residential construction was up 6.4% compared with February 2016.

While such broad-based infrastructure investment in concept is receiving widespread, bipartisan support and an optimistic reception from the steel industry, there continues to be some “squabbling” in Congress with the uncertainty of what exactly the Trump administration is proposing and how it will be paid for, Carrick notes. This comes as the American Society of Civil Engineers’ 2017 report card rated overall US infrastructure with a D+ grade, unchanged from its last report card in 2013, with roads getting a D and bridges and ports receiving grades of C+. The ASCE estimates that the United States needs to invest $2 trillion over the next 10 years – double what the Trump administration is proposing – just to stop its infrastructure from getting worse.

One of the biggest questions regarding the Trump infrastructure investment package, as has been the case with other recent federal infrastructure investment plans, is how it will be funded. Traditionally federal funding of infrastructure projects has been through the Highway Trust Fund, which, in turn, is funded by federal gasoline taxes. But with that tax not being increased since 1993 and is not likely to be increased anytime soon, and vehicles are becoming more fuel efficient – and in the case of electric vehicles not using any gasoline at all – the Highway Trust Fund has been teetering on the precipice of insolvency.

While the details are still somewhat sketchy, Hazelton says it appears as if the Trump administration plans to use about $137 billion of federal guarantees www.steeltimesint.com

18/05/2017 11:40:26

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42

STRUCTURAL STEEL

leveraged with private money, including tolls to pay for its infrastructure package, although that appears to be a very high multiplier and traditionally the United States hasn’t been all that successful in the past in encouraging private investment.

That is why there has been some talk of tax reform being tied to infrastructure, to give investors a better reason to invest, although that might be easier said than done given that the United States hasn’t successfully gotten a tax reform package approved in about 30 years. It was also originally hoped that money that would have been saved if they had been able to successfully repeal and replace Obamacare could have been used to help pay for the infrastructure package, but, at least to date, Congress hasn’t been able to pass new healthcare legislation. Because of this, Anton says there is fear that the proposed package, especially if it indeed has a $1 trillion price tag, could result in the federal deficit going through the roof if Congress continues to refuse to raise taxes.

Even once an infrastructure package

is passed – if it is passed – it will be a while before the steel industry will feel its benefit. AISC’s Cross says under normal circumstances there is a 6-12 month lag, but due to the package’s reliance on public private partnerships that lag could be as long as 18-36 months.

But the eventual impact could be quite significant, SMA’s Bell says – as much as 5%, or about 5 million short tons, per year for 10 years. Plummer agrees. “Even if the

package is watered down somewhat, it will result in much higher infrastructure construction demand.”

Meanwhile the building side of the construction market will continue to grow as well, Cross says, although it isn’t expected to reach peak levels anytime soon.

But on the positive side, with continued urbanisation, a bigger proportion will be for the mid- and high-rise buildings that consume more steel. �

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PROCESS CONTROL

45

Optimising desulphurisation at RSP Modification of the ladle furnace refining slag to increase basicity, fluidity and reduce FeO and MnO content, as well as a change in de-oxidation practice from Si-Al to Al-Si additions, has achieved a 60% 1 0 7 65 4 3 2 8 improvement in sulphur removal from the steel reducing S from averages of 0.02% to 0.01%.

Abdhesh Prasad1*, Somnath Kumar1, S K Gupta1, Manish Kumar Singh1, R K Patra2, S L Manjhi2 and S Ghosh1

(10wt%MgO, 10wt%SiO2) 1.4 1.2

1. 28wt%Al2O3, 52wt%CaO 2. 30wt%Al2O3, 50wt%CaO 3. 33wt%Al2O3, 47wt%CaO 1

1.0 Viscosity (Pa/s)

AROUND 2.8Mt of steel per year in a wide variety of grades is being produced

by Rourkela Steel Plant (RSP) through the oxygen steelmaking – ladle furnace – degassing – continuous casting (BOFLHF/RHOB-CC) route. RSP has recently undergone massive modernisation and expansion. A new BOF converter, a third ladle furnace, a modern high-speed caster and a RH OB degasser have all been commissioned in Steel Melting Shop II. A state-of-the-art new wide plate mill capable of rolling 4m wide plates enables the plant to produce a variety of value added steel for home and export markets. For full capacity utilisation of these facilities it is essential to control the final sulphur in steel to within 0.015%.

Good desulphurisation can be achieved with high basicity slag, high temperature and the minimum amount of easily reducible oxides in the slag. Suitable slag engineering is required to achieve these conditions. High alumina slags have good desulphurisation potential as these have higher sulphide capacity. Initial deoxidation with aluminium not only helps to improve steel deoxidation, but also helps maintain higher basicity and a low level of easily reducible oxides in slags. The addition of slag modifiers help maintain the required alumina level in the slag, thus improving slag fluidity.

Critical factors responsible for low desulphurisation of steel have been identified. It was found that optimisation of flux, deoxidation and refining practices were required to improve desulphurisation.

0.8 2

0.6 0.4

3

0.2 0.0

1800

1900 1850 Temperature (k)

1950

Fig 1. Effect of replacement of CaO by Al2O3 on slag viscosity 2 CaO and MgO solubility as a function of Al2O3 content 3 Crusty ladle furnace top slag

Extensive trials have been carried out following adjustments to ladle top slag composition and process characteristics so as to be conducive to desulphurisation.

Good desulphurisation was observed with the optimised practice. The average sulphur reduced to <0.010% as compared to >0.020% in previous practice. Control of sulphur below 0.015% has helped increase production of value added steel at RSP. These technical interventions helped achieve an average desulphurisation of ~60% from BOF to tundish. With these measures it is now possible to produce steel with S below 0.015% on a regular basis.

Sulphur in steel Sulphur (S) dissolves in liquid iron (Fe) at any concentration. However, the solubility

of sulphur in solid iron is limited: 0.002% in α -iron at room temperature and 0.013% in γ -iron at 1000°C. When liquid steel cools and solidifies the solubility of sulphur drops and it is liberated from the solution as iron sulphide (FeS) forming a eutectic with the surrounding iron. The eutectic is segregated at the iron grain boundaries and the eutectic temperature is relatively low – about 988°C. This Fe-FeS eutectic weakens the bonding between the grains and causes a sharp drop in steel properties (brittleness) at the temperatures of hot deformation (rolling, forging etc).

Brittleness during hot metal forming is called hot shortness. To prevent formation of low-melting iron sulphide, a minimum of 0.2% manganese (Mn) is added during steelmaking to actively react with iron sulphides during solidification transforming FeS to MnS according to the reaction: (FeS) + [Mn] = (MnS) +Fe (1) (Square brackets [ ] – signify concentration in steel, round brackets ( ) signify concentration in slag) The melting temperature of manganese sulphide is relatively high – about 1610°C – and this means that the steels containing manganese may be deformed in the hot state without exhibiting hot shortness.

However, unfortunately MnS inclusions are: • Brittle (less ductile than steel) • They may have sharp edges • They are located in grain boundaries.

1Research and Development Centre for Iron and Steel, SAIL, Ranchi-834002, India 2Rourkela steel Plant, RSP, SAIL, Rourkela-769011 e-mail abdhesh@sail-rdcis.com www.steeltimesint.com

process control SAIL.indd 1

May/June 2017

18/05/2017 11:07:24

46

PROCESS CONTROL

2.1

Viscosity of LHF slag 1.9

1.7 Viscosity, Pa.S

1.6 1.4

1.3

1.3

1.18

0.9

0.98

0.93 0.7

0.6

0.5 1550C

1575C

associated with their use can be seen in Table a.

Silicon and manganese are often used in conjunction with one another. For the amounts of dissolved oxygen and aluminium at different temperatures see Table b.

1600C

Temperature

Fig 2: 2LF slag viscosities with temperature 5 CaO –SiO2 Al2O3 slag system

MnS inclusions have several effects on the processing and properties of steel, which are mainly detrimental, as these inclusions are more plastic than steel and, hence, during deformation, they act as crack initiation sites and zones of weakness.

Oxygen in steel The oxygen content of liquid steel in the ladle at the start of secondary steelmaking is 600-1000 ppm (0.04 - 0.1%). The solubility of oxygen in liquid steel is 0.16% but in solid steel it is only 0.003%.

Therefore, steps have to be taken to reduce the oxygen content and deoxidise the steel before it solidifies to prevent blowholes during casting and a porous product being created or large quantities of FeO being precipitated.

Subsequent desulphurisation largely depends upon the type of slag made after deoxidation and alloying. It also depends upon the fluidity and composition of the ladle slag. Aluminium killed steel has higher desulphurisation power then silicon killed steel, as with aluminium killed steels the amount of easily reducible oxides is less.

Aluminium, silicon and manganese are the most common deoxidisers used in steelmaking. The chemical reactions

Comparing the equilibrium dissolved oxygen content for aluminium and silicon – manganese: Al killed 2-3 ppm oxygen Si-Mn 30-60 ppm oxygen Desulphurisation The major refining reaction in ladle metallurgy is desulphurisation. In fact, it is one of the major reasons for increased interest in ladle metallurgy. The two main additives to steel for desulphurisation in the ladle are CaO and Ca. In either case, the equilibria for the reaction can be expressed as, CaO + S = CaS + O (2) And the equilibrium constant is expressed

by KCaO = hOaCaS / hSaCaO The value of K at 1600 C is 4 x 102. The value of K decreases with increasing temperature, therefore, making desulphurisation less favourable.

However, kinetic factors are favoured by high temperature and this may be more important.

Pre-conditions for desulphurisation One of the primary requirements of efficient desulphurisation is a highly basic and reducing slag. Highly basic slags have a lime (CaO) content around 50-55% and should not contain high amounts of easily reducible oxides such as FeO and MnO after

Table 1a.

2[Al] + 3[O]

(Al2O3)

[Si] + 2[O]

(SiO2)

[Mn] + [O]

(MnO)

Dissolved Al/%

Equilibrium dissolved 0/ppm

1500°C

1600°C 1700°C

0.01

2.3 10 37

0.02

1.5

6.2

24

0.03

1.1

4.7

18

Table 1b.

May/June 2017

process control SAIL.indd 2

tapping. FeO and MnO should be less than 2% in ideal cases.

Also, carryover of slag from the BOF into the ladle should be avoided as this primary steelmaking slag contains large amounts of FeO and MnO. A portion of this slag flows into the ladle during tapping because of slag carryover. Because of the high content of oxides, a greater amount of deoxidisers are needed during deoxidation. Another serious problem associated with this is poor desulphurisation and phosphorus reversal back into the steel. Therefore, steelmaking should aim at slag-free tapping or a significantly small amount of slag carryover.

Ladles lined with high alumina or basic refractories should be used to avoid any decrease in slag basicity due to silica or any other acidic oxides.

High steel and slag temperatures are essential parameters in desulphurisation.

Temperature influences slag and steel viscosity and the capacity of the slag to absorb sulphides and also the sulphur distribution between the metal and slag .

The kinetics of steel desulphurisation are more favourable at higher temperatures. At the end of the various steps, the slag should be sufficiently liquid to absorb non-metallic inclusions rising up from the melt[.

Alumina as slag modifier In simple silicate slags, the solubility of CaO is limited by the precipitation of the very stable phase, Ca2SiO4. The addition of any component to the slag that will dissolve (destabilise) Ca2SiO4, will increase the solubility of CaO in the slag. Al2O3 is the third most potent component after B2O3 and CaF2 to destabilise the Ca2SiO4 complex and increase the solubility of CaO. A minimum and significant amount of Al2O3 – added as calcined bauxite – is needed to increase CaO solubility in the slag at 1600°C. The increase in CaO solubility above the Al2O3 threshold value is also linked to the SiO2 content of the slag.

Figs 1 & 2 show that in the CaO-Al2O3SiO2 (CAS) system, the replacement of SiO2 with Al2O3 will initially results in a decrease in CaO solubility. A large increase in CaO solubility occurs when the Al2O3 content of the slag exceeds 25% Al2O3 and the SiO2 content decreases to less than 10%.

Al2O3 can be used to increase the solubility of CaO in the slag. The required Al2O3 levels in the slag should be greater than 25% to generate slags with good fluidity at steelmaking temperatures. The www.steeltimesint.com

18/05/2017 11:07:26

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PROCESS CONTROL

MgO content should be controlled to a very tight range of 8-10%.

Alumina is a major slag component (>25% Al2O3) in Al-killed grades and is very effective in bringing lime into solution and to generate good desulphurising slags.

Magnesia-carbon refractories are typically used with these slags and with good results because the solubility of MgO in these slags is fairly low (<11% MgO).

Former practice Steel Melting Shop-II (SMS-II) of RSP mainly produces silicon-aluminium killed steels.

The BOF charge generally consists of 155t hot metal and 10-15t scrap. The average finished heat weight is around 150t.

Limestone and calcined dolomite are used as flux for preliminary refining of the steel in the BOF. The blow time varies from 15-18 minutes and heat is tapped into a ladle pre-heated to 700-900°C. Deoxidation and alloying at the time of tapping is carried out with the addition of silico manganese (SiMn), pet coke and ferro silicon (FeSi).

Lime (~2-3 kg/tcs) is added in the ladle during tapping and a further ~5-6kg/tcs during LF refining to achieve the desired top slag basicity for effective desulphurisation and slag conditioning. About 2kg/tcs aluminium is added for deoxidation and alloying. A trimming addition of mainly FeSi, SiMn and pet coke is made at the ladle furnace. The high sulphur in the steel is difficult to remove and ultimately leads to product down grading. Incidences of strand break out are also evident due to the high sulphur content of steel. The average sulphur level in the hot blast furnace metal charged is 0.040%, at BOF turn down is ~0.028% and in the tundish 0.020%, which means desulphurisation is low at only about 37% from BOF to tundish.

Poor desulphurisation To understand the specific reasons for poor desulphurisation the existing practice of secondary refining was studied in detail.

Ladle top slag samples were collected at the LF final stage of refining to measure the slag melting point and viscosity using empirical correlations and FactSAGE. Analysis revealed the following probable reasons for poor desulphurisation.

CaO

Final S in steel

% De-S

0.026

60

0.02

0.02

50

0.015

0.014

0.025

0.015

0.01

0.01 0.006

0.005 0

~50-52%

Table 1 Desired ladle top slag chemistry

May/June 2017

process control SAIL.indd 3

42.2 40 30

37.5 30

modified

conventional

modified

Fig 3. Final S in steel (%)

Fig 4. Overall desulphurisation (%)

• Physical observation of the slag in the ladle furnace revealed that the slag is viscous. Samples were collected and the melting point calculated at around 1480°C. To maintain a fluid slag during refining and casting, the difference between the melting point of slag and liquidus temperature of steel should be a minimum of 40-50°C. The calculated viscosity was 0.98 Pa s at 1600°C (Figs 3 & 4), which showed that the slag was very viscous in nature. The poor fluidity of ladle top slag meant proper mixing of slag and metal was impossible, resulting in poor desulphurisation. Optimisation of slag composition and adoption of suitable flux additions was necessary to make a fluid slag for better slag-metal interaction.

• Since deoxidation during tapping used SiMn the amount of dissolved oxygen in steel was in the range of 30-40 ppm.

Carryover slag was also high varying in the range of 10-12 kg/tcs resulting in a high oxygen potential of the slag. High FeO + MnO in the slag was 6% to 13% giving a large amount of easily reducible oxides which is unfavourable for desulphurisation.

If the slag is blackish in appearance it reflects a high level of easily reducible oxides present and shows that the slag is not properly deoxidised and hence not very conducive for desulphurisation.

Technological interventions to modify secondary refining were necessary to achieve good desulphurisation. To improve deoxidation, primary deoxidation with aluminium was introduced. A chute was fabricated for Al additions during tapping and ~1 kg/tcs was added during tapping. Calcined bauxite is a very good slag modifier, adding alumina to the slag which increases fluidity by breaking the

calcium silicate chain and enabling the lime to go into solution and thus increase the sulphide capacity of the slag. Thus calcined bauxite was also added at 400-450kg/ heat during secondary refining to achieve a final Al2O3 level of ~25-28% in the ladle top slag. Additions of around 100kg/heat of FeAl nuggets were added to de-oxidise (kill) the ladle top slag. The flux addition and deoxidation practice was redesigned to achieve a desired ladle top slag chemistry as shown in Table 1 and in Fig 5.

SiO2 Al2O3 ~10-12%

60 57.8

20 conventional

MgO FeO+MnO

62.5

25-30%

~7-10%

< 2%

Results and discussion • During the trial, heats were treated with suggested flux addition and purging procedure, and ladle furnace top slag fluidity was monitored. The refining slag was found to be fluid with the modified flux and deoxidation practice compared to previous practice. The analysis of slag samples revealed a reduction in melting point and viscosity of LF slag due to incorporation of slag fluidiser Al2O3 as calcined bauxite. Slag viscosity reduced from 0.98 to 0.65 Pa s at 1600°C and the slag melting point fell from 1471°C to 1445°C. • Modification in deoxidation practice – moving from Si-Al killing to Al-Si killing helped reduce the dissolved oxygen content to <5 ppm. The introduction of a slag deoxidiser (FeAl) and good slag metal interaction helped reduce the FeO and MnO level of the slag to <5% as compared to 9% average in the conventional case Restricting silica generation also helped increase ladle top slag basicity.

• The analysis of trial result showed good improvement in desulphurisation. Trial results showed an average tundish sulphur level of 0.01% as compared to 0.020% for earlier heats. The average desulphurisation of steel improved to ~60% from BOF turndown to tundish compared to ~37% in conventional practice (Fig 6 & 7). � www.steeltimesint.com

18/05/2017 11:07:26

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03.04.2017 10:58:02

PERSPECTIVES: AEROMON

51

Focused on emissions monitoring All winning businesses will be sustainable by 2050, says Jouko Salo*, chairman of the board of dronetech company Aeromon

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

Things are going ahead like crazy. Since we came out with our drone-based emission monitoring solution for process industries there has been a lot of contacts from various industrial sectors including the steel industry.

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

We are still familiarising ourselves with the steel industry, but it seems to be tough with the economy not growing. Also tightening environmental regulations seem to be pushing the industry towards taking more action on gaining a better understanding of how to reduce emissions.

6. “Aluminium will always outperform steel on a weight basis; and on the stiffness issue alone it will carry the day,” said Alcoa’s chief technology officer Ray Kilmer speaking about aluminium usage within the global automotive industry. Where do you stand on the aluminium versus steel argument?

I think that the use of aluminium will increase. This has an effect on our business as the energy requirements and emissions are vast.

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

Our business is centred around emission monitoring. For the steel industry that can mean SOx, NOx, particulate matter, VOC and other measurements. As we offer a drone-based system we can reach difficult places and map large areas quickly and effectively.

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

We are a Finnish start-up and have currently only operations in Finland. Our clients are based in Finland, but also in Europe. We are looking to expand.

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

Nothing we can release at this point.

7. “While there will be increased aluminium penetration, vehicles will continue to be predominantly steel,” said Ducker Worldwide’s Dick Schultz.

Is he right or wrong?

I think this is wrong. Autonomous vehicles will have a larger value-creating capability so they can bear the higher costs associated with lighter materials. This will not be the largest change, though, as the number of vehicles produced will drop dramatically over the next 20 years.

8. “Within the next 15 years or so there could be a nearly even split between steel, aluminium and carbon fibre content in the average North American produced light vehicle.” So said Jay Baron, president of the Centre for Automotive Research. Who is closer to the truth – Dick or Jay? Definitely Jay. 9. How important is the development of Industry 4.0 – or ‘smart manufacturing’ – for the global steel industry and what, if anything, is AEROMON doing to further the development of the digital age?

We are combining drones, cloud and smart sensors (IoT), so effectively we are living and breathing Industry 4.0. I think that the future will see the integration of robotised emission monitoring and reporting to the process controls of production plants.

10. “…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?

Yes. The climate is changing and emissions cuts need to be aggressive. We are already passing the 1.5 C goal set in Paris.

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

Not greatly. My belief is that in 2050 all winning businesses will be sustainable.

The reason for this is that eventually the environmental burden of industry will come at a price, and by that I mean the use of

*Chairman, Aeromon www.steeltimesint.com

Perspectives aeromon.indd 1

May/June 2017

18/05/2017 15:52:52

52

PERSPECTIVES: AEROMON

common resources will be taxed somehow.

This will lead to a business environment where emissions are significant costs.

12. In your dealings with steel producers, are you finding that they are looking to companies like AEROMON to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them?

We can offer steel producers a 360-degree view on their emissions and their effect off-site. Airborne environmental monitoring will be in use by the leading players in the industry within a few years.

13. How quickly has the steel industry responded to ‘green politics’ in terms of making the production process more environmentally friendly and are they succeeding or fighting a losing battle?

I think that the pick up of ‘green politics’ could have been faster, but we are beginning to see moves being made in this direction.

14. Where does AEROMON lead the field in terms of steel production technology?

We believe that we are leading, technologically, in airborne emission mapping. The penetration of this technology in the steel industry takes time, but we will get there. The oil and gas field seems to be moving faster.

15. How do you view AEROMON’s development over the short-tomedium term in relation to the global steel industry?

The first demonstrations of value in dronebased mapping have already been done.

This technology will become standard in the medium-term.

16. AEROMON is based in Finland, but what’s happening steel-wise in the country?

In Finland the steel industry has been suffering from the European finance crises quite a bit. Now it seems that with new ship orders and a bit of an economic upturn the industry will do better this year.

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

I think I’m kept mostly awake by new ideas and inventions. For some reason they pop up during the night and I have to write them down and elaborate a bit around them. Then in the morning it’s easier to review them critically over a cup of coffee.

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

Set globally binding emission standards, which would be the same for each player.

I think that that would be the best way forward in raising the bar for everyone. This would also push innovation in efficiency. �

May/June 2017

Perspectives aeromon.indd 2

www.steeltimesint.com

18/05/2017 15:52:58

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03/10/2016 11:55

FUTURE

The Future Steel Forum will look at how innovative technology can be brought together with the sole intention of revolutionising the way steel is made.

STEEL FORUM

DON’T MISS OUT – REGISTER FOR YOUR DELEGATE PASS NOW AND VISIT WWW.FUTURESTEELFORUM.COM

2017 14-15 JUNE • SHERATON WARSAW HOTEL • WARSAW

TO FIND OUT MORE

have an impressive line-up of speakers “ You covering a broad range of topics ”

Applying Industry 4.0 to the steel industry

Dr. Rizwan A Janjua, Head, Technology, World Steel Association

REGISTER NOW Key presentations confirmed

What is Industry 4.0 and how can it assist the global steel industry in its quest for greater efficiencies? Two questions, among many others, that will be answered by the experts at the Future Steel Forum in Warsaw in June 2017.

The Future Steel Forum is a live discussion

Speakers from academia, the steel industry

of the issues surrounding Industry 4.0 or

and the world of steel production technology

‘smart manufacturing’ and will endeavour to

will explain the key concepts behind the

cover all bases, including the all-important

digitalisation of steel manufacturing. Myths

subject of cyber security, the role of human

will be exploded, ideas challenged and

beings in the factory of the future, how to

terminology explained.

survive a cyber attack and the all-important process safety and control.

See full details online at www.FutureSteelForum.com

FROM THE PUBLISHER OF STEEL TIMES INTERNATIONAL Official Media Partner

Voestalpine’s Special Steel Division – One Step Ahead in Digitising Processes in the Metals Industry, by Dr. Michael Eder, global chief digital officer, Voestalpine.

ArcelorMittal and Digital Manufacturing – A Global Perspective by Pinakin Chaubal, General Manager, ArcelorMittal Global R&D.

TAKE ADVANTAGE OF OUR GROUP RATE Book 5 or more passes to receive a 20% discount For further conference information, log on to www.futuresteelforum.com

Industry 4.0 – Where does the Humble Human Being Fit in? by Michael Bremicker, Partner, Operations Consulting, KPMG AG. How Industry 4.0 Can Save Steelmakers Money

by Jane Zavalishina, CEO, Yandex Data Factory.

Papers and discussion panels will also be presented by SAP, Danieli Automation, Primetals Technologies, SMS group, PSI and Quinlogic and more.

Organised by:

www.FutureSteelForum.com

FSF_17_DPS_Ad.indd 2-3

16/05/2017 10:38

FUTURE

The Future Steel Forum will look at how innovative technology can be brought together with the sole intention of revolutionising the way steel is made.

STEEL FORUM

DON’T MISS OUT – REGISTER FOR YOUR DELEGATE PASS NOW AND VISIT WWW.FUTURESTEELFORUM.COM

2017 14-15 JUNE • SHERATON WARSAW HOTEL • WARSAW

TO FIND OUT MORE

have an impressive line-up of speakers “ You covering a broad range of topics ”

Applying Industry 4.0 to the steel industry

Dr. Rizwan A Janjua, Head, Technology, World Steel Association

REGISTER NOW Key presentations confirmed

What is Industry 4.0 and how can it assist the global steel industry in its quest for greater efficiencies? Two questions, among many others, that will be answered by the experts at the Future Steel Forum in Warsaw in June 2017.

The Future Steel Forum is a live discussion

Speakers from academia, the steel industry

of the issues surrounding Industry 4.0 or

and the world of steel production technology

‘smart manufacturing’ and will endeavour to

will explain the key concepts behind the

cover all bases, including the all-important

digitalisation of steel manufacturing. Myths

subject of cyber security, the role of human

will be exploded, ideas challenged and

beings in the factory of the future, how to

terminology explained.

survive a cyber attack and the all-important process safety and control.

See full details online at www.FutureSteelForum.com

FROM THE PUBLISHER OF STEEL TIMES INTERNATIONAL Official Media Partner

Voestalpine’s Special Steel Division – One Step Ahead in Digitising Processes in the Metals Industry, by Dr. Michael Eder, global chief digital officer, Voestalpine.

ArcelorMittal and Digital Manufacturing – A Global Perspective by Pinakin Chaubal, General Manager, ArcelorMittal Global R&D.

TAKE ADVANTAGE OF OUR GROUP RATE Book 5 or more passes to receive a 20% discount For further conference information, log on to www.futuresteelforum.com

Industry 4.0 – Where does the Humble Human Being Fit in? by Michael Bremicker, Partner, Operations Consulting, KPMG AG. How Industry 4.0 Can Save Steelmakers Money

by Jane Zavalishina, CEO, Yandex Data Factory.

Papers and discussion panels will also be presented by SAP, Danieli Automation, Primetals Technologies, SMS group, PSI and Quinlogic and more.

Organised by:

www.FutureSteelForum.com

FSF_17_DPS_Ad.indd 2-3

16/05/2017 10:38

56

HISTORY

Early cannon made in England The Weald of Southern England was where the first blast furnaces arrived from the Continent â&#x20AC;&#x201C; the earliest recorded in 1490 with the technology lasting 323 years until 1813. Of the 119 furnaces recorded during this period some 38 specialised in the casting of cannon. By Tim Smith* THE casting of cannon in 38 blast furnaces took place over a period of some 230 years commencing in the 1540s. Other furnaces were content to cast simpler objects such as fire backs or shot, or sows to send to one of the 109 refining forges where wrought iron was made.

The casting of cannon was a more specialised undertaking requiring careful control of the quantity of iron held in the blast furnace to ensure sufficient iron to cast cannon weighing up to two tons.

Cannon were cast vertically in a pit located close to the casting arch of the furnace. Making the mould was a specialist undertaking and since the cannon were cast hollow, a core had to be located centrally down the barrel.

First a pattern was made in the shape of the outside barrel of the gun. This was achieved using a tapered wooden bar mounted horizontally on end stands. The bar was greased and a straw rope wound around it along its length and fixed at each end by nails. The shape of the gun was then built up with layers of loam containing animal dung and brick dust, each layer dried by a fire lit under the pattern. The final coating was shaped to the profile of the gun using a mould board. Wooden trunnion patterns were nailed to the wooden core and any crest ornaments were cast in wax using a plaster mould.

The mould for the gun was then built up on this pattern, which was first copiously greased. The mould was also made of loam, dung and clay of about 100mm (4â&#x20AC;?) thickness and when complete, was bound with iron hoops. To remove the pattern the trunnion wood was first pulled out and the outer openings closed with a plug of mould material onto which the founders

mark had been made so as to appear on the end of the trunnion. The ends of the straw rope were then severed from the central wooden tapered bar and the bar knocked out. Burning wood was inserted into the resulting hollow which burnt away the straw rope and grease and caused the pattern loam to shrink, allowing it to be broken out of the mould.

The core to cast a hollow barrel consisted of an iron bar around which loam was coated, greased and fixed centrally within the mould and held there by a crown-iron at the breech end. Separate moulds for the breech and a head feeder were then attached.

The assembled mould, when fully dried, was hoist into the pit and fixed vertically.

An adjustable platform in the pit base enabled different length cannon to be accommodated at various times.

A boring mill [and a fairly boring image too]

When all was ready, the furnace was tapped and metal flowed into the mould.

Possibly with smaller cannon, the metal could be poured from a ladle, but large guns would be cast direct from the furnace.

To hold sufficient metal for these large castings the blast furnace had a forehearth extending the size of the metal reservoir.

Following casting and cooling over several days the gun was hoist from the pit and the mould broken away. The feeder head was sawn off and the core pulled out.

Following inspection for no obvious flaws the barrel was reamed using a steel cutting head mounted on a long wrought iron bar.

This was mounded horizontally and rotated by means of a water wheel. The cannon was slowly drawn onto the rotating cutter by a windlass.

Government cannon were proof-tested in London, initially at the Tower and later at Woolwich. Prior to delivery, cannon were tested with shot at the furnace site so failures were not presented for proofing.

Minor failures may have cavities filled with copper plugs and sold to alternative markets.

Considering the complexity of the work, it is amazing how prolific some of the furnaces were. At Horsmonden, one of the most active furnaces, 123 cannon were cast in 1666 representing 30% of the 408 cast in five Wealden furnaces supplying guns that year.

Cannon on the Weald were cast with a hollow bore, eventually this causing the loss of their market when John Wilkinson patented the casting of solid barrels in 1773, which were bored out. The latter provided a sounder gun since casting with a core down the barrel often resulted in porosity in the cannon wall due to escaping gases.

By 1775 the government would only accept solid cannon which were largely cast at Carron in Scotland and the iron industry in the Weald was in steep decline, not only because of Scottish ironworks but also those in the Midlands, Shropshire, Forest of Dean and South Wales. ďż˝

* The author is secretary to the Wealden Iron Research Group May/June 2017

History.indd 1

www.steeltimesint.com

18/05/2017 15:21:47

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