Steel Times International September 2016

INDUSTRY 4.0

METALLURGY MASTERCLASS

CONFERENCE REPORT

PERSPECTIVES Q&A

Manufacturing’s fourth industrial revolution

Rolling and testing

Manik Mehta reports from New York on Steel Success Strategies XXXl

Saku Kaukonen, CEO/CTO of Sapotech of Finland, answers our questions

www.steeltimesint.com September 2016 - Vol.40 No.6

STEEL TIMES INTERNATIONAL – September 2016 – Vol.40 No.6

O T S R E INT

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EXCELLENCE IN FLOW CONTROL

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barandwirerodmills@sms-group.com www.sms-group.com

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CONTENTS - SEPTEMBER 2016

INDUSTRY 4.0

METALLURGY MASTERCLASS

CONFERENCE REPORT

PERSPECTIVES Q&A

Manufacturing’s fourth industrial revolution

Rolling and testing

Manik Mehta reports from New York on Steel Success Strategies XXXl

Saku Kaukonen, CEO/CTO of Sapotech of Finland, answers our questions

Picture courtesy of Stopinc.

2 Leader

www.steeltimesint.com September 2016 - Vol.40 No.6

STEEL TIMES INTERNATIONAL – September 2016 – Vol.40 No.6

5 News The latest steel industry news from around the world.

TOP

INTERS

EXCELLENCE IN FLOW CONTROL

www.rhi-ag.com

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

11 International trade Tariffs mean strength for US steelmakers.

11

12 Latin America update Imports characterise seamless market 16 Japan update Signs of recovery.

21 19 4.0 Industry Manufacturing’s fourth industrial revolution.

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

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

21 Metallurgy masterclass Rolling and testing.

25 Conference report Concern over dumping.

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

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Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England.

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

Rolling 31 Improving rolling efficiency.

37 Duplex steels in wire rod production.

43 Bearing selection for rolling mill.

www.steeltimesint.com

50 Perspectives Industrial internet will rule the world!

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,

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Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2016

52 History Bridging the gap with wrought iron.

ISSN0143-7798

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LEADER

Future Steel Forum, Warsaw, 14-15 June 2017...

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

Global steel conferences. I’ve been to a few in my time and they have all been very inspiring in so many ways. As a magazine editor, the big steel events, such as the annual World Steel Association Conference, which is held in Dubai next month, and the CRU World Steel Conference, held every March, are two crucial events for any self-respecting journalist wishing to gain a broad understanding of the current state of the steel industry. There are, of course, many others... and now there’s one more.

Steel Times International is to run its own conference, but it’s not going to tread on the hallowed ground of the aforementioned established events – perish the thought! Rather than focus on the broader issues tackled by many conferences – China springs to mind – we will focus upon technology, and not ‘technology’ in the wider sense of casting and rolling, but something known as Industry 4.0, or ‘smart manufacturing’ as they call it in the USA. Industry 4.0 might sound like a software package you can pick up from a PC store (life’s not that easy) but it’s much more than that; in fact, it is best described

as a philosophy embracing a variety of different aspects of digitalisation, which, when joined together, form a digital manufacturing platform that brings with it greater control and greater efficiencies. In short, we’re talking about the fourth industrial revolution. Industry 4.0 is the next stage in the evolution of industrialisation.

How well the global steel industry has embraced the technologies behind Industry 4.0 depends a great deal on who you talk to; some say not enough, while others state that steel, more so than any other manufacturing sector, is well positioned and clued up to make the most out of the elements involved (big data, the internet of things, cyber security and so on); it’s all a matter of ‘connectivity’ – another important buzzword associated with Industry 4.0.

But there is a need for discussion and that’s why we have decided to run the Future Steel Forum in Warsaw, Poland, 14-15 June 2017. I am developing the conference programme and I want to hear from anybody keen on presenting a paper.

Email me today for more details.

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September 2016

Leader.indd 1

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INDUSTRY NEWS

Future Steel Forum 2017 A new conference focused entirely on digital manufacturing has been launched by Steel Times International magazine.

The event, which will concentrate solely on the subject of Industry 4.0 – or ‘smart manufacturing’ as it is known in the USA – is aimed at senior level steel executives, particularly chief technology

officers, who want to know more about the philosophy behind the topic and get involved in the live discussion.

Future Steel Forum will take place at the Sheraton Hotel in Warsaw, Poland, between 14 -15 June 2017 and promises to be an informative event.

Major steelmakers have already expressed an interest in taking part as speakers and there are a number of leading technology companies eager to explain the theoretical and practical elements

of digital manufacturing and its relationship to steel production in the 21st century.

What is Industry 4.0 and how can it assist the global steel industry in its quest for greater efficiencies? These are two key questions, among many others, that will be answered by the experts in Warsaw next summer.

For further information on Future Steel Forum and details on how to be involved as a speaker, delegate or exhibitor, log on to www.futuresteelforum.com.

Stace: Global efforts must have ‘bite’ Global effort to support the steel industry must be “fast and have bite” to avoid prolonging the UK’s steel crisis, according to Gareth Stace, head of UK Steel.

Government and industry officials from G20 countries, who recently gathered in Paris for talks on the steel industry, will need to move fast to prevent more steel plant closures and community catastrophes, according to Gareth Stace, head of UK Steel.

According to Mr Stace, “We welcome the G20 commitment to launch the Global Forum on Excess Capacity in the Steel Sector to address overcapacity in our industry.

It is crucial that this new Forum moves quickly and has real bite, to avoid replicating mistakes with previous forums, all of which proved ineffective”.

Stace said that the Global Forum for Steel must address the source of the problem and ensure that China is cutting its net steel-making capacity.

“And we need a clear system for demonstrating both the pace and extent of this,” he said.

“A real cut in steel capacity, www.steeltimesint.com

Industry news.indd 1

most notably in China, is necessary as opposed to the closing of socalled ‘zombie sites’, while at the same time opening bigger facilities elsewhere that actually add to total capacity and exacerbate the current crisis,” Stace said.

Stace said that the crisis is continuing as can be seen in the predicted 30% reduction in steel production output in 2016 when compared with 2015 (2015, 10.9Mt, 2016, estimated at 7.6Mt with UK demand expected to be stable at approximately 10.4mt).

“This is capacity, communities, skills and livelihoods that will struggle to recover,” said Stace.

He added that “Government must ensure that this worrying trend comes to a halt and that it uses all the tools at its disposal to give this strategically vital industry a positive long-term future”.

“The Global Forum for Steel must address the source of the problem and ensure China is cutting its net steel-making capacity. And we need a clear system for demonstrating both the pace and extent of this,” Stace concluded.

The ‘Global Forum on Excess Capacity in the Steel Sector’ has been established to tackle overproduction of steel and met behind closed doors in the French capital a year after the closure of the Redcar works, which sparked the beginning of a steel crisis in the UK. In the 12 months since Redcar's closure – with the loss of 2,000 jobs – the US and the EU have erected trade barriers in an effort to prevent unfairly traded Chinese steel, made and sold at below the cost of production, flooding markets and

distorting competition leading to further pressure on the US and UK steel industries.

According to UK Steel, while these measures – with the support of the UK Government – have had some impact, the source of the problem remains stubbornly familiar.

NEWS IN BRIEF

5

Danieli wins Nam contract…

Italian steel production technology specialist Danieli has been awarded an order for the design and supply of all the equipment for a new cold strip complex capable of producing 600kt/yr of pickled/coldrolled/ galvanised coil, with a final thickness down to 0.14 mm.

The new plant, owned by Vietnamese steelmaker Hoa Phat Steel Sheet, is to be built in the region of Hanoi and will include a 600kt/yr push-pickling line, two 200kt/yr cold reversing mills and two hot dip galvanising lines (150kt/yr and 350kt/yr).

… and a meltshop contract Agha Steel Industries has contracted the Italian steel technology company Danieli to reconstruct its electric arc furnace (EAF) and build a new fume treatment plant.

Pakistan’s only private steelmaker aims to reduce electrical consumption and tap-to-tap time in order to increase productivity at a lower production cost.

Why the S8 TIGER?

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September 2016

20/09/2016 11:01:12

6 NEWS IN BRIEF Polish tubes contract for SMS-group A Polish steel tubes plant in Gliwice, owned by Huta Labedy, has handed a final acceptance certificate to German steel production technology company SMS-group.

SMS-group has installed a 12.75 inch ERW (Electric Resistance Welding) welded tube line capable of producing tubes with diameters ranging from 4.5in to 12.75in, wall thicknesses between 3mm and 12.7mm and lengths of up to 18 metres.

According to SMS, it is the largest and most advanced plant in Poland designed to manufacture electro-resistance welded tubes with longitudinal seams.

Lay-offs at US Steel It has been reported that American steel giant US Steel Corporation has laid-off 38 workers at its Gary Works plant in Indiana.

Maintenance staffers were escorted out of the plant, according to an online report by the Chicago Sun Times.

The company laid off around 750 managers, supervisors and other workers in April and 1,000 workers in North Western Indiana the year before.

China ships 3.4Mt to Latin America Between January and June 2016 China shipped 3.4Mt of steel to Latin America of which 3Mt was finished steel and 387kt steelderivative products. This figure is down 32% when compared with the same period last year (2015).

During the period, Central America was the main destination for Chinese steel (878kt) followed

by Chile (536kt) and Peru (451kt).

In value terms, the volume of steel sent to Latin America was worth US$1.5 billion.

Source: Alacero.

Hyundai grants SMS-group final acceptance After the successful installation and commissioning of a 3-roll PSM (Precision Sizing Mill) into an existing bar mill in Pohang early this year, the Korean producer, Hyundai Steel, has granted SMSgroup the final acceptance.

The 3-roll precision sizing mill PSM 380/5 will be used to roll purely SBQ grades.

September 2016

Industry news.indd 2

INDUSTRY NEWS

Porter cites reasons for optimism Tracy Porter, president of CMC Americas and chairman of the Steel Manufacturers Association (SMA), told journalists recently that the US steel industry continues to face challenging market conditions.

Domestic mills, he said, have produced 57.6Mt this year (2016) down 1.1% from last year's already low levels. He said that the US capacity utilisation rate – the most recent figure being 70.8% – has consistently lagged behind the global figure and that the overcapacity problem was the chief cause of the US steel industry’s woes.

“US markets, which are open and relatively strong, continue to be flooded with offshore imports from a range of nations and in virtually every product category. American steel producers, the workforce, and surrounding communities bear the brunt of global overcapacity,” he said, adding that there is some good news.

There have been positive developments, he said, on the trade

legislation front. “Congress passed bipartisan trade remedy and enforcement legislation in 2015, and these measures have already had a positive impact on recent steel trade case determinations,” he said. “Also, earlier this year, Congress passed the ENFORCE Act as part of the Customs bill. If properly implemented, these provisions can have a major impact in addressing duty evasion and trade schemes."

Porter believes that trade cases and remedies have helped in some instances. “But they alone will not solve the problem,” he argued.

“We urge the Administration to keep the overcapacity issue front and centre in multi-lateral forums, such as the OECD Steel Committee, which will meet in Paris next month.”

According to Porter, the time has come ’for the dialogue to result in meaningful, transparent commitments that yield significant net capacity reductions’.

Despite the problems facing US steelmakers, Porter cites reasons

for optimism. The passing of the FAST Act, a multi-year surface transportation bill, gives states the ability to participate in large-scale project planning. “As such we anticipate that some long overdue infrastructure projects will finally proceed,” he said, adding that, moving forward, he would like to see increased investment levels and steps to address the future solvency of the highway trust fund.

Porter said that investment in the USA’s inland waterways should be top priority and was hopeful that Congress would pass a new Water Resources Development Act during its current session.

Porter said that EAF producers continue to operate ‘sustainable, world-class facilities’. “CMC is excited to have broken ground on our new minimill in Durant, Oklahoma. Sound public policy will help ensure that the US remains a viable place to do business,” he concluded.

China congratulates itself New name!

Following the release of their halfyear financial results, three leading Chinese steelmakers – Baoshan Iron & Steel Co, Angang Steel Co and Wuhan Iron and Steel Group – are hailing a recovery of the steel market and praising the success of their cost-cutting efforts.

A report by Global Times claims that Baoshan Iron & Steel’s net profits grew 9.26% year-on-year to 3.5 billion yuan ($524 million).

Angang Steel Co was up 93.55% to 300 million yuan and while Wuhan announced reduced profits (down 41.71%) it was an improvement on the company’s Q1 results when profits fell around 93%.

All three steelmakers cut costs to improve profitability and Wuhan accredits rising iron and steel prices for its change in fortune as well as the hard work of its employees.

But the good news is shrouded in misfortune as Ansteel was forced to cut 742 employees during the first six months of 2016 and Baosteel said 93% of its goals were the result of cost-cutting exercises, refusing to elaborate fur-

ther.

Wuhan trimmed down it’s energy, marketing and management departments.

Despite the cost-cutting, however, the steel market globally is still in a bad way, thanks to oversupply emanating largely from China.

Chinese steelmakers, it is claimed, are over-staffed and the companies are producing uncompetitive products, which is leading to heavy debts.

According to Baosteel, crude steel production in China over the first six months of the year fell 1.1% to 400Mt. Baosteel and Wuhan are both planning a major restructuring next year.

Source: Global Times.

Following its acquisition of Oerlikon Leybold Vacuum GmbH, Stockholm-based Atlas Copco AB has renamed the company as Leybold GmbH. Leybold is now part of Atlas Copco’s Vacuum Solutions Division, and is part of the Compressor Technique Business Area, which has approximately 6,500 employees represented in over 35 countries.

Vacuum specialist Leybold, founded in 1850, is an important acquisition for Atlas Copco.

“The technological know-how and the innovative spirit of Leybold will complement our vacuum portfolio and strengthen our market presence, contributing to our customers’ success,” said Geert Follens, president of Atlas Copco’s Vacuum Solutions division.

Leybold, which is headquartered in Cologne, Germany, has a 166year long history of developing and delivering vacuum pumps, systems, standardised and customised vacuum solutions and services for various industries, including steel. www.steeltimesint.com

20/09/2016 11:01:14

INDUSTRY NEWS

Happy days for Nucor Things have gone from bad to good for the American steelmaker Nucor.

A report by Moneyshow.com claims that Nucor, the USA’s largest recycler of any material and the biggest minimill steelmaker in the country, is up 34% since the start of 2016, thanks in large part to an International Trade Commission ruling that China has been dumping steel in the US at ‘less than cost’.

The ruling means bigger tariffs

on imported steel from China and this has strengthened Nucor’s financial position in the market.

Also on the good news front, Nucor has signed a 10-year deal with energy infrastructure giant Kinder Morgan. The deal is worth $900 million and involves the company’s terminals division handling in the region of 14.8Mt of scrap, DRI, pig iron and other feedstocks.

Nucor is also planning to build an automotive steel plant in Mex-

served Paratore.

NanoSteel, which focuses on proprietary alloys for use as sheet steel in automotive light-weighting applications, partnered with West Chester, Ohiobased AK Steel Corp. earlier this year and recently provided a sample of the material to Detroit-based General Motors Company for testing. The material, according to its promoters, is as affordable as current offerings of advanced high-strength steels to automotive companies, which are scrambling to comply with US regulations to reduce carbon emissions, which can be achieved by using lightweight metal.

El Marakby’s new plant A new 350kt/year compact electric steel plant engineered by the German SMS-group has opened in Giza, Egypt.

The plant comprises a raw materials handling system, 45-ton EAF, ladle furnace with a transformer rating of 8MVA + 20% and a three-stand billet

caster. The new plant is owned by El Marakby. CEO Hassan El Marakby said that the new plant enables the company to expand its range of steel grades and produce rebars extremely flexibly, creating value locally and strengthening its competitiveness too.

7

TK pursues growth through acquisition

ico in partnership with Japanese steelmaker JFE Holdings, a joint venture that can only bolster Nucor’s position in the long term.

Source: Moneyshow.com

Automakers demand lightweight steel David Paratore, president/CEO of Providence, Rhode Island-based NanoSteel Co., an advanced materials company specialising in designing and commercialisation of patented steel, argues that the impact of lightweight steel, while retaining its key property of affordability, would help steel remain the material of choice among automotive manufacturers, especially if consumers become more informed about the materials that make up the cars they drive.

Speaking at the recent Steel Success Strategies XXX1 conference in New York, Paratore said, “The cheapest solution, in this case the cheapest material that solves their problem, is what car companies are going to use. That’s why steel has been used for so long,” ob-

NEWS IN BRIEF

Thyssenkrupp Materials Processing Europe GmbH has acquired Thyssen Ros Casares S.A. in southeastern Spain.

The Krefeld-based processing specialist is systematically pursuing its growth strategy with the integration of the site in El Puig, which is now trading under the name Thyssenkrupp Materials Processing.

Since spring, the Europe-wide service centre network has already been boosted by the addition of a new location in Györ, Hungary, and the stainless steel service centre in Willich, Germany.

Evraz cuts costs Russian steelmaker Evraz, of which Roman Abramovich holds a 30% stake, is cutting costs to remain competitive, according to a report in the UK Daily Telegraph.

Evraz’s interim revenues fell 27.6% to $3.5 billion and net profit collapsed from $19 million to $7million.

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SAFE SAMPLE ANALYSIS R E AS O N # 13 : Safe sample analysis

SampleCare™ constantly protects important WDXRF system components from contamination, ensuring accurate results and reliable system performance. www.bruker.com/S8TIGER-13 Marcel Fasswald, member of the managing board of SMS group (left) with Hassan El Marakby, CEO of MKS. www.steeltimesint.com

Industry news.indd 3

WDXRF

September 2016

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9

INDUSTRY NEWS

World crude production up World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 133.7Mt in July 2016, up 1.4% on July 2015.

China’s crude steel production for July 2016 was 66.8 Mt, an increase of 2.6% when compared to July 2015. Elsewhere in Asia, Japan produced 8.9 Mt of crude steel in July 2016, an increase of 0.5% compared to July 2015. India produced 8.1 Mt of crude steel in July 2016, up 8.1% compared to the same month last year. South Korea’s crude steel production was 6.0 Mt in July 2016, up by 1.5% on July 2015.

In the European Union, Germany produced 3.4 Mt of crude steel in July 2016, a decrease of -6.1% compared to July 2015. The United Kingdom produced 0.7 Mt of crude steel, down by 27.3% on July 2015.

1.4% In July 2016, Russia produced 6.1 Mt of crude steel, up by 0.9% over July 2015.

Ukraine produced 2.1 Mt of crude steel, up by 10.5% compared to the same month in 2015.

The USA produced 6.9 Mt of crude steel in July 2016, a decrease of -2.2% compared to July 2015.

Brazil’s crude steel production for July 2016 was 2.7 Mt, down by 6.0% on July 2015.

The crude steel capacity utilisation ratio of the 66 countries in July 2016 was 68.3%. This is the same figure as in July 2015. Compared to June 2016, it is 3.7 percentage points lower.

Turkey’s crude steel production for July 2016 was 2.7 Mt, up by 6.5% on July 2015.

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

DIARY OF EVENTS September 2016 25-27 Steel Orbis Fall 2016 Intercontinental Hotel, Vienna, Austria.

The 75th Irepas meeting promises to be a big event with over 300 delegates expected. Papers on the global steel market outlook, economic developments and expectations and a focus on China.

For further information, www.cvent.com 26-28 2nd Iran Iron & Steel Conference.

Abbasi Hotel, Esfahan, Iran.

Organised by Metal Bulletin Events and covering a wide array of topics, including iron ore, DRI, technology, logistics and infrastructre.

For further information, www.metalbulletin.com/events/ iransteel

October 2016 03-05 9th North American Steel 2016, Fairmont Hotel, Chicago Organised by CRU, the North American Steel Conference 2016 is a major industry event that will address a range of key issues,

www.steeltimesint.com

Industry news.indd 4

including trade barriers and global threats to the North American steel industry.

For further information, log on to www.crugroup.com/events/nasteel 03-05 9th North American Steel Conference.

Chicago, USA. Organised by CRU. An all-singing, all dancing steel conference covering all aspects of the North American steel market.

For further information, www.conferences@crugroup.com 09-12 12th China International Heat Treatment Exhibition.

Shanghai, China.

A leading heat treatment event, organised by Beijing Hiven Exhibition Co and attracting leading players in the field of heat treatment.

For further information, www.chinaexhibition.com 18-20 Met Coke World Summit Pittsburgh, USA This event will keep delegates up-to-date with the latest trends in the global market.

For further information, www. metcokemarkets.com

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SPEAKS YOUR LANGUAGE R E A S O N # 17 : Speaks your language

The S8 TIGER’s TouchControl™ user interface provides free, online language selections that make the WDXRF analysis accessible to over 80% of the world’s population. www.bruker.com/S8TIGER-17 WDXRF

September 2016

20/09/2016 11:01:24

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INTERNATIONAL TRADE

Tariffs mean strength for US steelmakers With a heavy tariff placed on Chinese imports, the US steel industry has experienced a recent upturn, says Lynn Cielec* THE USA’s federal government recently placed a major tariff on imports of Chinese cold-rolled steel, after the US International Trade Commission (ITC) determined that these products have been unfairly subsidised by the Chinese government and sold in the US at disproportionately low prices. The tariff will run as high as 522% in some cases and is twofold in nature, comprising a 266% anti-dumping duty and a 256% anti-subsidy duty.

A global glut of steel China is by far the leading producer of steel, and the country now produces more steel than the US, Japan, Russia, and the European Union (EU) combined. Over the past 15 years, China has rapidly increased its steel production to accommodate growing infrastructural needs both domestically and abroad. In the last year alone, China sent 112Mt of steel overseas.

But now that demand has dropped, factories are producing and exporting far more steel than is needed; and the Chinese government continues to subsidise this practice, offering tax rebates for steel exports.

China’s continued production and export of steel has ruffled feathers in the US and EU, as leaders have blamed the country for exacerbating a worldwide steel glut and responded with prohibitive tariffs. In its defense, China insists that it is abiding by World Trade Organisation rules, and that the issue of over-production has more to do with diminished worldwide demand than it does with Chinese dumping. But Xiang Songzuo, chief economist at the Agricultural Bank of China, admits in an interview with NBC News that “China’s steel capacity is huge, at over 60% of global steel capacity.”

Proposed mass layoffs in the industrial sector might help curtail the country’s capacity issues and slow production moving forward. While China’s status as the world’s largest steel producer remains intact, the country plans to cut back its steel producing capacity by up to 150 million metric tons by 2020.

happening.” He went on to confirm that further progress was on the horizon.

However, his statement took a cautious approach given the steel industry’s recent losses, allowing that the industry still faces ‘global overcapacity and unfair trade practices.’

The tariff is a definite move in the right direction for an industry clearly on its way back to profitability, as well as for the entire US economy. �

US steel holds steady The recent tariff is a boon for US steel, and has already begun to pave the way for improved market conditions and an increase in domestic steel prices.

United States Steel Corporation’s stock prices were up 10.8% at the close of July, and reported a net income loss for the quarter that was much smaller than predicted. What’s more, the Pittsburgh-based company expects to generate $850 million in adjusted earnings for the full year, compared with its initial April forecast of REASON #23: $400 million.

Quality components President and CEO Mario Longhi gave Core technologies, including X-ray generator, voice to the company’s goniometer, X-ray detector and analyzer crystals, optimism in a recent have been developed by Bruker, specifically for statement: “There’s so use in the S8 TIGER WDXRF. many investments that www.bruker.com/S8TIGER-23 we’re making that are making things so much WDXRF better. The opportunity for growth is real. It’s

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* Lynn Cielec is the industrial business unit manager at Midwest Industrial Supply.

She is an experienced executive sales director with a proven track record of results and sales growth. www.steeltimesint.com

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September 2016

21/09/2016 09:18:05

12

LATIN AMERICA UPDATE

Imports characterise seamless market Last month we examined the supply side of the Latin American seamless tube market, emphasising regional production and exports. In order to complement the analysis of this market segment, we will now focus on demand and imports. By Germano Mendes de Paula* IT is worth remembering that only four Latin American countries are equipped to fabricate seamless tubes: Argentina, Brazil, Mexico and Venezuela. The rest of the continent, therefore, and Venezuela (because its lone plant has been idled since 2009) are attended only by imports (including intra-regional ones).

Imports data extracted from UN Comtrade, refers to Harmonised System Code 7304. If a given country imports less than 1kt/yr, this amount is excluded from the database by the author. Even adopting this cap, the sample is fairly comprehensive, including small consumer nations such as the Bahamas, Belize, Jamaica, and Surinam. Moreover, UN Comtrade was able to deliver roughly 95% of the required information. The gap was eliminated by using data provided by the Latin American Steel Association (Alacero) and market participants.

Bearing these methodological procedures in mind, Fig 1 shows that regional seamless tube imports jumped from 867kt in 2010 to 1.18Mt in 2011, hovering around this plateau until 2014. It diminished 7.7% in 2015, while world exports plummeted 24% in the same year.

One possible explanation from the

Between 2010 and 2015 Venezuela considerably enlarged its volume, skyrocketing from 131kt in 2010 to 466kt in 2015. For the period as whole, Venezuela achieved a 25.9% share of regional imports.

Colombia, Ecuador and Peru imported a considerable amount of seamless tubes, collectively reaching 374kt in 2010, 529kt in 2011 and 294kt in 2015. For the entire period, their participation was equal to 39.4%.

Mexico, Argentina and Brazil, as mentioned before, are the only Latin American nations currently producing seamless tube and this explains the

better-than-expected regional import performance in 2015 could be associated with Venezuela, which is usually criticised for its inaccurate statistics. Venezuela aside, regional imports improved from 736kt in 2010 to 955kt both in 2011 and 2012, but declined to 864kt in 2014 and to 621kt in 2015 (Fig 1). This outcome seems closer to the market’s reality.

In 2010, Latin America’s seamless tube imports (including Venezuela) were equivalent to 6.1% of the global trade. This ratio increased to 9.3% in 2012. Since then, its share varied from 6.5% in 2013, to 7.0% in 2014 and 8.5% in 2015.

Countries

2010

2011 2012 2013 2014 2015

Venezuela

131 222 285 310 314 466

Mexico

141

Colombia

190 246 255 195 212 128

Ecuador

111 188 156 167 207

Peru

73 95 89 66 88 71

Brazil

107

Argentina

27 39 49 34 45 35

Chile

25 37 31 23 30 31

Bolivia

21 23 25 26 32 23

Central America and the Caribbean

33

30

34

27

34

37

Other South America

7

6

10

11

12

5

TOTAL

867

159 174 147 123 131

132 133 125 81

95 65

1,176 1,240 1,132 1,178 1,087

Table 1: Latin American seamless tube imports, by countries, 2010-2015 (kt) Source: own elaboration based on UN Comtrade, Alacero and market participants

Venezuela Argentina Colombia Ecuador

1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2010

2011

2012 Latin America

Fig 1

2013 Ex-Venezuela

2014

2015

World Peru Latin America Others Mexico Brazil Chile 0

5

10

15

20

25

Fig 2

*Professor of Economics, Federal University of Uberlandia, Brazil. E-mail: germano@ufu.br September 2016

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LATIN AMERICA UPDATE

relatively limited imports, despite being the largest steel markets on the continent. Together, their imports rose from 276kt in 2010 to 356kt in 2012, but dropped to 231kt in 2015, meaning that, for the whole period, these three countries had a 26.2% participation in total regional imports.

Central America and the Caribbean show a combined volume from the following nations: Bahamas, Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Nicaragua, Panama and Trinidad and Tobago. Paraguay, Suriname and Uruguay make up other South American countries in the mix.

Regional consumption The apparent consumption was calculated, for most countries, by the sum of national production and imports, deducted by exports.

For Brazil, demand was estimated by adding domestic sales and imports (following the procedure adopted by the Brazilian Steel Institute).

Latin American consumption of seamless tube experienced an upward change from 1.7Mt in 2010 to 2.2Mt in 2012. Afterwards, it experienced a downturn to 2.0Mt in 2013-2014 and 1.6Mt in 2015. Meanwhile, the relative importance of the region in terms of global demand was 4.4% in 2010, 5.4% in 2012 and 3.9% in 2015.

Apparent consumption in Mexico expanded from 402kt in 2010 to 494kt in 2012, declining to 289kt in 2015. Brazilian demand was maintained around the 450kt/yr level during the 2010-2013 period and decreased to 255kt last year. Argentinian consumption hovered around 280kt/yr between 2010-2011 and then jumped to 330kt in 2012, decreasing to 233kt in 2015. Mexico, Brazil and Argentina accounted for 56.9% of regional consumption.

The importance of seamless tube It is worth investigating the importance of seamless tube as a proportion of national steel consumption in 2015. Differently from the previous graph and tables, all information utilised to elaborate Fig 2 was delivered from Alacero and the Brazilian Steel Institute, in order to employ the same source from both the specific product and the total market. There are some minor differences between UN Comtrade and Alacero. The only key exception is Ecuador, for which the first one registered 95kt imports in 2015 and the second one, 48kt.

Seamless tube accounted for 2.6% of the global steel consumption in 2015, while in Latin America this ratio reached 2.3%. Within the region, there is a strong disparity, since this proportion varied from 21.7% in Venezuela (an evident outlier), 4.4% in Argentina, 3.0% in Colombia, on one side of the spectrum, to 1.2% in Mexico and Brazil and 1.1% in Chile (Fig 2).

More imports than exports Latin America’s participation in global seamless tube production diminished by 2.7 percentage points between 2010 and 2015, while consumption retracted just 0.5 percentage points. In terms of international trade, Latin America reduced its share 0.9 percentage points for exports, but amplified its participation by 2.4 percentage points. In other words, the Latin American seamless tube market has been increasingly attended by imports. �

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16

JAPAN UPDATE

Signs of recovery On 27 and 28 May, Japan welcomed world leaders to the G7 Ise-Shima Summit Meeting. In a 32- page Leaders’ Declaration document, made public on the closing day of the event, the word ‘steel’ appeared three times not as an engine for global economic growth, but as a symbol of industrial products suffering from global excess capacity. Countries such as the USA and EU have started to investigate or impose anti-dumping duties and/or safeguard measures for increasing imported steel products from export-oriented countries such as China. Japan is no exception, but there are some signs of recovery in the Asian steel market despite successive announcements by major Japanese corporations highlighting poor financial performances earlier in 2016. By Nobuhisa Iwase * ACCORDING to a survey by Nikkei Simbun (a Japanese economic journal), total current profits by 1,055 major Japanese companies whose stock shares are listed on the Tokyo Stock Exchange declined by 18% in the first quarter (April-June) of the fiscal year (FY) 2016 compared to the same period in 2015. Reduced profits were reported by 67% of the total number of companies.

Most of the sectors related to the iron and steel industry experienced poor financial performances (See Table 1).

Appreciation of the yen has become a negative factor for export-oriented manufacturing sectors such as automobiles, shipbuilding and machinery. Weak domestic demand in terms of personal consumption, and peaked-out in-bound consumption by foreign tourists, particularly by the Chinese, have been negatively affected by the appreciated yen currency and have brought about reduced profits in the retailing and service sectors. The Japanese yen to the dollar appreciated by 11% from 121 yen in April-June 2015 to 108 yen in the same quarter in 2016. It is estimated that the appreciation of the yen reduced the total operating profits of Japan’s seven leading auto manufacturers in the AprilJune quarter 2016 by 500 billion yen (US$ 4.6 billion). In the case of the automobile companies, market conditions have not been bad at all in terms of sales. Total sales by the seven major Japanese passenger car producers have slightly increased on a

1.3 trillion yen (US$ 12 billion) in total.

Automobile manufacturers are confident they will continue to increase total sales for the whole year.

Global oversupply of iron and steel products has continued to be a headache

global level even in the first quarter of FY 2016. Due to the yen’s appreciation, total operating profits of those seven companies in Q1 FY2016 declined 10% compared to 2015 levels, although they recorded an historically high level of profits reaching Sector

2015/Apr-Jun

2016/Apr-Jun

Ocean Shipping

+70%

Red ink

Food -processing

+32%

-15%

Chemical

+47%

-23%

Shipbuilding

+44%

-75%

Electrical machinery

+16%

-40%

Auto and auto components

+13%

-15%

General machineries

+13%

-50%

Iron & steel

+2%

Red ink

Retailing

+55%

-15%

Services

+24%

-29%

Note: Figures (%) show the changes of total current profits in April-June quarter in 2016 compared to those of the same in AprilJune quarter in 2015. Source: Nikkei Shimbun (Japan Economic Journal)

Table 1. Changes in current profits by major Japanese companies

Fiscal year/Quarter/Month

Production

Export

Import

2011

104.5

42.8

6.7

2012

107.3

46.1

6.3

2013

111.5

45.3

7.1

2014

109.8

45.1

7.2

2015

104.2

44.4

6.9

2016/Jan-Mar

25.8 (-3.4%)

11.2 (-0.6%)

1.7 (+5.1%)

April

8.5 (+1.1%)

3.5 (-9.9%)

5.5 (+0.5%)

May

8.9 (+0.2%)

3.9 (+0.5%)

5.5 (+6.6%)

June

8.8 (+2.7%)

-

-

Note: (1) Figures in parenthesis ( ) show percentage changes from the previous year.

(2) Japanese fiscal year from April to March next year. Source: Japan Iron and Steel Federation

Table 2 Crude steel production, exports and imports of Japan (Million tons: Figures for exports and imports are calculated crude steel basis).

* An independent steel economist, Karuizawa, Japan, E-mail: nobykaru@seagreen.ocn.ne.jp September 2016

JAPAN.indd 1

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20/09/2016 11:17:36

17

JAPAN UPDATE

for both policy makers and the steel industry. In Japan, the steel sector has suffered from deteriorating financial performances in the first half of the year. All three major Japanese integrated steel mills recorded net losses in Q1 FY 2016. Nippon Steel and Sumitomo Metals Corporation recorded a 12 billion yen (US$ 111 million) current account loss and JFE Steel suffered a loss of 13.3 billion yen (US$ 123 million). However, they also keep their relatively optimistic views on profits generation for the whole fiscal year of 2016 at a certain level. One of the reasons is that they see some signs of rebounding steel prices both in their domestic and export markets. For example, the spot market price of hot rolled coil in East Asia rebounded to around US$360, which is 20% higher than the bottom at the end of last year. Price level index of steel products produced by the Japanese steel companies for the domestic market has also been rebounding since the beginning of this year (Fig. 1). It is reported that the Chinese government has announced that it will stimulate investment by the private sector in the latter half of 2016 in order to keep a modestly high economic growth rate of between 6.5% and 7.0%. Another reason is that most Japanese companies set a relatively conservative currency rate at around 100 yen to the dollar for their estimation of whole year financial performances – a more appreciated level compared with actual results… until now.

The Japanese iron and steel sector has maintained a relatively high operational rate up until now. With some figures to show

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rebounding production volumes for the recent months, crude steel production for 2016 is estimated to continue to be more than 100Mt (See Table 2). While Japan’s large integrated steel companies struggle with rapidly changing business environments, particularly by continuous over-supply pressure from Chinese steel products in the Asian market, they will succeed in keeping their relatively stable and profitable businesses in 2016. �

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19

INDUSTRY 4.0

The fourth industrial revolution Yandex Data Factory’s Alexander Khyatin*, argues the case for machine learning’s place in the fourth industrial revolution and presents the challenges that lie ahead if manufacturers fail to get on board.

WITH the advent of Industry 4.0, significant change is set to disrupt the factory floor. While change can be daunting for manufacturers, it should not equate to revenue loss. With the surge of big data brought about by the industrial ‘internet of things’ (IoT), the pressure is on for manufacturers to find ways of extracting business value from their data and possess the right tools to keep up with manufacturing innovation. While the challenges ahead are tough, applying advanced technologies like machine learning will see manufacturers stay ahead of the competition and see a return on their investments.

Why is Industry 4.0 happening?

The fourth industrial revolution is the result of a combination of factors, which together are about to change the way manufacturing operates. First, data collection and storage has evolved significantly in recent years thanks to advances in technology. With the advent of industrial IoT, manufacturers now have the tools to collect masses of data on the factory floor through sensors, telemetry and connected devices.

Second, the advances in technology are echoed in the increased availability of computing power, necessary for advanced data analysis, including machine learning and neural networks. This enables data processing on a mass scale – something that just several years ago was impossible and impractical for businesses due to cost limitations.

Third, the success of these advanced technologies has already been demonstrated in other online sectors.

As advanced data analysis defines user experience on e-commerce sites, car navigation, internet search, and so on, offline industries, such as manufacturing, are beginning to see how success might be reaped from their data.

Towards optimisation On a practical level, Industry 4.0 very much resembles the previous revolution in that it is driven by automation. The radical transformation of the production process brought about by Industry 4.0 will allow for additional efficiencies and flexibility through the automation of decision-making.

Intuition, expert opinions and specifications

based on statistics and theoretical modelling are all to be partially replaced with automatic real-time decision-making, based on the advanced analysis of real data coming directly from the factory floor.

Making use of data to see tangible and valuable results is where manufacturers have come to fail in the past. Naturally, data collection is the first step towards data analysis. However, manufacturers make the mistake of over-focusing on collection and neglecting analysis. Many attempt to extract value from their ever-growing data using data analysis techniques from previous generations, which lack the benefits that machine learning could provide. This outdated approach proves less than fit for purpose and fails to maximise results.

While many manufacturers have, in fact, begun to recognise their big data failures, they sadly do not possess the tools necessary to overcome all of the obstacles they encounter. Applying advanced technologies, such as machine learning algorithms, specifically developed to work with such massive datasets, manufacturers will definitely see a return on their investment.

* Chief operating officer, Yandex Data Factory

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20

INDUSTRY 4.0

Beyond big data When manufacturers have the correct foundation – both datasets and tools – they will be able to extract business value. By applying machine learning and artificial intelligence across all production levels, manufacturers will be able to optimise processes in a multitude of ways.

For example, narrow-focused solutions, such as computer vision systems, can be applied for quality control of materials based on automatic visual inspection.

When applied to the factory floor, real-time analysis of video feeds can also be used for safety control.

On the next level, predictive and prescriptive machine learning algorithms can be applied to data, such as the composition of raw materials, equipment telemetry, operational logs or production parameters.

This would allow for manufacturers to model existing processes with greater precision to correctly identify applicable patterns across the factory floor or for specific equipment. Such analysis can be followed by recommendations on production parameters to deliver savings through cost reduction

without affecting output quality.

Another example is the application of a machine learning model for predictive maintenance, developed from the analysis of machines’ previous performance. This allows manufacturers to anticipate faults and breakdowns in individual machines before they happen.

By switching from rule-based systems reliant upon statistics to systems based upon discovering patterns and relationships within the real data, manufacturers will be able to increase production efficiency without new capital investment.

We have witnessed first-hand how the application of a recommender system for steel production, when integrated with existing equipment, can enable manufacturers to decrease ferro alloy consumption by up to 5% without affecting quality levels. Similar solutions can be developed for many tasks.

The successful integration of new technologies rely upon multiple factors including data availability and the ability to quickly collect missing data through the integration of new sensors that are

becoming cheaper and more accessible.

Another important factor in the profitable integration of machine learning and data analytics is the engineering mind-set. If manufacturers want to embrace Industry 4.0, they must understand the value of measurements and experiments, essential to all solutions based on machine learning.

Industry 4.0 will bring manufacturing into a new era, whereby decisions are made by man-machine systems and the greater part of decision-making is fully automated. Through the combination of sensors and industrial IoT systems, data connectivity and machine learning models to automate decisions and predict likely events, the factory floor will begin to resemble a connected ecosystem, supporting the stability of its environment with multiple optimisation mechanisms.

As Industry 4.0 continues to make leaps and bounds into the manufacturing world, the challenges which lie ahead are evident.

But if manufacturers want succeed, changes in existing business processes must take place to make manufacturing innovation and industrial IoT a reality. �

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METALLURGY MASTERCLASS

21

Rolling and testing This is the third part in a series of articles aimed at those in the steel industry who have no background in metallurgy, and would like to know more without learning a lot of complex theory. This time, rolling and testing are considered. By Keith Walker* IT is worth remembering that one of the greatest challenges in steel making is obtaining the desired balance of strength and toughness for the final product.

High strength, although not always desirable, usually is but is most easily achieved at the expense of toughness. This means that strong, or hard (same thing), steel is commonly brittle and those who have broken drill bits will appreciate this point.

Changing the chemical composition of steel obviously alters its properties, but in addition to this method of controlling its properties, it is also necessary to consider

how the steel is rolled. Another reminder is that steel has different crystal structures at different temperatures, so during rolling or forging it is a completely different material than at room temperature. This can be difficult to appreciate for non-metallurgists, who might reasonably assume that when rolling a new, higher strength steel, it will require higher rolling forces in the mill. No, most often this will not be so. The higher strength will only be apparent when the steel has been cooled.

This is because most strengthening methods only start to work when the steel has transformed into the crystal structure

found at service temperature. However, the way the steel is rolled can also have a considerable affect on the final steel properties.

For ordinary steel grades, rolling or forging takes place when the steel is in a phase called austenite. In this phase, which is present between 750 and 900 degrees Celsius depending on carbon content, steel is more like aluminium than steel at room temperature. So, the reason that steel is rolled hot is not just because it is softer, but because it changes into a different material, which is more easily deformed without cracking.

* Steel consultant. Email: keith.walker@steelfolk.co.uk www.steeltimesint.com

Metallurgy masterclass.indd 1

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22

METALLURGY MASTERCLASS

One of the most efficient ways of achieving a good combination of strength and toughness is to obtain a small grain size. There is a limit to its effectiveness, but for ordinary grades this is very desirable.

Grains are the individual crystals from which the steel is composed. During rolling, the grains of austenite deform and elongate in the direction of rolling, being compressed into ‘pancakes’ as the thickness is reduced.

However, a process called recrystallisation takes place simultaneously.

When the grains are deformed, a natural process creates new grains, which nucleate and grow on the boundaries between the pancake-shaped grains. It is the same material, but the new grains are rounder and less flattened, minimising interface energy. The more this process can be encouraged, the smaller the grain size will be when the steel has cooled to room temperature.

Aluminium nitride One way of achieving this is to have a large number of particles on which new grains can nucleate, and in common grades these particles are aluminium nitride. This is done by the addition of aluminium during steel making, which not only removes oxygen (which is desirable for avoiding problems during casting) but leaves an amount of it in solution in the steel. This reacts with nitrogen in solution to form small particles of AlN. Many readers will be familiar with ‘aluminium fine-grained’ steels, to which this refers. After rolling, the small grains of austenite will transform into small grains of ferrite and pearlite, giving a good combination of toughness and strength.

The rolling process itself can also affect the grain size in the final product.

New grains of austenite not only form during rolling, they also grow in size, and this happens more quickly at higher temperatures and will tend to increase the grain size in the final product, and can be discouraged by rolling at lower temperature.

Therefore, the rolling mill will often hold steel before the final passes to achieve a low temperature, and finish rolling thereafter. This has to be carefully controlled to avoid problems, and is often known as “controlled rolling”, or the more flamboyant term “thermo-mechanical controlled rolling” (TMCR).

The holding process to lower the steel September 2016

Metallurgy masterclass.indd 2

temperature before the final passes creates an undesirable reduction in speed of working and mill capacity, so some mills have installed equipment which accelerates cooling using controlled application of water. This must be very uniform to avoid temperature differences, and often laminar flow systems are employed. Because of edge effects on cooling, this is arguably an improvement on simply holding the steel.

These rolling controls are most often found in mills rolling flat products, simply because their thickness is uniform and, therefore, the necessary controls are more easily deployed. Although they are used in some mills that make sections (or shapes), Jominy End Quench Test

Test piece at austenite temperature

Hardness readings

Water jet

due to the variable cross-section of such products, they are more difficult to use.

During rolling of rod, for drawing to wire or for the making of fasteners such as screws and bolts, air-cooling is often used to achieve a small grain size. In this process, the steel is laid in a particular way at the end of rolling and air is blown across it using special fans. Especially for high carbon products, this has the effect of creating a fine pearlite structure, in which the distance between the ferrite and cementite laths is as small as possible, having a beneficial effect on strength and avoiding more expensive higher alloy contents.

For special steels, which require high strength and good toughness, heat treatment is commonly used. This usually needs quenching and tempering. For example, wear-resistant plate, which is hard and tough, is made using a heat treatment plant, which takes advantage of the difference in solubility of carbon between the austenite and ferrite phases of steel.

Carbon totally in solution in austenite forces it to transform, upon rapid cooling, not

into the usual ferrite but into a very strong phase called martensite.

This phase is of very high strength, but does not have sufficient toughness. It is then heated to a temperature below that which would transform it into austenite and held for a defined period of time, which causes it to soften in a controlled way. This is tempering, which creates a product with a good balance of strength and toughness.

For products with a high cross-section, the hardenability of the steel is an important consideration. It will be obvious that during quenching the surface of the steel cools a lot more quickly than does the centre. The question is, does the centre cool sufficiently quickly to cause a transformation to martensite rather than ferrite? If not, then the surface may be very strong, but the centre too weak.

It is the chemical composition that affects hardenability. A greater content of alloys that tend to form carbides increases it, such that a higher cross-section can be quenched successfully. This is why tool steels often contain high levels of alloys such as tungsten, molybdenum and chromium.

For steels that are hardenable to a lower extent, a less expensive approach is to add boron in very small amounts (a few parts per million). Boron has an effect on austenite grain boundaries that discourages nucleation of ferrite and so encourages transformation to martensite.

Hardenability is usually tested using a Jominy test, in which a defined-size test piece is heated until it is austenite and then the end is quenched with a jet of water (Fig. 1). Once cooled, hardness measurements are taken along its length to determine the extent to which is has been successfully hardened. The steel can then be certified.

It is a time-consuming test, but one which is of considerable value in avoiding downstream problems.

So, there are a number of ways that steel works metallurgists can obtain the required combination of strength, toughness and other product properties, using the most economic option available. Customers and competitors are always progressive in their demands and offerings, and there is continual improvement to existing grades and new ones, such that around 30% of grades produced today were not made five years ago. However, the appearance of steel products usually remains the same, such that the significant benefit to consumers is not often appreciated. � www.steeltimesint.com

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CONFERENCE REPORT

25

Concern expressed over dumping Several speakers at the Steel Success Strategies-XXXI conference held in New York from June 13 to 15, 2016, urged US politicians to crack down on steel dumping. By Manik Mehta* THE US steel industry hopes that it would get strong support from the next president – both the candidates Donald Trump (Republican) and Hillary Clinton (Democrat) have said in their election campaigning that they would protect the interests of American manufacturing and “bring jobs back to the United States” – and Trump has stressed “firm commitment” to trade deals, arguing that they are “great for the United States and our workers”.

Clinton who was endorsed by the United Steelworkers’ Union, was quoted by USW president Leo Gerard as saying that “Secretary Clinton has promised to fight for fair, not just free, trade and vowed to oppose the job-killing Trans-Pacific Partnership (TPP)”.

Speakers at the SSS-XXXI pointed out that the US International Trade Commission had recently determined that US mills were materially injured or threatened with injury by unfairly traded cold-rolled steel coil imports from China and Japan.

All six ITC commissioners voted affirmatively – meaning that combined

anti-dumping (AD) and countervailing duty margins of 522% for all Chinese steelmakers and AD margins of 71.35% for Japan’s producers were finalised.

Some of the speakers highlighted the fact that in 2015, 70% of the 64 trade cases launched by the US Department of Commerce were for steel products.

Jobs matter – that is the mantra being used by many to galvanise public opinion and pressurise politicians to keep up the momentum that is building up steam in presidential electioneering and was also visibly evident at the steel conference.

Thomas Gibson, the president of the American Iron and Steel Institute, has been saying in public comments that some 15,000 workers lost their jobs in the steel industry in the past 18 months: many blame the “flood” of cheap imported steel for these job losses, with the call for curbing steel imports getting louder by the day.

But not content with mere “lip service” from the politicians, as one steel executive told me on the sidelines of the conference, the US steel industry has been keeping

up the momentum to crack down on imports. Steel industry executives like Mario Longhi, CEO of US Steel, and John Ferriola, CEO of Nucor, used the SSS-platform to reinforce the view that enforcing the rules of free trade “is not protectionism.” Both executives underscored their position that US steel companies will use all the tools available to them to stop illegal imports.

A panel at the New York conference explored the use of technology in the future of steel manufacturing. The panel’s moderator, Ronald E. Ashburn, executive director of the Association for Iron & Steel Technology (AIST), pointed out that China’s steel producing capacity is about 804Mt of steel whereas the demand in the USA was for 96Mt in 2015. These figures suggested, obviously, that existing demand was being increasingly met from cheap imports, and that there was an urgency in stopping steel dumping.

With their joint presentation called Death Spiral Black Jack, the duo Peter F. Marcus and Karlis M. Kirsis, both managing partners at World Steel Dynamics (WST),

* USA correspondent www.steeltimesint.com

SSS conference 1.indd 1

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26

CONFERENCE REPORT

Mario Longhi

John Ferriola

Ron Ashburn

said that the global steel industry’s structure was in the midst of a “profound change” as Chinese domestic steel demand enters a “significant downward phase”. The two experts warned that the Chinese, probably facing years of significant oversupply, as it became evident in early 2015, launched a steel product export offensive, driving their hot-rolled band export price to a level well below the marginal cost of the mediancost producer. “A Chinese ton of steel could be supplied at $300 … a price much lower than the prevalent prices in the USA. Hence, imports will rise,” predicted Marcus.

“We see rising foreign deliveries into the USA. Because of slower economic growth, we see a 17% drop in steel consumption in the USA. If you have lower costs of gas, as in Iran, the DRI can be produced at reasonable costs,” he maintained.

Mario Longhi, CEO/president of US Steel, highlighted in his keynote address that the US industry faces a “rapidly changing global dynamics”. He cited the emergence of a middle class, but also pointed out that some 795 million people were worldwide undernourished and 2.5 billion lacked basic sanitation; trillions of dollars were being invested worldwide.

“Steel has a vital role to play in our lives. Some claim that fair trade is a single-most disruptor of world trade. We have shut down plants (in the US) due to unfairly traded imports. Overcapacity encourages this and it keeps growing.

American steel trade has been severely harmed by unfair trade and pricing. More than half of the industry has been driven to bankruptcy but it made a turnaround though, unfortunately, the economic crisis put this back on the old path,” Longhi said, lamenting that the creation of overcapacity had reached “epic proportions”.

The US and European markets remained targets of foreign dumping. The US

administration had announced levies on Russian and Chinese dumping, he continued. The European and US industries would co-operate to stop steel dumping.

He spoke of the creation of a global steel forum to deal with overcapacity. The steel associations of the G-7 countries were going to tackle the issue of overcapacity and dumping.

China, he said, showed no signs of slowing or cutting down its capacity. Twothirds of the complaints received by the US Commerce Department today were against steel dumping. “China does not play by the rules. It continues to manipulate currency and prices,” he said, describing China as a non-market economy that did not play by the rules of fair play. He rejected the view that the call for fair trade was a call for protectionism.

Responding to a question about Chinese hackers breaking into the system of some US companies, Longhi said that “we would have never brought this case before the authorities if we did not have evidence [about hacking]. This is an ongoing investigation and I cannot talk about it under investigation,” he said, adding that this was a ‘nasty case’ and by taking action ‘we are trying to bring justice’. “There is no reason why China cannot compete fairly,” he noted.

In informal conversations, some experts at the conference told Steel Times International that they envisaged that rising international criticism will start impacting China’s exports.

Another panel, under the title “International Oversupply Five-Card Stud”, moderated by Edwin Basson, the World Steel Association’s director-general, focused on how steel mills were responding to an increasingly tough environment and the changing trade patterns emerging in 2016.

Kazuo Mike Fujisawa, principal (overseas

business) at JFE Steel Corp., recalled his conversations, against the backdrop of China’s excessive capacity, with Chinese steel executives who had told him how challenging the environment had become and that it was very difficult to make money. “Restructuring is not new to the steel industry,” he said, pointing out that JFE Steel Corp. saw good potential in the automotive, infrastructure and construction sectors.

Fujisawa’s co-panelist John E. Liechtenstein, managing director at Accenture, identified two main challenges – the changes taking place in the automotive industry and China’s overcapacity. But he predicted a “sharp decline” in supplies from China due to the trade cases filed against China, which will make a “meaningful reduction” in supplies.

Bahram Sobhani, managing director of Iran’s Mobarakeh Steel Company, was supposed to join the panel but could not come. Speaking on his behalf, Peter F. Marcus of World Steel Dynamics, said that Iran’s production is 17Mt and the widespread view in that country is that it can produce 54Mt in 2016, a perception that was dismissed by many experts at the conference as “unrealistic”.

Yurly Ryzhenkov, CEO of Metinvest of Ukraine, acknowledged that Russia-Ukraine relations had impacted Ukraine’s steel business. Russia’s declining absorption of steel had more to do with the attitude than the agreement. Trade between Ukraine and the EU, expected to grow, had fallen short of his company’s expectations. Despite the Russia-Ukraine conflict and the increase in Chinese supplies, his company was “very positive” about the internal Ukrainian market.

“We can beat on quality, price and customer service. Just give us fair competition,” he said.

September 2016

SSS conference 1.indd 2

www.steeltimesint.com

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CONFERENCE REPORT

Vinay Shroff, executive VP of JSW Steel

Roger K Newport, AK Steel

Philippe Blostein, marketing director (Metals) of Air Liquide SA

John Ferriola, Nucor Corp’s CEO, is a keen watcher of the automobile industry – both within and outside the country. The Charlotte, North Carolina-based steelmaker recycles scrap in relatively small electric furnaces, even though that process has not been able to create the “perfect” flexible steel used in external car parts.

But Nucor has replaced some scrap with a type of iron refined with natural gas, and has removed the contaminants from steel made from scrap, enabling it to compete in the market with other integrated producers who use iron ore and coke made from coal.

Indeed, Nucor recently unveiled a $270 million joint venture with Japan’s JFE Holdings Inc. to produce steel for carmakers at a plant in Mexico. This plant is seen as further evidence that the Charlotte producer is offering steel especially for automobile manufacturers seeking to buy steel from recyclers of the metal.

Nucor’s JV with JFE Holdings is the second steelmaking expansion outside of the US announced this year. In May, Nucor announced that it was going to open a new facility near Hamilton, Ontario, to make construction products, with fabrication beginning this year.

Nucor also has operations in Italy and Trinidad and Tobago, with sales offices in Canada, Colombia and Mexico and trading businesses in Switzerland and the United Arab Emirates.

The company also said its downstreamproducts’ performance is expected to improve from the first quarter because of a gradual improvement in non-residential construction markets.

Ferriola drew a fine line between “genuine competition” and “unfair trading”. “We welcome genuine foreign competition, but unfair competition harms the industry through illegal subsidies,

manipulation of currency, product dumping and duty evasion,” he said, adding that the “overcapacity problem has grown into an overcapacity crisis”. China’s production of 100Mt in 2000 had ballooned into 1.2 billion tonnes today, he maintained.

“China has gone from a net importer to a net exporter. Overcapacity is a big, big problem. The position of the steel industry today is worse than in the 1990s … China’s steel industry is not driven by market economy, but by state intervention.

China exported more steel last year than the entire production of the USA, Canada and Mexico,” Ferriola claimed, recalling that at one time he was positive that China was, at last, going to start cutting its overcapacity.

“I was shocked, however, at the statement issued by China at the OECD meeting in April blaming the global economy and urging other countries to increase demand,” Nucor’s top executive said, defending the USA steel industry’s action to use trade remedies – tariffs – which, he said, were not protectionism but legitimate and, of course, necessary.

money to its steel companies, China could create a major financial crisis if the indebted companies are unable to pay back.

Roger K. Newport, CEO of AK Steel, attached great significance to making steel in the USA “if we are to survive in the business”, and called for enforcement of laws passed “if we are to curb imports and save jobs”. “If we do not protect jobs, we are not doing our responsibility,” he declared.

September 2016

SSS conference 1.indd 3

Not a market economy “We need to use the full power under the WTO rules. At Nucor, we will pursue trade cases … China is not a low cost producer without massive government support. It cannot produce low-cost steel. China’s cost of raw materials and energy are much higher, but China’s Government offsets these costs through subsidies. That is why we address China as a non-market economy. China’s massive infusion of capital into the steel industry is a clear sign that it does not behave as a market economy,” Ferriola said, declaring that the only way to have a strong global steel industry is through “robust competition that free markets create”. By lending huge sums of

USA – a global leader in steel For Nicholas J. Sowar, global steel leader at Deloitte LLP, the US was the world’s global leader in steel manufacturing. “This is the wealthiest country in the world and foreign suppliers are interested in dumping their steel in this country. Our regulators react far too late. While the US enforces environmental requirements, other countries have supplied steel produced with total disregard for environment requirements and place the US at a big competition disadvantage. US is a far more productive country than China and India,” he said, adding that some 42% of goodpaying jobs were lost.

While US steel companies work globally, they did not own assets abroad, he said.

Nevertheless, many of the attendees, involved in various aspects of the steel business, told Steel Times International that while “they were not faring so badly and things could be worse”, they also expressed concern over the inflow of steel, particularly from China, which had expanded its steel production eightfold during the last 15 years. They blamed Chinese policies for the price decline in the U.S. US steel producers are accustomed to the fluctuation in supply-and-demand cyclicality of the market, but are hit by prevalent weak prices. � www.steeltimesint.com

20/09/2016 11:27:11

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ROLLING

31

Improving rolling efficiency In the field of stainless steel flat product cold rolling, the 20-high mill has clearly proved its technological superiority compared to other types of rolling mill, such as the 6-high rolling mill or split housing 20-high rolling mill. However, nowadays, steel producers are under considerable competitive pressure. They are asked for perfect management of capital expenditure (CAPEX) and operating expenditure (OPEX), and at the same time they have to address human and environmental challenges such as safety, the human factor, environmental pollution and energy consumption.

By F Baudu, O Calcoen, C Ernst de la Graete, J Freliez* STAINLESS steel rolling differs from standard carbon steel rolling in several ways: • Strip surface aspect 2B/2A can only be reached using pure oil as a coolant and lubricant of the roll bite. Typical rolling oil viscosity is approximately 8cst.

• Strip surface is crucial. As a consequence, great care has to be taken to avoid the mill roll set or wiping device from damaging the strip surface.

• Stainless steel grades are characterised by high yield strength and high work hardening. Yield strength can be as high as 2000 Mpa for some austenitic grades. In order to efficiently roll these hard materials, small work rolls have to be used: typically work roll diameter has to be 1/200 of the minimum strip thickness, i.e. 60mm for a strip thickness of 0.3mm. Rolling has to be performed under very high unwinding and winding specific tensions, requesting specific mandrel design.

• Lack of strip roughness and high viscosity of coolant decrease the friction between coil wraps during winding the strip in coil. Strip wiping is, thus, a key issue as coil telescoping risks become very high.

• As pure oil coolant has a thermal capacity half below emulsions used on carbon steel rolling, coolant flow has to be much increased, together with rolling speed, to keep the strip temperature within a reasonable range. Strip has to be cooled down with rolling oil both before and after the roll bite. Strip wiping is thus more * Florent Baudu, vice president, sales and marketing, Fives DMS; Olivier Calcoen, product manager rolling mills, Fives DMS; Conrad Ernst de la Graete, technical director, Fives DMS; Jérémie Freliez, research and development engineer, Fives DMS www.steeltimesint.com

ROLLING fives.indd 1

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ROLLING

difficult and a lot of rolling oil fumes is generated at the exit of the mill.

The stainless steel market is nowadays focused on strip width of 52in (1320mm) and 63in (1600mm) to fit with stainless steel applications and to reach requested production rates. The 20-high rolling mill is the only available technology featuring a very small work roll for such wide strips.

This rolling mill technology is called ‘cluster’, because the rolls are set in a cluster arrangement and not in a vertical stack and has several particularities: • Roll set flattening creates natural strip edges over rolling. First intermediate rolls have to ground with a taper relief in order to compensate for this phenomenon.

The first intermediate roll shifting mechanism is requested to meet the changes in rolling conditions (rolling speed, entry thickness and so on).

• Frequent roll changes are requested due to high compressive stress solicitation.

Typically, work rolls have to be changed every 20 to 30 minutes and the first intermediate rolls every four to eight hours.

• Due to the very low thermal capacity of work rolls, any roll cooling disturbance along the width of the strip will lead to strip flatness defects, or, in worst case scenario, strip break.

Fives, an industrial engineering group, has been specialising in cold rolling mill design and manufacturing for more than 60 years and is a technological pioneer and a partner for many international steelmakers worldwide. Fives’ latest developments for a 20-high rolling mill include rolling speed increase, new strip and work roll spraying design, new strip wipers, a fume exhaust improvement, and a cutting-edge concept for flatness actuators and mandrel greasing.

Fives’ new solutions aim to decrease operating costs, which is a very critical issue due to the highly competitive nature of the steel market worldwide; they respect safety rules, human factors and ergonomics and address environmental challenges.

Advanced roll gap lubrication and strip cooling Fives has optimised its spraying system September 2016

ROLLING fives.indd 2

104% 102% 100%

Fig 1. Simulation of flow distribution along the width of the strip

Flow variation

32

98% 96%

previous design 50% 50%

94%

new design

92% 90%

0

0.1

0.2

Fig 2. DMS Wiper SCP 3.0 strip wiper cassette

(Fig. 1) so as to bring better distribution of flow along the width of the strip, typically in a range of +/-1% versus +/-3~5% for other technologies available on the market.

The spraying system is now fed only from the motor side allowing for a mill door to open and close without any flexible hose connection/disconnection. A coolant flow is divided in three zones at both the entry and exit sides of the mill for a higher coolant flow range adjustment. Top and bottom flow can optionally be individually controlled for better strip cooling and lower strip wiping requirements. Spraying pumps can optionally be driven by variable speed motors allowing for an annual saving of around 1100 MWh, i.e. 77k€ (based on 70€/

0.3

0.4

0.5

0.6

0.7

previous design 60% 40% ideal flow

0.8

0.9

1

Ramp width

MWh) as pumps are stopped with the mill.

New DMS Wiper SCP 3.0 In the 1980s, in order to solve strip-wiping issues, Fives introduced SCP technology under the DMS brand, which became the reference technology in this field. SCP has been used and is still being used to replace other designs, like the well-known ‘pollastrelli’ or the wipers based on big steel, bronze or fleece rolls.

SCP wipers allow for high-speed rolling (references up to 1200m/min) even for a thin strip. Depending on product mix, a 5% to 10% annual production increase can be reached compared to, for instance, fleece wiping rolls.

5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

Fig 3. Simulation of hoods efficiency

www.steeltimesint.com

20/09/2016 14:13:34

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ROLLING

The advantages of DMS Wiper SCP 3.0 are the following. First, backing bearings support the wiping rolls on its full roll face (Fig. 2.) and are staggered, which drastically reduces contact pressure between roll and bearings. Marks of backing bearings on the wiping rolls and on the strip are then avoided.

Exclusive partnership Backing bearing technology has been developed in exclusive partnership with a highly regarded and specialised company to accept a very high rotational speed (>10 000RPM) and axial loads without an external lubrication mechanism. Backing bearing sealing ensures long-term efficient lubrication of the rolling elements whatever the working conditions. Bearing lifetime has been improved, reaching 10 times the lifetime of the previous generation of backing bearings.

Backing bearing reliability has drastically decreased the risk of fire linked with this equipment. The simple self-lubrication of the bearing saves the cost of an expensive lubrication unit and thus the investment cost is reduced.

Lower lubricant consumption and lower backing bearing maintenance lead to operating cost savings.

Fume exhaust Fives has redesigned the fume hoods (Fig. 3). More than 95% of fumes generated by a mill are sucked by new hoods, which lead to a clean environment and clean air for operators working close to the mill. The amount of rolling oil dispersed inside the building has, therefore, been divided by 10 and operators have a safer workspace as the floor is much less slippery.

Fig 5. Picture of mandrel shaft automatically greased

September 2016

ROLLING fives.indd 3

Fig 4. Schematic of push-push mechanism

Optional installation of a variable speed motor to drive the exhaust fan allows for an annual saving of about 650MWh energy, i.e. 45k€/year (based on 70€/MWh) as the fan is stopped with the mill.

Advanced flatness control system The usual first intermediate roll shifting is designed with a hydraulic cylinder located at the drive side of the mill, moving the rolls forward and backward. This design is well known as the “push-pull” system. Fives is now using an alternative “push-push” mechanism (Fig. 4) with hydraulic cylinders located at both the operator and motor side of the mill. Each of them is used to push the rolls. This advanced design has the following advantages: • No need for complicated and weak connections between the hydraulic cylinder and rolls at the motor side.

• Fast and reliable intermediate roll change.

• Elimination of fire risk linked with incorrect connection of intermediate roll and hydraulic cylinder.

Automatic mandrel lubrication Mechanical stress due to high winding specific tension and thermal stress due to the high temperature of the rolled strip requires almost daily lubrication of the tension reel mandrels. As each of the two mandrels has 30 to 50 greasing points, not less than 20 minutes are requested daily for the lubrication. Fives has developed a new concept of automatic greasing of the mandrels (Fig. 5). The advantages of such a system are: • Production increase of about 2,500tons/year.

• Lubrication grease saving.

• Mandrel pyramidal shaft lifetime increase.

• Safe conditions during mandrel greasing.

Conclusion Thanks to the above-mentioned developments, the following advantages in the cold rolling process of stainless steel flat products can be achieved: • Minimised operating costs, thanks to energy consumption saving, production improvements, better design of well-known weak mechanical parts of the mill and faster mill maintenance.

• Healthy environment and friendly operation.

• Optimum strip wiping for high-speed production of the thin strip with the first ranked strip surface.

• Optimum lubrication of roll bite and an advanced flatness control in order to produce the strip with very tight flatness tolerance.

These developments can be integrated by Fives on new mills and can be retrofitted on existing mills. � www.steeltimesint.com

20/09/2016 14:13:39

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ROLLING

Duplex steels in wire rod production Fig 1. Wire rod stored in the form of coils

Rolling small-diameter hot wire rod entails high speeds that, with conventional laying head pipe, can wear the pipe out frequently and affect quality and consistency in the final product. However, with upgrades to super-duplex stainless steels, operators can avoid frequent worn pipe changes.

By Alessandra Spaghetti * WIRE rods, pictured as coils in Fig. 1, are relied upon in a variety of critical applications. They are used as high tensile bridge and deepwater cables, chains and springs for automotive or industrial applications, agricultural machinery components, industrial fasteners and more. Each of these applications present significant challenges for which the wire rod must be of an optimised and consistent quality, while also guaranteeing high levels of safety.

Ideally, wire rod should possess an enhanced strength-to-weight ratio as this helps operators to reduce maintenance requirements and avoid equipment downtime or failures. In order to achieve these properties, similarly high expectations are placed on the laying head pipe (LHP) technology that is so vital in the manufacturing process for turning steel billets into wire rod. This process presents its own significant challenges with elevated operating temperatures and constant hot rolling at high speeds.

Nevertheless, operators are experiencing problems with LHP made from carbon steels and conventional stainless steel grades.

These issues arise from frequent wear to the pipes, which necessitate frequent changes of the worn pipe, increased maintenance requirements, unwelcome downtime and

costly plant shutdowns.

Severely worn LHPs can also produce unstable laying ring patterns with the possibility that the wire breaks into the pipe, otherwise known as ‘cobble’. Such factors may be critical not only for the LHP system itself, but also for the final wire rod product. The rod can emerge from the laying head system with inconsistent mechanical properties and tolerances that will cause serious problems in the end applications.

This article examines how rolling mills are surmounting these issues with laying head systems that are characterised by

Reheating furnace

Toggle shear

superior metallurgical properties, smooth coil formation and easier coil handling.

Operators are achieving this with LHP manufactured from super-duplex stainless steel as a superior replacement for carbon steel and even conventional stainless steel grades. The operational benefits of superduplex are evident in increased lifetimes of the LHP, resulting in fewer shutdowns and higher production volumes of wire rod per pipe used.

Wire rod production When identifying a replacement stainless steel, it is necessary to consider the

C&C shear

PFM side looper PFM block 14&15

Pull out rolls Push out rolls Laying head

Pinch roll

Roughing mill stands 1-7

Intermediate pinch roll

Intermediate mill stands 8-13 NTM block 16-25

Water boxes Laying of wire rod

Snap shear Reform tub

Stelmore conveyor

Snap shear C&D NTM side shear looper

Water box

Chopping shear

Air from stelmore blower

Fig I. Overview of wire rod mill operations

* Global technical marketing, Sandvik Materials Technology www.steeltimesint.com

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38

ROLLING

Historic development of 5.5mm wire rod rolling speed mill capability (m/s)

‘Actual’ speed

150 Forced productivity sub-optimisation vs wear rate

90

25

1975

Fig 2. Designs of laying head pipe systems

operations of the whole wire rod mill, as shown in Fig. 1.

The wire rod production process begins with square billets as the starting material.

These are typically heated to a temperature of around 1050 °C (1922 °F) and then subjected to hot rolling, a continuous process that incorporates up to 30 steps during which the billet elongates.

After final rolling, the hot-rolled wire rod is then laid on a Stelmor conveyor in the form of a coil. This is achieved with the help of the LHP, designs of which are illustrated in Fig. 2. The LHP rotates at high speeds and this transforms the linear hot-rolled product into a helix. Once the wire rod is distributed on the conveyor, it is then transported for cooling and heat treatment.

It should be noted that application of the LHP is not only important during the rolling itself for the coiled formation of the wire rod. It is also important after rolling to ensure that the subsequent air cooling is effective and will help to achieve the desired final properties in the rod.

Increasing performance demands The levels of performance expected from wire rod rolling mills have evolved over the decades. Fig. 3 compares the rolling speed capabilities of a mill, in metres per second (m/s), in the years 1975 and 2015. The mill was producing 5.5 mm diameter wire rod.

Fig. 3 shows an ongoing disparity between the capabilities of the mill and the ‘actual’ speeds achieved; only in the year 1995 do the two measurements match.

This can be attributed to accelerated pipe wear on the inner diameter (ID) of the LHP that resulted from wire rod passing through the pipe at higher rolling speeds.

Conventional materials for LHP The types of carbon or low alloyed pipe that September 2016

ROLING sandvick.indd 2

1995

2015

Fig 3. Comparing the rolling speed capabilities, in metres per second (m/s), of a mill producing 5.5 mm diameter wire rod between the years 1975 and 2015 Name P22/T22

C Si Mn P S 0.05-0.15

P9

SAF

0.15 ≤0.030

≤0.50

0.30-0.60

MAX

-

.25-1.00 .30-.60 ≤0.8

≤1.2

≤0.025

Al Cu Crr Ni Mo

≤0.025

-

-

1.9-2.6

-

0.87-1.13

-

MAX

MAX

-

-

-

- -

0.030

0.030

-

-

8.00-10.00

-

.90-1.10

≤0.025

≤0.015

-

-

25

7

4

Others N=0.3

Fig 4. Chemical compositions (nominal) % of the standard low-alloy LHP used by a wire rod mill in Italy, alongside the composition of Sandvik SAF 2507

Image 2. The images show how hot-rolled wire rod creates abrasion on the inner surface of the laying head pipe wall, causing severe wear

are conventionally chosen for LHP systems are shown to fail frequently, including standard P9 and T22 grades. These materials have exhibited signs of wear at operating temperatures between 800 and 900 °C (1472 °F to 1652 °F).

As a result, the hot-rolled wire creates

abrasion on the inner surface of the LHP wall, as pictured in Image 2. Friction points and severe wear are generated as a consequence of the high temperatures, both inside the laying head and on the wall of the pipe. Wear appears in the form of grooves on the pipe’s ID and may cause a www.steeltimesint.com

20/09/2016 14:18:17

40

ROLLING

Image 3. Wire rod ring patterns laid on the cooling conveyor (left) by the laying head pipe (right).

change in profile which, in turn, disturbs proper coiling and ring formation of the wire rod when it is laid on the cooling conveyor. These factors can also affect the subsequent air-cooling process and, therefore, impact on the delivery quality of the final wire rod.

From the operator’s perspective, such issues will likely create additional needs for maintenance and replacement of the tubes.

Another possible consequence is lowered surface quality of the final wire rod, which is unacceptable when producing special grade rod.

With a grooved LHP, the chance of cobble is also high if there is a size change on the wire. ‘Cobble’ can otherwise be described as when rings become caught up during production, in either the out tube or the central mandrel. Again, this is a major issue since quality wire production requires perfectly uniform rod ring patterns laid on the cooling conveyor, see Image 3.

Carbon or low-alloyed pipe materials By assessing the performance capabilities of carbon or low-alloyed pipe materials, it becomes clear that conventional materials are not hard enough and cannot cope with extreme temperatures. In order to identify a suitable replacement LHP grade, certain parameters should, therefore, be taken into account: • Performance criteria of the laying head system such as the inlet speed of the rolled rod (in straight shape), the rotation speed of the LHP, and the dimensions of the pipe.

• Material and dimensions of the wire rod itself.

• Temperature of the wire rod, the temperature inside the laying head, and the temperature of the wall of the LHP.

SANDVIK

others

Sandvik SAF 2507

P9/T22/low alloy and carbon steel

that laying heads in today’s modern high speed rod mills are expected to handle products at elevated temperatures in the range of 900°C (1600°F), while also moving at speeds exceeding 50 m/sec (10,000 fpm).

For operators, the big question is: how is it possible to increase laying head speeds both for increased production and greater profitability?

Higher surface hardness To address these issues, Sandvik conducted extensive research into the capability of various material grades to withstand the high wear from friction between the hot wire and the pipe surface. Based on detailed findings, Sandvik identified a solution in the use of duplex stainless steel

material grades, which it recommends as an established way to improve the wear properties of the LHP while also extending the operational lifetime.

Duplex grades can be quite ductile at room temperature, which is a great advantage during bending, and the materials become quite hard when subjected to the typical operating temperatures found inside the laying head.

Carbon steel has the opposite mechanism: it is quite hard at normal temperatures and quite soft when the heat increases inside the laying head equipment.

Image 4 shows the difference in the erosion resistance of Sandvik SAF 2507 compared to a low- alloyed stainless steel over the same operational duration.

Case studies The performance capabilities of superduplex stainless steels for LHP have been operationally tested in several installations.

Among these was a wire rod mill in Italy that was unsatisfied with the performance of its existing LHP made from low-alloy grades including P9, P22 or other carbon steel. The chemical compositions of these low-alloy steels are listed in Fig. 4. The operator sought to increase its productivity

Image 4.

The considerations relating to temperature are especially important given September 2016

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41

of wire rod (in tonnes) while also extending the lifecycle of the pipe; this also entailed mitigating catastrophic failures and expensive maintenance requirements.

The mill’s existing T22 grade LHP was capable of producing 15,000 to 20,000 tonnes of wire rod, while operating at speeds of 75 m/sec and 5,000 tonnes and working at 100 m/sec. With a view to enhancing the plant’s overall performance capabilities, the operator turned to Sandvik for a solution. The recommendation was to install high-alloy super-duplex laying head pipe. The mill replaced its existing pipe with Sandvik SAF 2507 and thereafter experienced a production capacity increase from 5,000 tonnes to 35,000 tonnes at 75 m/sec, and to 65,000 tonnes at 100 m/sec.

The result increased the lifetime by a minimum of five times, a clear and significant improvement over the previous conventional LHP grades.

Further performance advantages An operator in Turkey achieved further performance advantages when it installed the specially-developed Sandvik SAF 2507 LHP grade across its two mills. In total, 51 LHPs were installed in the first mill which provided the plant with a six to 10 times longer pipe lifecycle when producing 6.3 mm diameter wire rod. The solution also helped to eliminate vibration problems that had been experienced with the previous set-up.

In a second mill, the operator installed 33 replacement superduplex LHPs for the production of wire rods up to 5.5 mm. As result, the mill was able to significantly extend its extrusion capacity – the ability to create wire with a fixed cross-sectional profile – by approximately three times.

Conclusion As wear requirements become tougher for laying head systems with increased risks of ID defects, super-duplex and duplex stainless steels have emerged as a good option for LHP. In particular, the higher surface hardness values of duplex grades can better support operators’ requirements for higher production output, increased speeds and extended performance lifecycles in LHPs. These advantages have been demonstrated in several installations where the advantages of duplex went beyond the capabilities of conventional low alloy or carbon steel grades. It is, therefore, expected that duplex will continue to play a vital role in safeguarding quality, consistency and safety in wire rod while also helping to avoid the need for frequent worn pipe changes.

Sandvik and Sandvik SAF 2507 are trademarks owned by Sandvik Group.�

Materials handling solutions for your industry

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

September 2016

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OUTPERFORMING

BY DESIGN. Used in the most demanding industrial applications, Timken® Spherical Roller Bearings carry heavier loads and run longer, giving you more to work with.

See how our bearings make your design stronger at Timken.com/spherical Stronger. By Design.

Timken® is a registered trademark of The Timken Company. | © 2015 The Timken Company.

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43

Bearing selection for rolling mills

Today’s rolling mill market environment can be characterised by low investment in new equipment and higher output requirements. The mills are getting older, but to increase productivity, their operational loads are becoming much heavier. These extreme conditions, along with old and obsolete roll designs, contribute to many of the roll neck failures that occur in 2-HI mill work rolls or 4-HI mill back-up rolls.

As a consequence, the market is demanding a rolling mills “revamp” to mitigate roll neck breakage in the fillet ring area under severe loading conditions. The choice of bearing selection can play an important and beneficial role in establishing a successful revamp solution.

Technical overview Rolling mills represent an extremely demanding application for bearings and rolls, which must perform under high operating temperatures, loads and speeds.

During the rolling process, the roll rotates and, simultaneously, the load is applied through the bearings on the semi-finished strips. One point on the roll neck supports

mainly tensile stress with a maximum value σmax, while the point found diametrically opposite supports a compressive stress with a minimum value σmin. When the roll rotates 180°, these two points change position and stress, and the tension progresses from σmax to σmin = -σmax. Over time, the material stress on these points varies many times between these two limits (one full

fig 1. Roll bending stress

variation per rotation), as shown on the graph in Fig. 1. As a result, the area of the roll neck between the bearing and the barrel (the fillet radius area) is subjected to alter symmetrical cyclical bending stress that fluctuates with the roll’s rotation. A careful evaluation is required to determine the maximum allowed stress and manage the geometrical features of the transition

Roll neck – Alternant symmetrical cyclical bending σmax= maximum bending stress σmin = minimum bending stress

Load

σmax

Half roll model

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σmin = -σmax

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ROLLING

Centeline bearing A

Mill housing centreline Neck centerline

Bearing B

Fig 2. Roll diameter optimization

Roll barrel diameter

Neck O.D.

Bearing A

Centreline bearing B

Fig 3. Compound fillet radius

5.0 4.0

21582 kN

Relative life

3.0 ø990

ø595

2.0

R20.00 140° R30.00 R30.00 ø603.00

1.0 2180 2980

0 Standard Timken® Bearings

DuraSpexx® power rating series bearings

Fig 4. Comparative life results for the DuraSpexx® Power Rating Series vs. standard Timken bearings within the same envelope

between the roll neck and barrel diameters (i.e., step chamfers and fillet radii) in order to control the effect of stress concentration.

Revamping heavily loaded roll neck bearings The Timken Company offers the following roll neck solution engineering support for revamp projects: 1) Roll design optimisation by maximising roll neck diameter 2) Design support for a compounded roll neck fillet radius 3) Selection of bearings with reduced cross-section (larger bore, same outer diameter*, same or smaller overall width and special features to maintain or increase bearing load rating)

Fig 5. Roll load and fillet radius detail

needed to cope with the higher bending stress. Based on this need, a conventional heavy-duty bearing size (represented by bearing A in Fig. 2) may not be suitable.

For these high-load applications, reduced section bearings are suggested (represented by bearing B) with the same outer diameter as the heavy-duty bearings, but with a larger bore. These reduced section bearings offer an increased neck to barrel ratio (d/D ~ 68%) and, whenever possible, a smaller bearing width that also reduces the axial distance between the screw-down load line and the barrel face. The increased

roll neck outer diameter and reduced bending moment improve the performance capability of the roll neck under extreme loads. b) Replace existing fillet radius with a compound fillet radius Traditional roll neck designs often use a simple radius in the fillet area, but Timken believes that this solution may be inappropriate for heavily loaded mills, and recommends replacing the simple radius with a compound fillet radius. Timken recommends compound

Fig 6. Roll neck fillet design: Isometric view

Theoretical considerations 1. Roll Design Optimisation a) Roll neck diameter optimisation In heavily loaded rolls, which often run at slow speeds, a larger neck diameter is *The revamp solution assumes that the same chocks will be used, which requires bearings with the same outer diameter.

September 2016

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Fig 7. Expanded view of the 4-row tapered bearing

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FUTURE STEEL FORUM 2017 14-15 JUNE • SHERATON WARSAW HOTEL • WARSAW

Applying Industry 4.0 to the steel industry FROM THE PUBLISHERS OF STEEL TIMES INTERNATIONAL 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 of the issues surrounding Industry 4.0 or ‘smart manufacturing’ and will endeavour to cover all bases, including the all-important subject of cyber security, the role of human beings in the factory of the future, how to survive a cyber attack and the allimportant process safety and control.

Speakers from academia, the steel industry and the world of steel production technology will explain the key concepts behind the digitalisation of steel manufacturing. Myths will be exploded, ideas challenged and terminology explained.

For more details contact: Paul Rossage International Sales Manager +44 (0) 1737 855 116 paulrossage@quartzltd.com See full details online at

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Official Media Partner

Organised by:

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FSF_A4_Print_Ad.indd 1

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ROLLING

Row 1

Row 4

Fig 8. Computer model: Isometric view

Fig 9. Computer model 4500 Row 4 4000 Row 3

3500

Row 1 Row 2

L10a (hours)

3000 2500

Fig 10. Adjusted bearing life

2000

1500 1000 500 0

Fig 11. Roll neck assessment before upgrade: Maximum stress and fatigue life

Bearing row

– or two-radii – fillets because they offer favourable stress distribution across the fillet radius. Fig. 3 shows the development of the compound radii fillet from two predetermined fillet length and height dimensions ra and rb, respectively, with the purpose of reducing roll neck maximum stress. The length and height of the fillet radii rc and rd can be determined using the following formulas:

rc= ra+

(ra-rb)2 2(rb-rd)

rd=

4rb-ra 3

ra = Fillet length (ra is less than 2.5 rb for practical purposes) rb = Fillet height rc = Major radius of compound fillet rd = Minor radius of compound fillet September 2016

ROLLING timkens.indd 3

2) Bearings with reduced cross-section Timken engineers use sophisticated, application-focused computer programs to model applications and operating environments, producing specially designed bearings that yield longer life.

To maximise bearing performance in tough operating conditions, Timken has developed the DuraSpexx Power Rating Series of bearings, which feature a modified design that offers enhancements to improve bearing life in demanding applications with harsh environments. They are claimed to be ideal for heavy-load industrial applications such as rolling mills and gear drives.

Enhanced features and a reduction in the cross-section of these bearings result in higher bearing ratings.

DuraSpexx leverages Timken’s technical design knowledge to achieve a 23% bearing dynamic rating increase, resulting in a

fatigue life increase versus the standard Timken bearing, as shown in Fig. 4.

DuraSpexx design attributes • Enhanced steel materials with improved cleanliness and modified inclusion shape to reduce inclusion-related damage • Surface finishing options to reduce peeling and fatigue in high-temperature and thin lubricant film environments • Profiled geometry to optimise contact stress distribution under high loads and/or misalignment Existing solution and problem description This application is performed on the rolls of 2-HI mills, but could be extended to the back-up rolls of 4-HI mills. Fig. 5 shows roll load and current fillet radius detail.

Mill design attributes Mill type: 2-HI mill Roll barrel diameter: 990 mm Barrel width: 2180 mm Roll neck diameter: 595 mm Roll neck to barrel ratio: 60% Screw-down distance: 2980 mm Roll body material: Steel Young’s modulus: 210000 MPa Poisson’s ratio: 0.3 Tensile yield strength 250 MPa Tensile ultimate strength: 460 MPa The isometric view of the roll is shown in Fig. 6.

Operating conditions Max. rolling load:

2200 tons (= 21582 kN) Max. rolling speed:

220 m/min at pass line

Fig 12. Roll neck breakage

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22/09/2016 08:59:22

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5th International Conference on Automation & Information Technology in Iron & Steel Making: Vision 2025 Participation requested through Technical papers, Sponsorship, Technical Exhibition, Manufacturers’ presentation and Delegates

Venue: Ispat Bhawan, Ranchi, India

Organised by Computer Society of India Ranchi Chapter

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48

ROLLING

Fig 13. Bearing schematic Fig 14.

10000 03

9000 8000

L10a (hours)

7000 6000 02

5000 4000 3000

01

Fig 15. Adjusted bearing life L10 for existing solution vs. standard and DuraSpexx® bearing designs

A good practice is to mount the bearing with quadrant number 1 of each cup in the load zone, then during subsequent inspections rotate to each of the others, in sequence, until the procedure repeats again with number 1. The rotation of the cups at every inspection will extend the useful life of the bearing by incrementally distributing the load over the entire cup raceway.

The roll maximum stress on the fillet area of 352 N/mm2 and the roll fatigue life of 4,400 hours are presented in Fig. 11.

2000 1000 0 Bearing 01: TRB M280049DW-M280010 (existing solution) 02: New TRB NP825343-NP205014 standard design 03: New TRB NP825343-NP205014 DuraSpexx® design

Timken bearing Fig. 7 shows an expanded view of the four-row tapered bearing made up of two double inner rings, four single outer rings, one inner ring spacer and three outer ring spacers.

Bearing:

4-row TRB M280049DWM280010

10, is 2,800 hours.

Since the bearing cups are stationary in the chocks, only one part of the cup carries the rolling load at any given time. This part is called the ‘load zone’.

Roll neck bearing cups are marked on their back and front faces to show four quadrants. The cup face markings enable the user to keep a record of which quadrants have been used in the load zone.

Roll neck breakage The roll was broken at its fillet radius area, as shown in Fig. 12. The customer requested Timken Support for solutions to increase roll neck strength and keep the new bearing fatigue life within acceptable limits. There were no reported issues with the existing bearing selection.

Timken roll upgrade solution Timken suggested roll design optimisation by increasing the neck diameter from Ø595mm to Ø610 mm and replacing the existing fillet radius with a compound fillet.

The bearing external diameter and width were maintained at their initial values. Note that the mill chock covers and seals had to

Envelope: 595.312 x 844.550 x 615.950 (ID x OD x width in mm) Timken rating: C90(4) = 4400 kN Computer model Fig. 8 shows the isometric view of the computer model. The computer-modelled application is shown in Fig. 9.

The adjusted bearing fatigue life L10a of the maximum loaded row, presented in Fig. September 2016

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Fig 16. Roll neck assessment after upgrade: Maximum stress and fatigue life

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1) Increase roll neck diameter (from 595 mm to 610 mm)

Acknowledgements The authors would like to thank The Timken Company for permission to publish this study.

Mill design attributes Roll barrel diameter: Barrel width: Roll neck diameter: Roll neck to barrel ratio:

References 1.

Harris, T. and Kotzalas, M. (2007), “Rolling Bearing Analysis – Advanced Concepts of Bearing Technology” 2.

Association of Iron and Steel Engineers

be replaced due to the larger bearing bore.

990 mm 2240 mm 610 mm 62%

New Timken bearing Bearing: 4-row TRB NP825343-NP205014 (shown in Fig 13) Envelope: 610.000x844.550x615.950 [ID x OD x Width in mm] Timken rating: C90(4) = 5020 kN with standard Timken bearing Timken rating: C90(4) = 6175 kN with DuraSpexx® bearing design

49

(1985), “The Making, Shaping and Treating of Steel,” 10th Edition 3.

The Metals Society (1978), “Flat Rolling: A Comparison of Rolling Mill Types” 4.

ISO 281 (2007), Rolling Bearings – Dynamic Load Ratings and Rating Life 5.

Timken Engineering Manual – Metals Industry Edition 6.

Timken Metals Product Catalogue

Steel Times International’s coverage of rolling this month starts on page 31 with an article

by Fives and continues with an article by Sandvik.

2) Replace existing fillet radius with compound fillet radius Inputs ra = 101 mm rb = 50 mm Outputs rc = 177.5 mm rd = 33 mm The adjusted bearing fatigue life L10a, shown in Fig 15, is 4,500 hours for the standard Timken bearing and 9000 hours for the DuraSpexx® bearing design.

The maximum roll stress on the fillet area of 318 N/mm2 and the roll fatigue life of 6,000 hours are shown in Fig. 16.

Results of roll upgrade 1. Decreased the maximum roll stress from 352 N/mm2 to 318 N/mm2, a decrease of 9.6%.

2. Increased the roll fatigue life from 4,400 hours to 6,000 hours, an increase of 36%.

3. Increased bearing fatigue life L10a of the standard Timken bearing from 2,800 hours to 4,500 hours, an increase of 60%.

4. Increased bearing fatigue life L10a of the new DuraSpexx® bearing from 2,800 hours to 9,000 hours, an increase of 120% .� E. Summary and conclusions The market is now requesting roll mill revamps because of frequent failures caused by roll neck breakage in the fillet ring area.

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50

PERSPECTIVES: SAPOTECH

Industrial internet will rule the world!

Finland-based Sapotech is very busy in the steel industry globally and mainly operates in the upstream, high-temperature processes of metal making. Digital manufacturing is firmly on the company’s agenda.

Industrial Internet will rule metal production processes in the medium term and our solutions are all based on that, says Saku Kaukonen*

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

Well, things are going very fast for SAPOTECH! We are a young company, but because we are extremely customerfocused, we have achieved excellent results in the steel industry. Yes we are very busy with the steel industry, even though customers’ decision making is not so quick nowadays.

area for us at this moment. Indeed, we have now started business in North America and Asia as well.

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

We are on contracts with major stainless steel producers in and outside Europe.

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

The Western steel industry has seen better days. Consumption is picking up, but there is so much overcapacity and unfair competition. We remain optimistic in the long run as we are very likely at the bottom and unhealthy competition patterns are going to be addressed properly.

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

We mainly operate in the upstream, hightemperature processes of metal making.

We monitor online, detect and document surface quality issues of hot products (continuously cast, hot-rolled), inside furnaces, converters, ladles (condition of refractories) as well as molten metal flows (tapping, foaming…)

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

As a Finland-based company we started our business in Scandinavia – our domestic market. Last year we expanded our activity in Europe, which is definitely the busiest

Right! High-strength steels with improved mechanical properties combined with lighter gauges are the future in the automotive industry.

8. How is the steel industry approaching digital manufacturing and what impact is ‘the factory of the future’ – or Industry 4.0 as it is known in Germany – having on SAPOTECH? We at Sapotech strongly believe in the Internet of Things – this is exactly where we are at. Industrial Internet will rule metal production processes in the medium term and our solutions are all based on that.

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

Both industries have their pros and cons in terms of environment protection. Big steps have been made in making steel industry processes cleaner, at least in Europe. We at Sapotech contribute at making both metals greener!

6. “Aluminium will always outperform steel on a weight basis; and on the stiffness issue alone it will carry the day.” Where do you stand on the aluminium versus steel argument?

It remains to be seen.

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?

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?

We should not walk away from the fact that climate is directly affected by the way we drive our industry.

11. In fact, talking of ‘green issues’ and emissions control, how is the steel

*CEO/CTO, Sapotech September 2016

perspectives sapotech.indd 1

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PERSPECTIVES: SAPOTECH

industry performing in this respect?

Europe leads the way in these ‘green issues’ and emissions control, but attempts of the steel industry in other parts of the world are few or void. Is it starting now? http://www. reuters.com/article/us-china-steel-pollutionidUSKCN1050P7 12. In your dealings with steel producers, are you finding that they are looking to companies like SAPOTECH to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them?

Absolutely! This is what our solutions offer our customers: save and optimise their energy, processes and raw materials.

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?

As we see it in Scandinavia, they are succeeding, but will need to be followed by all players to keep their competitiveness.

Sapotech has a role in providing adequate tools for that.

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

Sapotech solutions enable the steel makers to understand and optimise some core processes, which could not be monitored before.

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perspectives sapotech.indd 2

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

Sapotech’s technology is highly innovative and advanced which – combined to IoT-based services that we offer – means extremely strong development in the shortto-medium term. Our solutions will be everywhere within five to 10 years.

processes – at least, industrial Internetbased services will be the rule.

16. In a similar fashion to the aluminium industry, China dominates global crude steel production and is accountable for almost half of total production. How should the industry react to this situation?

The industry is split between modern and competitive and old producers. This applies also to China, but their specific problem is that the old ones are kept alive through subsidies. Will and action by the Chinese government will be necessary.

20. What exhibitions and conferences will SAPOTECH be attending this year?

This year we participated in AISTech (May), SCANMET V, Sweden (June), and will be at ANKIROS, Istanbul (September). In 2017 we plan to enter the Asian market through local exhibitions.

17. The Chinese still rely heavily upon Western steel production technology.

What is SAPOTECH’s experience of the Chinese steel industry?

Up until now, Sapotech has had little experience with Chinese customers. We are going to enter this market soon because they definitely will benefit from our solutions.

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

In our field of activity – monitoring of

19. How optimistic are you for the global steel industry going forward and what challenges face global producers in the short-to-medium term?

The challenge will always be balance of supply and demand.

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

Consolidation of the local industry is going on. Carbon steel producer Ruukki was merged to Sweden’s SSAB with consequent capacity arrangements. Stainless steel producer Outokumpu too, made severe adjustments further to last year’s mergers.

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

Let me give this simple quote: “Since I have been an entrepreneur, I have been sleeping like a baby.”

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

‘If’ is not in my vocabulary… � September 2016

20/09/2016 12:23:40

52

HISTORY Main picture: Joseph Wright’s 18th Century painting of a tilt hammer at work Below: Henry Cort

It would have been most convenient at the beginning of the railway age in 1830 if a plentiful supply of steel had been available, but this would not become a reality until 1860.

By Harry Hodson*

AS the rail network began to spread its tentacles across Britain, the main building materials for civil engineering were stone and cast iron. This had been demonstrated on a grand scale by Thomas Telford (1757-1834) by the construction of the Pontcycyllte Aqueduct, which carries the Ellesmere Canal across the Dee Valley, North Wales, in a cast iron trough supported on stone piers; this method was also chosen by the railway engineers when faced with similar problems. However, it would be quite unsafe to use cast iron in the same fashion when carrying a railway across long distances between masonry piers. Most engineers had already decided that wrought iron was the answer to long-span bridge building. Production had been steadily increasing since the early 18th century, but it was still more costly than cast iron. The railways would place increased demand on the wrought iron industry, now dominated by many unscrupulous ironmasters.

Henry Cort Henry Cort (1740-1800) was a navy paymaster based in London. He oversaw the incoming and outgoing funds of the naval ports in that area. As chief creditor he took over the management of a failing ironworks at Fontley in Hampshire, which had been established since the 17th century and produced about 250 tons of iron goods per annum using water wheel and tilt hammer.

Cort recognised that with a little improvement to the existing plant, there was a very good business opportunity to be had. Finding customers would be no problem as the expanding navy was in constant need of ironware associated with shipping and warfare. Wrought iron

Bridging the gap with wrought iron

hoops were an essential part in the construction of ships’ masts, as were brackets and joining plates for the assembly of wooden beams. Cort’s was to improve the tonnage of malleable iron from the furnace.

When a ship was being re-fitted or broken up, the navy sold the existing ironware as scrap. Cort bought it himself, thus lowering his raw materials costs. He made further improvements in the smelting and puddling of iron by a coal-fired reverberatory furnace, finally passing the hot iron through rolling mills to shape it to the customers’ requirements.

Before Cort’s time water-powered tilt hammers were producing one ton of iron bar in 12 hours, his rolling mill produced 15 tons of bar at the same rate using the same power. These improvements came at a cost to Cort who may have overstretched himself financially. He had taken into partnership Adam Jellicoe whose descendant may well be connected with the 1914-18 war admiral. Fate intervened when a family incident forced Jellicoe to re-call his money.

Cort had given Jellicoe the rights to his patents as collateral, but as yet there was no money royalties coming from them. Cort had previously made an agreement with other ironmasters to use his patents for a period of time before their royalties were due. There is no doubt that some of them were benefitting from them. An appeal for some of the ironmasters to start paying their royalties to ease Cort’s situation was

ignored. The government foreclosed on the patents until they expired in 1797, thus giving many ironmasters the benefits of better ironmaking techniques without furthering their costs. It was a shocking and shameful episode by a number of individuals leading the industrial revolution. To their credit, the government granted Cort and his family of 10 children a pension of £160 per year in recognition of his work. Henry Cort died a broken man on 23 May 1800.

Demand for wrought iron.

Cort’s methods of malleable ironmaking put Great Britain at the forefront of total world production of about 9Mt. Of this, Great Britain produced 3Mt from 4,500 furnaces, mostly concentrated at Merthyr Tydfil in Wales. Many ironmasters who worked them re-located there from Sussex, Surrey and The Weald because of the abundance of coal, limestone, ore and water – the ingredients needed for their business. A canal system allowed them to transport their goods anywhere in the world.

The Merthyr Tydfil site was dominated by Anthony Bacon, John Guest, Richard Hill, and Richard Crawshay. These ironmasters occasionally shared their interests with each other, but such were the financial misdemeanors and distrust of each other at the time, they usually parted company.

Henry Cort was one of the many victims of this new breed of man. �

*harryhodson39@ntlworld.com September 2016

History sept.indd 1

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20/09/2016 12:25:56

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