Steel Times International January February 2020 by Quartz Business Media

CONFERENCE REPORT

USA UPDATE

DIRECT REDUCED IRON

NEWS ROUND-UP

We report from Buenos Aires at the ALACERO annual conference

Steel jobs at stake despite Trump’s tariﬀs, argues Manik Mehta

Plant safety by Midrex and an article on the Energiron ZR process

Six pages of the latest steel news from around the world

Since 1866

www.steeltimesint.com January/February 2020 - Vol.44 No1

THE WORLD LEADER IN DIRECT REDUCTION TECHNOLOGY STEEL TIMES INTERNATIONAL – JANUARY/FEBRUARY 2020 – Vol.44 No1

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CONTENTS – JANUARY/FEBRUARY 2020

CONFERENCE REPORT

USA UPDATE

DIRECT REDUCED IRON

NEWS ROUND-UP

We report from Buenos Aires at the ALACERO annual conference

Steel jobs at stake despite Trump’s tariﬀs, argues Manik Mehta

Plant safety by Midrex and an article on the Energiron ZR process

Six pages of the latest steel news from around the world

Since 1866

2 Leader By Matthew Moggridge, editor, Steel Times International

www.steeltimesint.com January/February 2020 - Vol.44 No1

THE WORLD LEADER IN DIRECT REDUCTION TECHNOLOGY STEEL TIMES INTERNATIONAL – JANUARY/FEBRUARY 2020 – Vol.44 No1

Front cover photo courtesy of Midrex

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4 News round-up and facts & figures The latest news and diary dates

27/01/2020 10:26:48

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EDITORIAL Editor and all-round Guru Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Consultant Editor and Steel Guru Dr. Tim Smith PhD, CEng, MIM Production Editor/Design Guru Annie Baker Advertisement Production Guru Martin Lawrence SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116 Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117

12 Innovations The latest contracts and new products from international plant builders and suppliers

Testing & analysis 22 Improving Sinter Feed Analysis 24 Improving slag detection 29 Artificial intelligence The Alpha Dog in the Human-Al Team Direct Reduced Iron 35 Trends in hydrogen steelmaking 40 The basics of DRI plant safety

14 USA update Steel jobs at stake despite tariffs

46 Perspectives Q&A: Brokk AB Joakim Furtenback, sales director

16 Conference report: Alacero Living with small growth rates

48 History Fluxes in early blast furnaces

Managing Director Tony Crinion tonycrinion@quartzltd.com Tel: +44 (0) 1737 855164 Chief Executive Officer Steve Diprose SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £195.00 Other countries: £270.00 2 years subscription: UK £350.00 Other countries: £485.00 ) Single copy (inc postage): £45.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England. Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2019

ISSN0143-7798

www.steeltimesint.com

Contents.indd 1

January/February 2020

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LEADER

Big name speakers in Prague for Future Steel Forum 2020

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

This year more than any other, global steelmakers have made it clear that they are willing to speak at the steel industry’s premier Industry 4.0 conference, the one and only Future Steel Forum; and it can only be good news for the delegates. For me, as the person responsible for the development of this incredible event, the willingness of senior level steel executives to take part is pure vindication for the idea of running a steel conference that is focused solely on digital manufacturing and Industry 4.0. I am pleased to say that this year, 2020, the Future Steel Forum is attracting many more steelmakers than past events and I can only attribute that to the conference gaining the acceptance of the industry and, therefore, becoming a must-attend event on the annual conference circuit, joining, perhaps, other established industry get-togethers that we all know and love. This year’s programme is looking very promising. In fact, I am delighted that Dave Stickler, CEO of Big River Steel, Osceola, Arkansas, USA, has agreed to speak. For many people in the steel industry, Dave is the poster boy for hi-tech steelmaking.

He has been profiled twice in Steel Times International, the last time being our July/ August 2019 edition, and is the man behind the world’s first ‘learning mill’, which was developed in conjunction with SMS Digital and the artificial intelligence specialist, noodle.ai of San Francisco, both of whom will be fielding top flight speakers in Prague (Grandior Hotel, 2-3 June). The Future Steel Forum 2020 is shaping up to be a memorable event with confirmed presentations from South Korean steel giant POSCO; Metinvest Digital and Severstal from Russia; ArcelorMittal, the world’s largest steelmaker; Tata Steel India; Japanese steel manufacturer, Kobe Steel; and Buderus Steel and Badische Stahlwerk from Germany. There is still time for other steelmakers to confirm their presence in Prague. A handful of big players are currently mulling it over, and I’m hoping they will bite the bullet and get involved; but rest assured I will keep readers informed of developments as and when they happen. To attend the Future Steel Forum as a delegate is simple: visit https://www. futuresteelforum.com and register online.

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• The world’s largest pilot plant for the CO2-neutral production of hydrogen has commenced operation. The plant is part of an EU-funded initiative entitled H2FUTURE, a multi-partnered venture involving Austrian steelmaker voestalpine, Austrian power company Verbund AG, Siemens, Austrian Power Grid, K1-MET and TNO. The aim is to replace fossil fuels in steel production. Source: Green Car Congress, 28 November 2019. • The JSW Group, which owns JSW Steel, India’s second largest steelmaker, has commissioned an 18Mt/ yr iron ore terminal at the state-run Paradip port in Odisha. The port, which has a loading rate of 100kt/yr, ships iron ore ﬁnes and pellets. The company also owns the Dharamtar port on India’s west coast. Source: Argus Media, 28 November 2019.

NEWS ROUND-UP • It’s looking highly likey that Aditya Mittal will become chairman of the board of directors of Essar Steel once ArcelorMittal and Nippon Steel (the two acquiring partners) get their feet under the table. Source: Economic Times, 27 November 2019.

• Sort it out or get rid of it, that’s the advice of Union Investment, a company described as a top-10 investor ‘in ailing conglomerate ThyssenKrupp’, which last year had a negative cashﬂow (for the group) of -1.14 billion Euros, according to an online media report. Ever since a planned merger with Tata Steel collapsed, workers have been in a state of anxiety over their future and now it’s up to new CEO Martina Merz to get it sorted. Union Investment’s fund manager Michael Muders argues that if you can’t make money out of steel in Europe perhaps it’s time to ofﬂoad it. Source: Business Standard. com, 28 November 2019.

• Improving efﬁciency and reducing costs is the name of the game for state-owned Indian steelmaker SAIL. The company has initiated a cost control drive at all plants and is engaged in what chairman Anil Kumar Chaudray described as ‘aggressive cost control’. Workshops are being organised across the business with a view to improving operations and operational efﬁciency. Source: Times of India, 27 November 2019.

• A US$433 million coke delivery deal has been agreed between the Polish JSW Group and the Romanian steelmaker Liberty Galati. The contract is for ﬁve years commencing 1 January 2020. Liberty House Group purchased the Galati mill from ArcelorMittal in July 2019. Source: Seenews.com, 30 November 2019.

• Sunnapuralla palle village in Jammalamadugu mandal, India, looks like the place where AP High Grade Steels Ltd will build a steel plant, following an announcement by chief minister YS Jagan Mohan Reddy. The foundation stone will be laid on 26 January 2020 and it is said that a multi-national company based in China will construct the plant. Source: The Hans India, 29 November 2019.

• Iran is on track to produce 28Mt of steel by the end of the Iranian calendar year (to end March 2020), according to Khodadad Gharibpour, Deputy Minister of Industry, Mine and Trade and the CEO of IMIDRO (Iranian Mines and Mining Industries Development and Renovation Organisation). Mr Gharibpour said that Iran exported more than 6Mt of steel between 21 March and 22 September 2019. Source: Mehr News Agency, 1 December 2019.

• No injuries were reported after a fire at Gerdau Ameristeel at 1678 Red Rock Road in St. Paul in Minnesota, USA. Flames rose 70 feet in the air and firefighters battled with the blaze for 15 hours. Source: Twin Cities.com-Pioneer Press, 1 December 2019.

For more global steel news, log on to our news website, www.steeltimesint.com

January/February 2020

Industry news.indd 1

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NEWS ROUND-UP • Valast 450 is the name of a new steel product from Tata Steel. It is claimed to be an abrasion-resistant strip product that provides superior surface quality when compared with conventional abrasion-resistant plate products in ‘as rolled’ condition. It is claimed that the product will enhance Tata’s offer to long-standing customers in the ﬁeld of construction, mining and quarrying equipment. Source: AggNet.com, 1 December 2019.

• According to the Trend International News Agency, Iran intends to invest over four billion Euros in its copper industry. Source: Trend International News Agency, 2 December 2019.

• With the sole aim of increasing its annual crude steel capacity from 12.8Mt/ yr to 21.4Mt, state-owned steelmaker SAIL has undertaken a modernisation programme for its ﬁve integrated steel mills at Bhilai (Chhattisgarh), Bokaro (Jharkhand), Rourkela (Odisha), Durgapur and Burnpur (both in West Bengal), and the company’s special steel plant at Salem in Tamil Nadu where a new steel melt shop has been added to enhance the capacity of the facility’s cold rolling mill. Source: Indus Dictum, 2 December 2019.

• High-speed rail systems are part of a glowing future for Indian state-owned steelmaker SAIL. The company plans to make special rails at its Bhilai plant in Chhattisgarh as well as its IISCO facility in Burnpur, West Bengal. Work is expected to commence within the next two years, said Anirban Dasgupta, CEO of SAIL’s Bhilai Steel Plant. Source: Urban Transport News.com, 3 December 2019.

• South Korean steelmaker POSCO has been highlighting its continued commitment to corporate social responsibility. Towards the end of last year the company joined forces with another big South Korean player, SK Group, to promote CSR and talk up a possible partnership between the two giants to generate social value for sustainable growth. POSCO chairman Choi Jeong-woo has led a number of CSR projects under the ‘With Posco’ slogan, an initiative that has won the support of SK Group chairman Chey Tae-won. Source: Korean Herald, 3 December 2019.

• Flooding at US Steel’s Gary Works mill in Indiana has caused problems with the blast furnaces. A 36-inch wide water pipeline ruptured and ﬂooded a portion of the complex, but the company managed to restart two furnaces. None of the furnaces were damaged and there has been no impact on customers. Source: Inside Indiana Business, 3 December 2019/ SP Global, 6 December 2019.

• In a place called Farrell, north of Pittsburgh in the state of Pennsylvania, NLMK Pennsylvania has laid off 100 of its 430-strong workforce and cut 35 salaried ofﬁce positions. The company has cited higher import costs since Trump slapped 25% tariffs on imports from Russia and other countries last year. Bob Miller, the company’s president, claims that his ﬁrm had paid more than $160 million in tariffs so it could keep buying steel. Source: Philadelphia Inquirer, 3 December 2019

• ArcelorMittal is seeking immunity from any future investigations into the Ruia family, the previous owners of Essar Steel. The world’s largest steelmaker wants to avoid a situation similar to that experienced by JSW Steel following its acquisition of Bhushan Power and Steel. Source: Economic Times.com, 4 December 2019.

January/February 2020

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NEWS ROUND-UP

• Online media reports are claiming that US sanctions on Iran are pretty ineffective in the minerals sector. According to the World Steel Association, Iran was the world’s 10th largest steel producer in 2018 despite the reimposition of sanctions by the USA. In 2018 Iran produced 25Mt of crude steel, up 17.7% on 2017 and it could rise to 28Mt in the current Iranian year, which ends in March. Source: Tehran Times, 4 December 2019.

• Indian state-owned steelmaker SAIL recorded a 36% growth in sales in November 2019. Source: The Hindu Business Line.com, 4 December 2019.

• The profitability of Indian steelmakers is under the spotlight according to online reports with big players like Tata Steel, JSW Steel and Jindal Steel and Power starting the new decade with weakening profits due to a softening of demand, falling steel prices and rising raw materials costs. According to The Hindu, the profitability of Indian steelmakers will decline a further 5% in 2020 following a sharp decline of around 25% in 2019. Source: The Hindu.com, 4 December 2019.

• Much to the annoyance of the Chinese company Jingye, the French factory of British Steel is for sale separately from the rest of the company. According to an online report a process is underway to sell what is regarded as a strategic industrial asset for the French Government. Source: City AM/Financial Times, 5 December 2019.

• It’s been going on for almost a year, but only now is it looking likely that JSW Steel is getting closer to acquiring Vardhman Industries (VIL). The Indian steelmaker has been locked in discussions with the National Company Law Appellate Tribunal (NCLAT) which last month (December 2019) ruled in favour of JSW Steel. Source: The Hindu Business Line, 6 December 2019.

• If the Jingye/British Steel deal falls through, there are plenty of other interested parties willing to snap up the latter if the Chinese company pulls out. A key potential buyer if things go awry is Sanjeev Gupta’s Liberty Group. The company already works closely with British Steel in the UK and for many industry observers is seen as the likely candidate should the situation change in any way. Source: City AM, 8 December 2019.

• A micromill in Sedalia, Missouri, will be the ﬁrst of its kind to run on wind energy. The $250 million facility is expected to be up and running by the year end and is a partnership between electric steelmaking giant Nucor and local power company Evergy. Evergy will power the plant after a 75 megaWatt power purchase agreement between the two companies. Source: CNBC, 7 December 2019.

• Swedish bearings manufacturer SKF has signed a performance-based deal with Brazilian steelmaker Gerdau to increase productivity and reduce unplanned downtime at two mills. For SKF the deal marks the beginning of a new future strategy whereby it is paid a fee based on preagreed performance levels. Source: Reuters, 6 December 2019.

• The ﬁrst above ground jaw gyratory crusher in Australia will be installed by ThyssenKrupp at the Roy Hill iron ore mine in Pilbara, Western Australia. The new crusher has been designed for high-performance and cost-effective operation. Jaw gyratory crushers can handle bigger chunks of material than straightforward gyratory crushers and have a higher crushing ratio.

Source: International Mining, 10 December 2019.

January/February 2020

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DIARY OF EVENTS

• Rather than shut up shop and close its Orb steelworks in Newport, South Wales, UK, Tata Steel has decided to ‘mothball’ it instead. The difference between ‘close’ and ‘mothball’ is fairly simple: if you close something, that’s effectively the end of it, but if you ‘mothball’ you stop using it and keep it in good condition so that it can readily be used again. The Orb plant makes electrical steel for power transmission and the workers there are to be redeployed in other parts of the business, including Port Talbot, according to a BBC online report. There are, of course, interested parties, such as Liberty Steel, but also the US steelmaker Big River Steel, which has said it would like to use the site, but only with another company operating it. Source: BBC, 11 December 2019.

• Polluting the atmosphere is a costly business, as US Steel discovered to its cost recently. A proposed settlement with members of the public living close to the Clairton Coke Works involves paying residents $2 million and investing $6.5 million in equipment upgrades at the plant. Source: Triblive.com, 11 December 2019.

• Italy-based Marcegaglia Group has acquired Evraz e Bertoli, one of Italy’s largest steel production sites, for 40 million Euros. Bertoli specialises in manufacturing heavy quarto plates and processes over 400kt of steel annually. Source: Global Legal Chronicle, 12 December 2019.

• The US Department of Commerce has said it lowered its anti-dumping duty on hot-rolled steel from South Korean steelmaker Hyundai, the country’s second-biggest steelmaker. The new weighted average dumping margin is 0.94%, down from 5.44%. Source: Reuters, 12 December 2019. • German steelmaker ThyssenKrupp is said to be in discussion with Elon Musk about ‘carrying out certain services’ for the latter’s planned e-vehicle manufacturing hub in Berlin, or so said TK board member Klaus Keysberg to Germany’s business daily Handelsblatt last month. Source: Financial World.org, 14 December 2019. www.steeltimesint.com

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• Russian steelmaker MMK has stopped taking export orders for February and March 2020 hot-rolled coil production because of mill maintenance. The company will stop its 2,500mm wide hot strip mill in March, one of two at its Urals site, for 110 days, according to a report by Platts. Source: SPGlobal.com, 12 December 2019.

• Workers at the Visakhapatnam Steel Plant (VSP) in India joined forces to protest against a planned joint venture between the company and South Korean steel giant POSCO. Plans by the region’s chief minister YS Jagonmohan Reddy to provide 75% employment to locals will only become possible according to CITU state president Narsinga Rao if VSP is expanded within the government sector. Rao wants the Government to pass a unanimous resolution stating that VSP’s land is not given away to private companies. Source: Times of India, 13 December 2019.

January 2020 25-27: Mexican Steel Forum Location: The Westin Monterrey Valle, Monterrey, Mexico Organised by: Fastmarkets MB Meet over 200 professionals from the biggest North American steel mills as well as freight and logistics companies, scrap processors, automotive OEMs and more. The only multi-national, bilingual conference that attracts the entire regional supply chain to Mexico. Further information, contact: marketing@metalbulletin.com February 2020 25: 3rd Postgraduate Research Symposium on Ferrous Metallurgy Location: London. Organised by: Materials Processing Institute The aim of the symposium is to enable PhD researchers and university departments from across the UK to showcase their research to inspire academics and research students to engage in the steel industry's research challenges. Further information, contact: www.mpiuk.com/doctoralacademy-symposium.htm 25-27: China Iron Ore 2020 Location: Grand Hyatt, Beijing. Organised by: Fastmarkets MB Bringing together individuals from across the iron and steel supply chain. For further information, contact: marketing@metalbulletin.com June 2020 2-3 Future Steel Forum Location: Grandior Hotel, Prague. Organised by: Steel Times International The Future Steel Forum moves to the Czech Republic for an event that has already attracted many top ﬂight global steelmakers as speakers. The Forum is all about Industry 4.0 and the steelmaking process. For further information, log on to: www.futuresteelforum.com 8-11 2020 SEAISI Conference Location: Shangri-La Hotel, Kuala Lumpur, Malaysia. Organised by: South East Asian Iron and Steel Institute Steel in ASEAN: New Possibilities, New Challenges and New Approaches. For further information, log on to: www.seaisi.org

January/February 2020

24/01/2020 10:06:50

NEWS ROUND-UP

• What a difference a day makes in the British Steel rescue talks. On 14 December the Telegraph reported that talks with ‘potential buyer’ Jingye were close to breaking down, but then, one day later, the BBC claimed that talks were ‘making progress’. Outside of online and media reports, some industry observers believe that the deal will fall through, leaving other contenders, like Liberty Steel, in the frame. Source: Daily Telegraph and the BBC, 14-15 December 2019.

• In India, the Odisha government has awarded Tata Steel BSL with the Odisha State Energy Conservation Award 2019. Saroj Kumar Banerjee, chief of environment for Tata Steel BSL, received the award from Dibya Shankar Mishra, Odhisa’s energy minister. The company received the award for improving energy conservation performance through reducing carbon footprint and fossil fuel consumption and generating power through waste heat recovery and energy efﬁcient projects. Source: The Hindu Business Line, 15 December 2019.

• Leon Topalian is rich beyond his wildest dreams! Nucor Corporation’s new head honcho will get a base salary of $1 million with a target for annual incentives of $1.5 million and long-term incentives of $2 million. Topalian started on 1st January 2020 and will likely become chairman ‘in a year or so’ according to one online report. John Ferriola, his predecessor, had a base salary of $1.4 million in 2018 along with an annual incentive that year of $2.1 million. Source: BizJournals.com, 16 December 2019.

• A 250kt/yr coil paint line is to be added to Nucor Corporation’s sheet mill plant in Mississippi County in Arkansas, USA. The aim of the expansion is to diversify the leading US steelmaker’s product and market mix by adding processing capability, according to Jay Henderson, VP and general manager of Nucor Steel Arkansas. He said it would also improve the quality and service provided to pre-paint customers. Source: PR Newswire, 18 December 2019.

• A timely Christmas president for Brazil’s President Jair Bolsonaro of Brazil involved a chat with The Donald in which the latter backed off on a threat to impose tariffs on Brazilian metal. According to Bolsanaro, relations between Brazil and the USA are getting stronger by the day. Source: New York Times, 21 December 2019. • Five people were injured at a POSCO steel mill in Gwangyang following an explosion that took out a generator facility. One of the ﬁve was seriously injured. The ﬁre had no impact on operations and was not related directly to production operations. Source: Reuters, 24 December 2019.

• SSAB Americas’ Montpelier facility in Iowa is believed to be powered solely by renewable energy sources, according to a report by SP Global, which also claims that the company plans to produce steel in North America using a fossil fuel-free process by the start of 2026. Source: SP Global, 17 December 2019.

• Sanjeev Gupta’s Liberty Steel was announced as the preferred buyer for Bayou Steel in a deal worth $28 million. The plan is to restart recycling operations in 2020 and steelmaking in 2021, according to City AM. Source: City AM, 24 December 2019.

• Donald Trump famously boasted that his tariffs had saved the US steel industry. Then why is it that US Steel Corporation is laying off 1,545 workers and closing a giant plant in Detroit? And why is it that the same company laid off 200 workers in Michigan earlier in 2019? Well, according to economics professor Alan Deardoff from the University of Michigan, the US steel industry has been in trouble for years and Trump’s tariffs never stood a chance to save the industry, according to an online report. Source: Salon.com, 21 December 2019. www.steeltimesint.com

Industry news.indd 5

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NEWS ROUND-UP

• Ever since British Steel was ‘plunged into insolvency’ the British taxpayer has been funding the company’s operational losses – to the tune of £1 million per day! Source: The Guardian, 2 January 2020.

• Nucor Corporation in Memphis, Tennessee, has purchased heat treating equipment from Energy Alloys of Conroe, Texas. Dave Smith, VP and GM of Nucor Steel Memphis, said the new equipment will improve the quality and properties of the heattreated steel currently produced at the site. Source: Daily Memphian, 3 January 2020.

• A toxic gas leak at an Indian state-owned steel plant run by Steel Authority of India Ltd (SAIL) has left six people ill. The incident involved blast furnace number eight and was due to a material slippage inside the furnace which caused a pressure build-up to release the gas through the drain pot of the hydraulic U seal, which is installed to deal with pressure build-ups of this nature. Source: Hindustan Times, 3 January 2020. January/February 2020

Industry news.indd 6

• Good news for the US steel industry is that the New Year started well with a capacity utilisation rate of 82% according to ﬁgures released by the American Iron and Steel Institute (AISI). Source: AISI and AG Metal Miner, 7 January 2020. • Job cuts are on the agenda if Jingye takes over at British Steel, according to a leading UK-based national broadsheet. According to The Guardian newspaper, the National Trade Union Steel Coordinating Committee (which includes the Community and Unite Unions) is concerned about possible job cuts should the deal go through as planned. Since the collapse of British Steel in May 2019, the British Government has been funding the company’s £1 million/day losses. Source: The Guardian.com, 10 January 2020

• Troubled German conglomerate ThyssenKrupp is said to be stepping up efforts to sell it’s Industrial Solutions business. Among the interested purchasers are a number of Chinese stateowned enterprises. Industrial Solutions is one of the worst performers in the TK portfolio, according to the Financial Times.

• The Q3 crude steel output of Indian steelmaker JSW Steel has declined by 4.9% to 4.02Mt, down from 4.23Mt the previous year. Flat-rolled products were down 1.3% to 2.86Mt, long-rolled products were down 14.4% to 0.89Mt. JSW Steel is part of the $14 billion JSW Group. Source: The Hindu Business Line, 13 January 2020.

• Aditya Mittal, son of Lakshmi, has big plans for ArcelorMittalNipponSteel India (formerly Essar Steel). He plans to double production at the Hazira plant to 15Mt and is in the process of setting up a dual feed petrochemical annual capacity of 1.2Mt through the HPCL Mittal Energy JV. The company owns the 11Mt Guru Gobind Singh Reﬁnery at Bathinda, which was built in 2012 at a cost of $4 billion. Source: Business Today, 14 January 2020.

• It looks as if workers at Tata Steel Ijmuiden will be guaranteed work until October 2021. According to an online media report, while eventual layoffs are inevitable, the management of Tata Steel Nederland will adhere to previously made agreements with the trade unions. While job cuts in the rest of Europe will likely go ahead, the 1,600 jobs in the Netherlands will be put on hold. Source: NL Times, 14 January 2020.

Source: www.FT.com, 12 January 2020.

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

www.steeltimesint.com

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Danieli Morgårdshammar, in order to produce steel bars in diameters ranging from 45mm to 120 mm. The supply includes new Level 1 automation, instrumentation, AC main drives, regenerative DC common bus technology, auxiliary drives, main stand and shear LV motors, and motor control centres for the bar mill. Sunflag Iron & Steel chose Danieli Automation both for its consolidated know-how in rolling mill process control and for its proven capability to deliver complete automation systems in a very short time. For further information, log on to www.danieli.com

Introducing the multi-tasking KBSE machine Maschinentechnik Roth has been developing and constructing what it regards as a unique and universal piece of equipment known as the KBSE. It can perform all of the operations necessary for the tapping and maintaining of a converter, including core hole drilling, repair and mudding refractory material. According to the company, it combines four operations in a single unit, whereas the conventional procedure deploys a number of machines or machine units. The refractory spraying part of the equipment will be supplied by VELCO of Germany, a well-known supplier of gunning equipment. Maschinentechnik Roth claims that its new machine (pictured right) is well-prepared for the task in hand, saves time and helps improve steel plant utilisation.

For further information, log on to www.mt-roth.de

Advanced digital service for long product mills ABB has launched its Performance Optimisation Service (POS) for long product rolling mills, an advanced service powered by ABB Ability Data Analytics for long product rolling mills and described as ‘a digital solution, which applies process-specific analysis to large volumes of complex data’. According to ABB, POS helps metals producers achieve unprecedented levels of yield, quality and productivity, with remote monitoring and support via ABB’s Collaborative Operations Centres. POS for long product rolling mills allows operations to be monitored around the clock from ABB’s Collaborative Operations Centres, where experts alert designated on-site staff to process deviations and disturbances and advise on corrective action, supporting faster, more data-driven decisions that will enhance process performance. To facilitate continuous improvement, ABB utilises process insights to generate regular reports identifying focus areas and recommended actions. Enterprise-level integration provides insights across multiple mills, enabling users to identify and analyse trends that could impact performance at several sites. January/February 2020

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ABB Ability Data Analytics for long product rolling mills integrates with ABB’s Ability Data Analytics Platform for metals and is able to collect high frequency data in real-time from data acquisition systems, such as Iba or over other industry standard communication protocols, and analyse the performance of the mill with process-specific algorithms. The data is used to detect deviations, identify their root cause and determine trends, benchmarks and other performance factors including predicting and preventing faults before they affect production. Data is collected in real-time, stored securely on-site at the customer’s premises using ABB’s Historian server, and visualised for designated users in intuitive, customisable dashboards. “We’ve combined a number of powerful performance optimisation tools into one complete performance optimisation service,” said Nilabja Ash, product manager, profile mills, for ABB’s metals business. The digital technology at the core of this service is also available as a stand-alone solution. For further information, log on to https://tinyurl.com/rs497s7 www.steeltimesint.com

27/01/2020 15:40:08

World Leader in Direct Reduction Technology

Tosyali Algerie MIDREXÂ® CDRI/HDRI Plant Capacity: 2.5 mtpy Location: Bethioua (Oran), Algeria

USA UPDATE

1. David Burritt - 2. John Ferriola - 3. President Donald Trump.

Steel jobs at stake despite tariffs Tariffs are not a panacea for all ills, but infrastructure upgrading and modernisation will help the US steel industry says Manik Mehta* AT the start of 2020, questions are being raised about the economic prudence of imposing tariffs to bolster the fortunes of the steel industry. During a recent discussion at the New York offices of Stifel, a leading full-service brokerage and investment banking firm, Barry B. Bannister, the head of Stifel’s institutional equity strategy, replying to my question on tariffs told me: “Tariffs don’t work as stimulus … you need a stimulus to boost the economy by investing, for example, in infrastructure and modernisation.” While some analysts already sniff an impending recession in the air, rising levels of unemployment in the steel sector are causing anxiety to some. Indeed, the latest government monthly manufacturing data suggests that tariffs are not going to be much help to bolster the steel industry or save jobs. Tariffs cannot be a panacea to cure the ailments of the steel industry. Some pundits were taken aback by the news that manufacturing jobs in December 2019 in the steel sector had declined by some 12,000, with the metal-producing industries alone losing 9,500 jobs. The feeling in the industry is that it is necessary to reach an agreement with China on the latter’s subsidies, failing which the industry could face more losses in the coming months. The general view is that the Trump administration will push for an early agreement with China and quietly bury the much-discussed trade war between the two countries.

The signing of a so-called “Phase 1” trade deal with China – some call it the ‘skinny deal’ – is being presented as a precursor to a bigger deal which should address the vexing question of Chinese steel production as well as other questions related to China’s industrial policy. President Donald Trump has been saying that once the Phase-1 deal is completed, talks can begin on Phase 2. US steelmakers are uneasy about China’s ‘hidden and not-so-hidden’ subsidies through which Chinese suppliers gain what they say is an unfair advantage. US industry groups, including the Alliance for American Manufacturing, emphasise that Chinese subsidies need to be sorted out in future deals with China. Many predict a bleak future for US industries and workers if the question of the huge subsidies China gives to its industries is not satisfactorily resolved. This also prompted Peter Navarro, the US adviser on trade, to say in interviews with journalists that the administration is “fully engaged (on the issue of Chinese subsidies) and … it needs to be firmly addressed”. Many US – but also international – experts blame Chinese steel subsidies for the huge overcapacities that have piled up in global markets. This fact was recognised by the previous Obama administration, which lodged a formal complaint with the World Trade Organisation against Chinese subsidies; however, the succeeding Trump administration, expected to pursue the issue at the WTO, decided to impose 25% and 10% tariffs on all steel and aluminium

imports respectively. While tariffs did help US steel and aluminium manufacturers for some time, they seem to be losing their effectiveness, as the difficulties of steelmakers show. US Steel Corp, for example, lost nearly 77% of its value, while Nucor Corp, the country’s leading steel company, has lost about 22%. I recall John Ferriola, Nucor’s former CEO, telling a large audience at a past Steel Success Strategies conference in New York that it was a “good time to make steel” in the US, with the listeners boisterously cheering him. It is true that US steelmakers were able to increase production by about 10% between 2015 and 2018. The job situation, however, worsened as the industry lost some 8.8% of jobs after resorting to using mini-mills, which use scrap metal to make steel; enhancing productivity also contributed to reducing the number of workers. US Steel has announced plans to idle its plant near Detroit; this will also be accompanied by retrenchment of about 1,545 workers. But the company also offered a sugar coating to the bitter pill: US Steel said it expects the lay-off figure will be lower than the figure originally announced. One of Trump’s promises during the last election had been to resuscitate the steel industry; he could thus garner the support from voters in key swing states such as Pennsylvania and Ohio in the last election. But things are changing, and so is the mood of the people. It remains to be

* USA correspondent January/February 2020

USA - Copy.indd 1

www.steeltimesint.com

24/01/2020 11:00:28

USA UPDATE

join the best: 30 March–03 April 2020 Düsseldorf, Germany I www.wire.de I www.tube.de

seen if Trump will be rewarded for checking the inﬂow of cheap foreign steel or whether he will face the ire of the voters for the retrenchment and plant closures. Steel tariffs may have provided some succour to the steel industry, but as Bannister said, upgrading of infrastructure is key to improving the lot of the steel industry. US Steel, considered to be a steel pioneer, has suffered from old and creaking plants that needed upgrading. An accident underlines the urgency: last Christmas Eve at its 120-year-old plant near Pittsburgh a sprinkler pipe collapsed and fell from the ceiling, causing a major outbreak of fire in an area the size of a football field. The compressor suddenly began to vibrate and a ﬂood of gas from coking-coal ovens was ignited, according to a report on the investigation conducted for US Steel by an engineering firm, US media reported. US Steel, caught between the need to overhaul its existing plants and invest in new mills, is remembered for producing the steel used for skyscrapers and cars that made the US an industrial power. Its current state leaves much to be desired. David Burritt, US Steel’s chief executive officer, has presented strategies over the past two-and-half years to spend billions of dollars on renovating or replacing equipment that has been in service for decades. Tariffs on foreign-made steel imposed by President Trump may have curbed imports and for a short time driven up US prices, thus providing the company with a window to repair its plants and improve its competitiveness. But the company’s competitors – the mini-mills – stepped up with major investments in new production capacity which is expected to increase by several million tons of additional steel to the US market over the next three years. With steel prices weakening once again, experts wonder if the US is heading for a glut that could put pressure on prices and hurt profits. Ironically, Burritt had supported Trump’s 25% tariff on foreign steel; because of the tariffs, domestic steel prices rose to their highest level in a decade in the summer of 2018. US Steel’s profits soared and had peaked. However, the respite was short-lived. US manufacturers, confronted by slower global trade, less domestic drilling for oil and natural gas, and tariff costs, are buying less steel to make machinery, auto parts and other durable items. Sheet steel, US Steel’s main product, is fetching lower prices, having fallen below $600-a-ton. Falling prices have also led to the company’s losses. In October, the company posted a loss for its quarter. Unlike in the past, the steel industry is now global in character. Companies like US Steel cannot compete against its rivals by resorting to old production methods and using what many say are antiquated, fully-integrated mills. There is an urgency in the cry for upgrading steel-producing operations. � www.steeltimesint.com

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It will be the big industry spectacle: The world’s leading trade fairs for the wire and cable, tube and tube processing industries are extending an invitation. Experience visionary machines, technologies and processes. At wire: For the first time, pioneers in the manufacture of end products – springs and fasteners – will be there. Thus, the complete value chain from raw materials to industry right up to high-end results is represented. At Tube: Trends in OCTG technologies, process solutions, from tube cutting to tube trading. And never before have both trade fairs been so green: The ecoMetals Trails will lead you to the pioneers of sustainability. The field of progress has been prepared – for you as a decisionmaker of the future. The best thing to do would be to register today: wire.de/2130 and Tube.de/2130

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January/February 2020

09.12.19 16:57

24/01/2020 11:00:34

CONFERENCE REPORT: ALACERO 2019

Alacero’s 60th annual conference, held in Buenos Aires in November 2019, showed signs of modernisation and a more casual approach, with speakers delivering their presentations standing up and some of the male speakers not wearing ties. Informality aside, however, there were important issues to discuss as Germano Mendes de Paula* found out. ALACERO (or the Latin American Steel Association) organised its 60th Annual Conference in mid-November 2019 in Buenos Aires. As usual, this is the most important event for the steel community in the region. This year’s conference showed a number of signs of modernisation. At least three factors demonstrated Alacero’s aim of transforming the event and making it more casual. First, speakers delivered their speeches standing up instead of being seated, with few speakers using the podium. There was a more theatrical approach to the presentations and some of the male speakers decided not to wear ties, adding an air of informality to the proceedings. Last but not least, the traditional tango show was substituted for something a little more ‘modern’. These modifications can be attributed, most probably, to Alacero’s new management team, which took over when the Alacero moved its headquarters from Santiago de Chile to São Paulo two years ago. It is remarkable to notice that there were 1,220 registered attendees, from 37 countries. The global perspective Dr. Edwin Basson, director general of The World Steel Association (worldsteel) discussed the global steel industry and its raw materials. He initially stressed that global production (excluding China) diminished from 2014 to Q1 2016, but recovered afterwards, reaching a 75Mt/ month plateau since 2018. However, the recovery lost momentum by mid-2018, with substantial regional differences: downturns were observed in the European Union, Japan and Turkey, whereas continued

Living with small growth rates growth was verified in the USA and India. Meanwhile, crude steel production in China experienced substantial expansion over the last three years and H1 2019 output was 10% higher year-on-year. Dr. Basson said that worldsteel’s latest short-range outlook, released in October 2019, confirms the weakening of global steel consumption. He said that worldwide demand would reduce 0.4% in 2019, followed by a partial recovery of 0.2% in 2020. Obviously, there are significant regional disparities. According to worldsteel, over the period 2020-2040, global steel demand will experience a mild 0.8% compound annual growth rate (CAGR) – see Fig.1. In the interim, according to the United Nations’ medium variant scenario, the world population will expand annually also by 0.8%. Consequently, per capita consumption will be maintained over the next two decades.

Dr. Basson said there will be pockets of strong growth, especially in India. This country is expected to amplify its steel production from 1,324Mt in 2016 to 1,452Mt in 2025. The country’s urbanisation ratio would enlarge from 32.7% to 37.0%, respectively, while GDP per capita (in real terms) would skyrocket from 1.8k to 3.1k. (what’s the currency?) Even so, demand enlargement in India and other emerging nations will not be big enough to result in another period of strong global steel demand growth. It can be concluded that the steel sector achieved a status of mature activity. Thus, it must adapt itself for low growth rates. In the second part of his presentation, Dr. Basson discussed the steel production structure and raw material markets. At a glance, world crude steel production totalled 1.8 billon tonnes in 2018, of which 1.29 billion tonnes was based on BOF and 0.52 billion tonnes on EAF. In

* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br January/February 2020

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CONFERENCE REPORT: ALACERO 2019

addition, the EAF’s share in global steel production decreased from roughly 34% in the early 2000s to 26% in 2015, mainly due to the expansion of the Chinese steel industry. More recently, the closure of induction furnaces in 2017 has implied a scrap surplus in China. Combined with environmental actions, such as curbs on blast furnace operations, these resulted in a strong jump in the EAF’s participation in

China’s total output. Therefore, there was an expansion of EAF’s share in global steel output to 29% in 2018. Regional steel production shows different technological routes. It is important to highlight the expansion of the EAF’s ratio in North America, Canada and Mexico while the BOF’s share has been amplifying in India and the ASEAN region. In China, EAF output achieved 77Mt in 2017 (or 9.3% of the total). Allegedly, China’s EAF volume continued to improve in 2018, surpassing 100Mt, but the ratio varied according to two important sources: the China Association of Metal Scrap Utilisation (Camu) said 9.8% versus the Bureau of International Recycling (BIR) which claimed 13%. In 2000, the global steel industry used 570Mt of hot metal, of which 320Mt was scrap and 43Mt was direct reduced iron (DRI). In 2018, the amount jumped to 1.25 billion tonnes of hot metal, 640Mt of scrap and 100Mt of DRI. According to worldsteel, global scrap availability is expected to rise from 780Mt in 2018, to 1 billion tonnes in 2030 and even to 1.4 billion tonnes in 2050. Regarding obsolete scrap availability alone, the figures will be 390Mt in 2018, 600Mt in 2030 and 900Mt in 2050 (Fig. 2). Indeed, it will surge in the developing world, particularly in China, skyrocketing from 65Mt in 2018 to 175Mt in 2030 and even to 300Mt in 2050. Other Asian countries (excluding Japan) will experience a considerable evolution too, climbing from 40Mt in 2018 to 75Mt in 2030 and 165Mt in 2050. In the developed world (European Union, NAFTA and Japan), the amplification will be more modest, from 210Mt in 2018 to 265Mt in 2050. The rest of the world will also show a substantial evolution, moving

Fig 1. Global finished steel demand, 2000-2040 (Mt). Source: worldsteel

www.steeltimesint.com

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from 70Mt in 2018 to 170Mt in 2050. Dr. Basson informed delegates that, with steel demand stabilising, worldsteel expects that Chinese scrap consumption will probably not catch up with the increase in scrap availability. In this context, the country has the potential to become a scrap exporter from the mid-2020s onwards. Seaborne iron ore demand is around its historical peak and expected to enter a decline phase within the next decade. The drop will mainly be driven by decreasing steel demand and the blast furnace output requirement in China. On the supply side, continued growth is observed, albeit at a much slower pace, as major miners ramp up towards targeted capacities. An ongoing tightness for higher quality iron ore is predicted. Seaborne metallurgical coal demand is anticipated to continue upward due to robust growth potential in India and the ASEAN region. On the supply spectrum, upturn is going to remain limited, being insufficient to mitigate the impact of weather or operational disruptions. Moreover, some companies have been avoiding coal investments and some financial institutions have ceased support for coal investments. There will be a tightness in higher quality coal, because of the enlargement in average blast furnace size and more stringent environmental regulations to underpin demand for higher quality raw materials. These trends will imply severe market volatility. CRU’s standpoint Unfortunately, CRU, despite reassuring delegates that the worst-case scenario is not the most likely one, has not showed the base and best ones. However, it is understood that China will increase its steel production capacity by 90Mt/yr in

Fig 2. World obsolete scrap availability, 1990-2050 (Mt). Source: worldsteel

January/February 2020

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CONFERENCE REPORT: ALACERO 2019

250 200 150

2007

2009

2011

2013

2015

2017

2019

2021

Fig 3.Global crude steel production, 2007-2024 (Mt). Source: CRU

the analysed period. Anyway, Dr. Paul Butterworth emphasised that, based on the period 2008-2019, a 7% fall in the capacity utilisation ratio resulted in a ~10% EBITDA profitability drop for Chinese steelmakers. Consequently, excess capacity seems to be maintained as a key concern for the global industry in the following years. Dr. Butterworth discussed seaborne imports of iron ore and metallurgical coal, during the period 2018-2023. He estimates that iron ore will amplify by 46Mt, resulting in a 0.6% CAGR, while the respective figures for coal will be 27Mt and 1.7%. Concerning iron ore prices, he highlighted that they exceeded $100/t for the first time since 2014. On the demand side, Chinese crude steel production reached its peak in Q2 2019. On the supply side, disruptions started in Q1, but worsened throughout Q2. In Western Australia, responsible for 57% of seaborne supply, cyclone Veronica forced key harbours to shut. Shipments in March 2019 experienced their lowest levels since January 2016. In the case of Brazil, in Minas Gerais State, which has a 13% participation in seaborne supply, Vale’s dam accident impacted its production for the next few years. In Pará State, where the Carajás mine is located and represents 12% of seaborne supply, heavy rains have affected production, transportation, processing and shipments of iron ore. Iron ore and hard coking coal prices started to fall in August 2019, due to a combination of macro and sectorial factors, such as: a) weak margins forcing Chinese blast furnaces to close; b) weakness in other iron ore import regions, such as Europe, Japan, Korea and Taiwan; c) supply response: Australian production improved better than expected and record strong shipments from Pará State. January/February 2020

Alacero conference.indd 3

2023 2024

276

Capacity swaps may have led to an additional increased capacity of up to 15Mt?

Released capacity is that capacity that has been constrained during 2017 and 2018 due to environmental restrictions in China

Capacity in 2024

Others (new)

CIS (new)

Capacity creep in China could be as high as 100Mt, more likely 50 Mt

N Asia (new)

-15%

100

50 0

S America (new)

600

MENA (new)

Europe (new)

100

1,200

China (released)

China (creep)

1,800

India (new)

15%

SE Asia (new,M-T)

Other Asia Other CAGR (crude):1.5% Volume increase: 140M

SE Asia (new,S-T)

CIS

N Am (new)

2,400

Potential/actual added capacity by country/region, 2018-2024 worst case scenario, Mt

300

RoW (creep)

LHS: Global crude steel production by country/region, Mt RHS: Crude steel production growth, China (red) and RoW (black), y/y, % Other N America L America China Europe US

Fig 4. Additional steel capacity, worst-case scenario, 2018-2024 (Mt). Source CRU

Although prices have been falling, iron ore miners had an exceptional 2019, as the prices were relatively high in comparison with the cost curve. CRU emphasised that the global iron ore market was significantly under supplied in 2019, by roughly 60Mt. This situation will be less favourable for the miners in 2020 when a 30Mt undersupply is expected. The market will become balanced in 2021, and a 30Mt supply surplus is forecast for 2023 (Fig.5).

Metallurgical coal prices have also fell significantly in Q3 2019. In reality, premium hard coking coal (HCC) has reached a two-year low. The key underpinned demand factors were: a) dwindling global steel margins and a deteriorating steel market; b) escalating trade tensions between the USA and China; c) extremely weak Indian demand: poor construction activity and automobile sales have fallen for eight months in a row; d) restrictions on imported coal intakes at Chinese ports.

The relevant supply features were: a) eased logistical constraints in Australia: Queensland harbours’ throughput reached record levels in June; b) increasing supply from Russia and healthy Chinese domestic coal production. Dr. Butterworth observed that global metallurgical coal consumption will be flat in the medium-term period, but that imports will increase by 32Mt along the years 2018-2023. According to CRU’s base case, ~38 Mt of additional supply will enter the export market in the same period. Based on the assumption that HCC prices will average the ~90th percentile of the global costs curve, it will translate into a price of $157/t FOB Australia in 2023. Dr. Butterworth also investigated the challenge of low or zero carbon emissions for the steel industry, by emphasising the Western European experience. He said that integrated steel mills in Europe emit ~2tCO2/t hot rolled coil (HRC). The CO2 allowance price stayed low in 2016 and early 2017 (around € 5/CO2), but rises up to € 25/CO2 as credits were removed from the market. Dr. Butterworth presented a quite interesting exercise. He affirmed that only ~80% of emissions are covered by free CO2 allowances. Therefore, at 90% utilisation level and €30/tCO2, the average costs lift by $6/tHRC. Furthermore, as it can be observed in Fig. 6, higher CO2 prices lift marginal costs and constrain accessible capacity. The dark blue line refers to the marginal costs without European Union Allowances (EUA). The light blue dashed lines show the marginal costs with €10/ tCO2, €20/tCO2 and €30/tCO2 prices. For its turn, the red curve represents the revenue curve. Thus, the interception of the marginal cost curve with the revenue curve determines the optimal level of production, www.steeltimesint.com

24/01/2020 11:03:17

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CONFERENCE REPORT: ALACERO 2019

y-axis: steel mill marginal cost under different CO2 prices, illustrative, $/t x-axis: capacity utilisation (based on historical production), %

Oversupplied market

Marginal cost (no EUA) EUA price Euro 20 Revenue curve

650 600 550

40 20

-20 -40 -60

As marginal costs rise, access to marginal sales is lost

500 450 Optimal operating point at Euro30/tCO2 price 400 350 300 250 200 60% 65% 70%

Undersupplied market

EUA price Euro10 EUA price Euro30

Optimal operating point with no CO2 costs 75%

80%

90%

85%

95%

100%

-80 12

Fig 5. Global iron ore market’s balance, 2012-2023 (Mt). Source: CRU

Fig 6. Steel mill’s revenue curve and marginal cost under different CO2 prices ($/t). Source: CRU

Mexico

Brasil

Argentina

Colombia 21

Steel raw materials

30 -3 -12

Steel products -11 -20

-20 -25

-30

-22

-23 -31

-31

Metalmechanical product

-45

5 0 2004

2008

2012

2016

2020

Fig 7. Crude steel demand in Mexico, Brazil, Argentina and Colombia, 2004-2020 (Mt).

2010

2011

2012

2013

2014

2015

2016

2017

2018

Fig 8. Steel’s value chain trade balance with China, 2010-2018 ($bn). Source: Alacero

Source: worldsteel

as the microeconomics textbook explains. Consequently, as marginal costs rise, access to marginal sales is lost. In this example, EUA at €30/tCO2 will imply a roughly 10% production diminution, which has obvious negative impacts on profitability. Latin America’s view Martín Berardi, president of the Argentina Chamber of Steel and executive president of Ternium Argentina, presented some crucial data on the Latin American steel market. The region has been registering disappointing GDP growth in the last decade. For instance, it has a 1.8% GDP amplification in 2017, which was much lower than the world figure (3.3%). The under-performing continued in the following years: Latin America (1.3% in 2018 and projections of 0.7% in 2019 and 1.5% in 2020) versus world (3.1%, 2.4% and 2.5%, respectively). Another negative factor was deindustrialisation, which has been verified in most of the countries in the region. The manufacturing industry as a proportion of GDP has reduced along the period 20002019 (forecast): Mexico (from 19% to 17%), January/February 2020

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Argentina (from 16% to 12%), Colombia (from 14% to 11%) and Brazil (from 13% to 9%).

Steel demand in Latin American was unsatisfactory too. Looking at the four largest consuming countries, Mexican crude steel consumption amplified from 22.3Mt in 2004 to an expected 25.9Mt in 2020 (Fig. 7), performing a 0.9% CAGR. The respective figures for Brazil is 20.4Mt, 25.2Mt and 1.3%. For Argentina, 4.1Mt, 4.8Mt and 1.0% and for Colombia, 2.5Mt,

4.8Mt and 4.2%. Considering that all are emerging nations, only Colombia has shown a good performance. Reasons to be cheerful? Another key problem of the Latin American steel industry is related to its trade relationship with China. On the one hand, Fig. 8 shows that the region has a considerable steel raw material trade surplus of $21 billion in 2010 and $20 billion in 2018. On the other hand, the steel product trade deficit amplified from $3 billion to $5 billion along the same period. Moreover, the metal-mechanical product trade deficit enlarged from $30 billion to $45 billion, respectively. Considering these three type of products combined, China has amplified its trade surplus with Latin America from $12 billion to $31 billion during the years 2010-2018. Considering low GDP growth, the de-industrialisation process, the poor steel market performance and the metalmechanical product huge trade deficit with China, it is quite understandable why Latin American steelmakers do not have many reasons to celebrate. � www.steeltimesint.com

24/01/2020 11:03:21

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TESTING & ANALYSIS

Improving sinter feed analysis Hüttenwerke Krupp Mannesmann GmbH (HKM) in Duisburg, Germany, a subsidiary of Thyssenkrupp Steel Europe AG, produces up to 5.1Mt/yr of sinter and 5.4Mt/yr of steel. Six years ago, the company upgraded to an online sinter feed analysis system that uses prompt gamma neutron activation analysis (PGNAA) to determine elemental concentration in bulk materials. Overall, HKM saw a return on investment in less than a year. By Kevin Gordon1 and Bernhard Oehling2

adjustments to composition, proportions and basicity affect sinter being produced hours after the samples were collected. If sampling is not done frequently enough, short-term variability in sinter composition will be missed, smoothing out and hiding the true process variability. As a result, process upsets and missed chemistry targets in the sinter feed are unknowingly passed along to the blast furnace.

A KEY determinant of steel quality is the quality of the sinter feeding the blast furnace. For steel manufacturers, controlling the chemistry and minimising the variability of the sinter feed mix is a fundamental requirement. Sintering process fluctuations, inhomogeneous mixtures and other factors can negatively affect physical and metallurgical quality, impede stable furnace productivity and drive up raw material and fuel consumption and costs. But maintaining optimal composition and basicity using the traditional lengthy, laboratory-based sinter analysis process is both challenging and inefficient. Increasingly, leading steel manufacturers are relying on online instrumentation that uses an innovative application of prompt gamma neutron activation analysis (PGNAA)

technology to help them validate the composition and quality of sinter more effectively and efficiently. Sinter quality challenges Proper selection and mixing of the raw feed materials is only the first step in ensuring high quality sinter. The variability of the raw materials’ chemistry both within and between batches means that the sinter feed mixture’s composition and basicity must be constantly monitored, analysed and adjusted for conformity and stability. Typically, the chemistry is controlled based on incremental collection and laboratory analysis of composite samples of the final sinter product. Because of the multihour lag time from sample collection to completed lab analysis, the resulting

The power of PGNAA Hüttenwerke Krupp Mannesmann GmbH (HKM) in Duisburg, Germany, is a subsidiary of Thyssenkrupp Steel Europe AG that produces up to 5.1Mt of sinter and 5.4Mt of steel per year. Six years ago, HKM upgraded to a Thermo Fisher Scientific online sinter feed analysis system that uses PGNAA to determine elemental concentration in bulk materials. This neutron activation analysis technique works by bombarding materials with neutrons that interact with elements in the materials, causing those elements to emit secondary, prompt gamma rays that can be measured. Each element emits a characteristic energy signature as it returns to a stable state, allowing the analyser to determine its elemental composition. This non-contact, non-destructive method measures through many centimetres of material, so it’s ideal for realtime analysis of bulk materials on conveyor belts. Because the entire process stream is analysed, the errors potentially associated with mechanical sampling of the final sinter product can be reduced. This online analysis system has allowed

1. Thermo Fisher Scientific. 2. Hüttenwerke Krupp Mannesmann GmbH January/February 2020

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is being changed, this causes the sinter to lose some strength, causing increased pressure loss or reduced performance. The real-time, minute-by-minute analysis that PGNAA technology provides enables rebalancing adjustments to be made quickly, minimising variability.

HKM to validate sinter composition and quality more efficiently and cost-effectively. Instead of taking hours from sample to result, we now see chemistry information each minute on a real-time basis, enabling plant operators to make quicker, better informed decisions to control the basicity of the sinter. Boosting quality, uniformity and efﬁciency Thermo Scientific’s CB Omni online elemental analyser uses PGNAA technology to deliver a combination of real-time analysis, full process stream analysis and accurate and reliable elemental analysis. For HKM, the biggest advantage has been faster analysis. HKM’s old analysis method involved a very long waiting time while the sinter cooled, and several samples were collected and sent to the lab for composite analysis. As a result, it would take five to six hours from the time a change in the mix proportion occurred to when the change in the analysis could be seen. HKM acquired the PGNAA analyser to significantly shorten that multi-hour lag time. Now the company can react much faster when switching between different mixed compositions and where input materials fluctuation occurs. The PGNAA is located between the mixing drum and the sinter strand. We know, therefore, the composition of the sinter before it is produced. This helps to shorten response time. Today, HKM’s mean response time is approximately 30 minutes. The overarching goal for sinter plant operators is achieving a high output of uniform sinter quality at low operational costs. For HKM, the sintering process has become significantly more uniform, which has translated to higher performance. PGNAA analysis allows the company to measure the chemistry of the raw sinter mix. The most important oxides are silicon dioxide (SiO2) and calcium oxide (CaO), and that measurement data is input directly into the control system, enabling automatic regulation of the addition of SiO2 and CaO based on the PGNAA analysis. This helps HKM respond quickly and appropriately to fluctuations and changes in the input material. The more uniform sintering process has also yielded cost savings by helping to www.steeltimesint.com

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Additional ﬂexibility The successor to the analyser that HKM is currently using offers an important additional feature – the ability to use a choice of two different neutron excitation sources: Californium-252 (Cf-252) and a neutron generator. The CB Omni Fusion online elemental analyser provides the option to use either excitation source or allows users to switch between sources at any time. It uses either PGNAA or Pulsed Fast Neutron Activation Analysis, depending on the neutron source selected.

increase the volume of sinter going to the blast furnaces. In addition, HKM has been able to lower the return fines of the sinter and reduce fuel consumption, particularly during the phases when the blending yard is being changed, when it is necessary to respond quickly to changing framework conditions. For example, if the dosage of calcium is insufficient in phases when the mixing area

Rapid return on investment By detecting feed composition variability quickly and reducing the response time, this fully automated technology has enabled HKM to provide better control of additives to stabilise the feed chemistry/basicity. Improved uniformity of the sintering process has enhanced performance and delivered cost savings by increasing the volume of sinter in the furnaces and lowering fuel costs by decreasing return content. Overall, HKM saw a return on investment in less than a year. �

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Improving slag detection We look at the issue of slag detection in the steel making process and how thermal imaging cameras are helping to reduce its impact and improve efficiency. By Peter Unwin* STEEL slag, a molten liquid melt of silicates and oxides, is a by-product of the steelmaking process, which is produced during the separation of molten steel from the impurities that are found in iron ore and scrap metal. The slag solidifies upon cooling. Slag needs to be removed as its impurities degrade steel. For example, slag will pull phosphorous from iron and, if not removed, the phosphorus reverts back into the steel, lowering its quality. It also causes substantial wear and tear on the vessels involved. Removal of slag can require huge effort and expense on the part of steel producers. Recent advances in detection, however, now mean that slag can be more reliably and effectively managed. The disadvantages of slag carryover include: • Longer processing time • High inclusion formation and steel cleanliness challenges • Difficulty in ladle desulphurisation • Caster nozzle clogging • Ladle refractory wear There are many grades of steel that can be produced, and the properties of the steel slag can change significantly with each grade. Grades of steel can be classified as high, medium, and low, depending on the carbon content of the steel. High-grade steels have a high carbon content. To reduce the amount of carbon in the steel, greater oxygen levels are required in the steel-making process. This also requires the addition of increased levels of lime and dolime (flux) for the removal of impurities from the steel and increased slag formation. There are several different types of steel slag produced during the steel-making process. These different types are referred to

AMETEK Land Slag Detection System’s camera unit with water cooling and air purged enclosure with heat protection shield

as furnace or tap slag, raker slag, synthetic or ladle slags, and pit or cleanout slag. The steel slag produced during the primary stage of steel production is referred to as furnace slag or tap slag. This is the major source of steel slag aggregate. After being tapped from the furnace, the molten steel is transferred in a ladle for further refining to remove additional impurities still contained within the steel. This operation is called ladle refining because it is completed within the transfer ladle. During ladle refining, additional steel slags are generated by again adding fluxes to the ladle to melt. These slags are combined with any carryover of furnace slag and assist in absorbing deoxidation products (inclusions), heat insulation, and protection of ladle refractories. The steel slags produced at this stage of steel making are generally referred to as raker and ladle slags. While slag can be used in the aftermarket for a variety of applications, its presence as a result of the steel-making process involves a great deal of time and expense to remove it. Slag also can lead to equipment damage. How steel is produced Steelmaking starts with iron in a furnace, with the two most common furnace types

being a basic oxygen furnace (BOF) and an electric arc furnace (EAF). The two vary as follows: Basic Oxygen Furnace A basic oxygen furnace is a refractorylined and tiltable converter. When steel is made in a basic oxygen furnace, molten iron and scrap are heated. Oxygen is then blown through nozzles into the charge via a water-cooled oxygen lance. The BOF is able to rotate, enabling it to charge raw materials and fluxes that are used to remove impurities. That also allows it to sample the melt and pour the steel and slag out of the furnace. The oxygen converts the pig iron, which accounts for approximately 94 per cent of the volume. The remaining six per cent is composed of impurities, including manganese, carbon and silicon. By the end of the steel-making process, steel made via BOF will have impurity levels of approximately one per cent. In the basic oxygen process, hot liquid blast furnace metal, scrap and fluxes, consisting of lime and dolomitic lime, are charged to a furnace. A lance is lowered into the converter and high-pressure oxygen is injected. The oxygen combines with and removes the impurities in the charge. These impurities include gaseous carbon monoxide,

* Global industry manager (metals) at Ametek Land January/February 2020

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AMETEK Land IMAGEPro-SDS advanced image processing and application software

silicon, manganese, phosphorus and liquid oxides that combine with lime and dolomitic lime, forming steel slag. At the end of the refining operation, the liquid steel is tapped (poured) into a ladle. The steel slag remains in the vessel and is subsequently tapped into a separate slag pot. The steel-making steps in a BOF include: • Charging the scrap • Adding pig iron to the furnace • Charging the fluxes • Oxygen blowing • Sampling • Tapping • Ladle refining • De-slagging The molten steel is removed from the furnace when the steel is at its optimal consistency, through the tapping hole. During the steel manufacturing process, the tapping hole remains plugged to keep heat from escaping the furnace. Molten iron is tapped at regular intervals

Electric arc furnace In comparison, an electric arc furnace (EAF) creates steel from scrap and direct-reduced iron (DRI). It uses three vertical graphite electrodes to charge the iron and scrap via electric current. This furnace is analogous to a wok with a lid. Metal is added, the lid is closed, and an arc is created between the electrodes. A huge amount of power is used to melt 100 per cent of the steel scrap. At this point, limestone flux is added. A hole in the base of the “wok” opens and a ladle is positioned underneath. The molten steel exits into the ladle, and the hole closes when slag is detected. The steel making steps for an EAF are: • Charging scrap metal, iron and limestone www.steeltimesint.com

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• Lowering the electrodes, melting the metal with electric current • Oxidation • De-slagging • Adding new fluxes for reducing stage to eliminate sulfur and oxide absorption • Tapping • Lining maintenance to eliminate molten steel breakouts from excessive lining depletion. With both types of furnaces, molten iron is tapped at regular intervals. Accurate temperature monitoring ensures steel quality is consistent and improves process efficiency. While it seems that the steps are straightforward, detecting slag and keeping

An operator carrying out a visual slag detection inspection

it from degrading the steel is an art and a science, and the detection methodology has evolved significantly over time. Slag detection – measurement methods When slag begins to exit along with the steel, the pour is stopped. The early method of detecting slag was visual. An operator wore a dark viewing shield, or visor, to observe the colour of the pour. Since slag has higher emissivity, it looks brighter than the steel preceding it. Once the slag was spotted, the operator signalled for the molten steel vessel to tilt, preventing it from pouring out. There are several downsides with this method – a major one being safety, as January/February 2020

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the operator’s eyes could be damaged while observing the steel. Repeatability is a major issue, as reliability varies from operator to operator. Fumes often cloud the environment so that complete accuracy is impossible. While this visual method is still used in some areas of the globe, its use prevents improvements to the process. Another method involves a ceramic ball, or dart, that is shot into the molten steel. The stem of the dart is visible as it floats on top of the steel. Once slag begins to flow through the tap hole, the flow density lowers and the dart sinks into the tap hole, reducing slag flow until the operator reverses the tilt. Inserting the dart is often problematic, so much so that, in many cases, it requires an expensive machine run by a highly trained operator. The darts are also consumable and add costs to the process. A third method is to use a circular induction coil that is wound around the tap hole in a refractory. Current passes through the coil, and the induction field varies based on the material composition of the flow. When slag is present, a signal from the induction coil determines the time when reversal should occur. This method actually works well. The coil, however, does not last as long as the vessel. When the coil fails, it means casting a new coil into the hole or waiting for a reline and moving to manual slag detection in the interim. Accuracy over time is another major issue. Again, the coil is consumable, so using this method also adds an ongoing expense. Two decades ago, thermal imaging cameras were introduced to help improve the process of slag detection. They had major advantages, including being noncontact, which meant they did not wear out or add consumables to the bottom line. Their detectors were an optical or infrared detector array that featured an electronic processor and repeatability was greatly enhanced. Advances over time

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included long-wavelength thermal imagers with an 8-14 μm response. The results were good, as the emissivity between steel and slag is accentuated by the long wavelengths. There was still fume obscuration and the optical materials used in these thermal imagers were not sufficiently durable for the harsh environment, requiring frequent protective window or lens replacements. An atmospheric window Although long wavelengths were problematic, mid-wavelength thermal imagers offered several possibilities. A thermal imager working at a narrow waveband could see through hot CO2 and hot water vapour. This atmospheric window was first documented in NASA test data more than five decades ago. The shorter 3.9 μm waveband also enabled extremely durable optical systems, including sapphire protection windows with good transmission characteristics from ultraviolet to approximately 5.5 μm in the infrared. These capabilities are built into AMETEK Land slag detection system (SDS), which deliver improved yields, higher-quality steel and reduces costly downstream processing for BOF and EAF steelmaking operations. It is specially designed to withstand the harsh conditions of continuous operation in a steel plant, with minimal maintenance requirements. The AMETEK Land SDS has an industrial thermal imaging sensor, which is housed in a rugged, water-cooled and airpurged enclosure that continuously views the tapping area. As the tap begins, dedicated software automatically records the tap, producing a log and graph of the relevant steel and slag data. When the slag reaches a predetermined level, an alarm

Mounted high-resolution thermal imaging camera detects the transition between steel and slag

is generated to stop the tap. Full access to the tapping data is available to the operator for quality control purposes. The SDS’ high-resolution thermal imaging camera detects the transition between steel and slag with a particular wavelength, reducing “blackouts” caused by smoke and fumes. The data it presents in real time enables the operator to make informed decisions about the tapping process. By warning the operator in a dependable, repeatable and timely manner to stop the tap before slag is carried over, the SDS improves production yields and ensures a lower slag content, therefore improving the steel’s quality, reducing energy costs further along the process and lowering overall maintenance on the furnace vessel. Using an SDS has been shown to improve operator response time and consistency at the end of each tap. This results in a typical reduction in slag depths of up to 25%, compared to traditional methods for monitoring slag. The SDS represents a major innovation in slag detection and thermal imaging, providing a man-machine interface for the steel industry. The system offers improved operator safety, quick response times and consistent results. It is very durable and will normally be expected to last longer than the vessel as the system is designed to withstand the harsh conditions of continuous operation inherent in steel production. It reduces slag carryover in steel production facilities, saves money and improves operator safety. Summary Although measurement methods have evolved over the past few decades, the quality of metallic scrap and iron feed stocks have simultaneously deteriorated; this results in greater slag generation and increased slag-related challenges for the steel industry. The existence of slag causes substantial processing time, lower steel quality, difficulty adding alloys and conditioners and substantially higher processing and treatment costs. The cost of additional downstream processing time and materials can be a significant burden for an operating plant. By controlling slag carry-over, these costs can be reduced or eliminated, improving plant throughput and operating margins. �

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ARTIFICIAL INTELLIGENCE

On 11 May 1997, a computer’s ﬁrst-ever tournament defeat of a reigning world chess champion marked a milestone in the history of artiﬁcial intelligence. Twenty-three years later, intelligent algorithms may soon replace human employees. By Patrick Henz*

The Alpha Dog in the Human-AI Team THE AI chess win marked the ﬁrst of many that later included the Chinese board game Go (2016) and Poker (2017). One year later, the massive online multiplayer game StarCraft II joined the list. According to a 2015 Deloitte study, the replacement of human employees by intelligent algorithms and machines is expected to begin around 2020. At risk are all jobs that are highly repetitive and/ or include a decision-making process based on a large amount of data. This includes middle-management positions in which responsible algorithms could maximise the operation of workshops along with co-ordinating the human employees. Intelligent algorithms, combined with machine learning, will reduce the number of today’s jobs. On the other hand, humans are freed from check-the-box processes to concentrate on tasks that require human ingenuity and creativity. Therefore, new jobs can be created. W. Edwards Deming, an expert on systems and quality, understood the

human employee as an integrated part of the system. So, it is not surprising that his approach to understand and improve the system included the philosophy of continuous learning. Accordingly, Alibaba founder Jack Ma demanded at the World Economic Forum: “Everything we teach should be different from machines.” Explicitly he mentioned values, beliefs, independent thinking, teamwork and care for others. This would be ensured by an holistic educational approach such as STREAM (Science, Technology, Reading, Engineering, Arts and Mathematics). To process his personal defeat against IBM’s “Deep Blue,” chess Grand Master Garry Kasparov organised a “freestyle chess tournament” where groups of humans, chess programmes and mixed human-AI teams could join and play against each other. To his surprise, a team of average players, using average chess programmes, won the tournament based on a superior process. He concluded: “Weak human + machine + better process was superior

to a strong computer alone and, more remarkably, superior to a strong human + machine + inferior process.” According to Deming and Kasparov, we can conclude that a team with a superior system is the perfect combination of the individual players. Speaking of systems, the ideal process is not limited to ﬁxed bureaucratic structures, but it has to be “liquid.” This means that the process should be capable of adapting to changing economic and technological realities, empowering individual employees to respond based on values and attitudes. The liquid condition can be strong and at the same time ﬂexible (comparable to James Cameron’s shapeshifting T-1000 robot from the 1991 movie “Terminator 2: Judgement Day”). Erik Brynjofsson, director of the Massachusetts Institute of Technology (MIT) Initiative for Digital Economy, adds: “AI won’t be able to replace most jobs anytime soon. But in almost every industry, people using AI are starting to replace people

Patrick Henz is head of governance and compliance at Primetals USA and regional compliance ofﬁcer, Americas. www.steeltimesint.com

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ARTIFICIAL INTELLIGENCE

who don’t use AI, and that trend will only accelerate.” Paul Ryan, IBM Watson’s UK director of Artificial Intelligence, goes one step further with his prediction that in a few years “every major decision, business and personal, will be made with the assistance of cognitive technologies.” A successful team requires a co-operative mindset of its integrands, not only by the human ones, but also the machines. Responsible algorithms can control machines or be part of the corporate software. Apart from the term “Artificial Intelligence,” the algorithms had been programmed and approved by humans. Accordingly, they represent human vision, experience, attitudes and values. If responsible algorithms get embedded into machines, we speak about the so-called “cobots,” short for “collaborative robots.” This philosophy includes the premise that the machines take good care of their human colleagues. Thanks to their robust metal bodies, cobots can replace human workers in such dangerous environments, like near an electric arc furnace, where scrap steel is melted. They can also be used for emergency events, like Mitsubishi Heavy Industries’ Water Cannon Robot, which is designed for firefighting with a water discharge capability of 4,000 litres per minute. As industrial robots are connected via the Internet of Things or the cloud, it is imperative that cybersecurity ensures that no intruders gain access to the machines. Regular tests should ensure the AI still acts as required, because Machine Learning could have altered its behaviour. Robots are machines, and responsible algorithms and sensors convert them into cobots. The concept is not limited to them, but can also include exoskeletons, Augmented Reality glasses or autonomous vehicles. Responsible AI can even act without a physical body, as part of corporate software to support an adequate decision-making process for human employees. Intelligent nudging can provide moments of personal disruption. Responsible algorithms, for example, can identify potential phishing emails and flag them accordingly. This notifies the user, who can then start a more extended decision-making process to analyse the suspicious email – an important task since due to the daily workload, many humans work rigidly “like robots.” The www.steeltimesint.com

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algorithms can act as a second set of eyes, a colleague who asks critical questions, so that we start to challenge our own point of view and try to gather more information before we make a final decision on a topic. As Apple CEO Tim Cook said at MIT in 2018: “I’m not worried about artificial intelligence giving computers the ability to think like humans, I’m more concerned about people thinking like computers, without values or compassion, without concern for consequence.” Perception is based on sensors and companies such as Deloitte play with the idea of using Augmented Reality glasses not only in workshops and factories, but also in office spaces. The integrated camera (possibly including an integrated microphone) is able to detect potential red flags for the employee. This may be overstepping security boundaries on a factory floor, or detecting a certain paragraph inside a new contract. The machine intelligence acts as the first level of support. The human, alerted or not, remains the final decision-maker. Today, Industry 4.0 and artificial intelligence enter all kinds of business environments. As they mostly aim at smart data and decision-making (for example for predictive maintenance and system optimisation), white collar employees have

the greatest opportunity of working with this technology and getting enhanced by it. Nevertheless, as the boundaries between white and blue collars vanish and evolve into “new collar,” Industry 4.0 is growing in factories and workshops. Science fiction movies, such as Alien Resurrection and Avatar, present exoskeletons. By definition, such equipment provides both, support and protection. Smaller exoskeletons are not designed to provide general additional force, but “it redistributes the load over your shoulders and into your core muscles, so you’re using the right muscles to perform the lifts, thus reducing risk,” StrongArm Technologies chief marketing officer Matt Norcia explained. Instead of just muscle, exoskeletons provide an individual with additional brain power. The equipment’s task is to avoid costly accidents inside the workshop. The processes aim to reduce physical risks – a benefit for the individual and the organisation, as fewer work accidents in most countries result in lower insurance fees and taxes. As a self-fulfilling prophecy, the Pygmalion Effect (developed by two social psychologists, Robert Rosenthal and Leonore F. Jacobson) explains that: if the robot’s behaviour is perceived by the employee as respectful (according to lawyer and robot ethicist Kate Darling, humans have the tendency to humanise robots), it confirms the co-worker’s positive selfesteem that he/she is a respectful person. By imposing this value, the individual treats the machine respectfully in return. A cycle is created, and a positive corporate culture reduces the risk of sabotage and inadequate machine handling. The implementation of such machines is not a pure technical initiative, but requires holistic corporate change management, including adequate support from top management. The cobot philosophy supports the acceptance by the employees, as it respects the existing corporate culture. We may have to change our romantic view of robots, they are not independent as we perceive them based on their appearance. Rather, they are an integrated part of the network. Primetals Technologies’ Trimrob is such a robotic system, designed for coil trimming and sample taking, placed within the coil handling area of a wire rod mill. Trimrob operates within a system of physical safety fences, laser light January/February 2020

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ARTIFICIAL INTELLIGENCE

curtains, and laser area scanners to ensure that human operators do not enter the work area while the machine is operating. Additional safety measures include collision detection and torque monitoring. “He who is cruel to animals becomes hard also in his dealings with men. We can judge the heart of a man by his treatment of animals.” (Immanuel Kant) The human employee is the “alpha dog” regarding relations with intelligent algorithms: the determining part. Not only limited to strategy and decisionmaking, it also takes care of the selected information and algorithms. On the other side, the “beta,” the cobot, has to be empathic (predicting risks) not only to avoid accidents, but also to work efﬁciently as a member of the pack. It is a common misbelief that because they are “descendants of the mighty wolf,” dogs can perceive the character of a person. But unlike wolves, dogs are no longer pack animals. For example, they share their food with others only in exceptional cases. Nevertheless, they still accept the role of the “alpha,” which would be the human owner. They not only respect the alpha, but also learn from it, as they interpret their owner’s behaviour as correct. This affects their subsequent perception, emotions, thoughts and expectations. In other words, “people who act in a manner the dog is used to may make the dog feel calm, while people who act different might make the dog feel uneasy.” (Pet Care Blog) The animal conﬁrms its owner’s opinion and perception. By no means is Machine Learning only based on mathematical truth. Instead, through observed behaviour (sensors) and processing (code), algorithms

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learn from humans and, therefore, embrace their perceptions. Ivana Bartoletti, founder of the “Women Leading in AI”network, proclaimed, “An algorithm is an opinion expressed in code.” This deﬁnition gives AI certain human characteristics, as the behaviour of the theoretical model (Digital Twin) represents the thoughts, knowledge and experience of human engineers and other subject matter experts. For example, engineers at Industrial Technology Research (ITR), one of the world’s original predictive maintenance companies, manually collect, process, and analyse rich data sets with every analysis they perform. With experience averaging more than 20 years, their analysts look at steel machinery (complex asset analytics) coupled with a thorough peer review process to eliminate false alarms and missed problems. ITR digitises this knowledge with every cycle, to use it as a basis for training. This collaboration between the human alpha (engineer) and AI beta (ITR’s proprietary platform) removes bias and error to the greatest possible extent. Despite ongoing advancements in technology, complex asset data analysis still requires human intervention to ensure effective condition monitoring and predictive maintenance. � Sources •Cameron, James (1991): “Terminator 2: Judgment Day” •Cameron, James (2009): “Avatar” •Conbolly, Byron (2018): “Are you a middle manager? AI may take your job,” •Cuteness Team (2018) on Pet Care Blog: “Are Dogs Good Judges of Character?”, •Finney, Sherry / Corbett, Martin (2007):

“ERP implementation: a compilation and analysis of critical success factors” •Jeunnet, Jean-Pierra (1997): “Alien Resurrection” •Kshirsagar, Alap / Dreyfuss, Bnaya / Ishai, Guy / Heffetz, Ori / Hoffman (2019): “Monetary-Incentive Competition Between Humans and Robots: Experimental Results” •Li, Borui / Lauden, Andrew / Davis, Jonathan / Stohl, Klaus (2019): “High Quality Predictive Maintenance Through Advanced Analytics” •Ransbotham, Sam / Kiron, David, Gerbert, Philipp / Reeves, Martin (2017): “Reshaping Business with Artificial Intelligence.” •Roe, David (2018): “7 Jobs That Artificial Intelligence (AI) Will Soon Overtake,” •Rosenthal, Jacobson (1968): #“Pygmalion in the Class Room” •Schuetz, Anja (2019): “His name is Yochai” •Scott, Ridley (1982): “Blade Runner” •Sheppard, Emma (2019): “Why are virtual assistants always female? Gender bias in AI must be remedied” •Shirota, Jun (2019): “New collar: a new fit for a dynamic manufacturing hub”: •Siniscalchi, Marcello / Stipo, Carlo / Quaranta, Angelo (2013): “ ‘Like Owner, Like Dog’: Correlation between the Owner’s Attachment Profile and the Owner-Dog Bond”: •Teegavarapu, Sid / Palfreman, Matthew / Shen, William / Zelle Jason (2019): “Intelligent Robotic Coil Trimming for Wire Rod Mills” •Violino, Bob (2017): “Can Artificial Intelligence Help with Heavy Lifting?” •Whitwam, Ryan (2019): “DeepMind AI Challenges Pro StarCraft II Players, Wins Almost Every Match”

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PICTURE 5 PICTURE 6

PICTURE 1 Drilling and setting in the horizontal working position PICTURE 2+3

PICTURE 2+3 Drilling and setting in the working position at variable angles up and down.

PICTURE 4 Slurry in the setting stones with the spray lance (Velco). All operations take place in an alignment position of the machine. PICTURE 5 Telescopic equipment built on serial excavators. Rigid equipment and kink equipment. Reach diagram.

PICTURE 4 MASCHINENTECHNIK ROTH GmbH & Co. KG

PICTURE 6 SBS vertical drilling and setting machine. The SBS is designed for the vertical drilling of the tap hole on electric furnaces. Drilling and setting takes place in one machine position

Auf dem Sand 25 · D-40721 Hilden · Tel. +49 (0)2103 25 372 83 · mail@huettentechnik.info · www.huettentechnik.info

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Trends in hydrogen steelmaking Tenova-HYL proved the suitability of the Energiron ZR direct reduction technology to use high levels of hydrogen as the reductant back in the 1990s. The present drive to low CO2 emission steelmaking has led to the adoption of this technology in several European pilot projects aimed at low or zero carbon steelmaking. Modification of the melting practice in the EAF is required when using high H2 reduced DRI with carbon injection of 12-15kg/TLS being the optimum method for overall CO2 reduction. By P Duarte*

THE world, and especially European, iron and steel producers need a paradigm change to be prepared for future environmental regulations, specifically on reducing the carbon footprint as well as to cope with availability of raw materials while retaining product quality. There is a trend in the steelmaking industry, as part of the decarbonisation of Europe’s economy and the perceived future for other countries worldwide, towards hydrogen-based iron reduction as a longterm substitute for the present carbonbased processes. The Energiron technology – jointly developed by Tenova and Danieli – has been characterised by innovation. Specifically, the ZR (Zero Reformer) module with its wide flexibility for using any energy source for direct reduction of iron ores, while keeping the same basic and proven process, offers a most suitable method for the direct use of hydrogen. The following is a review of the benefits and advantages and current achievements and experience on the use of hydrogen for Carbon Direct Avoidance (CDA).

DR-EAF steelmaking Historically, the steelmaking route based on Direct Reduction and the Electric Arc Furnace (DR-EAF) has always partly used hydrogen as the reducing agent, this normally being generated from natural gas (NG) through catalytic reformers. Since the hydrocarbon source is natural gas, the hydrogen produced is mixed with CO, depending on the oxidants ratio being used: CH4 + H2O = 3H2 + CO CH4 + CO2 = 2H2 + 2CO

The HYL pilot plant for high hydrogen reduction to DRI developed in the 1990s is the basis of to-day’s low carbon steelmaking proposals

Since the 1950s, the HYL/Energiron technology using reformed natural gas as the source of the reducing gas, uses a conventional steam/NG reformer. This proven technology has multiple plant references with more than 40 HYL/ Energiron plants in operation worldwide. Typical operation characteristics for these plants and for the competing gas based DR technologies are shown in Table 1. In any case, as long as NG is used as the primary source of hydrogen generation, there will be CO2 as a by-product, which is emitted in the DR plant and the melt shop.

*Senior Consultant Tenova HYL www.steeltimesint.com

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Parameter related to H2

Energiron

other DR technology

H2O/C ratio in NG reformer

2.0 - 2.5

1.5

H2/CO ratio in reducing gas

4 - 5

1.7

% H2 to reactor (% vol.)

˜70%

˜55%

Table 1. Characteristics of reformed gas in DR technologies

Producing ‘green’ hydrogen It becomes evident that the only way to produce carbon-free hydrogen is from the electrolysis of water using renewable energy to provide the required power, thus eliminating the carbon footprint (CDA) for ironmaking and steelmaking (Fig 1). To generate carbon-free hydrogen, there are various electrolysis technologies available: Proton Exchange Membranes (PEM), Atmospheric Alkaline Electrolysis (AAE) with units already in operation for high purity hydrogen with power consumptions ranging from 4.8 to 3.8kW/Nm3 of hydrogen. There is also High Temperature Electrolysis (HTE), currently at a smaller scale, using steam, with power consumption of around 3.6kW/ Nm3 of hydrogen. Currently, larger PEM and AAE modules make hydrogen in the range of 4000Nm3/h, sufficient for operation of a DR module of about 40kt/yr a year of direct reduced iron (DRI). Multiple modules will be proportionally required for larger DR plant sizes. Experience in the use of hydrogen The basic configuration of the Energiron process is the same regardless of the source of reducing gas. In the case of raw hydrogen supply, the same concept applies. The only difference is that, for hydrogen using more than ~73% (% energy) or ~90% vol, the process is simplified by eliminating the need for CO2 removal. For higher hydrogen concentrations, any carbon input to the system, via natural gas, along with other gases, such as nitrogen, are eliminated by purging the exhaust gas which can then be used as fuel in the gas heater (Fig 2).

natural gas in the process in any proportion; - Vast experience with high hydrogen concentrations (~70% vol.) in HYL/ Energiron plants. In terms of energy consumption, the impact of hydrogen (as a percentage of total energy input), as compared to natural gas is indicated in Fig 3a. The corresponding reduction in CO2 emissions is included in Fig 3b. Demonstration plant using ~100% H2 In the 1990s, Tenova HYL carried out extensive tests at a pilot plant at Hylsa Monterrey, Mexico, using ≥90% (vol) of hydrogen produced from reformed gas taken from an industrial DR plant by water-

gas shifting and CO2 removal. Fig 4 shows the energy consumption for various H2 concentrations and the amount of carbon in the resulting DRI. This demonstration/pilot plant had a production rate of 36 tonne DRI/day with full flexibility to produce carbide containing DRI, HDRI for HBI briquette production and HDRI for direct pneumatic transport to an adjacent pilot plant EAF. This plant also included full capability for synthesis of all types of reducing gases; from 100% hydrogen to 100% CO, including reformed gas, typical coke oven gas (COG) and gases from coal gasification. The ZR technology was developed and demonstrated in this facility during the 1980s. The experimental campaign included 15 different process conditions, depending on the DRI type and quality to be achieved. These tests provided all necessary information to define: • Process and design parameters mainly related to reducing gas optimised flowtemperature correlation. • DRI quality in terms of metallisation and carbon content. ENERGIRON DR Plant

Carbon free power H2 EAF Liquid steel

DRI Renewable energy sources

High efficiency electrolyser

Fig. 1. Carbon-free steelmaking route based on the ENERGIRON ZR process

H2O

CO2 NG

The ZR plant provides significant flexibility, which makes this process most suitable for using hydrogen as illustrated below: - The ZR process is inherently suitable for any reducing gas make-up, specifically hydrogen; - hydrogen make-up directly replaces January/February 2020

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Scheme with partial use of H2

Scheme with H2 >90% vol. (as make-up)

Fig. 2. Configurations of Energiron ZR plant for two levels of hydrogen

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Fig 3a. Energy consumption as fuel and reducing agent in terms of H2/NG ratio

• Optimisation of operating pressure, reactor height to diameter ratio, solids residence time (τ) to consistently achieve the DRI quality, determination of the fluidisation factor (ƒ) to ensure proper gas velocities and distribution through the solids bed, and other factors for process and equipment design for hydrogen use. These campaigns confirm that the Energiron technology is already available to use 100% hydrogen, when needed. All required data for design and operation under this condition is available and can be directly applicable to any existing and/or new DR plant installation. Trend for hydrogen-based steelmaking In general, Europe is leading the trend towards the intensive use of hydrogen for steelmaking. A major step, as described in the European Steel Technology Platform (ESTEP) in its’ ‘Strategic Research Agenda’, is the initiative on ultra-low carbon future European steelmaking. Some projects aimed at this target are: • ThyssenKrupp with its Carbon2Chem® Project aimed at using CO2 emissions from steelworks and surplus energy from renewable sources to produce chemicals. • voestalpine, Siemens and Verbund for the H2FUTURE Project, building a pilot facility for green hydrogen at Linz. • SSAB, LKAB and Vattenfal with the January/February 2020

DRI Tenova.indd 3

Fig 3b. CO2 emissions for DRI production at various H2/NG ratios

HYBRIT initiative, based on hydrogen for steel production. • Salzgitter for the SALCOS project study with high-C DRI as feed to the blast furnace and EAF – the latter replacing the basic oxygen furnace (BOF). This is in combination with the GrinHy project to generate hydrogen via reversible, hightemperature electrolysis through renewable energy, to be used for DRI production. Tenova was contracted by SSAB for the HYBRIT initiative to supply its DRI solution for the world’s first fossil-free steelmaking technology with virtually no carbon footprint. Thanks to the unique characteristics of its process and its specific expertise in direct reduction with high content of hydrogen, Tenova HYL was the perfect fit for the HYBRIT project. The experience gained in nearly 60 years of DR technology development and the references of more than 40 DR modules in operation makes Tenova HYL a reliable partner for this innovative process. The pilot plant is currently under construction in Luleå, Sweden, and is expected to begin operations this year. The SALCOS (Salzgitter Low CO2 Steelmaking) project is a study initiated in 2015 in Germany by Salzgitter AG, together with Tenova and Fraunhofer-Gesellschaft (FhG). As one of the major results, the study demonstrated the possibility of achieving even stricter CO2 reduction targets in

Europe after 2030 by realising a stepwise transformation process in integrated iron and steel works towards direct reduction and electrical energy-based steelmaking processes. Challenges using H2 DRI in EAF EAF operations to melt DRI are based on the DRI characteristics to reduce the remaining FeO in the DRI and the promotion of a foaming slag. The optimum carbon content in the DRI charged is based on the amount of DRI in the feedstock and the amount and type of scrap steel added to obtain the required steel quality. The cost scenario, among others, must also be met, but the present trend is to use high-carbon DRI as the C here provides additional chemical energy to the furnace. Hydrogen-based DRI will have low or even zero carbon content, which will require a modified melting practice in the EAF. A specific carbon content in the DRI or injected carbon separately into the furnace is required. Options • To produce DRI from high Fe content premium iron ores, with the optimised/ highest metallisation (~96%), thus minimising the FeO content. Considering the stoichiometric requirements for reduction of any remaining FeO and minimum melting needs, the %C in the DRI needs to be ~0.8 – 1.2%. This implies a certain amount of natural gas injection www.steeltimesint.com

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from renewable sources needs to cost no more than $0.03/kWh. CAPEX has also to be significantly reduced, which may become possible within the coming years.

Energy consumption (GJ/tHDRI) vs. %H2 (as %Energy) to Process/Reduction

8.0

Remarks In summary, the current status for intensive use of hydrogen is: • Hydrogen with up to ~70% vol has already been tested at an industrial scale in HYL/Energiron plants using an external reformer for natural gas, several decades ago. • Extensive demonstration plant tests were carried out during the 1990s by Tenova HYL, defining the process and plant design parameters for use with over 90% hydrogen. • Salzgitter AG, together with Tenova and Fraunhofer-Gesellschaft (FhG), has initiated the study of the SALCOS project for stepwise conversion of the integrated BF-BOF steelmaking route to a hydrogen DR-EAF route reducing CO2 emissions by 95%. • Due to the unique characteristics of its process and its specific expertise in DR production using high hydrogen content gas, Tenova HYL has been selected to supply the pilot plant technology for SSAB’s HYBRIT project, a fossil-free steelmaking technology. • Improved efficiency of electrolysis for hydrogen generation along with expected low-cost electricity from renewable sources will make feasible the fossil-free ironmaking route based on DRI production in the coming years. �

6.0 4.0 2.0 0.0 35% H2

55% H2 70% H2

100% H2

%C in DRI

%C vs. %H2 (as %Energy) to Process/Reduction

0% H2

35% H2

55% H2 70% H2

100% H2

Fig. 4. Results of HYL pilot plant tests in the 1990s using ≥90% (vol) hydrogen

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Summary: Transformation of integrated steelmaking to DRI/EAF based steelmaking in three stages

Today

2020 + Status Quo

2040 +

Pilot phase

2050 +

Completion

Max

DRP

Blast furnaces

(AS 1b) -18% CO

(AS 2)

(AS 3a)

-26%

-50%

-82%

BOF

**with the use of 100% hydrogen

Economics for H2-based ironmaking In terms of operating expenditure (OPEX), producing hydrogen by water electrolysis implies a direct cost for grid power. Considering ~4.0kWh/Nm3 of energy for hydrogen production, the energy consumption for DRI, based on the Energiron ZR technology, would be ~3.08MWh/t of DRI. Since green hydrogen will be produced from renewable energy, this analysis is made on such a cost for power. Additionally, costs related to

consumption of water and the capital expenditure (CAPEX) for electrolysis modules, hydrogen storage and transport (when applicable) and CO2 emissions targets, with corresponding credits, must be taken into account. To be a competitive scenario for green hydrogen-based DRI production, based on current electrolysis efficiency and without CO2 credits offsetting costs, the electricity

*with the use of 55% hydrogen

at the DR plant, which is possible for the Energiron process operating with ~90% (vol) hydrogen, as already demonstrated in the pilot plant; or • Alternatively, produce carbon free DRI from selective iron ores using 100% hydrogen, which when fed to an EAF will require a minimum carbon injection of 1215kg/tLS, and the use of particular melting operations and slag engineering practices. Both options are workable but in terms of overall CO2 emissions for the DRI-EAF route, the first method will result in emissions of about 150kg CO2/tLS, while the second represents just about 50kg CO2/tLS. Thus, in terms of overall decarbonisation, the second option is the preferred choice for hydrogen-based steelmaking.

EAF

0% H2

Electrolyser

Energy consumption (GJ/tHDRI)

10.0

**/-9

5%*

*CO

Status Quo

Stage 1a and b

Stage 2

Stage 3a

Stage 3b

Fig. 5. SALCOS step-wise proposal for low CO2 emissions

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The basics of DRI plant safety From the earliest days, personal safety of plant personnel and protection of plant equipment have been of paramount importance in the design and operation of MIDREX® Direct Reduction Plants. After all, a MIDREX Plant is a chemical plant that processes iron oxide using combustible, explosive, and toxic gases at high temperatures. By David Durnovich1 and Todd Miller2 THE original purpose in our plant design was to provide the safest working environment possible. Before a plant is purposefully built to maximise production, it must be designed to be safe. MIDREX Plants are good examples of this safetyby-design concept and have enjoyed an excellent safety record since the first startup in 1969. Midrex engineers are ever-mindful of the basic design guidelines that have proven time and again to provide the highest level of personal safety for plant operators while producing the most tons of DRI: keep it simple, provide safety interlocks, develop procedures for safe operation, train plant personnel to recognise hazards (Fig. 1), and follow safety procedures. When discussing plant design safety, three areas/operations within a MIDREX Plant deserve particular attention: gas handling, materials handling, and storage.

• • • • • • • •

Gas explosion Fire Electrocution/arc ﬂash Heat Burns Toxic gases Pressure component failure Dust explosion

• • • • • • • •

Asphyxiation Radiation Noise Falls Rotating machinery Corrosion Direct natural draft Biological

Fig. 1 Potential hazards within a MIDREX Plant.

Gas

Minimum %

Maximum %

Oxygen % (By Volume)

Hydrogen

4.0

74.0

5.0

Carbon monoxide

13.0

74.0

6.0

Methane

5.3

14.0

12.0

Mixture

5.0

52.0

Fig.2 Gases used in the MIDREX Process (Note: For practical purposes, a 4% concentration of a combustible gas or a mixture of combustible gases is considered non-ﬂammable; therefore, dilution to 4% by any means is non-ﬂammable.)

1. General Manager – Midrex Global Solutions. 2.Todd Miller, Midrex EHS Co-ordinator January/February 2020

DRI MIDREX.indd 1

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Gas handling MIDREX Plants handle the following types of gases: natural gas, process gases, inert gas, and flue gas. For combustion to occur, the concentration in air of combustible gases must be within their flammable limits and a minimum percentage of oxygen must be present to generate sufficient heat. The flammable limits of the gases used in the MIDREX Process and the oxygen percentages necessary for combustion are as shown in Fig.2. Ignition will occur when the auto-ignition temperature of a gas-air mixture is within its flammable limits and the oxygen level is more than the limit for the gas. The autoignition temperatures of the fuel gases used in the MIDREX Process are hydrogen, 570° C; carbon monoxide, 610° C; and methane, 630° C. It is essential that no unburned flammable gas-air mixture is allowed to accumulate in the furnace, which could cause an explosion later. Purging the furnace to below 5% oxygen is a safe practice; however, a plant operator should always know the composition of the other 95% of gases present before proceeding. The MIDREX Reformer is designed to ensure: 1. the reformer box is purged with air 2. the auxiliary burners have the proper gas-air mixture for ignition and to heat the reformer box 3. the main burners are ignited after the reformer box temperature exceeds 980° C (220° C above conventional furnace combustion practice) Midrex engineers design the process gas recirculating system to be kept under pressure to avoid introducing any source of oxygen into the system. Therefore, the system should be purged with nitrogen prior to depressurising it to atmospheric pressure. Gas monitoring equipment plays a key role in protecting employees from harmful gases or

environments while working in a MIDREX Plant. Whether it is during start-up, commissioning, shut downs, or other maintenance activities, these personal pieces of equipment can and will save lives. All employees who wear a personal gas monitoring device must be trained in proper operation of gas monitoring equipment prior to entering a plant site. Asphyxiation can occur when gaseous contaminants, called asphyxiates, displace the oxygen in breathable air. Chemical asphyxiation occurs when a contaminant, such as carbon monoxide (CO), reacts with hemoglobin to prevent the blood from transporting oxygen. In low concentrations, asphyxiates do not present an immediate threat, but in higher concentrations, they can displace the oxygen in the blood and result in loss of consciousness or eventual suffocation. Gas leaks, whether from the process system or natural gas piping, must be detected and identified immediately. Large changes in gas pressure, temperature, ﬂow, or analysis can indicate leaks in the gas system. Any gas leak that presents the chance for explosion must be repaired immediately. The determining factor in these cases should be safety – not economics. Gas leaks can be detected by CO monitors located at various points throughout the plant or by portable personal CO monitors. When a leak is detected, a local alarm is activated to warn personnel in the area, and a remote alarm notifies those in the control room. If the plant only utilises portable CO monitors, it is the responsibility of the worker to advise the control room and others of the danger. If the plant does not utilise fixed monitors, all employees must be equipped with a portable CO monitor system.

GENERAL GUIDELINES FOR DEALING WITH GAS LEAKS

• Always use properly calibrated gas monitoring equipment before entering a hazardous atmosphere. • Priority must be given to warn plant personnel of any gas leak. The area surrounding the gas leak should be roped off and identified as a safety hazard. • Any area where gas could accumulate in explosive proportions, such as under the reformer, should be repaired immediately. Personnel should be evacuated, and the area should be ventilated if at all possible. • Leaks in the seal gas piping should be treated with caution and repaired as required to maintain safety and proper operation of the seal gas system. Remember, seal gas in an enclosed area can cause asphyxiation. If a leak develops where proper ventilation cannot be ensured, the leak must be repaired immediately. • Gas leaks in the feed gas, reformed gas, and bustle gas piping, as well as leaks from the furnace can burn without being seen. During daylight hours, leaks can often be located by a “hissing” sound. In the case of hydrogen, only very faint heat waves can be seen. Exercise extreme caution when trying to pinpoint the location of a leak. Never use your hand to feel for a leak. • Any equipment or machinery that could be a source of ignition should be removed from an area where a gas leak occurs. • Gas leaks within the analyser building can cause a toxic build-up of combustibles. Midrex has provided a ventilation fan, which continuously forces fresh air into the analyser building. It is imperative the ventilation system operates at all times and is kept in good working condition. • Gas leaks from the cooling zone of the shaft furnace or product cooler may contain carbonyls. As with other gas leaks, the area surrounding the gas leak should be roped off and identified as a safety hazard.

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CDRI and HBI • Conveying/transporting CDRI to storage silos • Discharging/reclaiming CDRI from storage silos • Conveying/transporting CDRI or HBI to short-term storage at EAF melt shop • Reclaiming CDRI or HBI from short-term storage • Conveying/transporting CDRI or HBI to EAF • Charging CDRI or HBI to EAF

HDRI • Discharging HDRI from reduction furnace to pneumatic transport system, insulated hot transport conveyor or insulated hot transport vessels • Transporting/conveying HDRI from reduction furnace to EAF melt shop • Charging HDRI to EAF from pneumatic system, insulated conveyor or transport vessels • Direct gravity feeding HDRI from reduction furnace to EAF melt shop (if equipped)

Fig.3. Characteristics of DRI handling systems

Materials handling The natural tendency of all iron is to rust; i.e., to combine with oxygen in air (oxidise) and in water (corrode) to form iron oxides. This is intensified in the case of DRI. After all, DRI is the result of oxygen being chemically removed from iron oxide. The tendency of DRI to oxidise or corrode is called reactivity. All types of DRI January/February 2020

DRI MIDREX.indd 3

are reactive regardless of the production process or product form. Prolonged exposure of DRI to water reduces product metallisation due to rusting (the product of corrosion). Given sufficient time, oxygen, and water, any iron mass will eventually be entirely converted to rust. Rusting also generates heat and in bulk scenarios, this heat can cause DRI to ignite if the heat becomes trapped inside a product pile. Excessive fines within a DRI pile can also pose a safety hazard, especially if the fines become wet and are buried in the pile. To preserve product quality, care must be taken to varying degrees with each product. As a general rule, users should try to minimise any unnecessary handling of the product. A material handling system should be designed for the minimum number of transfer points required to move material from point A to point B and with the shortest drops. The easiest way to minimise the number of transfer points is to take material along the straightest path possible. However, care should be taken not to compromise metering and feed control in an attempt to eliminate all transfer points. Spillage from overloaded belts may lose more material than breakage through the extra transfer point of a feeder. A typical DRI handling system associated with a captive DRI plant may include the operations shown in Fig.3. A frequently quoted estimate for cold DRI (CDRI) breakage due to handling is 0.25% loss per 2-metre drop. This number can be much larger for weaker material, longer drops, or poorly designed transitions. Fines and chips generated during handling

will oxidise much faster than whole DRI products. A conservative number is 15% loss for -6.35 mm fraction material after exposed (outdoor) storage for a month. Hot DRI (HDRI) can be transferred from the DRI plant to the melt shop by hot transport vessels, hot transport conveyors, or pneumatic transport, depending on the distance between the DRI plant and the melt shop or by direct gravity feeding in the case of a close-coupled reduction furnace and EAF. Hot transport vessel systems employ ladle-type insulated vessels that are transported on ﬂat bed trucks and can be maintained at temperature if the melt shop is delayed in accepting the HDRI. Pneumatic transport systems use gas to blow DRI at high velocity through pipes to carry it to the EAF or to a product cooler. The high velocity and resultant turbulence can cause significant breakage and erosion of the HDRI, especially at bends in the pneumatic line. This method can result in fines generation of as much as 8-10%. Hot conveyor systems using enclosed conveyor buckets are less jarring and greatly reduce HDRI fines generation. Storage CDRI can be stored safely in open, welldrained piles if it will not be moved until it is used in the melt shop. Rain can only penetrate the stack to a certain depth, typically less than a metre. Although the resulting corrosion will reduce the metallisation, as described earlier in this article, the stack should not overheat unless additional material covers the wet area. This will insulate the wet iron and prevent the dissipation of the associated heat, which www.steeltimesint.com

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can cause the pile to overheat and lead to ignition. HDRI is not intended for long-term storage, but can retain much of its heat when needed to wait for a charging cycle or to be transported to a different nearby melting furnace. This is a temporary option when using hot transport vessels and not really an option with using pneumatic or conveyor bucket systems. Hot briquetted iron (HBI) is normally stored outdoors in exposed piles built on a firm, well-drained surface. Bulk piles of HBI tend to dissipate heat rapidly due to good thermal conductivity characteristics and a shape and form that create voids in the pile. HBI, like scrap, can also rust. Rusting has been observed to reduce its metallisation by less than 1% per month even in salt-laden, humid air and frequent, heavy rainfall conditions. The following precautions should be followed when storing DRI products outdoors: • Build pile on a firm base, such as concrete, and insure proper drainage to prevent the intrusion of water under the pile. The base should provide protection from moisture in the ground. A sealant layout of tar, bitumen or some other material impervious to water should be laid down before the concrete is poured. • Keep DRI away from corrosive chemicals, such as salt • Avoid excessive fines content in the pile. • In the case of CDRI, cover the pile to keep the DRI dry and to prevent air stacking in the pile. www.steeltimesint.com

DRI MIDREX.indd 4

A DRI pile will warm up to about 60°C/140° F as steaming occurs, but will cool down again to ambient temperature when the water is evaporated. Normally it is not necessary to take additional action

if the pile is steaming as long as the temperature does not exceed 100°C/212° F. In case of a pile of DRI overheating to temperatures in excess of 100°C/212° F, the overheated material should be removed from the pile and spread out on dry ground in a layer of about 0.5 metres using a trackequipped bulldozer or front-end loader, as shown in Fig.4. Another method is to bury the pile under sand or other suitable material to cut off the oxygen supply Storage bins and silos are used to protect DRI products when there is a time delay between arrival and when the product can be used or shipped. Badly designed silos can create operational problems and reduce product quality. The design of silos should always be determined on the basis of the material ﬂow properties of the bulk solid(s) to be stored. The expenses for testing and silo design are small compared to the costs of lost production, quality problems and retrofits that may be needed because of irregular ﬂow patterns.

Fig.4. Method for controlling hot material in a storage pile

• Any DRI at a temperature in excess of 65° C should not be sent to a storage bin or silo. It should be separated from all other material and piled no more than one metre high. • Bins and silos should be purged with an inert gas from the bottom. • Top slide gates should be closed except when DRI is being delivered. • Bottom slide gates should be closed except when DRI is being discharged. • Inert gas should be introduced into the top of the bin or silo during extended storage periods to insure a slight positive

pressure while the top and bottom slide gates are closed. • Periodic gas analyses should be performed to insure that the oxygen level is below 3% and that hydrogen is not being generated. • Temperature within the bin or silo should be monitored. If high temperature (65-75° C) is observed, the bin or silo should be sealed and purged from the top until it cools. If the temperature rises to above 90° C, the DRI should be removed from the bin or silo.

Fig 5. Recommended precautions for storage bins and silos

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The precautions shown in Fig.5 are recommended when storing DRI products. All employees should be trained in the methods and procedures for proper storage and handling of DRI prior to starting their assignment. They should have access to safety data sheets (SDS), which will provide them with important information on DRI storage, handling and other safety precautions. All SDSs must comply with the Globally Harmonised System, which was adopted in 2013. All SDS records are kept and maintained for each MIDREX Plant. Other safety considerations Midrex also incorporates in its plant designs various fire and explosion protection features, such as: • Non-combustible and lowcombustible construction materials • Site selection in an open, wellventilated area • Separation of plant sections to prevent “domino effect” • Paved and/or concrete surfaces in fire risk areas • Two (minimum) escape routes from

every point in the plant • Fire alarms which activate visual and audible signals in the control room • Automatic shutdown in case of pressure drop (gas valves go to fail-safe positions and purge gas is supplied immediately) • Carbon monoxide monitors and alarms • Critical areas are well marked and signed Conclusion Workplace safety is a crucial part of any successful, well managed business. Keeping people safe should be top priority. DRI plants and products can be potentially

dangerous under certain conditions if the proper precautions are not taken. There are no cost savings worth the risks of shortcutting safety procedures when producing, handling and storing DRI products. Loss of life, injuries, or destruction of property are costly on many levels. Direct cost to the company for a major accident include at a minimum: worker compensation claims, indemnity payments, and legal fees. Direct costs for a disabling on-the-job injury or death can quickly exceed seven figures. The indirect costs are much more expensive over the long-term. The indirect costs of a lost time accident (LTA) will generally exceed the direct costs by a ratio of 4 to 1 or higher and compound into the millions of dollars in total cost over time. With the true costs of major injury accidents in mind, clearly the best way forward is to stay with best industry practices and safety standards to help ensure safest possible conditions. Midrex Technologies Inc. strives to be the worldwide leader in DRI production and we work just as hard to have the safest DRI plants in the world. Midrex provides each plant with a detailed safety manual, and our employees go through rigorous safety training. We investigate all incidents, large or small, to identify causes and pinpoint potential hazards so corrective actions can be taken to insure that every MIDREX Plant is as safe a working environment as possible. �

(Important note: Water should not be sprayed on an overheated DRI pile under normal conditions. However, in case of a runaway fire, the pile should be inundated with a strong water stream. Firefighters should be prepared for violent steaming and hydrogen flashing resulting from such action. www.steeltimesint.com

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PERSPECTIVES: BROKK AB

Where there’s refractory, there’s a Brokk ‘We like to say that wherever there is refractory, there is a Brokk’ said Joakim Furtenback*. The company is busy in many global markets, including China and India, and believes that the future of demolition and refractory removal is moving toward autonomous machinery 1. How are things going at BROKK? Is the steel industry keeping you busy? Yes, we are quite busy in the steel industry at the moment. Brokk remote-controlled demolition machines are well known for their value in steel mills. Metal processing facilities, including foundries and mills, continue to recognise the advantage of implementing a Brokk machine on-site. By employing this technique, operators find increased efficiency, versatility and safety.

moment. Most recently, we’ve been experiencing growth in India. We believe that our machines have proven themselves over time, and customers are looking at using our robots for a wider variety of applications.

2. What is your view on the current state of the global steel industry? Like in all industries, you will experience ebbs and flows. While we can see that certain markets have slowed down, other markets, such as, India, continue to thrive. 3. In which sector of the steel industry does BROKK mostly conduct its business? Brokk machines are very flexible and have multiple usages. We like to say that wherever there is refractory, there is a Brokk. From cleaning ladles and torpedo cars to blast furnaces, Brokk machines can accomplish the work in half the time, with a fraction of the labour. Brokk machines are compact enough to work in confined spaces like conveyors and drainage systems. The steel industry often presents a series of dangerous situations for manual labour. Using a Brokk instead protects workers from straining themselves in tight spaces, and often accomplishes the job in half the time. Because Brokk machines are remote-controlled, operators can position themselves for optimal viewing of the work while staying clear of falling debris, dust and toxic chemicals. 4. Where in the world are you busiest at present? We are busy in many markets at the

5. Can you discuss any major steel contracts you are currently working on? Unfortunately, we can disclose nothing. But we are in discussions not only with the steel plants, but also the contractors that work for them. 6. Where does BROKK stand on the aluminium versus steel argument? I would say that we are very active in both industries and again, the applications within both industries are many. 7. What are your views on Industry 4.0 and steelmaking? We believe that the future of demolition and refractory removal is moving toward autonomous machines. Being the industry

leader in remote-controlled demolition machines, we are, of course, following this development closely as well. 8. In your dealings with steel producers, are you finding that they are looking to companies like BROKK to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them? For more than 40 years, we have continued to offer a wide range of electric-powered remote-controlled demolition machines. We continuously work to minimise power consumption and simultaneously maximise the demolition power. One of our machines, the Brokk 800S, produces 1,500 foot pounds when equipped with an MB1000 breaker. The machine is powered by a 60-horsepower electric motor, offering emissions-free operation. The lack of emissions allows for Brokk machines to operate in confined spaces without presenting harm to operators nearby. 9. Where does BROKK lead the field in terms of steel production technology? While we are not directly involved in the steel production, our machines still contribute to the production aspect of the industry. We help by reducing shutdown times, which allows steel plants to produce more. In this way, we are helping the steel industry be more efficient. Remotecontrolled demolition machines, like Brokk equipment, provides foundries with a number of productivity-boosting qualities. One or two people using a machine often complete a task in half the time it would take five to seven labourers with hand-held tools.

* Sales director, Brokk AB January/February 2020

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PERSPECTIVES: BROKK AB

10. How do you view BROKK’s development over the short-tomedium term in relation to the global steel industry? We expect Brokk to continue to grow within the steel industry, due to an increasing demand from both new and existing plants. Reducing shutdown time will always be important, as well as being able to perform the job with high precision and maintained safety for everyone involved.

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perspectives Brokk.indd 2

11. What is BROKK’s experience of the Chinese steel industry? For many years, the Chinese steel industry has been important to Brokk’s growth in China and we expect it to continue to grow in the future. 12. What exhibitions and conferences will BROKK be attending over the next six months? Earlier this year, we attended METEC in Dusseldorf, Germany. Over the next six months, our subsidiaries around the world

will attend the conferences and shows in their local markets. Our US subsidiary, for example, will attend AISTech (in Cleveland Ohio in May) and the National Slag Association Show. 13. Whereabouts in the world is Brokk headquartered and are there global subsidiaries? Brokk is a Swedish company with a head office in Sweden. We do, however, have subsidiaries in the USA, and a presence in many other countries around the world. � January/February 2020

27/01/2020 11:55:11

HISTORY

Fluxes in early blast furnaces Following on from a History page published in March last year on the Ashburnham furnace, the last blast furnace to work on the Weald of southern England, Dr. Tim Smith* revisits the subject of using chalk as a flux. IN the March 2019 History page of Steel Times International (p48), I described the final day in 1813 of Ashburnham furnace, the last blast furnace to work on the Weald of southern England. I referred to the use of chalk as the flux added to the charge as reported by Samuel Bartlett, an 11-yearold boy employed at the furnace who, in a letter to a newspaper some years later, said: they (the founders) neglected the proper mixture of chalk etc, with the ore, and the flux did not separate as it should have done…..’ Chalk is readily available in the area from the South Downs, but this is one of only two references we have to its use in a Wealden blast furnace. More commonly, a shelly calcareous ironstone, containing a proportion of calcium, magnesium and manganese carbonates, was sought for on the Weald as a flux, this having the advantage over chalk of being both harder and adding to the iron input of the charge. However, such ironstone is unlikely to have been a self-fluxing ore and additional sources of flux were required. An 18th century manuscript by Sloane, later recorded in The Victorian History of Sussex refers to the quality of layers of ore dug from shaft pits and quotes: ‘The lowest is Bottom, 16 to 30 feet (~5-10m) below the surface, indifferent but useful because it is a sort of Limestone which fluxes the metal. It is sometimes even 2 and even 3 feet (~0.5-1m) thick'. Both Cyrena limestone – also known as ‘Sussex Marble’ when cut and polished – a limestone consisting of bi-valve shells laid down in brackish water, and Paludina limestone,

Main picture: Over 1000 mine pits were revealed in an area in the Weald of 1.14 hectares (2.8 acres) 1. Slag ﬂowing from the WIRG experimental furnace

made up of shells of small freshwater gastropods (snails) and viviparous (winkles) occur on the Weald and both forms were likely used as flux in the blast furnaces. The Wealden Iron Research Group conducted a smelt in their small experimental shaft furnace adding a calculated 17% by weight of ‘pea sized’ chalk to a charge of local siderite ore assaying at around 50% Fe content after roasting. The fuel/reducing agent was charcoal added at a 1:1 ratio to the ore. Slag flowed ‘like milk’ from the base of the furnace when tapped, far more than previous smelts without the addition of flux. Calcining chalk is a highly endothermic reaction commencing at about 600°C so it was feared that adding raw chalk to the charge may chill the furnace. Pre-calcining was considered but the hazards of handling the reactive oxide were considered too high so raw chalk was added at each ore charge. A comparison of charging calcined or un-calcined limestone is reported by Robert Forsyth in his book The Blast Furnace and the Manufacture of Pig Iron re-published in 1913. This showed that pre-calcining of limestone for the blast furnace provided very little overall energy saving. In theory, charging un-calcined limestone should be Flux Type

Coke pounds

Limestone*

1925

Calcined lime

2009

Limestone*

1969

Calcined lime

2014

Change %

4.2

highly detrimental to the coke rate. The reaction: CaCO3 � �CaO + CO2 commences around 600°C in the upper part of the furnace. The CO2 formed passes up the furnace reacting with coke to produce CO. CO2 +C � �2CO This passes out of the furnace without combusting to provide heat. Thus, not only is the calcining reaction endothermic, but the resultant CO2 formed consumes additional coke. Quoting trials by Sir Lowthian Bell over a number of months showed that less fuel was needed and more iron produced when charging pre-calcined lime (Fig. 1). While in the periods using pre-calcined lime there was an average reduction in the coke rate of 2.2 – 4.2% and an increase in iron produced averaging 19%, with no change in iron quality, the additional cost of calcining the lime in a separate kiln off-sets this gain. In addition, further coke is consumed due to the conversion of CaO back to CaCO3 by CO2 in the furnace which then requires re-calcining by the furnace coke. Hence, modern practice is to charge uncalcined limestone. � Flux pounds

Change %

Iron tons

1061

18.7

361

862 1062

2.2

857

444 19.3

459 430

*Result normalised to same period of calcined lime of 17 weeks

Fig 1. Comparison of calcined and un-calcined ﬂux charged with coke rate

* Consulting Editor Steel Times International & Hon Sec of the Wealden Iron Research Group January/February 2020

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