MINIMILLS
INNOVATIONS
ELECTRIC STEELMAKING
WORKFORCE
Myra Pinkham on the resilience of the US electric steelmaking sector
Over 10 pages of contracts, new products and services stories
ABB’s Lidong Teng on the importance of electromagnetic stirring for EAFs
How Liberty Steel is championing the female engineer
Since 1866
www.steeltimesint.com November/December 2020 - Vol.44 No8
STEEL TIMES INTERNATIONAL – November/December 2020 – Vol.44 No8
EAGLE EYE COATINGTM The new standard in zinc coating of steel strip STEEL SUCCESS STRATEGIES 2020 – CONFERENCE REPORT STI Cover.indd 1
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CONTENTS – NOVEMBER/DECEMBER 2020
MINIMILLS
INNOVATIONS
ELECTRIC STEELMAKING
WORKFORCE
Myra Pinkham on the resilience of the US electric steelmaking sector
Over 10 pages of contracts, new products and services stories
ABB’s Lidong Teng on the importance of electromagnetic stirring for EAFs
How Liberty Steel is championing the female engineer
Since 1866
www.steeltimesint.com November/December 2020 - Vol.44 No8
STEEL TIMES INTERNATIONAL – November/December 2020 – Vol.44 No8
Front cover photo courtesy of John Cockerill Photo shows the start-up of John Cockerill’s highly innovative hot-dip zinc coating process that is to allow one of Europe’s biggest steelmakers to produce premium quality strip, while reducing its zinc consumption.
EAGLE EYE COATINGTM The new standard in zinc coating of steel strip STEEL SUCCESS STRATEGIES 2020 – CONFERENCE REPORT
2 Leader By Matthew Moggridge, editor, Steel Times International. 4 News round-up Four pages of the latest global steelmaking news.
EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Consultant Editor Dr. Tim Smith PhD, CEng, MIM Production Editor Annie Baker Advertisement Production Martin Lawrence SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116 Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117 Managing Director Tony Crinion tonycrinion@quartzltd.com Tel: +44 (0) 1737 855164
8 Innovations The latest contracts and new products from international plant builders and suppliers. 23 Latin America update Latin America steel outlook Conference report 26 Steel Success Strategies 2020: Lots to discuss. 33 Minimills Didn’t they do well!
Chief Executive Officer Steve Diprose SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com
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37 Electric steelmaking Electromagnetic stirring. 41 Electric steelmaking Measuring and assessing the EAF. 47 Handling Conveyor belt health monitoring. 51 Workforce Liberty champions the female engineer. 54 Perspectives Q&A: BM Group Polytec Passionate, dynamic, hungry is how CEO Andrea Tonini describes his company. 56 History Dr. Tim Smith looks at the Penydarren Works, the fourth dominant 19th century ironworks of Merthyr Tidfill in South Wales.
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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
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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 2020
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LEADER
Minimills represent the bright future of global steelmaking
Matthew Moggridge Editor matthewmoggridge@quartzltd.com
November/December 2020
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That the electric arc furnace will play a major role in the future of global steel production is a given, despite the fact that, in the past, it was always considered inferior to its bigger brother the integrated mill. It was always argued that minimills were alright up to a point, but when it came to the production of superior steels for use by the automotive sector, well, that’s the territory of the big blast furnace-based operators. In fact, if you go right back to the very early days of Nucor Corporation in the USA, those who supported the superiority of the integrated mill often put forward the notion that minimills were fine for the production of trash can steel, but little else. And we all know what happened next: minimills stepped up to the plate, they improved technologically and in many ways have yet to reach their zenith. We’ve all heard of Big River Steel in Osceola, Arkansas, USA, and how it represents a new generation of minimill, exploiting ultra-high-tech and heavily reliant upon Industry 4.0 technology, such as machine learning and AI. In fact, Big River Steel’s CEO, Dave Stickler, will be making a keynote presentation at next month’s
virtual Future Steel Forum 2020, to be held 8-9 December (for details of the programme and how to register, visit https://www.futuresteelforum.com). There are, of course, other EAF operators making just as big a name for themselves. Steel Dynamics Inc’s 3Mt/yr greenfield flatroll mill in Sinton, Texas – which should be up and running by the middle of 2021– is another groundbreaker as it will not only produce unexposed automotive steels, but might well be the first EAF facility in the world to produce exposed autosheet. Integrated mills want a piece of the action. Of course they do; and with everybody looking closely at environmental issues and the fact that electric steelmaking is by far the greener production option, traditional steelmakers have realised that the future is most definitely electric. US Steel, for example, is moving towards a ‘best of both’ worlds scenario, having acquired a 49.9% share in Big River Steel and having the option to buy the lot before October 2023. You can read all about minimills in Myra Pinkham’s article in this issue, and in Manik Mehta’s excellent coverage of the virtual Steel Success Strategies conference.
www.steeltimesint.com
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4 NEWS ROUND-UP
• It has been suggested that substance abuse within Baffinland Iron Mines in Canada can only be tackled successfully if Olympic-style drug testing methods are employed, according to David Qamaniq, a Canadian politician representing the district of Tununiq in the territory of Nunavit. The mining company, in which the world’s biggest steelmaker, ArcelorMittal has a minority stake, claims it does conduct tests when it suspects impairment. Source: NNSL Media, 11 October 2020.
• The World Steel Association has extended the mandates of last year’s Executive Board of Directors due to the COVID-19 pandemic interfering with their duties at the postponed annual general meeting of members and other worldsteel meetings. HBIS Group’s Yu Yong remains as chairman; and Sajjan Jindal of JSW and André Johannpeter of Gerdau stay on as vice-chairmen. Source: worldsteel, 13 October 2020.
• The GFG Alliance has launched a Global Advisory Board whose world-leading industry experience and insight will guide the company in delivering its strategic priorities in relation to its Carbon Neutral 2030 target. GFG Alliance has appointed the board following the consolidation of its businesses into three industry brands; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group. Liberty continues to improve governance, transparency and independent advisory structures. Source: GFG Alliance, 13 October 2020.
• The European Steel Association (EUROFER) has welcomed the European Commission's publication of definitive anti-dumping duties on imports of certain hot rolled stainless steel sheets and coils (SSHR) originating in Indonesia, China and Taiwan. The duties are seen as a first step towards restoring a level playing field and securing a sustainable future for the European stainless industry Source: EUROFER, 14 October 2020.
• Perhaps it’s just as well that Donald Trump lost the election to Joe Biden (or anyone else for that matter). According to Bloomberg, while Trump promised to revive the steel industry’s fortunes when he was campaigning to be president in 2016, the end result has been tariffs and, ultimately, lay-offs. While steelmakers initially cranked up production and hired new workers, there wasn’t enough demand to satisfy increased production. Companies that relied upon steel had to raise prices to consumers. So, all-inall, Trump wasn’t the saviour of the US steel industry. Source: Bloomberg Quint, 13 October 2020.
• POSCO International, an affiliate of South Korean steel giant POSCO, is to supply Vietnamese start-up VinFast with half shafts for electric vehicles. A half shaft transmits engine power from the transmission to the wheels. From POSCO’s perspective, the deal could lead to new business in Vietnam. Source: Yonhap News Agency, 13 October 2020.
• World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 156.2Mt in August 2020, a 0.6% increase compared to August 2019. Source: World Steel Association, 13 October 2020
• The former SSI steelworks in Redcar, UK, is now under the direct control of South Tees Development Corporation, which is chaired by Tees Valley Mayor Ben Houchen. The plan is to create jobs, lots of them, with the help of private investment. Source: The Northern Echo, 12 October 2020.
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NEWS ROUND-UP
• South Korean automaker Hyundai Motor Company is upgrading its supply chain infrastructure. The aim is to build a logistics system using the expertise of a range of sister businesses to transport hydrogen produced at Hyundai Steel’s Dangjin factory to HyNet charging stations. Specialized storage and delivery trucks capable of carrying up to 340kg of hydrogen will reduce delivery costs and make the fuel more accessible, it is claimed. Source: Pulse News, 13 October 2020.
• By the end of 2020 China will have banned imports of solid waste, which traditionally meant steel scrap, but new standards have been proposed for high quality steel scrap, which will be reclassified as a resource, not waste, and, therefore, will not be subject to a ban. Source: MarketScreener, 14 October 2020.
• Japanese steelmaker Nippon Steel Corporation mulls over selling its share in two automotive steel plants in Indiana, USA. The company jointly owned the plants with ArcelorMittal USA, but is now considering selling following ArcelorMittal’s decision to sell its share in the plants to Cleveland Cliffs. Nippon cites restructuring, but also reduced demand caused by the COVID-19 pandemic. Source: Various, 15 October 2020.
• A former Tata Steel research centre in Rotherham is to be developed into housing by property developer Keepmoat Homes. The 16.5-acre site includes historic buildings like Sitwell House, the Coach House, the Lodge and Swinden House. There are plans for 170 new homes and 27 residential units within the original buildings. Source: Insider Media, 14 October 2020.
• South Korean steelmaker POSCO won the World Steel Association’s Excellence in Sustainability Steelie Award for its Triton Project, which helped to restore the ocean’s eco-system through artificial reef development, promoting the natural sequestration of carbon in marine ecosystems. Triton fish banks were developed using steel slag and help establish sea forests for marine algae in damaged parts of the ocean. Source: Korea Times, 15 October 2020.
• The leader of the UK Labour Party, Keir Starmer, has put his weight behind the 'Britain, we need our steel' campaign, which was launched by the Community, GMB and Unite unions. In a video message, Starmer told viewers that steel ‘is not just an industry of our past’. Source: Labour List, 15 October 2020.
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• Sanjeev Gupta’s Liberty Steel Group has put in a bid for the ailing German steelmaker ThyssenKrupp. Gupta told the Financial Times that ‘steel belongs in private hands’. Liberty is not the only steelmaker to be considered as a potential partner, but TK said it would look carefully at the offer. Other companies in the frame include SSAB, Salzgitter and Tata. Source: Financial Times, 22 October 2020. • Production of steel products in Iran for the first half of the current Iranian calendar year (20 March to 21 September) is over 7.26Mt, 3% higher than the figure for the same period last year. Iran is looking at 16 development projects that will boost output of steel products by 17.3Mt within the next five years. Source: Tehran Times, 17 October 2020.
• The process of deciding whether ailing steelmaker ThyssenKrupp AG is eligible for state aid will take time, according to Olaf Scholtz, Germany’s finance minister. The company’s CEO Martina Merz is open to all options including selling a stake in the business to the Government. Source: Reuters, 14 October 2020. November/December 2020
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NEWS ROUND-UP
• Stallion and Maximus are two new brands of steel launched by AM/NS India, a joint venture between ArcelorMittal and Nippon Steel Corporation. Stallion is a hot-rolled steel manufactured in Hazira in a variety of strengths from mild to high tensile. Maximus is a range of premium quality rolled plates and serves a broad range of engineering and fabrication needs. Source: Business Standard, 16 October 2020.
• Tenaris SA, a global steel manufacturer and part of Techint, is to form a joint venture with Mongolia Baotou Steel Company to build a steel pipe premium threading plant for the production of oil country tubular goods (OCTG). The JV company will be 60% owned by Tenaris and 40% by MBSC. The OCTG produced by the plant will be used to support the Chinese oil and gas industry. Source: MarketScreener, 17 October 2020
• Tata Steel India has won a Steelie Award for Excellence in Digital Communications for the second time in a row and has also won a Steelie for Excellence in Education and Training. The Steelie Awards were launched in 2010. Source: Orissa Diary, 19 October 2020.
• The Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) reports that Iran’s ingot production in the first half of the Iranian calendar year (which ended on 21 September) exceeded 14Mt, representing a growth of 10% when compared with the same period of the previous year. Source: MEHR News Agency,19 October 2020.
• Deutsche Edelstahlwerke (DEW) is accelerating the development of its steel solutions for applications such as electric mobility, wind power and fuel cells. The company claims that it designs and produces its steel solutions in a resource-friendly and future-oriented manner, starting with the selection of steel scrap and relying upon 100% renewable energy. Source: DEW, 21 October 2020
• Belgium-based NLMK Clabecq, a leading producer of thin premium steel plates and part of the NLMK Group, has embarked on a 30 million euro project to upgrade its rolling mill. The company is a key player in the thin-gauge steel plate and in particular the quenched and tempered steel plates markets. The revamping of the rolling mill includes the installation of a new descaling system with two new descalers and the modernization of a four stand finishing mill, which NLMK describes as 'a unique layout for plate producers'. Source: NLMK, 22 October 2020.
• The European Commission has today initiated an investigation into the dumping of wind towers on the EU market from China. Wind towers – used to make renewable electricity – are principally built using steel, and the opening of this investigation shows that steel-using sectors also need adequate trade remedies. “EUROFER welcomes the Commission's initiation of an anti-dumping investigation into the conditions of imports of Chinese wind towers into the EU”, said Axel Eggert, director general of the European Steel Association (EUROFER). “Global steel trade distortions jeopardise entire EU value chains and hundreds of thousands of jobs in Europe. Europe needs to wake up and take trade defence enforcement to a higher level before it is too late”. Source: EUROFER, 21 October 2020.
• Global steelmaker Liberty Steel Group has made a non-binding indicative offer (NBIO) as part of a thyssenkrupp-led process to acquire the steel activities of thyssenkrupp. Liberty argues that with both transformation experience and an entrepreneurial approach, a possible combination of LIBERTY Steel and thyssenkrupp Steel would create a strong group well positioned to tackle the challenges faced by the European steel industry and accelerate the transformation to GREENSTEEL. Source: Liberty Steel Group, 20 October 2020. November/December 2020
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NEWS ROUND-UP
• Figures released by the International Molybdenum Association (IMOA) show that global production rose 3% to 148.2mlbs when compared to the previous quarter of 2020 and the same quarter of 2019. Global use of molybdenum also rose by 3% to 126.9mlbs when compared to the previous quarter, but fell by 14% when compared to the same quarter of the previous year. Source: IMOA, 22 October 2020.
• Baodian Coal Mine, a subsidiary of Shandong Energy Group Company is running China’s first privately built 5G mobile network. The mine is located in the eastern coastal province of Shandong. Faster data transmission means that workers have better control of mining equipment hundreds of metres under the ground. Source: South China Morning Post, 21 October 2020.
• Zekelman Industries, the largest independent North American manufacturer of hollow structural sections and steel pipe, and Everguard.ai, whose AI-based Sentri360™ solution provides proactive interventions to prevent and avoid industrial accidents and the billions in fees and LTIs they cause, are joining together to use AI and sensor fusion to increase safety measures at the steelmaker's facilities. The two companies have announced an agreement to bring Everguard’s Sentri360™ platform to Zekelman’s Atlas Tube facility in Blytheville, Arkansas, which will create a paradigm shift from a reactive to a proactive approach to preventing workplace injuries and accidents. Source: Zekelman Industries, 22 October 2020.
• US minimill giant Nucor has broken ground on a new $1.7 billion steel plate manufacturing mill in Brandenburg, KY. An estimated 400 jobs will be created at the plant and it is likely that the facility will rely upon the services of some 1,500 contractors. The mill will open in 2022 and, according to Brandenburg’s mayor Ronnie Joyner, will have a long-term impact on the community’s workforce. Source: Spectrum News1, 23 October 2020.
• Proposed Tariff Rate Quota allocations for UK steel exports into the EU from 1 January 2021 have been published by the European Commission – much to the relief of the UK steel industry. Without these UK-specific tariff allocations, the UK sector could have faced an £80 million bill from EU Steel Safeguard tariffs in the first half of next year. Source: UK Steel, 30 October 2020.
• Tata Steel Europe in IJmuiden, the Netherlands, is to face prosecution for permit violation after it was accused of not doing enough to stop graphite rain from showering people in the nearby town of Wijk aan Zee. Graphite rain contains ‘undesirably high’ levels of lead, manganese and vanadium dust, which can be harmful to young children. Source: Dutch News, 22 October 2020.
• Martin Lindqvist, CEO of Scandinavian steelmaker SSAB says that his company is NOT taking part in the bidding process for ThyssenKrupp’s TKAG.DE steel business. Still in the running is Sanjeev Gupta’s Liberty Steel Group. If successful, he will become Europe’s number two steelmaker with an estimated market share of 14%. Source: Nasdaq and Reuters, 22 October 2020.
• Having made a Q3 operating profit, following an operating loss for the previous three months, South Korean steelmaker POSCO is optimistic for the future as it believes the pandemic has done its worst and is unlikely to hurt major economies going forward. Sales for Q4 are expected to be an improvement on Q3 and the company might invest in high purity nickel production to meet demand from electric vehicle battery manufacturers. Source: Korea Times, 23 October 2020. www.steeltimesint.com
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INNOVATIONS
SCHADE reclaimers for new Chinese mill
Zhongtian Steel Works, located in Nantong,100 miles north of Shanghai in China, has been supplied with eight 1,800 tonnes/hr (iron ore) semi-portal reclaimers. The Chinese steelmaker is currently constructing a greenfield steel plant which is due to commence operations at the end of 2021. The reclaimers were manufactured by SCHADE Lagertechnik GmbH of Gelsenkirchen, Germany, part of the Aumund Group of Companies and an international specialist in the sale, engineering and supply of stackers and reclaimers for bulk materials stockyards and blending beds. SCHADE is represented in China by AUMUND Machinery Technology (Beijing) in Nantong, via general contractor CISDI. Zhongtian Steel belongs to the Zhongtian Group which was incorporated in 2001 and is claimed to be one of the most successful private companies in China, with activities in metallurgy, ports, power plants, logistics and hotel construction. The Zhongtian Group is one of the top 500 earning companies in China. For further information, log on to www.aumund.com
Artificial intelligence for Austrian steelmaker
Austrian steelmaker Stahl-und Walzwerk Marienhütte of Graz, the country’s only manufacturer of reinforcing steel for the construction sector, has commissioned Berlin-based Smart Steel Technologies to introduce artificial intelligence to the plant. SST will be supplying the steelmaker with its SST Temperature Optimization AI software, which will be integrated live into the production process and used for precise temperature control from EAF to continuous caster. According to November/December 2020
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SST, process stability will be maximized across all process stages and Marienhütte will minimize temperature buffers and lower the temperature in production. This in turn will lead to permanent energy savings and further efficiencies through increased process stability. According to SST, integration of the software will take three months. The project goal will be achieved after a test and optimization phase of another three months. “We deliberately invest in optimizing our
temperature control through artificial intelligence technology. This way, Marienhütte will further increase process stability and reduce energy costs. We trust in the expertise of Smart Steel Technologies and we are convinced,” said Herbert Fohringer, managing director, Stahl-und Walzwerk Marienhütte GmbH.
For further information, log on to www.smart-steel-technologies.com www.steeltimesint.com
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INNOVATIONS
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Carbon and lime injection renewed ESF Elbe-Stahlwerke Feralpi GmbH, the German affiliate of the Italian Feralpi Group, has contracted VELCO GmbH to renew its carbon and lime injection installations at their electric arc furnace. The installation consists of two silos, each with a useful content of 35 m³ for carbon fines and lime. Three dispensers of type UNIDOS 1.0 are installed under each silo. For the foaming slag process, lime and carbon are blown with conveying rates of up to 100 kg/min via sidewall-lances into the furnace. The dispensers are equipped with the patented discharge system UNIDOS (DE19900655), and feature a wear-resistant conveying rate variation, achieved by chamber pressing regulation. According to demands given by the furnace
PLC, the conveying rate can be continuously regulated between 10kg/min and 100kg/min. The dispensers are equipped with a valve station with conveying air volume measurement and special valves, which guarantee gentle and low-wear pneumatic conveying. A conveying line surveillance system detects and prevents the line from clogging in the early stages of the process. A state-of-the-art Siemens S7 1500 TIA PLC is the central control system and ensures the system is future-safe and efficient.
For further information, log on to www.velco.de
Increased safety in mining operations Brokk, a leading manufacturer of remote-controlled demolition machines, is offering the Brokk 200 for ultra-deep mining applications. With SmartConceptTM — the company’s signature system for improved performance and uptime — the machine provides industry-leading power and productivity with zero emissions, making it ideal, claims Brokk, for the deepest, most challenging applications. Compactness, combined with the power of a machine three times its size, revolutionizes efficiency and safety by reducing the need for large crews with handheld equipment, says the company. “Demand for gold and other mined ore has pushed mining operations deeper than ever before,” said Lars Lindgren, president of Brokk Inc. “As shaft depth increases, so does the risk to workers. Electric, remote-controlled demolition machines provide superior productivity as well as a safer alternative to handheld equipment by removing operators from the hottest, most physical tasks.” As part of Brokk’s Next Generation of remote-controlled demolition machines, the Brokk 200 is said to be ideal for all-electric mines. It incorporates the SmartConcept system, which consists of three features: SmartPower™, SmartDesign™ and SmartRemote™. SmartPower senses when the power supply is poor or faulty and then compensates before damage to components occurs, allowing mining operations to use the machine with generators or unreliable power sources. SmartDesign is claimed to extend machine life and provides unprec-
edented ease of maintenance, even in extreme environments. This feature includes 70% fewer cables, hardened components, LED headlights and easily accessible grease points and hydraulic hoses. SmartRemote incorporates adjustable straps, intuitive controls and professional-grade radio technology with a 984-foot (300-metre) working range. The Brokk 200 is capable of carrying heavy tools, such as breakers, rock drills, buckets and shotcrete attachments. It is ideal for heavy duty, difficult-to-access projects and applications, says Brokk.
For further information, log on to www.brokk.com
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INNOVATIONS
LaserSpeed Pro from LIMAB UK
Intuitive operating software from Hitachi Hitachi High-Tech Analytical Science has introduced SpArcfire – an intuitive operating software already available across Hitachi’s stationary spark OES (optical emission spectrometer) range – to its mobile OES analyzer range. The new interface, optimized for touchscreens, delivers a greatly improved user experience, maximizing speed and efficiency for both simple and complex metals analysis tasks, the company claims. This intuitive new software removes the need for extensive training or highly experienced operators, it is claimed. With SpArcfire software, Hitachi OES spectrometers can be deployed to complete all metals analysis tasks, including measuring unknown materials, identifying and verifying grades, creating customizable report templates, and performing and evaluating accuracy tests with control samples. Advanced users can edit and modify regression data to extend calibration ranges. SpArcfire software can also verify the status of the instrument, providing real-time monitoring and diagnostics on all systems parameters such as temperature, pressure and voltage inputs and outputs. This ensures essential analysis equipment can be kept operating at peak performance, Hitachi claims. SpArcfire offers a range of additional features designed to make analysis quicker and easier: Wizards take the user step-by-step through non-routine operations; online help and tool tips provide direct assistance; a programmable event
calendar enables scheduling of regular tasks such as maintenance and control sample runs; an intuitive report generator with drag and drop features enables the creation of customizable reports and certificates. According to Hitachi, SpArcfire provides the advanced user with a powerful regression software and a matrix manager in order to extend or modify existing calibration curves and create methods on their own. The Sensor Scan application, with its scan manager, future-proofs the instrument and allows it to deliver additional qualitative analysis.
NDC Technologies, a leading global provider of intelligent, connected measurement and control solutions, has had a long established and successful partnership with LIMAB UK Ltd. Specializing in delivering non-contact, in-process measurement solutions, LIMAB is the official distributor of NDC Technologies’ LaserSpeed Pro length and speed gauges and near infrared (NIR) sensors for the UK, Ireland and Benelux regions. Known for its specialized industry knowledge and applications expertise, LIMAB serves a broad scope of industries including metals. In the metals industry, LIMAB UK provides NDC Technologies’ LaserSpeed Pro gauge to precisely control the length and speed of moving products in production applications such as continuous casting, hot and cold rolling, temper and skin pass mills, pipe and tube, bar and rod, coil and strip. LaserSpeed Pro directly measures the length and speed of products with +/-0.03% accuracy – the highest in the industry, and 20 to 40 times more precise than contact measurement devices. This high level of accuracy enables metal manufacturers to reduce measurement errors, improve process control and realize true production gains. For further information, log on to www.ndc.com
Michael Molderings, product manager, commented: “The objective of any industrial analysis is to get results quickly and keep production moving. Our new SpArcfire software on our mobile OES products will make metals analysis with OES much more intuitive and faster, no matter if you’re an experienced or inexperienced user. For mobile and portable OES analyzers, the SpArcfire software is an exciting cutting-edge development helping businesses unlock the power of analysis.” For further information, log on to www.hha.hitachi-hightech.com
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INNOVATIONS
Danieli completes spooler line modernization Italian plant builder Danieli has completed the modernization of the spooler line for Bar Mill number two at Alfa Acciai, Brescia, Italy, implementing for the first-time simultaneous coiling of small-diameter rods by two coilers as part of a single line. According to Danieli, the upgrade allows the steelmaker to increase its production of coiled rod products, in line with current market demand, and also results in a significant improvement to the characteristics and mechanical properties of the finished coils. The project involved a complete renewal of the mill’s automation system as well as some new equipment to direct both strands of the split rolling mill to the two coilers. Bar Mill number two has been equipped with Danieli EWR® billet-welding capability since 2004, joining two billets to produce a spooled coil weighing about three tons. For small-diameter products produced by twin split rolling, four billets are needed to obtain two 3-ton coils. Prior to modernization, just one strand of the split rolling line fed the spooler line and the alternate strand delivered material to the cooling bed as straight bars. Following the modernization, it is possible for both strands to feed two coilers, simultaneously,
Danieli explained, adding that Alfa Acciai will increase its spooled bar output from 50% to 80% of hourly production and reduce straight bar output to 20% of the total. “This particular production practice was studied and developed jointly by Alfa Acciai and Danieli at the height of the Covid-19 pandemic
NISCO relies upon Friedrich Kocks Chinese steelmaker Nanjing Iron & Steel Co Ltd (NISCO) has modernized its 800kt/yr medium bar mill incorporating a reducing and sizing block (RSB®) 500++/4 in 5.0 design by Friedrich KOCKS GmbH & Co KG. The RSB® 500++/4, which is so far the biggest KOCKS 3-roll reducing and sizing block, operates as the finishing unit for the production of straight bars within a dimensional range from 50mm to 160mm. KOCKS is also responsible for the thermo-me-
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chanical rolling process at the steel mill including five water boxes and a full automation package. The low temperature rolling process is applied for sizes up to 130 mm. Now that NISCO has completed its modernization project, it hopes to further expand its market share in the SBQ market.
For further information, log on to www.kocks.de
and concluded positively with on-time commissioning and successful start-up, and full mutual satisfaction, reconfirming the long partnership between the two Groups,” Danieli concluded. For further information, log on to www.danieli.com
In June 2020, Primetals Technologies received the final acceptance certificate (FAC) for revamping the No. 2 continuous pickling line at the Kakogawa Works of Japanese steelmaker Kobe Steel. Kobe Steel is a global business operating under the group's unified international brand of Kobelco. The company supplies high-value-added steel products, primarily long and flat products, for automobiles, home appliances, ships, buildings, and bridge cables in Japan and overseas. A Primetals iBox replaced the Kakogawa Works’ existing pickling tank, and led to improved productivity of high-strength strips for automobiles, energy savings and a reduction of acid solution consumption during operation once the revamping work was completed. During the revamping work, the polypropylene iBox, which is claimed to be superior in chemical resistance and in retaining heat, replaced an existing shallow tank consisting of acid-resistant bricks and steel plates. Acid solution storage tanks were added with incidental fittings. There are immersion boxes inside the iBox through which strips, guided by rolls and skids, travel through. The process uses the strong shear flow generated by the narrow and rectangular channel formed by the immersion boxes to accelerate an acid-liquid reaction without resorting to an electric pump to circulate the acid solution, as is the case with conventional jet pickling tanks. www.steeltimesint.com
18/11/2020 13:31:00
13
INNOVATIONS
Global industrial engineering group Fives has developed a new flameless direct firing furnace (DFF) for continuous annealing or galvanizing lines, enabling the production of new generation steels (Gen3 AHSS) for the automotive industry. The new concept received the Grand Prix at Fives’ Innovation Awards in Paris in September, an annual event, held by the group, to support innovative ideas and solutions among its employees. According to Fives, it is a breakthrough innovation responding to the constraints associated with the production of Gen3 AHSS, the new steel grades needed to manufacture lightweight vehicles with reduced emissions. In strip processing lines, the furnace is a key technology for achieving the final product properties, but if the preheating temperature in a DFF is not homogenous, those properties can be compromised. The DFF uses new S-shaped tunnel geometry combined with flameless combustion to achieve homogeneous heating in all the sections of the furnace by using a new generation of lateral burners. The result is a homogeneous temperature of +/-10°C along the whole width of the strip at the exit of the furnace. “We conducted CFD modelling to optimize the furnace design – in particular the waste flue gas passage between the active and recuperative zones – and define the design of the burners. By running a series of tests, we were able to
“This is a continuous pickling line that pickles hot-rolled strips of 1.8mm to 6mm in thickness and 600mm to 1,650 mm in width, at the maximum central speed of 240m/min, and a maximum throughput of about 300 tonnes/hr,”
Award for direct firing furnace come up with a totally new burner concept that achieves a flameless combustion mode. The final DFF concept was validated by CFD modelling on a complete furnace,” explains Sébastien Lemaire, R&D engineer at Fives Stein, a Fives’ subsidiary in France. “This technological solution offers steelmakers many different advantages,” highlights Camille Moukarzel, business development manager at
according to Primetals. The pickling plant at Kakogawa has been in operation since 1981. Primetals proposed the iBox as a revamp solution and was awarded the order in April 2018.
Fives Stein. “Reduced operational costs, thanks to the 600°C preheated air flameless side burners; simplified control; minimized maintenance and, more importantly, a dramatic reduction of NOx and CO2 emissions.” For further information, log on to www.fivesgroup.com
For further information, log on to www.primetals.com
Primetals revamps Kobe Steel pickling line
www.steeltimesint.com
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November/December 2020
18/11/2020 13:31:28
14
INNOVATIONS
Work starts on new campus An artist’s impression of SMS group’s Monchengladbach Campus. On completion the complex will be home to a new technology, service and digitalisation centre that will provide 1,500 modern workplaces and bring together the competences of five locations in the region. In addition to senior members of the SMS group management board, Hans Wilhelm Reiners, the Mayor of Monchengladbach, was present at the recent groundbreaking ceremony along with architect and general planner Holger P Hartmann.
New heavy section mill section for Masteel Chinese steelmaker Maanshan Iron & Steel, aka Masteel, has started up a new heavy section mill for what it claims will be the largest beams ever made in China. The heavy beam mill in question was supplied by the German SMS group and is capable of producing beams with a root face thickness of up to 1,100mm and a flange width of 500mm, in addition to beams with a flange thickness of up to 130mm. The weight per metre of the heaviest beam produced there is 1,377kg. The 800kt/yr mill is located 300 km west of Shanghai and represents a major cost saving for the steelmaker when it comes to downstream processes, which are no longer required as the larger steel sections can now be manufactured by the steel plant’s new heavy beam mill. Masteel claims it is putting the spotlight on maximum product quality. SMS group supplied the engineering and the core components for the mill, including the centrepiece of the plant, the Compact Cartridge Stand (CCS) tandem rolling mill unit with a hyNovember/December 2020
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draulic adjustment system and a fully automatic quick programme change function, as well as a Compact Roller Straightener (CRS) straightening machine. The latter features a shifting platform for quick and simultaneous changing of all straightening rollers. The CCS stands and CRS straightening machine are claimed to be the largest of their kind in operation anywhere in the world. The CCS Tandem Millstand Control System (TCS), also supplied by SMS, enables the process to be controlled in real time while ensuring that the roll gap is automatically zeroed and adjusted after each programme change. Masteel claims it will use the heavy beam mill to make products for the bridge and building construction sector. On an historical note, Masteel has been operating a heavy-beam mill from SMS group since 1993, and a CSP plant supplied in 2005. For further information, log on to www.sms-group.com
www.steeltimesint.com
18/11/2020 13:31:42
INNOVATIONS
15
Xingcheng Special Steel – jumbo caster! Staying with China, but moving to Jiangsu Province, SMS Concast has received an order from Jiangyin Xingcheng Special Steel Works Co for a three-strand jumbo bloom caster. According to SMS group, the equipment will be capable of continuously casting 1,200mm round blooms and it will be another world record breaker for the German plant builder: the first caster in the world to produce 1,200mm blooms in a curved continuous casting process. The caster will have a nominal radius of 18m and will produce a range of rounds from 600mm up to 1,200mm and we’re talking highly
www.steeltimesint.com
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demanding steel grades from bearing steel right through to stainless steel. The caster will incorporate advanced SMS Concast technologies, such as INVEX molds, CONFLOW stopper mechanisms, CONSTIR electromagnetic stirrers and dynamic mechanical soft reduction (DMSR) not to forget dynamic spray cooling (DSC) which, along with DMSR, will be controlled by COOL solidification simulation software. Ultimately, the aim is to create a stable process, says SMS group, and improved internal quality, as well as ease of maintenance and, of course, high performance.
SMS Concast and Xingcheng Special Steel have built up a relationship since 2007 when the steelmaker first got involved with DMSR. This latest project, the jumbo caster, represents another challenging project and, claims SMS group, another milestone in the two companies’ successful partnership. Commissioning of the caster takes place at the end of May 2021. For further information, log on to www.sms-group.com
November/December 2020
18/11/2020 13:31:58
16
INNOVATIONS
Long rolling mill revamp at Stahlwerk Annahütte In August 2020, Primetals Technologies completed the revamping of a long rolling mill at the 240kt/yr Stahlwerk Annahütte Max Aicher GmbH & Co. KG (Stahlwerk Annahütte). The facility is based in Ainring-Hammerau, Bavaria, Germany. Stahlwerk Annahütte was established in 1537. Since 1975, when it became part of the Max Aicher group, the company gradually specialized and has become an important European producer of thread bars and quality bars for automotive and industry applications. It is the leading global supplier of thread bars used in pre-stressed concrete manufacturing, rock anchoring, mining, tunneling and other geotechnical applications. The mill processes square billets with dimensions of 160mm x160mm and 178mm x 178mm. Steel grades include carbon, quality, alloyed and non-alloyed steels. Finished products are thread
November/December 2020
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and plain round bars with diameters ranging from 12mm to 75mm. The original rolling mill had been installed by former Pomini SpA (now Primetals Technologies) in 1973. The modernization of the plant’s intermediate rolling train was achieved by replacing two existing Red Ring Series 1 stands with the latest Red Ring Series 5 stands, which allow for shorter change times and prolong the lifetime of wear components. According to Primetals, mill operation and maintenance activities are also benefited. While the Red Ring stands Series 1 were still working perfectly, they were replaced with Series 5 purely to improve operational flexibility by reducing change times and extending the lifespan of the main wear components. Primetals provided the engineering of process
technology, as well as design services. Two Red Ring Series 5 stands RR545 in H/V configuration were installed at the intermediate train. Other equipment supplied included two stand-by stands, the retrofit of the stand lubrication system to allow quick connection/disconnection during stand change operations, encoder systems for gap adjustment, workshop systems for stand preparation and roll change, compatible with both Red Ring Series 1 and 5, as well as with other existing stands. To minimise installation time, the new equipment was adapted to the existing mill. Engineering services for other equipment, advisory services for erection and commissioning, and training services, were all part of the remit. For further information, log on to www.primetals.com
www.steeltimesint.com
18/11/2020 13:32:19
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18
INNOVATIONS
Small-scale acid regen for smaller steel mills While acid regeneration systems for bigger pickling installations are state-of-the-art in the steel industry, small capacity waste acid streams are generally not regenerated for economic reasons, thus generating a negative environmental impact. John Cockerill has developed SARA® to address precisely this environmentally unacceptable situation. SARA stands for Small Acid Regeneration Assembly concept. It helps smaller steel plants, surface treatment and long products pickling plants with limited or no access to conventional acid regeneration technology, to efficiently and economically regenerate small-scale acid waste streams. The hydrochloric acid regeneration process enables the total recovery of chloride solutions based on the pyro-hydrolysis principle, which is the chemical conversion of metal salts into hydrochloric acid (HCl) and iron oxide. Producers recover the HCl and obtain high quality iron oxide as a valuable by-product. John Cockerill is a leading global supplier of
acid regeneration plants for fluidized bed and spray roaster technology. Due to its proven reliability and environmental advantages, the fluidized bed type acid regeneration plant (FB-ARP), which produces a high-density iron oxide, became the worldwide-preferred method, highlighting why the SARA concept is based on this technology. John Cockerill’s new SARA offers a modular design that guarantees its clients the optimal solution for all their individual process requirements and applications. SARA has an acid recovery rate of up to 99% and is closing the loop on acid regeneration for installations only producing small amounts of waste acid of between 10m³ and 30m³ per day. This new technology, therefore, efficiently ensures an optimal and continuous operation of push pull pickling lines (PPL), wire coil pickling lines (WCPL), or other long product pickling lines, whereas, for such small throughputs, conventional ARPs operating in time-consuming intervals,
result in high wear of the refractory shell with every stop. SARA is designed to reach hydrochloric acid and dust emission values under 10mg/Nm³, which, claims John Cockerill, is an outstanding performance, as this value is well below even the most stringent worldwide emission limits. The absorber system, which recovers the hydrochloric acid from the off gas, and the following off-gas cleaning system, which eliminates the hydrochloric acid and dust aerosols, are the main contributors to this great achievement, claims the company. SARA also stands for state-of the-art plant automation. While allowing the ARP to run in a fully automated mode, its monitoring and operation are integrated in the control system of the pickling line. The automation system is constantly monitoring all of the ARP’s key parameters, providing operators with advice and suggestions for problem solving if necessary. SARA also comes as an ‘all-in-one’, standardized acid regeneration plant and is available in two different sizes, economically regenerating spent acid throughputs of either 500 - 800l/h, or 800 - 1300l/h. Both sizes are supplied as pre-assembled packages and come with a pre-manufactured building of less than 130m², allowing for quick and easy installation and commissioning. SARA is claimed to reduce the amount of fresh acid to be purchased, as well as the waste streams of the plant, as the system is processing the rinse water generated in the pickling line and allows for the transfer of the waste heat generated by the reactor to the pickling line. All of the above translates into an average payback time of two years when using the Western European model. A leading Turkish steel wire and rope producer has already placed an order with UVK, John Cockerill’s German subsidiary, for the design, manufacturing, and supply of a SARA ARP to be commissioned early in 2021. For further information, log on to www.johncockerill.com
November/December 2020
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www.steeltimesint.com
18/11/2020 13:32:59
INNOVATIONS
19
Cardinal Scale Robotic automation an option, acquires says InfoSight Belt-Way Scales
US-based Cardinal Scale has acquired BeltWay Scales, one of the industry’s leading conveyor belt scale manufacturers, based in Rock Falls, IL. Belt-Way Scales has a partner network spanning multiple continents and 34 countries and has been manufacturing conveyor belt scales since 1992. The acquisition adds an additional product line to Cardinal Scale’s wide variety of scales and weighing equipment that the company manufactures. “We are extremely excited about our acquisition of Belt-Way Scales, since it fills a gap in our product offerings and complements our overall weighing systems manufacturing strategy. They are known for manufacturing great products and delivering unmatched customer service. They will fit nicely into the Cardinal/DETECTO family and help round out our product lines,” said Matthew Stovern, president of Cardinal Scale. “We look forward to continuing Belt-Way Scales’ long history of manufacturing high-quality conveyor belt scales and production data solutions.” Belt-Way Scales’ employees, operations, and manufacturing will remain in Rock Falls, IL and continue with their own dedicated engineering, technical service, and manufacturing departments.
InfoSight has recently added robotic automation as an option for applications where space or cycle time is of utmost importance. The marking technologies typically incorporated into automatic machinery include the InfoDent® 8400 stamping system, spray marking systems (including the I-Dent® Marking System), tagging systems, and direct laser marking systems. InfoSight has integrated several of these as ‘End of Art Tools (EOAT) on robots, as well as providing the marking head for others to utilize as an EOAT. One of the earliest applications in which InfoSight utilized a robot was for end face painting of bars and pipes. In this instance, the system was designed to utilize 16 colours and nine defined patterns to identify bars and pipes for further processing. Spray nozzles were mounted to the ends of eight EOATs. The use of the robot in this application minimized both the footprint and cycle time for this complex system. Since then, the use of robots for automated marking systems has expanded to include other spray marking systems, like colour banding for pipes, as well as stamping systems and direct marking. Recently, InfoSight mounted an InfoDent® 8400 stamping head as an EOAT to
mark hot steel plates in up to six locations per cycle. Again, utilizing a robot decreased the footprint and cycle time of the machine, which was especially important to protect the marking equipment from an extremely high temperature environment. The most recent application utilized a robot to directly laser mark the inside diameter of pipes. This included marking both the leading end and trailing end of the pipes. The mark included a white patch; laser marking the white patch with 1D and 2 D barcodes, alphanumeric characters, and logos; and applying a clear protective coat to the mark. The process location of the marker was such that the ends of the pipes would not be presented to the marker. The marker needed to move in between pipes to access the ends. The use of a robot allows the marker to move into the marking position, mark the trailing end of one pipe and the leading end of the next pipe in a single cycle. InfoSight’s custom engineering group is proud to offer automated marking solutions in traditional automation and robotic automation. For further information, log on to www.infosight.com
For further information, log on to www.cardinalscale.com
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18/11/2020 13:33:07
Our goal, help our clients produce sustainably Producing without destroying. Helping our clients to focus on quality & performance, while minimizing the use of resources, energy and emissions throughout the lifecycle of the metal processing equipment & lines that we supply.
The Continuous Annealing & Hot Strip Galvanizing Lines recently supplied to one of India’s leading steelmakers, JSW and the Chinese steel giant Shougang, are prominent examples of our desire to provide efficient responses to the needs of our clients.
JOHN COCKERILL INDUSTRY METALS Reheating Furnaces Pickling Acid Regeneration Cold Rolling Strip Processing Automation
Design | Engineering | Erection & Commissioning | Technical Assistance & Training | After Sales
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HeatAd_60mmx270mm.qxp_Layout 1 11/9/20 11:55 A
INNOVATIONS
21
Self-lubricating solution for BF bleeder valves GRAPHALLOY®, a graphite/metal alloy, is a self-lubricating bearing material that is claimed to offer a superior performance in hundreds of mechanical and electrical applications and provide lifetime cost savings and significant operational advantages over conventional bushings and bearings.
When an American steel mill needed a solution for maintaining its bleeder valves on blast furnaces, a self-lubricating material was used to create custom-designed bushings that would perform without grease, at all pivot points. A blast furnace is a special type of furnace used at steel mills for smelting iron from ore. Blast furnaces are the biggest chemical reactors and are generally very large. They can be up to 200 feet tall and around 50 feet in diameter. These huge structures each contain three automatic bleeding valves – sometimes called air release valves (ARV) – that are used to automatically release trapped air from a heating system. When used in a steel mill, the gasses (often containing carbon monoxide) rise to the top and burn. The valves are actuated one to five times a day by a large air cylinder on each valve to control the pressure inside the blast furnaces. Electronic position feedback sensors are located on each valve. The assembly has a combination of linkages with bushings and counterweights. If there is an upset, the counterweights allow the valves to pop open to avoid an explosion of the vessel. Major repairs require removal from the structure by a crane. At a large steel mill in the United States, a blast furnace utilized bronze bushings at each pivot point on the bleeder valves. Despite being on top of a furnace, the bushings do not get extremely hot. Depending on the wind direction and activity in the furnace, temperatures average around 250 to 300°F but can sometimes reach as high as 400°F. The original design had grease-lubricated
bushings fed by automatic lubrication lines. Over time, the old grease would build up on the valve and, when there was an upset, embers could ignite the grease. The resulting fire often burned off the lubrication lines and the attached electrical instrumentation. Because of these safety hazards, the steel mill wanted an alternative to the traditional lubricating system. Initially, they tried a hard metal-on-metal material – a manganese-treated steel bushing. The metal is hard and not supposed to require grease. However, after a year of service these bushings began to stick. The mill maintenance team then installed the capability to force grease into the bushings if they got stuck, but the complication of grease build-up and a potential explosion from embers still existed. Graphite Metallizing Corporation (GMC) presented the mill with a self-lubricating bushing solution. Bushings made of Graphalloy, a graphite-metal alloy, were installed into all the pivot locations. The valves have four different size bushings installed in the linkage system to allow operation. The steel mill wanted something that would last at least three years, the time interval at which they reline and rebuild the furnaces. Each blast furnace has three valves. They bought enough Graphalloy bushings to upgrade two of the furnaces. These two furnaces worked effectively during the three-year threshold, with no issues. The Graphalloy self-lubricating bushings worked so well that a nearby machine shop decided to use the same solution for bleeder valves at another steel mill. The biggest advantage of using Graphalloy bushings for this application is the self-lubricating feature. Graphalloy can operate at high temperatures (up to 1,000°F) and is dimensionally stable. It maintains its size and shape and will not cold flow or deform under pressure. Because no grease or oil is used, these bushings do not attract dust or foreign matter. Because Graphalloy eliminates the need for oiling schedules, it prevents oil or grease damage to products while operating in inaccessible locations where maintenance can be difficult to perform. For further information, log on to www.graphalloy.com
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GRAPHALLOY® Bearings... We Go to Extremes
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www.GRAPHALLOY.com November/December 2020
18/11/2020 06:53:55
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LATIN AMERICA UPDATE
23
Latin America steel outlook The OECD’s 88th Session of the Steel Committee took place virtually in late September as a result of the COVID-19 pandemic and included, among many other country presentations, a Latin America Steel Market and Industry Update by Francisco Leal, directorgeneral of the Latin American Steel Association (Alacero). By Germano Mendes de Paul* THE OECD’s 88th Session of the Steel Committee was, by necessity, a virtual event. The presentations, which can be found at https://www.oecd.org/industry/ ind/88th-session-of-the-steel-committee. htm, focused mainly on the following issues: (a) an outlook for the world economy and the global steel market; (b) regional steel market developments; c) steel trade and trade policy; (d) steelmaking capacity; (e) State-Owned Enterprises (SOEs); and (f) characteristics of the steel firms. Regarding the regional steel market feature, presentations were delivered about North America, Latin America, Japan, South Korea, Russia, Turkey and Europe. Remarkably, there wasn’t a report on China. Where Latin America was concerned, Francisco Leal, director general of Alacero (the Latin American Steel Association) was the speaker and this Latin America Update summarises his presentation. Macroeconomic situation and COVID-19 On top of the 2019 crisis, 2020 has hit Latin America hard due to the new and challenging COVID-19 pandemic. It is worth noting that the region’s GDP growth achieved only 0.1% in 2019. The outcome was much worst than the previous year’s performance (1.1%), but much better than expected for 2020 (-9.4%), according to Fig 1. In particular, industrial production is planned to drop 5.1% in 2020. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) report published
in July, the fall in economic activity is of such magnitude that, by the end of 2020, the level of GDP per capita in Latin America will be similar to that observed in 2010. It will mean a 10-year setback in per inhabitant income levels. A 3.7% GDP recovery and a 3.0% industrial production improvement are expected in 2021. However, they will not be enough to offset 2020’s turmoil, regardless of the implementation of expansionary monetary policies in an environment of low inflation. Regarding COVID-19, as of 19 September 2020, Latin America has reached the mark of ~8 million confirmed cases and roughly 300,000 deaths. The pandemic has hit the region in a context of low growth, marked inequality and vulnerability, growing and extreme poverty, weakening of social cohesion and increasing expressions of social discontent. Moreover, most countries in the region have weak and fragmented health systems, which do not guarantee the universal access needed to address the crisis. In reality, the coronavirus pandemic has placed an unmanageable burden on public services, including funeral infrastructure. Steel business Fig 2 shows the Latin American steel performance in the first semesters of 2018, 2019 and 2020. Comparing 2020 in relation to the previous year, it was observed that production declined by 15.7%, whereas consumption diminished 14.3%. Meanwhile, exports plummeted 15.0%, while imports contracted 10.9%.
A key concern of Latin American steelmakers is the evolution of imports as a proportion of apparent consumption. So-called import penetration diminished from 36.7% in Q2 2018 to 35.2% in Q2 2019, but increased to 38.6% in Q2 2020. Indeed, this ratio was the highest value on a quarterly basis in the recent past. Alacero’s director also disclosed the Latin American steel consumption outlook for 2019-2021. In fact, as can be verified in Table 1, it shows data for 2019 and the original (pre-pandemic) revised figures for 2020 and 2021. The countries were listed in descending order with regard to market size. Mexico, for instance, was expected to amplify its steel demand by 1.4% in 2020, but then the value was updated to a 13.4% drop. For 2021, the respective figures are an increase of 1.6% (original) and 7.3% (revised). Brazil, after a 1.1% steel demand diminution in 2019, is predicted to experience a 14.4% drop, while a 9.6% resumption is planned for next year. However, after Mr Leal’s presentation, worldsteel released another update in midOctober 2020, in which the country will face a 4.7% drop in steel consumption this year and a 6.7% jump in 2021. Based on Alacero’s estimation, Argentina, after a massive retraction of 18.8% last year, should have a 15.2% decline in the current year and a mild 4.9% recovery in 2021. Colombian steel demand is planned to decline 23% in 2020, followed by a partial recovery of 15% next year. The other Latin American countries (Bolivia, Costa Rica, Ecuador, El Salvador,
* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br www.steeltimesint.com
LA Update.indd 1
November/December 2020
19/11/2020 13:35:11
24
LATIN AMERICA UPDATE
Fig 1. Latin America’s GDP and industrial production, 2016-2021 (% y-o-y.)
Fig 2 Latin America’s steel performance, first semester, 2018-2020 (MT). Source: ALACERO
Source: Alacero and IMF
Fig 3. Latin America’s steel import penetration, 2018-2020 (%). Source: ALACERO
Guatemala, Honduras, Panamá, Paraguay and Uruguay) witnessed a 5.1% decline in 2019 and an additional 7.5% retraction this year. A 4.7% partial upturn is expected in 2021. As a whole, Latin America this year is going to reduce its apparent steel consumption by 14.5%, while a recovery of 8.9% is expected next year. Fig 4 compares the industrial production and steel-weighted industrial production (SWIP) indices. The latter can be calculated using the production of major steel-using industries (construction, machinery and equipment and automotive) weighted by their share in steel consumption. The regional SWIP diminished 0.2% in 2019 and it is expected to experience an additional retraction of 9.6% in 2020, followed by a partial resumption of 3.6% in 2021. Bearing this unsatisfactory setting in mind, Alacero’s director emphasized that there is an urgent need in the region to continue improving the health structure and reduce the level of viral contagion to contain the spread and prevent a second wave. It will also be necessary to expand the fiscal space for humanitarian aid in a scenario of rising unemployment. Moreover, he claimed that sectorial recovery will depend more than ever on: a) promoting the substitution of imports with newly November/December 2020
LA Update.indd 2
Fig 4. Latin America’s industrial production and SWIP, 2016-2021 (% y-o-y). Source: ALACERO
2019 2020f 2021f
Country
original Revised
Original Revised
Mexico
-5.3
1.4 -13.4
1.6 7.3
Brazil
-1.1
4.5 -14.4
5.0 9,6
Argentina
-18.8
-1.6 -15.2
8.1 4.9
Colombia
-2.1
5.5 -23.0
1.9 15.0
Peru
0.9
1.8 -15.1
2.0 17.0
Chile
4.2
1.5 -23.0
1.7 12.9
Dominican Rep
10.9
5.2
Venezuela
-30.0
-22.3
-10.0 -34.3
5.0
28.0
-5.0 22.9
Others
-5.1
2.4 -7.5
2.8 4.7
Total Latin America
-4.0
2.6
3.3
-14.5
8.9
Table 1. Steel apparent consumption, 2019-2021 (% y-o-y) Source: ALACERO. For Brazil, worldsteel’s newest forecast shows a 4.7% drop in 2020 and a 6.7% increase in 2021
added finished steel capacity at home and strengthening border protection
against unfair competition; b) revering the deindustrialisation process by industrial policy focus directed to productivity and innovation; c) being aware of global trade tensions and commodity prices. Mr Leal stressed that, in a new environment of technological innovation, different forms of work are here to stay. In addition, the Latin American industry needs to keep up with this innovation, always having an eye on the productivity and safety of its employees. He concluded his speech by highlighting that a growing urge for national governments is to make sure that there is a ‘level playing field’. � www.steeltimesint.com
19/11/2020 13:35:17
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25/06/2020 13:21:05
26
STEEL SUCCESS STRATEGIES 2020
Lots to discuss
Goncalves –
Marcegaglia –
Fujisawa –
Englin –
“WE CONTINUE TO LEAD IN AUTOMOTIVE BUSINESS”.
“A UNIQUE OPPORTUNITY TO ACCELERATE STRUCTURAL REFORMS.”
“CHINA IS BECOMING A NET IMPORTER OF STEEL.”
ROBUST GROWTH IN NON-CHINESE STEEL EXPORTS
PRECLUDED by the ongoing Covid-19related disruptions, this year’s annual Steel Success Strategies (SSS), which is traditionally held in June in New York, was held from October 26-28, for the first time since its inception in 1985, in the virtual theatre. Participants in different parts of the world talked to each other at different
times, but synchronized with the regular office hours in New York. While webinars and virtual conferences have become the mode of exchanges in the pandemic-stricken world, the old challenges, in addition to new ones, continue to confront the business of steelmaking. The problems of steel imports
– aka dumping – along with job creation or losses, depending on which side of the political aisle you stand, were also discussed along with new themes such as climate change, reducing coal-generated pollution in steelmaking, markets, innovation, adapting to new products such as electricpowered and autonomous motor vehicles.
* USA correspondent November/December 2020
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www.steeltimesint.com
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STEEL SUCCESS STRATEGIES 2020
Amid Covid-19 restrictions, the first virtual steel conference – Steel Success Strategies – highlighted the challenges and opportunities facing the steel industry. By Manik Mehta*
contended that globalization was flattening the world, Englin predicted that China’s steel exports in 2021 would increase though the growth would be modest. However, Englin also said there would be robust growth in non-Chinese steel exports. While China loomed large at the conference, there was also space provided to other regions, including India. Indian steel executives are increasingly making their presence felt at many international steel conferences around the world. Tata Steel’s chief executive T V Narendran, said in a keynote presentation that today’s emerging markets will be tomorrow’s growth drivers, and that the three key economies in Asia in 2030 will be China, India and Japan. Covid-19, in his view, is a ‘temporary blip’. Narendran said that innovation was no longer taking place in the developed world and it was migrating to the developing world. Innovation can take place anywhere, he added, citing the process innovation developed by Tata Steel in Europe. Narendran urged the steel industry to innovate further and look to other sectors for solutions. Traditionally, the industry had been more focused on ‘continuous improvement’ rather than on innovation, having pushed for efficiency and
27
surface on innovation as an industry.” He urged the industry to look at ways and means of employing capital more efficiently ‘than (merely) building everything’, and also tackling overcapacity. The industry could learn from other industries and find out how they had become more capital efficient. “There are a lot of inefficiencies in the system which can be ironed out, if we work together to share infrastructure,” he said. “It could be ports, captive ports, railway lines, many other areas. Why can’t the steel industry work on a lease model like the hotel industry?” Overcapacity He also touched on the issue of China’s overcapacity, which is being closely monitored by many American executives. Narendran said that China had exported less and less “between 2015 and today”. “In 2015, China was exporting 10Mt/month; this year, for the past few months, it has been a net importer – (it’s) a big shift.” Speaking about new capacity being added in India, equipped with the latest carbon-efficient and cost-effective technologies, the Tata Steel CEO maintained that new capacity will further be added in markets where demand is growing. Countries such as India, with raw-material
Jeong Woo Choi –
Vinay Shroff –
Benedikt Zeumer –
Yuri Ryzhenkov –
COVID HAS SHAKEN THE WORLD
INDIA PLANS TO MAKE HUGE INVESTMENTS IN INFRASTRUCTURE PROJECTS.
“WE MAY SEE CAPACITY ADJUSTMENTS”.
“WE REGULARLY HAVE ELECTIONS IN UKRAINE.”
China and its overcapacity figured in many speeches and discussions, but it was overshadowed by Covid-19 and its impact on the steel industry. World Steel Dynamics’ duo Philipp Englin, CEO, and Peter Marcus, managing partner, kicked off the conference by providing their insights on the steel industry. While Marcus spoke of the ‘world is flat’, using the title of a best-selling book by Tom Friedman who www.steeltimesint.com
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incremental performance enhancement. He referred to the innovation among European companies who were forced by “very demanding customers … who are pushing us to innovate more and more.” “Innovation is possible in the process, in the product, in the way we approach customers, in the way we generate orders and in the way we fulfil orders,” he said. “I don’t think we’ve even scratched the
resources, have the markets that are conducive to adding capacity. He emphasized the importance of consolidation, which is critical for the overall efficiency of the industry, which is still fragmented, even though it has grown in recent years. Over the past three decades, he added, there had been consolidation through organic growth, and shifting ownership from governments November/December 2020
18/11/2020 06:44:27
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STEEL SUCCESS STRATEGIES 2020
to the private sector, which contributed to better capital efficiency. Narendran also touched on the ‘big challenge’ facing the industry in the form of reducing carbon emissions “at a time when consumption and production of steel is expected to grow … because other industries and sectors are reinventing (and) re-calibrating themselves. The steel sector needs to do a lot more”. Emissions Emissions from the steel industry must fall by 50% by 2050 to meet climate goals, posing a huge challenge for the industry, which, in Narendran’s view, would require ‘a revolution, and innovation with the use of enabling infrastructure’. Tata Steel is exploring the feasibility of
Carbon Capture Utilization and Storage (CCUS) to capture C02 from the company’s steelmaking operations, and either to reuse it or store it in empty gas fields under the North Sea. Raw Materials In his view, the opportunity for the steel industry to innovate would start with raw materials, and making better use of them to reduce the carbon footprint by being more careful about the choice of materials, making more energy-efficient use of raw materials, and developing alternatives to blast furnaces that have a smaller carbon footprint, in addition to using more steel scrap in the production of steel to help reduce that carbon footprint. It was necessary to collaborate with other www.steeltimesint.com
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industries such as the oil industry for carbon storage, chemical industries for usage, producers of gas which do innovative work on hydrogen, and exiting mining companies to work on carbon capture and storage. Echoing the popular sentiment in the industry, Narendran called climate change an ‘existential issue’ for a ‘hard-to-abate’ steel sector. “Low-carbon technology is necessary and requires immediate attention,” he said, emphasizing that the circular-economy approach was needed while designing products and processes. Referencing new capacity being added in India, equipped with the latest technologies which are carbon-efficient and cost-efficient, Narendran said that new capacity will continue to be added in markets where demand is growing. This
meant that countries such as India, which have raw materials, have the markets that offer a natural place to add capacity. With the Indian government allocating huge resources for infrastructure development, there would be greater opportunities for the steel sector. Antonio Marcegaglia, the chairman/CEO of Italy’s Marcegaglia group, and a panelist on the European Steel Panel, said that the coronavirus emergency had exacerbated certain global trends like a failure of multilateralism, the west/east political-economic dichotomy, the increasing differences between developed and developing world, weaknesses in the EU, including Brexit, and growing protectionism. “Nevertheless, enormous resources have been made available worldwide and
29
in Europe to tackle the socio-economic problems related to the pandemic, and this context is representing a unique opportunity to accelerate structural reforms,” he said. “From this emergency situation,” continued Marcegaglia, “we learnt that our socio-economical system is much more fragile than we thought and that the world and the globalized economy are highly interdependent: a single local phenomenon can quickly spread from one part of the planet to another with huge and almost simultaneous impacts. In emergency situations like this, therefore, the ability to forecast and anticipate the consequences of the emergency itself, as well as the reaction rate, become crucial. We must always think about a possible room for manoeuvre: we often have more resources than constraints, but we only discovered this during the emergency.” Geopolitics Yuri Rhyzenkov, the CEO of Ukrainebased Metinvest, responding to my online question on the geopolitics of the region, said ‘we regularly have elections in the Ukraine … more than any other country in the world’. However, he added that the geopolitical situation there was calmer now than four or five years ago; business was more peaceful. Ukraine consumes 20% of the steel it produces while the rest goes to the EU. “We see recovery in Ukraine’s market. There is a stimulus package aimed at reviving the economy,” he said. The Metinvest Group plans to invest $433 million in environmental projects by 2025, Ryzhenkov said, adding that the Group’s companies are already taking comprehensive measures to reduce emissions. They have managed to cut their total emissions by 33% since 2012. Sustainable development At the same time, the key factors determining competitive advantages will significantly change in the future. Thus, sustainable development, including production of ‘green steel’, will eventually become one of the key sources of competitiveness. Indeed, Metinvest has suggested to the EU that Ukraine, a long-time trading partner, be allowed to join the EU’s Emissions’ Trading System (ETS) scheduled to be ready in 2021. Ukraine’s admission to the ETS would November/December 2020
18/11/2020 06:44:29
30
STEEL SUCCESS STRATEGIES 2020
mean that a carbon border tax adjust mechanism would not be applicable to Ukraine because it would be part of the EU’s de-carbonization strategy, Ryzhenkov said. Metinvest is still involved in talks with the European Commission on this issue. The company exports hot-rolled steel coil to the EU, as well as significant volumes of steel slab, both to European customers and to its own re-rolling units in Italy. Restructuring Benedikt Zeumer, partner at McKinsey & Co., predicted a restructuring in the steel industry, adding that this did not necessarily mean a downsizing process because of de-carbonization. “We may see capacity adjustments. We do not need 210 million metric tonnes capacity growth; it will be less,” he said. Lourenco Goncalves, chairman/president/ CEO of Cleveland Cliffs, the largest North American flat-rolled steel producer, called for capital investment in technology innovation. He expected the industry to place emphasis on developing an ‘environmentally and socially-conscious relationship’. “We continue to lead in automotive business. We will continue to try to do better… but we will not be in the commodity (business). We will not go downstream servicing, but we will go downstreaming in automotive,” he said. Leon Topalian, President/CEO of Nucor, recalled that the SSS conference was launched in 1985, with the SSS acronym standing then for “Steel Survival Strategies” but, later, for “Steel Success Strategies”. The moniker Steel Survival Strategies could be relevant again now. Nucor has recently experienced an November/December 2020
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increase in business capacity in its premier markets following the pandemic outbreak, “though we do not expect to return to prepandemic levels any time soon”, Topalian said. Nucor’s top executive dwelt on improving safety for the company’s workers, and improving efficiency and productivity. He defended the US Government’s decision to check rising steel imports as ‘necessary’, and called for vigilance and continuation of measures against such high import levels. “Trade concessions cannot be viewed as candy to be given away,” he said. “However, in the American economy, we’re seeing some positive indicators: For one, the construction market has remained incredibly resilient. We have seen that Nucor’s backlogs and order-entry rates continue to be very encouraging for construction,” he said. Topalian noted that the Charlotte, North Carolina-based steelmaker is seeing strength in markets tied to construction, including heating, ventilation, air conditioners and water heaters. “Additionally, we’re also seeing strong growth in solar and renewable market segments,” he said. “Automotive has improved from its earlier lows, and while we don’t expect the market to return to pre-pandemic levels anytime soon, there’s been an increase in activity in many sectors of Nucor’s markets.” Nucor, he emphasized, was committed to sustained energy, saying that the US is ‘one of the cleanest places to produce steel’. He maintained that renewable energy – wind and solar – was becoming cost-effective. Recycled steel can be found in iconic structures and landmarks in the US. He struck a note of optimism and averred that ‘we will come out of 2020 more resilient and successful’. Health, social and economic crises Jeong Woo Choi, chairman of the South Korean steelmaker POSCO, said that Covid-19 had shaken the world, causing health, social and economic crises. “The steel industry has impacted our lives, the economy and steel industry.” He discerned certain trends in the consuming industries that could impact the steel industry: the auto industry was restructuring, the elective vehicle industry was posting growth, and there were multi-material vehicle structures, combining iron and plastic with steel could lead to the creation of a ‘new steel’. POSCO
is moving towards carbon neutralization. Sanjeev Gupta, executive chairman of GFG Alliance, said steelmakers have been undercut by other supplier countries; notably China. While the pandemic may have had serious consequences for the industry, ‘we should not give up on steel. We need the industry’s reinvention driven by new technology and innovation. He spoke of producing ‘green steel’ with clean and environmentally-friendly processes. Rebuilding with technology Gupta, whose group was recently in the news in connection with the takeover of the steel division of ThyssenKrupp, said that hydrogen technology is the ‘cry of the day’. “We can rebuild our industry with new technology and a new approach. We need investments, new consolidation …” he said. “The path to a sustainable steel industry, economically, socially and environmentally is to shift towards low-carbon technologies and ultimately carbon neutrality as quickly as possible. To support this shift and create a level playing field we need a global carbon price. There is some progress being made towards this, but we are still some way off. Regional policies must, therefore, give a competitive market advantage to those players who move fastest in the transition to low-carbon steel and not protect a failed traditional model,” Gupta said. Exposed grade steels Steel Dynamics Inc’s (SDI) new $1.9-billion flat-rolled steel mill in Sinton, Texas, could be the first electric-arc furnace (EAF) facility to produce exposed-grade automotive material, SDI’s president/CEO Mark Millett said. “The Sinton mill will certainly produce unexposed automotive steels, and we believe it will offer the possibility for the first mini-mill production of exposed automotive steels,” Millett said. Exposed grade automotive steel – sheet for roofs, hoods and other applications where surface quality is critical – have been one of the last bastions of integrated mills, which use iron ore rather than scrap as a raw material. Millet pointed out that SDI’s Sinton mill, scheduled to be completed in mid-2021, should be able to make those grades thanks to a 5-inch-thick caster coupled with a traditional hot-strip mill. “The thicker caster will facilitate greater www.steeltimesint.com
18/11/2020 06:44:31
STEEL SUCCESS STRATEGIES 2020
reductions for superior metallurgical and surface properties. The hot-strip mill configuration allows for firmer mechanical rolling for tougher, stronger steels at less cost,” he said. The Sinton mill could benefit from the increased local content standards in the USMexico-Canada (USMCA) trade agreement requiring that automakers need to source 70% of steel or aluminium from within North America. While emphasizing SDI’s commitment to the region, and to the potential growth of the Mexican market, Millett recalled that SDI had initially considered building the Texas mill in Mexico. Despite advantages accruing from relocating to Mexico, the company finally decided not to establish its plant there because it did not identify a suitable local partner and also it could not find a good site, he said. USMCA benefits SDI While SDI has not established a mill in Mexico, the company does benefit from USMCA rules, as European automotive companies increasingly source their products from North America, both in the US and Mexico. SDI, according to Millett, will also support a carbon border tax similar to what is being deliberated in Europe. Countries that do not follow international environmental standards and are contributors to greenhouse gas emissions supply much of the steel imported into the US. If the pandemic has heightened awareness of the need to search for a path towards meeting the steel industry’s future challenges, the answer might lie in digital technology. A digital-technology dedicated panel gave prominence to digital technology, including machine learning, computer vision, data analytics and artificial intelligence. “Digital transformation is changing the industry, and that change is fundamentally about using data, especially operational data,” said Martin Provencher, industry principal in mining, metals and materials at OSIsoft in Montreal. But of the companies investing in digital technology only few plants have seen any significant improvements in costs and efficiencies. Referring to a 2018 survey by McKinsey & Co. on digital transformation, Provencher said the investing companies do not get the value out of it. “… only 16% of respondents say their organizations’ digital www.steeltimesint.com
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transformation has successfully improved performance.” To make the most of this new technology, raw data has to be converted into operational intelligence and presented “in formats that can be easily understood by human decision makers... This will empower your people,” Provencher said. Success with digitalization The McKinsey survey found that companies transitioning to use digital technology can more than double their chances of success by increasing their data-based decision making. Harley Lorentz Scardoelli, Gerdau’s global chief financial officer, maintained that both the North American and Brazilian markets offer strong growth potential associated with infrastructure-related projects in the pipeline. Although severely impacted by COVID-19, Brazil has experienced lively construction activity. Brazil’s market generates some 4045% of Gerdau’s business. Describing Brazil as an emerging market, Scardoelli said that ‘(in) an emerging market, the potential for the growth of steel consumption is very large – both in long and flat production – and we as a company operate in both of those markets”. The housing and infrastructure segments were potential drivers for big growth in steel consumption within Brazil. North America accounts for some 35% of Gerdau’s business. The Brazilian steelmaker has been bullish about North America where steel consumption, fuelled by infrastructure projects, shows promising growth. Gerdau operates 10 mills, five downstream locations and 21 scrapyards across North America.
31
leading steelmakers. India plans to make huge investments in infrastructure projects (energy, roads/highways, railways, ports, airports, urban development, irrigation, digital communication), which will, undoubtedly, boost steel consumption. Rural demand for steel has also increased. There are opportunities available for the steel industry in multiple sectors. Steel demand is expected to reach 230Mt by 2030. Workers and raw material availability would support the Indian steel industry’s growth trajectory. JSW Steel, according to Shroff, felt the impact of Covid-19 in India, which imposed a lockdown for several months; however, the company developed a resilient strategy that saw a realignment of supply chain and logistics. Japan’s industrial decline Mike Fujisawa, principal at Japanese steelmaker, JFE Steel Corp., said that Japan’s industrial production had declined. The construction business had done relatively well compared to automotive and other sectors. “China’s demand is so strong that it is becoming a net importer of steel,” Fujisawa maintained, adding that China’s planners want to concentrate on domestic consumption over international supplies. A Steel Industry 2050 Panel, predicting that there will be more briquetted iron products and scrap, expected steel consumption to rise to an incredible 4 billion tonnes/year by 2050, up from 1.87 billion tonnes in 2019. However, climate change and pressures to reduce greenhouse gas emissions would also increase costcutting consciousness. �
Asian steelmakers Steel industry representatives from China, India, Japan and South Korea highlighted the steel sector of their respective countries during an Asian Steel Panel. Vinay Shroff, executive vice president (sales/marketing) of JSW Steel, said that China had the highest steel-production capacity at 72% while India accounted for 8.8% of total capacity in Asia. India’s per capita steel consumption at 74 kg was among the lowest by international comparison; China’s per capita consumption is around 633 kg. Shroff said that four of India’s steel companies are among the world’s 34 November/December 2020
18/11/2020 06:44:33
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MINIMILLS
Didn’t they do well! There is no question that 2020 has been a very challenging year for the entire US steel market with the Covid-19 pandemic resulting in considerable demand destruction, particularly during the second quarter of the year. It appears, however, that electric arc furnace (EAF), or minimill, steelmakers were able to fare somewhat better than their integrated mill counterparts. By Myra Pinkham* THE pandemic performance of minimills, according to Tyler Kenyon, a metals and mining analyst with Cowen & Co., was partly due to the resiliency of some of the markets they serve – particularly their concentration upon the construction industry, which wasn’t as subject to pandemic-related lockdowns as some other sectors of the US economy. Also, Philip Gibbs, an equity research analyst for KeyBanc Capital Markets, says that it is a factor that certain steelmakers who have great balance sheets and variable business models have put a lot of capital to work to grow their businesses and to expand their capacity and take advantage of weak competitors that have either been sold or who altered their business models. That isn’t to say that EAF steelmakers didn’t take a hit this year. “In general, EAF steelmakers, particularly EAF sheet mills, did very well despite everything that has been going on,” Christopher Plummer, managing director of Metal Strategies Inc., says, but still, he predicts that for the year as a whole that 2020 EAF crude steel production was about 14% from 2019 levels. “That, however, is less than for integrated steel
producers, who will see close to a 25% decline.” Even though, according to data from the American Iron and Steel Institute (AISI), total US steel mill capacity utilization plummeted to about 51% in early May from over 82% in January, Plummer says that EAF operating rates were higher than that. “For example, Steel Dynamics Inc. (SDI) was running at 94% capacity utilization during the first quarter with its operating rate only falling to 79% in the second quarter.” And while the coronavirus clearly hit demand hard in the second quarter, a spokeswoman for Nucor Corp. observed that with the economy recovering more rapidly in the third quarter than expected, the steelmaker experienced a rebound in its demand for bars, beams and sheet. In fact, Leon Topalian, Nucor’s president and chief executive officer, told investors during the company’s recent earnings call that Nucor’s steel mills’ operating rate moved up to 83% by the end of the third quarter after having fallen to 68% in the second quarter. This comes as, according to AISI, overall US steel industry capacity utilization was only 66.1% at the end of September and 69.7% at the
end of October. This discrepancy comes at a time when the US integrated steel producers have idled, and in some cases closed, a significant amount of production capacity. In fact, Philip Bell, president of the Steel Manufacturers Association (SMA) pointed out that during the second quarter US Steel alone had 10 of its blast furnaces down (six of which were brought back into service as of the end of October). “It made sense that they had done so,” Plummer says, given that, at least during the second quarter the integrated steelmakers’ end-use markets – primarily automotive – had shut down for two months, but has since recovered. He notes that the higher cost nature of their operations and their reliance upon coke batteries and blast furnaces – both of which can’t be slowed down too much without risk of damage – also played into this. This, Kenyon points out, has been one of the factors contributing to the recent spike in the overall EAF share of the US market with another factor being that EAF steelmakers’ end-use markets – particularly construction, which accounts for 45%
* USA correspondent www.steeltimesint.com
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November/December 2020
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MINIMILLS
of total US steel use and is supplied predominantly by the mini-mills – has held up better than automotive and other integrated mill end-user markets. Plummer agrees, noting that current expectations for the year as a whole are for the EAF share to hit about 71%, which, in addition to being a record high, is dramatically higher than its 69.7% share in 2019. John Anton, associate director of IHS Markit’s pricing and purchasing service, says that the EAF share has recently stabilized somewhat in recent months with integrated producers bringing back some of their idled capacity. Also, he says that it is likely that construction activity could weaken in coming months given that its strength has been largely related to the finishing of work that had already been underway rather than contracts to start new work. “The Architectural Billings Index (ABI) and other indicators of future construction activity haven’t been good,” Anton said, noting that the ABI, which is an indication of non-residential construction activity six months into the future, collapsed when Covid hit and has remained in negative territory (below 50 points) at least through September. On the other hand, Anton says that US economic growth has been improving. US third quarter GDP was up 7.4% quarteron-quarter and 33.1% on an annualized basis and IHS Markit’s September US manufacturing purchasing managers index (PMI) was showing its sharpest improvement in operating conditions since January 2019. With all the new planned EAF capacity, EAF market share could move up to 80% or even higher by 2022 or 2023 before reaching a new equilibrium in 2023 or 2024. Even with the challenges presented by a combination of Covid-19 and other struggles in certain end-user markets, the SMA’s Bell says that most of the recently announced major EAF capital projects aimed at modernizing the domestic steel Company
City
State
US EAF Steel Production
Forecast (mn Tons)
industry continue to go full steam ahead. In fact, Keith Shuttlesworth, its chief commercial officer, says that Big River Steel’s 1.6Mt Phase II expansion in Osceola, Ark., is expected to start up in November – two months ahead of schedule. “Over the next six to 24 months we will be seeing more modern steel mills in place that are using increased artificial intelligence, sensors, robotics and sustainable and renewable energy to help modernize our domestic steel industry,” SMA’s Bell said, noting that by conservative estimates, at least 10-12 million short tons per year of new EAF steelmaking capacity – mostly for sheet, but also for plate, rebar, merchant bars and other long products – will be coming online through 2022 or 2023. That, Plummer says, is just the projects that are already underway or that have been formally announced. He estimates that there is another 7,000 tons of probable or possible new EAF sheet capacity that could also come online. Bell says there is enough demand for this new capacity, especially given recent US trade policy. “It is a bit of an algebra equation,” he explains, as it will displace both imports and older, inefficient capacity at both EAF and integrated mills. Also, he says that these new projects – both for greenfield plants and plant expansions and upgrades – will further the trend to enable EAF steelmakers, particularly flat-rolled steel producers, to produce grades of steels that they weren’t able to produce just a decade ago, including advanced high strength steels (AHSS) and ultra-high strength steels. “In fact, I think it is just a matter of time before US EAF steelmakers make significant inroads into the exposed automotive sheet market,” Bell says. The company’s spokeswoman says that Nucor already produces almost all the automotive grades that integrated steelmakers make. “We believe that in the next decade EAFs will be able to produce
EAF
2000
52.8
2001
47.1
2002
50.8
2003
52.7
2004
57.2
2005
57.6
2006
61.8
2008
58.5
2009
40.5
2010
54.4
2011
57.4
2012
57.8
2013
58.0
2014
60.8
2015
54.5
2016
58.0
2017
61.5
2018
64.9
2019
67.4
2020
59.3
2021
65.3
2022
72.4
2023
73.1
2024
74.9
2025
75.0
EAF production forecast
Philip K Bell
Capacity
Announce Date
Capex (Mn $)
Description
CMC
Durant
OK
350
April 2018
$250
Micro mill
Nucor
Frost Free
FL
350
---
$250
Micro mill
Nucor
Sedalia
MO
350
June 2018
$250
Micro mill targetting Kansas City region
CMC
Mesa
AZ
500
44,044
$250
Micro mill
Liberty
Georgetown
SC
750
---
Total 2,300
EAF-based wire rod mill
$1,000
EAF-based Long Product Restarts and Expansions, 2018 and 2019 - Brownfield, Greenfield and Restarts, 000 Tons per Year. Source: Metal Strategies Inc.
November/December 2020
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MINIMILLS
all of the products demanded by the automotive market,” she said, adding that it is Nucor’s expectation to roughly double its automotive shipments from about 1.5Mt/ yr to 3Mt. “Several of our recent capital investment projects expand our portfolio of products for the automotive industry, including the production of AHSS.” Similarly, Mark Millett, president and chief executive officer of Steel Dynamics Inc (SDI) says that its new 3Mt/yr greenfield flat-roll mill in Sinton, Texas, which is slated to be completed in mid-2021, will not only produce unexposed automotive steels, but it could be the first EAF facility to produce exposed auto sheet. David Burritt, US Steel’s president and chief executive officer, recently announced that as part of his company’s Best of Both strategy-related collaboration, and possible eventual merger, with Big River Steel, the two companies have been successful in producing the first third generation (Gen3) AHSS using the EAF process – at Big River’s Osceola mill. “We are producing grades of steel that many didn’t think possible at all through a mini-mill, let alone in the first year of a partnership,” he said. US Steel acquired a 49.9% share of Big River in October 2019 and has an option to buy the remaining stake in the company by October 2023. Burritt says that this recent technological accomplishment “will create unmatched value and differentiation for our customers while ultimately providing the green steels our customers demand to achieve through their low carbon goals.” This came on the heels of US Steel’s announcement that it had started up its first EAF – at its Fairfield, Ala., plant, which Burritt says delivers on his company’s commitment to add sustainable
35
2022-2023
TOTAL
54.8
100.0%
EAF-based
24.5
45.4%
Nucor
9.4 17.5%
Steel Dynamics
8.7
NS-BS
2.8 5.1%
Slight ADC decline, offset by lower imp and higher exp (esp to Mex)
16.2%
NLMK-Portage
0.8
1.5%
EAF-based portion of Portage IN
Big River-BRS
2.8
5.2%
Standalone from US Steel Purchased slab-based
Slab Based
7.1
12.3%
AM-NS Calvert
4.2
6.9% 2.6%
NLMK
1.4
CSI
1.5 2.8%
JSW-Mingo
0.0
0.0%
Slab-based portion of Farrel PA and Portage IN Mingo Junction OH
Integrated 23.2 42.3% ArcelorMittal (Cliffs)
11.0
20.4%
Excludes AM-NS Calvert AL
US Steel
8.4
13.9%
Excludes Big River-BRS
AK Steel-Cliffs
3.8
8.0%
US producer sheet shipments (MT)
steelmaking capability to its footprint while driving significant cost reductions, adding, “The new EAF and our collaboration with Big River Steel are two proof points of our Best of Both strategy.” Cowen’s Kenyon, however, said he isn’t convinced that this foretells that more US integrated steelmakers will look to increase their presence in the EAF market even though he notes that in addition to the likelihood that at some point US Steel will acquire Big River, Cleveland-Cliffs’ planned acquisition of most of ArcelorMittal USA’s assets will give the company some EAF plate mills. IHS Markit’s Anton agrees, stating that it isn’t the time for companies to make big life decisions, maintaining, “Decisions made in a time of chaos aren’t always the best decisions.” That said, US integrated producers have been undergoing a bit of merger and acquisition activity – and possible consolidation – as well as some major shifts in strategy. For example, given that it had already acquired AK Steel earlier this
year, Cleveland Cliffs looks like it is on the road to becoming the largest US flat-rolled steel producer. Its expected acquisition of ArcelorMittal USA assets, however, does not include AM/NS Calvert, a 50-50 joint venture between ArcelorMittal and Nippon Steel, which is planning to build a 1.5Mt/yr EAF at its facility in Alabama. “It is too early to know what the impact of Cliffs’ acquisitions will have upon its EAF competitors or whether there will be further merger and acquisition or consolidation activity,” Bell says. Kenyon, however, says it’s possible, especially with US Steel signaling that it will be focusing its business strategy around three of its legacy operations. “That could imply that two of their operations – Great Lakes and Granite City – might be shuttered or repurposed to produce pig iron,” he said, adding, “Also there will likely be some difficult decisions that Cleveland Cliffs will need to make following the integration of the ArcelorMittal USA asset.” But he said that such moves will result in a more rational market, which will benefit both EAF and blast furnace producers. While it has been a challenging year, riddled with uncertainty, Plummer says it has proven the resilience and flexibility of US EAF steelmakers, given that they were able to maintain fairly high operating rates, even during the depths of the pandemic in the second quarter. “We are, however pleased with the improvement we are seeing in a number of end-user markets,” a Nucor spokeswoman said, adding, “The economic recovery should continue, but the pace will depend upon how quickly we get the pandemic behind us.” � November/December 2020
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ELECTRIC STEELMAKING
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Electromagnetic stirring and EAFs The importance of electric arc furnaces (EAF) in global steel production has been continuously increasing in recent years – and seems likely to continue to do so. But in common with all steelmaking, EAF will have to become smarter to succeed in a challenging environment. Lidong Teng*, explains why electromagnetic stirring is one key to surviving and thriving in today’s market
Electric Arc Furnace in operation
ELECTRIC arc furnaces (EAFs) have played an increasingly important role in global steel production in recent years. EAF steel production was only about 405Mt in 2015, but increased by 28% to 517Mt in 2019, according to the World Steel Association (worldsteel).1 The longer-term future of the EAF also appears bright, thanks to the sustainability advantages it holds over blast furnace production, particularly if low-carbon forms of electricity continue to become more widely available. An increase in the availability of scrap steel, which worldsteel expects to hit 1 billion tonnes by 2030,2 will play another key role in supporting growth in EAF production. The recycling of steel is an easy win for the circular economy, with important results in terms of reducing the
carbon footprint and the need for newlymined raw materials. With the disruption caused by COVID-19, however, the figures for this year look more challenging. For the steel industry as a whole, worldsteel anticipates a 6.4% reduction in demand, followed by a 3.8% fall next year.3 We will have to wait and see how this effects EAF production levels, but market conditions seem set to be much more challenging, at least in the short term, adding to the existing competitive and environmental pressures under which the industry was already operating. With market conditions looking tougher after Covid-19, it is those steelmakers that are best able to embrace the advantages offered by new technology – through innovative cost cutting and a steady focus
on performance – that will be best placed to ride the storm through to calmer seas. Stirring the melt in an EAF has long been known to bring a range of benefits: from increased productivity to lower costs and enhanced control of process conditions downstream of the furnace, as well as a reduced carbon footprint. In uncertain times, these benefits could prove vital in enabling a steelmaker to survive and thrive. At the forefront of stirring technology is electromagnetic stirring (EMS). A proven solution EMS is not a new technology: it was first patented about 80 years ago and there are now more than 1,870 references worldwide, across various applications, including 158 on EAF. On an EAF, the EMS
* Senior metallurgist at ABB www.steeltimesint.com
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parameters. As a result, payback time for EAF-EMS is relatively short with return on investment for ABB’s technology standing at 12-18 months, depending on annual production and EAF volume (larger furnaces generally experience quicker ROI).4
ABB ArcSave technology
hardware is installed under the furnace bottom – but not in contact with it – and generates a travelling electromagnetic field that penetrates into the furnace and generates a magnetic force within the melt that produces the stirring effect. This results in improved mass and heat transfer through the melt. The contactless installation avoids the inherent risk of breakthrough that comes with the use of the gas plugs used for bottom gas stirring (BGS). It also means maintenance requirements are negligible; the EMS stirrer coil itself is maintenance free, while the auxiliary equipment requires only minor maintenance, for example, to clean strainers on the heat exchanger every
couple of years. EAF-EMS has also proven particularly long-lived with the oldest operating for 54 years and counting. This contrasts with bottom gas stirring (BGS), which requires regular maintenance and replacement of the porous plugs. As a result, EAF-EMS has been shown to offer much lower operating costs, in the range of 20% to 40%, than BGS, while creating a global stirring effect, without dead zones or cold spots, and much higher stirring power. Its latest iteration, ABB ArcSave®, is able to generate average melt flow velocity of 0.2-0.4m/sec in today’s high-power EAF. It also offers adjustable and automatic control that means stirring can be tailored to specific operating
A track record of results Currently, nine steelmakers have installed or will install ArcSave, the latest EAF-EMS technology, representing all furnace types – carbon steel, stainless/specialist and Consteerer™ including: • Steel Dynamics Inc., Roanoke, USA, 2014, on a 90 tonne EAF for carbon steel production. • Outokumpu Stainless AB, Avesta, Sweden, 2014, on a 90 tonne EAF for stainless steel production. • POSCO, Pohang, South Korea, 2018, on a 95 tonne EAF for stainless steel production. • SeAH Changwon Integrated Special Steel, Chang-Won, South Korea, 2018, on a 70 tonne EAF for stainless steel and tooling steel production. • Yongfeng Steel, Shandong, China, 2019, on two 160 tonne Consteel™ furnaces for carbon steel production. • Böhler Edelstahl, Kapfenberg, Austria,
Outokumpu Stainless Steel plant at Avesta, Sweden
November/December 2020
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2020, on a 50 tonne EAF for special steel production. • Nippon Yakin, Kawasaki City, Japan, 2021, on a 70 tonne EAF for special steel production. Improving furnace productivity EAF-EMS has a measurable impact on furnace productivity. At Steel Dynamics, for example, productivity increased by 6%; at Outokumpu Stainless by 6-8%; and at SeAH, the increase was 5-7%. There is also an increase in yield, typically by about 1%. This productivity gain comes from the improved heat and mass transfer through the melt, which results in faster melt times and more homogenous melt conditions. Power-on time is, therefore, lower with EAF-EMS, while larger scrap bundles can be used to charge the furnace without compromising performance. At SeAH, for example, scrap handling costs were reduced by 70-80% as a result of its improved ability to melt larger scrap and whole rejected ingots (up to 4 tonnes). Better melt conditions also help avoid the formation of bottom skulls, a particular challenge for stainless and special steel producers that reduces the capacity of the furnace. At both Outokumpu Stainless and SeAH, a reduction in bottom skull formation was a primary motivation for installing EAF-EMS, as previous attempts with BGS has failed to tackle the problem. At SeAH, bottom skull build-up could be as much as 1000 mm thick and require drilling out with the refractory removal machine. This was a significant effort in terms of the time taken to remove the bottom skull, during which the furnace was not operating, as well as the costs involved. Following EAF-EMS installation, bottom skull formation at SeAH was reduced to less than 200mm. The stirring force generated by EAF-EMS can also help to double the decarburization rate, which is particularly relevant when charging the EAF with hot metal or pig iron, as well as in EAFs where decarburization is a current bottleneck. Keeping control of costs Steelmakers with EAF-EMS are able to maintain greater control of costs. Critically, energy costs are reduced, as power-on time is shorter and complete melting is achieved more efficiently. Energy consumption fell by 5% at Steel Dynamics, and by 3-4% at both Outokumpu Stainless and SeAH. These www.steeltimesint.com
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Skulls being lifted from the EAF with a crane[5]
energy savings are inclusive of the energy used by the stirrer, which is roughly 2-3kWh per tonne of liquid steel. Savings are also seen in the consumption of refractory materials. Better mixing of the melt not only means no cold spots in the melt, but also reduced surface superheat during the power-on period – which results in less refractory wear in the slag-line area. Meanwhile, as long as the melt velocity is well controlled, there is no increase in refractory wear in other parts of the furnace, for example on the furnace bottom. At Steel Dynamics there was a 20% decrease in furnace repair material consumption after the installation of EAFEMS, while at SeAH, there was a 40-50% fall in hot gunning materials consumption and a 6-10% fall in wall refractory consumption. The faster scrap melting – particularly of larger scrap bundles – that is achieved by EAF-EMS also helps to limit scrap stratification effects and cave-ins, reducing electrode current swings by 50-60% and stabilizing the arc. This results in higher arc power input and lowers electrode consumption, which fell by 3% at Steel Dynamics, 8-10% at Outokumpu Stainless, and 3-4% at SeaH.
Improving conditions downstream of the EAF A final area in which EAF-EMS has an impact are conditions downstream of the furnace. At Outokumpu Stainless, for example, tap temperature hit ratio improved from 30% to 100%, tap weight hit ratio went from 69% to 93%, and tapping temperature fell by 20-30°C. All of which helped to improve conditions to the Argon Oxygen Decarburization (AOD) process. A similar tapping temperature reduction was seen at SeAH, while tapped liquid steel per heat rose by 3-5 tonnes. Tapping temperature fell at Steel Dynamics by 13°C. There is also a reduction in carryover slag in the tapping ladle with EAF-EMS. High carryover slag is caused by vortex formation in the EBT area and leads to higher ferroalloy consumption in the ladle furnace. Due to the global stirring effect of EAF-EMS, the vortex is moved away from the surface, so that it no longer forms or sucks slag into the melt. There is no similar effect when using BGS. As a result, measurements at Steel Dynamics showed a 40-50% reduction in carryover slag in the ladle after tapping, resulting in a cost saving in ferrosilicon and calcium carbide consumption in the ladle furnace. November/December 2020
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Effect of ArcSave® on electric energy consumption (left) and power on time (right) reduction
SeAH Changwon Integrated Special Steel, Chang-Won, South Korea
Conclusion EAF-EMS brings important benefits to the process of electric steelmaking – benefits that are particularly relevant in current market conditions and given the challenges that now face the industry. In addition, EAF-EMS helps steelmakers tackle the challenge of sustainability. Lower energy consumption results in lower carbon dioxide emissions, while lower consumption of refractory materials, electrodes and additives helps to reduce the impact of steelmaking on the environment. Steelmaking is going to have to become increasingly smart if it is to ride out the current storms to a sustainable future. EAFEMS is one way of making that change to a smarter future – not just in the furnace but through the downstream process steps.
2. Çiftçi, B.B., ‘Blog: The Future of Global Scrap Availability’, worldsteel.com (2 May 2018). Accessed (27 July 2020): https://www.worldsteel. org/media-centre/blog/2018/future-of-globalscrap-availability.html 3. ‘worldsteel Short Range Outlook June 2020’, worldsteel.com (4 June 2020). Accessed (27 July 2020): https://www.worldsteel.org/media-centre/ press-releases/2020/worldsteel-short-range-
outlook-june-2020.html 4. ROI calculations include the cost of the stirrer, auxiliary equipment, and any necessary furnace modifications (EAF-EMS requires a stainless- steel bottom furnace shell or window to operate), but do not include potential productivity gains experienced as a result of EAF-EMS installation, which may reduce payback time. �
References 1. Steel production figures taken from World Steel in Figures, 2016 to 2020, published by the World Steel Association. November/December 2020
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Measuring and assessing the EAF electrical system Following a previous analysis of the EAF voltage measurement at the high current system[1], the EAF electrical system is analysed here in terms of what is measured and what characteristic parameters can be derived for assessment of operational electrical behaviour. Differences of supply side and furnace side are discussed. The characteristic phenomena and influences on measured quantities are explained.
The arc furnace electrical system FIG 1 depicts the measurement circuits of the three-phase system AC EAF. Each of the two independent circuit loops consists of an approximately sinusoidal supply voltage source, linear resistive-inductive impedances and non-linear arc voltages. Due to the properties of the arc plasma the arc voltages and the arc currents are not sinusoidal except approximately in refining with good foaming slag. Arc voltage and current oscillations are always in phase but their curve forms are different in general. The arcs behave like non-linear resistors “creating” harmonics. The voltage measurements on HV side (primary “p” or supply side) and LV side (secondary “s” or load side) play a special role. All problems of power measurements result from the voltage measurements. The current measurement is no problem because it is always very accurate. An external serial reactor is indicated by coils on the HV side. It can be located on the supply side (R1) or on the transformer side (R2) of the voltage measurement. Both, reactor and transformer cause voltage drops and thus reduce the available power for the furnace. However the reactor provides stability for long arc operation. The furnace transformer’s vector group is almost always Dd0 (internal delta closure) or Diii0 (external
delta closure). Vector group number 0 means that the phase currents are the same in the whole circuit, their magnitudes only change with transformer tap ratios. Fig 2 depicts the connection of a typical furnace transformer. Note that the terminal order on LV side is different than that on HV side. The connection of the delta is only feasible in this way, no matter if internally or externally closed. Thus the line current of terminal 1U appears in the centre electrode. This shift of the currents is typical and needs to be considered by the electrode regulation and also for the phase sequence. This must be anti-clock-wise when looking onto the
electrodes from top to avoid unscrewing. In the case of figure 2: El.1 → El.3 → El.2 or 2W → 2V → 2U or 1W → 1V → 1U. Hint: the reason for electrode unscrewing is the proximity effect, i.e. non-uniform current density distribution in the electrodes that causes torques[2]. At EAF single phase conditions occur regularly. This means that one electrode (line) current is zero. The related electrode and line-line voltages then rise up to their offload value approximately. A voltage rise in the supply can occur which in turn can cause an automatic tap adjustment at step down transformers. As only one circuit loop
Fig 1. Schematic of the three phase system for an EAF with voltage measurements on supply (HV) and load (LV) side
*Badische Stahl-Engineering GmbH, Kehl, Germany dirk.riedinger@bse-kehl.de www.steeltimesint.com
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Fig 2. Transformer connection using external delta Fig 3. Computed radiation power indexes and derived arc voltage for refining
remains, both related electrode currents are equal in magnitude. So only one current exists in one circuit with one supply voltage. The single phase situation is to be avoided because it causes high stress for the electrical equipment. Voltages and currents What are the relations of the instantaneous voltages and currents of the circuits of Fig 1? The instantaneous sum of the currents is zero because of the three-phase system in star connection, so only two currents are independent: i1+i2+i3 = 0. The currents “meet” in the charge starpoint B inside the furnace. On the HV side the sum is zero only approximately but the very small magnetizing currents of the furnace transformer can be neglected, so iµs = iµp *r . (with r: transformer tap ratio, µ: phase number 1,2,3). The instantaneous sum of the HV side supply line-line voltages is as well zero: . u 1p-2p + u 2p-3p + u 3p-1p =0. This is a property of the electrical generating system. The HV side phase voltages are always measured against a grounded starpoint at the PT. It can be assumed that this is identical with the fictitious starpoint 0. The consequence is that the voltages are always (approximately) symmetric and almost sinusoidal because they represent the supply line-line voltages, so u 1p0 + u + u 3p0 =0 . These voltages are called 2p0 “fictitious” because they are not the real starpoint voltages of the load. The LV side transformer voltages result from the transformation of the HV side lineline voltages by the furnace transformer, e.g. u 1p-2p /r The measured LV side lineline voltages, e.g. u1s-2s, are not equal to the transformer voltages if an external delta closure is installed because then the transformer voltages are inside the delta. November/December 2020
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Exemplarily (fig 2): .u1U-1V /r ≈ u2U1-2U2 ≠ u2U-2v . Each of the quite sinusoidal LV side line-line voltages is the difference of two distorted electrode voltages, e.g. u1s-2s = u1sM – u2sM. This means that harmonics contained in the two electrode voltages cancel out to a certain degree. The sum of the measured line-line voltages is only approximately zero due to induced fault voltages[1]: u1s-2s + u2s-3s + u3s-1s ≈ 0 . The electrode voltages µusM are measured against the reference ground M of the furnace and represent the real starpoint voltages of the load. They include the voltage drops of the high current system from cables, arms and electrodes, the arc voltages uArcµ and the induced fault voltages ufµ , so. uµs-M= uHsµ + uArcµ + ufµ In case of external delta (Diii0) the measuring cables of the PT are connected to the phases where the high current cables are connected to the delta vertexes at the transformer wall. The impedances of the external delta are not included in the measurement. In case of internal delta the connection is at the transformer terminals[1]. The instantaneous sum of the electrode voltages is generally not zero: u1sM + u2sM + u3sM ≠ 0. Besides induction the reason is asymmetry which is caused by asymmetric currents or impedances or different conditions for the arcs in the charge. To assess system asymmetry by the electrode voltages is not meaningful. Powers Periodical quantities like voltages and currents in three-phase circuits are characterized by their root mean square (RMS) values. RMS and DC values of equal magnitude have equal effect. That is why RMS are important. The minimal measuring period T is one full cycle (20 ms at 50 Hz,
16.67 ms at 60 Hz). Power quality recorders typically use a standardized period of 200 ms. This includes 10 cycles at 50 Hz and 12 cycles at 60 Hz. The power quantities to be determined in the conventional way are (SP=starpoint): Phase apparent powers:
Phase active powers:
Phase non-active powers: Total power factors: Total active power: Total non-active power: Total apparent power:
Total power factor:
The total active power is always the algebraic sum of the phase active powers. The summation of the non-active phase power magnitudes is a threefold approximation. Strictly speaking: non-active powers do not sum algebraically in general, on the HV side the fictitious starpoint can cause artificial asymmetry non-active power and on the LV side the cancellation www.steeltimesint.com
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Fig 4. Stability factor as a function of current
of harmonics is neglected. However for the resistive-inductive EAF the sum Q1+Q2+Q3 is still a good approximation on HV side and an acceptable one on LV side (not regarding induction). An exact evaluation of the total non-active power is feasible but not applied to date[3]. It is wrong to sum the phase apparent powers like S1+S2+S3. Note that the phase values and also the total values of active, non-active and apparent power build Pythagorean triangles. Active and nonactive power are orthogonal. The term “non-active” power is a generalization. Only under sinusoidal conditions we should say “reactive” power. The power factor is called cosφ also only under sinusoidal conditions because the phase angle φ is related to the phase shift of the fundamentals of voltage and current. What is the meaning of the defined apparent and non-active powers? Non-active power results from non-proportionality of voltage and current oscillations. This means that there is phase shift and / or distortion. Distortion means the degree of non-sinusoidality, i.e. the harmonic content. Phase shift is caused by system inductances, distortions by the nonlinear characteristics of the arcs. Apparent power SΣ is a measure for the utilization of the supplied energy at the point of voltage measurement and it represents the potentially achievable active power. In the optimal case SΣ would be equal to PΣ and QΣ = 0. This is the goal of compensation: supply load reduction (positive side effect: a stable supply voltage improves productivity). The best electrical utilization of the system is achieved with symmetric EAF operation, i.e. with symmetric currents and symmetric short circuit reactances of the high current system which result in symmetric arcs with equal arc powers on www.steeltimesint.com
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Fig 5. Distortion factor as a function of current
average. Then the total harmonic content of the system becomes smallest. Note: system asymmetry has no effect on energy consumption. HV side measurement Voltages and currents of the HV side are always available and the PT’s and CT’s are very accurate. A high accuracy current measurement is important for the electrode regulation system, the CT should be class 0.5. The measurements of the closeby furnace switch gear should be used, the furnace busbar is too far away. The phase voltages are the fictitious starpoint voltages (computed from the line-line voltages or measured at the PT). The characteristic HV side phenomena are: • The asymmetry of the phase powers depends on current asymmetry only. • The phase active powers include active power losses of the furnace transformer and of a serial reactor if this is installed between voltage measurement and furnace transformer. • The non-active powers caused by inductive phase shift and harmonics include all system reactances, i.e. the short circuit reactances of the high current system incl. an external delta, the furnace transformer and the serial reactor if this is installed between voltage measurement and furnace transformer. • The measured voltages contain much less harmonics than the electrode voltages because the supply voltages are quite sinusoidal. Distortions are caused only by the distorted load currents which cause related equally distorted voltage drops on linear equipment impedances in the supply lines. These voltage drops are comparably small. Thus the harmonic influence in the
powers is mainly related to the currents. • Using a large serial reactor value, the power factor can become smaller than 0.7 on the supply side. However, on the furnace side it will typically be larger than 0.7 and is thus still efficient for operation. The load needs to be determined on the supply side of the transformer to include it’s impedance. If the measurement includes an external serial reactor (a separate unit) then the total transformer load SΣTr is:
where the reactor values per phase are the tap losses PRµp and the non-active power QRµp from reactance of the tap per phase. From the reactor’s test report the tap resistance can be computed:
Then the tap losses per phase are
The tap non-active powers per phase are
The related average onload voltage at the transformer HV terminals UTr-av is: The transformer load with external serial reactor is mainly determined by the currents. However the rated voltage of the transformer must consider the poweroff supply voltage which can rise beyond the rated value (over excitation), e.g. due to harmonic filters. The load per phase of a serial reactor is determined by the line currents. During power-on times the November/December 2020
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Fig 6. Real arc voltage and arc power divided by current as a function of current
Fig 7. Total powers as a function of current
supply voltage at the reactor is usually not greater than the rated voltage. Sometimes furnace transformers have built-in reactors, transformer and reactor are one unit. Then only the combined load of transformer and reactor can be determind by SΣp. Overload means that the rated apparent power is exceeded in the temporal average with the consequence that the rated lifetime of the equipment is reduced. How much it is reduced depends on the built-in safety margin (over-dimensioning). Load is determined by temperature rise during onload and offload times (ageing of insulating material), by current (local current density, magnitude of magnetic forces) and by voltage (local electrical field strength, strain of insulating material).
currents. • The non-active powers result from the short circuit reactances of the high current system. Harmonics seem to increase the short circuit reactances (“→ operating reactance”) which in turn increase the nonactive powers. But in fact it is the reversed way: the non-active powers are increased by the harmonics of voltages and currents and then the “operating” reactances calculated come out greater. Concluding, LV side and HV side of the EAF are quite different electrically. Decisive for the total powers is the HV side measurement because it is accurate, not influenced by harmonic effects and determines the load of the furnace transformer.
LV side measurement The electrode voltages are always accessible and required for the electrode regulation system. Electrode currents are usually not measured on the LV side except sometimes by Rogowski coils. The same formulas apply as on the HV side. The index “s” designates LV side. The voltage measurement starpoint is M, the so called “reference ground” of the high current system, i.e. the real starpoint of the load EAF. The characteristic LV side phenomena are: • The line-line voltage and the electrode voltage measurements are significantly influenced by induction from the strong magnetic fields of the high current system[1]. So are the measured powers. • The measured electrode voltages contain the arc voltages and thus all related harmonics. So they are a good indicator for the melting progress. Harmonic content is large in melting and small in refining. • The measured phase apparent and non-active powers include the full harmonic contents of the electrode voltages and the
Total arc power, radiation index, stability and distortion factors Based on the accurately measured total HV side powers, some important electrical parameters of the EAF can be determined which are useful for assessment of the “quality” of operating setpoints. The location of a (internal or external) serial reactor needs to be considered. The LV side total active power PΣS is derived by subtracting the transformer and reactor tap losses PLT (from test reports) from the HV side PΣp:
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If a serial reactor is not installed or not included in the measurement or it’s tap value is zero then PRLT = 0. The total arc power is The value of the short circuit resistance Rsc is always ≈0.3 mOhm and determined by the electrodes. A typical loss in the high current system is about 1 MW per phase of
which ≈80 % is transformed into heat in the electrodes (the electrode conductance is 500 times less than that of copper). The derived average arc voltage for three-phase operation is
The real average arc voltage
includes all harmonics of the arcs. But the total arc active power PΣArc contains only equal order harmonics of voltages and currents, so
Thus the average arc length determined from from from the derived average arc voltage is
in mm up to the stability maximum, see the course of the arc voltage in fig 6. The arc length from the real arc voltage is
where the 40V are the voltage drops in anode and cathode area. Arc radiation is approximately proportional to the derived arc voltage
not to the usually applied classic radiation index RI which is proportional to U2Arc I . The classic radiation index increases with decreasing arc voltage and increasing current, so with arcs becoming shorter. This behaviour is not meaningful and the approximate average radiation power RP at the electrodes derived by[4] better fits www.steeltimesint.com
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reality. An example computation for refining is depicted in fig 3. With our modification by adding the approximate furnace area AF (panel-panel), the radiation power index proportional to the derived arc voltage is defined by
where the factor 29 is for scaling, Iav is in A (the three-fold root of the current is 3.76 at 40000 A and 4.22 at 100000 A) and
The course of RP is interesting in the stable operating range. RPmax ≈ 100 is the approximate radiation power limit for a setpoint in refining on flat bath (no covering slag) which shall not be exceeded. For an assessment of the thermal load the power per bath area needs to be considered as well. The specific primary power should be less than ≈3.5 MW/m². If RPmax and the power per bath area limit are exceeded then excessive refractory wear, panel overheating and/or increased specific energy losses are likely to occur. We used the furnaces of Badische Stahlwerke (BSW) to calibrate the limit value (108 t tap weight, PΣp ≈ 80 MW in refining with di ≈ 5.95 / 5.5 m inner furnace diameter panel to panel / refractory, ≈ 3.4 MW/m² bath area). For simplicity the index assumes 100% energy present in the arc radiation. The average arc resistance is
The average complete system reactance is
If an external serial reactor is installed and XRT>0 but it is not included in the measurement then it’s tap reactance XRT must be added to Xp-av to get the correct stability and distortion factors. The reactor creates additional stability. From arc resistance and system reactance the stability factor fS can be defined[5]:
At a certain low electrode current the graph of fS = f(I) has got a maximum (the power factor PFp as well), fig 4. This maximum indicates the average arc stability www.steeltimesint.com
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limit. The distortion factor fD is defined with the reactances:
Here XRT=0 if no reactor is installed or if it’s tap value is zero. XSC r² is the short circuit reactance of the furnace (XSC in mOhm), XTrT the transformer tap reactance (calculated via test report), XRT the serial reactor tap reactance, all in Ohm related to the HV side. XSC is an individual geometric value of each arc furnace high current system which is determined with a short circuit stress test (diptest) or more accurately computed with the Finite Network Method (FNM) tool of BSE, see[1, 2], the only method to date that is suitable for this task. The graph of fD = f(I) runs hyperbolically, fig 5. At a certain low current it reaches a value of 2. Factors greater than 2 indicate instability on average. At short circuit current the value of fD is close to 1. The relation „if fD ≈ 2 then fS ≈ max.“ holds. It is problematic to determine the total apparent and the total non-active power of the LV side from the measured HV side powers because the harmonic level of both sides is different. The question would be how to interpret or use these derived LV side powers. However the LV side apparent and non-active powers are of less interest. The following two figs 6 and 7 depict how the courses of the arc voltage and the powers typically run. The real arc voltage (red) increases until the arc cuts off, the quotient Parc/I (green) decreases in the instability region, indicating decreasing radiation power and strongly increasing harmonics. Like figs 4 and 5 the curves have been computed with the BSE EAF Power Simulation tool. The supply voltage was assumed to be stiff, therefore the apparent power Sp is a straight line in fig 7. Current setpoints on the right side of the maximum of the PΣArc curve are very inefficient. It is sufficient for an assessment of operational electrical behaviour to use the total powers to derive the average quantities discussed. Of course large asymmetries in setpoints or short circuit reactances (which are not desirable) may cause e.g. hot spot problems typically at the centre phase area (electrode 2) which are not revealed by an average electrical assessment. But in such cases anyway detail analyses are required. The current
(or voltage) asymmetry can be assessed quantitatively by
AI is maximal in a single phase condition, then is zero if all currents are equal. Sample aggregation A measurement always applies a sample period, e.g. 1 sec. or 10 sec. averaging time. How to aggregate (average) the samples to get correct total average values? The correct aggregation of measured samples is an important issue for the evaluation of measurements at EAF because of fluctuations. The aggregation of N active power samples Pk is algebraic because active power is a temporal average:
The aggregation of a number of N RMS samples Uk (Ik) is not algebraic but quadratic:
This follows directly from the RMS equation where the integration is under a square root: the measured samples are squared and summed over the integration time T and after the time is over the sum is averaged and then the square root taken. Thus the result of the quadratic aggregation of RMS samples equals the total RMS of an integration over the full measurement time. If the variation of the samples is large – like for arc currents – then algebraic and quadratic aggregation results differ significantly. To proof this, voltages and currents of several EAF heats (8.88 h total measurement time excluding stop times) have been measured with 5 sec. sample time, totally 6391 RMS values per voltage / current. Result of correct quadratic aggregation to full measurement time: U12 = 22241 V U23 = 22343 V U31 = 22114 V I1 = 973.5 A I2 = 973.6 A I3 = 997.1 A November/December 2020
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MINIMILLS
Result of incorrect algebraic aggregation to full measurement time: U12 = 22233 V U23 = 22336 V U31 = 22106 V I1 = 952.1 A (–2.2 %) I2 = 953.4 A (–2.07 %) I3 = 975.4 A (–2.18 %) The deviation for the (unsteady) currents of more than 2% less is not acceptable. It is only necessary to aggregate and average per phase voltage, current and active power samples. Then all other average values (phase and total) are computed from these three basic quantities.
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References 1. Riedinger D.: „Analysing EAF voltage measurement“, Steeltimes International, July/August 2020 2. Riedinger D.: „Magnetic forces on electrodes and steel bath in the EAF“, MPT International 3/2018 3. Riedinger D.: „Essay on the summation of non-active powers based on Quade’s geometric concept“, internal BSE paper 4. Dittmer B., Krüger K.: „Theoretical approach to modelling thermal radiation in electric arc furnaces“, elektrowärme international, 4/2009 5. Riedinger D., Bock M.: „Layout and procurement of arc furnace transformers“, MPT International, 2/2006
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BSE - version 2.indd 6
Conclusion The electrical system of arc furnaces is complicated and contains some subtleties. Electrical measurements should consider some phenomena that appear in the arc furnace electrical circuits. The main characteristics of the HV side are: less harmonics, more symmetry, better accuracy, determines the load, the nonactive power and the harmonic level to be compensated. The main characteristics of the LV side are: more harmonics, less symmetry, induction errors and less accuracy. These differences need to be considered for a proper evaluation of the complete electrical system. The accuracy of the HV side measurement can be used to derive average characteristic parameters for the assessment of the “quality” of EAF operation setpoints such as arc voltage / length, radiation power index, arc stability and distortion level. Electrode regulation systems need to measure the distorted LV side electrode voltages but can use the currents conveniently measured on the HV side. The HV side measurement should be used to report power input, electrical energy consumption and transformer load. �
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HANDLING
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Conveyor belt health monitoring When conveyor operations are closely monitored, it is possible to predict mechanical failures before they occur. Recent studies indicate that up to 90% of machinery malfunctions are predictable and can be avoided if maintenance can be performed online without interruption in service. By I Banerjee* & S Singh* CONVEYORS are typically single points of failure and, therefore, have high criticalities. The conveying system’s multiple rotating components, length and remoteness increase the complexity of maintaining them. A dedicated condition monitoring system can dramatically increase the reliability of conveyors in a steel plant. The belt conveyor is the most economic and efficient method of handling bulk materials and can be implemented in any process plant for raw material transportation. Belt conveyors are the most commonly used powered conveyors because they are the most versatile and the least expensive. Product is conveyed directly on the belt so both regular and irregular shaped objects, large or small, light and heavy, can be transported successfully. These conveyors should use only the highest quality premium belting products to reduce belt stretch and so result in less need for tension adjustments. Conveyor systems find major applications in manufacturing industries, the transportation sector, workshops, warehouses and many other similar tasks where transportation of bulk quantities is necessary. The belt conveyor system is one of the most popular conveyor systems implemented today. Conveyor belt, pulleys and electric motors constitute the important parts of such a system. Conveyor maintenance is a significant daily problem for the bulk handling industry. Common belt problems Conventional methods of detecting and troubleshooting failures in the conveyor belt, support rollers or drive motors are unreliable, time-consuming and labour
Belt conveyors are the method of choice to transport raw materials
Sway switch
Rotation detector
Pull chord switch
Fig 1. Typical locations of belt conveyor safety switches
intensive. Below are described means of detecting faults in advance of failure so scheduled maintenance can take place Mis-tracking The process of aligning and managing a belt to maintain a specific path, is critical. When the belt drifts from one side to the other, also known as mis-tracking, it may result in unforeseen downtime, belt damage, product damage, and
maintenance troubleshooting issues. Uneven belt wear, and even an entire system malfunction, can occur when a belt runs off its normal track. To detect mistracking, belt sway switches are used. (Fig 1) Belt slippage Too little or too much tension can cause a direct impact to the performance of a belt conveyor. If the head pulley wears down, there is no longer an adequate amount of traction to grip the belt causing excessive stretching, audible squeals, and conveyance slippage to occur. Time-consuming maintenance is often needed to remove build-up of conveyed material, increase wrap on the drive pulley, or reconfigure tension requirements. Seized rollers Most conveyor belt systems are traditionally constructed using metal components such as steel. When these rollers seize up, they can eventually develop sharp edges that cause the belt to mis-track unequally along
*The authors are with the Research and Development Centre for Iron and Steel, Ranchi, Steel Authority of India Ltd www.steeltimesint.com
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HANDLING
Loading point
Receiver Data acquisition Transmitter
Sensor loop
Rotation sensor
Vibration and temperature input
Transmitter Conveyor belt guide
Junction boxes
Main drive
Head, tail and tensioning pulleys
HMI with conditioning software
Fig 2. Condition monitoring by vibration and temperature measurement
the centre line. Not only does this pose a risk to safe working environments, but it can also damage the materials being transported. Blockages The main purpose of a conveyor belt is to ensure the efficient travel of material throughout the system. When this is compromised, the entire operation can become blocked and halt production. If the materials being transported catch on sharp edges, undergoes rigid directional changes, or passes along a corroded chute surface, this may cause a build-up of conveyed product and form blockages. Much like any of the other conveyor belt problems, a blockage can easily result in hours of lost production and financial loss. Condition monitoring conveyor
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Conveyor control panel
Converters
Fig 3. Loop sensors to detect rips in the belt
Vibration monitoring Conveyor systems that move heavy and bulky substances, such as mined materials, necessarily operate at low speeds to accommodate high loading. These types of belt conveyors come in various configurations, but all share certain characteristics that make them suitable for condition monitoring. Belt conveyors generate specific and predictable vibration signatures when operating correctly at various speeds and loads. These vibrations are primarily produced by motors, gearboxes, idlers, pulleys and other mechanical devices used to translate the constant rotational energy of the motors to the varying linear energy required for conveyor operation. (Fig 2) An online condition monitoring system, connected to vibration sensors located at various points along the belt conveyor system, delivers continuous data to keep
the conveyer operating and to provide a constant understanding of asset health. Only the most critical components, such as large motors, gearboxes, important roller bearings, and main idlers and pulleys are monitored; it is not cost effective to monitor minor components such as all of the idler rolls installed in a series configuration. Vibration is the most important parameter for condition monitoring, with temperature also measured in some instances. Vibration sensors are of the accelerometer type, with a typical output of 100mV/g of acceleration. Temperature sensors are generally resistance temperature detectors (RTDs), either built into the accelerometer or external. Both sensor types are usually hardwired back to the condition monitoring system. Wireless sensors have become practical in some applications and are being adopted in the industry. Hardwiring of signals is difficult for both the tensioning pulley, and the tail pulley, which is often located a long distance from the other sensors, so are good applications for wireless monitoring. Wireless vibration measurement is achieved by installing a wireless transmitter in close proximity to the sensor. The transmitter receives the mV signal from the sensor and transmits a wireless signal to a repeater point or directly to the base station. The base station receives the wireless signal and outputs an appropriate value to the nearby condition monitoring system. Belt rip detection Loop Sensor The most popular belt rip detection www.steeltimesint.com
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HANDLING
4. CMOS Receiver array
Belt without rip
3. Lens 6. Target A
6. Target B
Signal out
Signal in
5. Signal processor
Belt with rip
2. Lens
Base distance
Working range
Signal out
Signal in
1. Laser emitter
Fig 4. Detection of belt rips by laser
method is to use induction loops/coils in combination with external transmitters and receivers. The loops are vulcanized into the belt’s top or bottom cover. If a foreign body penetrates the belt and gets stuck in the conveyor structure, it may rip the belt. If a sensor loop is cut by this foreign body, a signal is no longer transferred by the loop causing the receiver sensor to shut off the conveyor drive. (Fig 3) Laser rip detection A laser beam is aimed to hit the surface of the belt carry side before it is reflected and captured by a camera. The laser stripe is continuously analysed by means of triangulation, to determine the width and depth of the belt’s rip or injury. The software generates a 3D image, which will depict any tearing that may have occurred. In case of a belt rip, the conveyor is shut off automatically. (Fig 4) Wire under the belt This is an old unreliable method where a wire is strung under the belt. If a foreign body penetrates the belt and moves that wire in the running direction of the belt, a stop of the motor is induced. It is derived from the emergency pull-wire found alongside most conveyor systems. The penetrating body has to emerge far enough to contact and move the wire. If the body is stuck on the belt support structure, as commonly happens, it will continue to rip the belt and the system cannot react. Ultrasonic technology
Fig 5. Detection of belt rips by ultrasonic monitoring
belting at the sensing location and this energy propagates across the belt using the belt’s rubber and steel matrix as the transmission medium. The energy is injected by a transducer and sensed by a number of receiver transducers, located at various positions across the belt. When a longitudinal rip occurs between the transducers, the level of acoustic energy arriving at a receiver is either reduced or lost completely. This reduction of energy level is used to detect the rip. (Fig 5) Conclusion PLC- and SCADA-based systems are designed to identify faults automatically in the conveyor belt. The latest state-ofart systems are capable of calculating temperature, vibration and speed of the conveyor belt by means of temperature sensors, vibration sensors, and accelerometer sensors respectively. Automation systems are designed in such a way to detect and also resolve faults in
a belt without manual efforts and delay. Use of the ‘Internet of Things’ (IoT) where sensing devises exchange information is enabling monitoring and troubleshooting of remote conveyor belts and automatically sends notification to the administration or supervisor of the system, so that corrective actions can be taken. � Bibliography [1] Radoslaw Zimroz , Robert Krol ‘Failure analysis of belt conveyor systems’ , Research gate publication number 285843088 [2] Todd Schools, ‘Condition Monitoring of Critical Mining Conveyors’ white paper E&MJ March 2015 [3] Conveyor Manufacturers Association of SA Ltd, ‘Guidelines for Safety Around Belt Conveyors’ CMA MS01 Rev 03 - October 2013 [4] Mining 3, White paper ‘Conveyor belt monitoring for wear detection’ [5] Matsushima white paper ‘Belt tear Detection’ [6] Coal Control white paper ‘Belt Rip Detection System’
The ultrasonic rip detector injects acoustic energy into the pulley cover of the target www.steeltimesint.com
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Liberty champions the female engineer In the United Kingdom only around 12% of the engineering workforce is female and the UK has the lowest percentage of female engineers in Europe. Liberty Steel hopes to redress the balance with its Female Engineering Academy, which recently celebrated its first year anniversary IT is just over one year since eight inquiring young women signed up to be the first students of Liberty Steel’s Female Engineering Academy. The academy, which is based at Sheffield College’s Olive Grove campus, opened its doors to students in September 2019. Run in partnership with Liberty Steel UK’s Speciality Steels business, which has plants in nearby Stocksbridge and Rotherham, the academy was conceived to address engineering skills shortages especially among women. Throughout the last year, students have developed the knowledge and skills to succeed in the engineering sector, with a focus on electrical technology and electronics. More women needed Nyachieng Jok John, aged 18, was part of the first intake and is planning to go to university to study aerospace engineering
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when she finishes her course. She said: “It’s been wonderful to be part of the first group. Being on a sponsored course is a blessing and I’m so thankful. Also, it’s been great making new friends in spite of our differences.” She added: “I’ve enjoyed some of the trips and units. My favourite ones include mechanical principles, engineering materials and engineering design. We definitely need more women in engineering. Let’s not let fear, age, gender or anything else stop us from dreaming big and being the best we can. We can do it!” During the last year, the academy’s first students have gained an insight into the engineering industry in a range of different ways. Alongside completing a BTEC Extended Diploma in Engineering Level 3, which is equivalent to A Levels, students benefit from industry talks from employers, workshops and work experience. The course
has enjoyed a high attendance rate at 93%. Students have completed site visits to major employers including Liberty Steel and Mondelez Sheffield. They’ve gained an insight into their potential next steps by attending careers talks with female engineers, including a former university placement student at Liberty and an employee at PCMS Engineering. Students also attended the Wentworth Construction Fair, which showcases the different specialisms within the sector, careers and the chance to meet women working within engineering. Inspiring young women to go further Anita Straffon, deputy chief executive, The Sheffield College, said: “It’s fantastic to see how the academy is raising awareness of the exciting careers offered within the engineering sector and inspiring more young women to go further.
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“I’d like to congratulate our first cohort on their achievements, and thank Liberty Speciality Steels for working with us and ensuring our students’ success during an unprecedented academic year due to Covid-19.” Mick Hood, human resources director, Liberty Steel Group UK, commented: “Engineering talent is key to the continued success of Liberty and the female academy is a great example of the company partnering with schools, colleges and universities to give opportunities to budding engineers.” All students in the academy have been gifted Institution of Engineering and Technology (IET) membership for the duration of their course, as an additional resource to support their studies. This includes access to IET learning centres around the country, resources online, careers advice and information on engineering pathways, access to industry experts around the country, engineering newsletters and invitations to weekly webinars. Sheffield College’s Olive Grove Campus specialises in engineering and has technical classrooms, workshops and equipment for electrical engineering, mechanical engineering, motor vehicle, plumbing, heating and ventilation. After completing the course at Olive Grove Campus, students can progress into employment or on to a university level course.
Although engineering has a key role in driving the economy and offers aboveaverage career and wage prospects, it has been forecast that job vacancies in the sector will represent 17% of all UK vacancies by 2024. Women are under-represented. Nationally, around 12% of the engineering workforce is female and the UK has the lowest percentage of female engineers in Europe. For Liberty Steel, the rationale for lending its backing to the academy made sense given the importance of upskilling young people to take the steel industry forward over future decades. While the statistics forecasting a skills gap in the wider engineering sector are stark, drill down specifically into the steel industry and the picture is the same. It is why young people and their future prospects are of paramount importance to GFG Alliance and Liberty Steel Group’s chairman Sanjeev Gupta. Speaking at the recent restart of Liberty
Steel Group’s Magona Pickling Line in Italy, which prompted the recruitment of 81 new workers aged between 20 and 25 years, Sanjeev said: “It is vital to the future of our economy and wider society that we attract more young people into the high-quality, high-skilled jobs our industry can offer.” Ventures like the Liberty Steel Female Engineering Academy also have the potential to improve the life prospects of young people in areas that have typically been left behind by the UK’s deindustrialisation over the last four decades. With Covid-19 adding another layer of complexity for young people yearning to make their way in life, enhancing education opportunities in an industry that can transform lives makes sense. Salaries in the UK steel sector are 28% higher than the national average. Tony Goddard is training delivery manager for Liberty’s Speciality Steel sites across Rotherham and Stocksbridge and has been Liberty’s main liaison for the academy’s students. “Liberty Speciality Steels has always had a strong tradition of taking on apprentices as they are the foundation for ensuring the continued growth of the business,” Tony said. “Around 30% of our current employees started off as apprentices here. “However, attracting young women into the apprenticeship scheme has always been challenging, reflecting the wider lack of women in the steel industry generally. The female engineering academy was the ideal initiative that offered Liberty a different route to supporting women so they can develop the skills that will take them into the engineering sector. Hopefully, we will see some of them working at Stocksbridge and Rotherham in the future.” �
The steel industry needs new blood According to Engineering UK and Women in Engineering, there is an urgent need for more engineers to fill significant skills shortages and support economic growth. November/December 2020
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PERSPECTIVES Q&A: BM GROUP POLYTEC
Passionate, dynamic, hungry Three words used to describe the team of technicians working for BM Group Polytec, according to Andrea Tonini*, who believes that steel is an indispensable asset for human progress. New technologies, he says, will make the steelmaking process attractive for the operators of tomorrow. 1. How are things going at BM GROUP? Is the steel industry keeping you busy? The steel sector covers 60% of our business. For more than 25 years, BM Group Polytec has provided automation platforms for the steel industry and we are very proud to be the world leader in robotics for this sector. The in-depth knowledge of the process gained over the years has allowed us to develop robotic solutions capable of replacing the operator in the most demanding and dangerous activities. The use of the best available technologies has allowed us to perfect the operation of these machines, making them more and more efficient and autonomous. I am sure that innovation and robotization processes are a necessary step for the steel industry of tomorrow. The combination of human and artificial intelligence is the tool to accomplish this new industry revolution. 2. What is your view on the current state of the global steel industry? In the moment of global difficulty that we have all suddenly met, I saw the will of the global steel industry not to interrupt the path of innovation undertaken. Issues such as sustainability and the safety and health of workers are today essential pillars for thinking about the future. 3. In which sector of the steel industry does BM GROUP mostly conduct its business? BM Group Polytec is a system integrator. Our specialization is to develop customized platforms which, by combining robotics, automation, vision systems and artificial intelligence, allow the steel mill and the rolling mill to become smart/4.0, without completely replacing the production machinery.
4. Where in the world are you busiest at present? Our robotics are appreciated all over the world. The North American market is giving us great success. In the last period we have seen a growth in demand in Latin America and Central America.
5. Can you discuss any major steel contracts you are currently working on? At the beginning of the year, we renewed the strategic agreement with Gerdau for digitalization and robotics. For more than two years we have been collaborating with great results with the Tenova teams for the development of new technologies in the Melt Shop. This collaboration represents, for our company, a unique opportunity for professional growth and at the same time the opportunity to fully express our technologies. I strongly believe in synergies between excellence, with universities and research centres; in this sense our approach is always positive.
6. Where does BM GROUP stand on the aluminium versus steel argument? Our approach to the two sectors is identical. We can summarize it with the term System Integrator. Basically we combine new technologies that the market makes available, with our knowledge of the process in order to create solutions that improve the process, its control, safety, efficiency and its knowledge through the continuous collection of objective data that these applications make available. I believe in this way of innovating and in the fact that the competitiveness of the companies of the future will greatly depend on the speed with which they will be able to equip themselves with these new technologies. 7. What are your views on Industry 4.0 and steelmaking and how, if at all, is BM GROUP using it? BM Group Polytec was a pioneer of the Industry 4.0 concept. The passion for research and development has always been a strength of our company. Being able to count on young and skilled resources with technology has given us the opportunity to anticipate the concept of intelligent and interconnected production. As we realized that automation alone was not enough, we invented the first robotic solutions. Seeing that the robotic cells placed along the process had all the credentials to be points of collection of objective data, we are committed to having these machines begin to collect and process data. Today we are talking about interconnected machines that process essential data for a predictive approach and efficient production. 8. “…any hint of doubt when it comes to predictions of climate doom is evidence of greed, stupidity, moral turpitude or psychological derangement.” This is a quote from
* CSO and board member, BM Group Polytec. November/December 2020
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PERSPECTIVES Q&A: BM GROUP POLYTEC
Bret Stephens writing in The Wall Street Journal. Do you sympathise with his view? Climate change is in front of everyone’s eyes. We can try not to see or we can choose to take advantage of available technology to develop solutions and turn a problem into an opportunity. A great man of all time said, “It is in the crisis that creativeness, great discoveries and great strategies were born”. Recycling, circular economy, are just two examples demonstrating how technology and human intelligence are the key to a more environmentally friendly industry. 9. In your dealings with steel producers, are you finding that they are looking to companies like BM GROUP to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them? As a company we try as much as possible to establish a partnership relationship with our customers. We analyze objectives to be achieved together and our BM Group seeks out the best technologies aimed at efficiency and sustainability. 10. How quickly has the steel industry responded to ‘green politics’ in terms of making the production process more environmentally friendly and are they succeeding or fighting a losing battle? Before adopting green policies, the steel industry necessarily had to address the problem of safety. In recent years, great strides have been made in this regard, mainly thanks to robotics and technology. The challenge now is to convert the steel production process into a process that is as environmentally friendly as possible. It is absolutely not a losing battle, it is a battle to be won together: producers, installers, system integrators, institutions.
system for precise dimensional control. 12. How do you view BM GROUP’s development over the short-tomedium term in relation to the global steel industry? Maintain leadership in robotics, constantly improve existing products and carry out new solutions with the research and development projects started, with the aim of ensuring the safety of people and production efficiency. 13. Where do you see most innovation in terms of production technologies – primary, secondary or more downstream? Technological automation solutions affect the entire production area without particular differences. Robotic applications find greater adherence in the secondary process. 14. How optimistic are you for the global steel industry going forward and what challenges face global producers in the short-to-medium term? Personally, I am positive, steel is an indispensable asset for human progress, it is difficult to say what the main challenges may be, I am convinced that new technologies represent the way to make the process attractive for the operators of tomorrow. 15. What exhibitions and conferences
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will BM GROUP be attending in over the next six months? We will be present at the virtual Future Steel Forum next month (8-9 December). For 2021, we are hoping to meet our customers face-to-face and have already confirmed our presence at the AIST Digital Forum, at the AISTech fair and at ABM Week. 16. BM GROUP is headquartered in Italy, but what’s happening steel-wise in the country? Our country has an important history. To the crisis, Italian producers are responding with innovation and high quality products. I believe that this is the right way to carve out a prestigious niche in the global market. 17. Apart from strong coffee, what keeps you awake at night? Polytec is a team of passionate, dynamic and hungry technicians. It is from teamwork, from sharing, from getting involved, that new ideas and solutions are frequently born. Being lucky enough to be part of it and then seeing that these ideas then materialize into industrial and concrete solutions – this is what me awake! 18 If you possessed a superpower, how would you use it to improve the global steel industry? Of every new idea that we develop for the steel process, I would like to be able to see its positive effects even before testing it. �
11. Where does BM GROUP lead the field in terms of steel production technology? In steel mill robotics represented by the PolyTen line, a complete range of robotic applications for steelmaking processes and developed based on research and development carried out jointly by BM Group and Tenova. Downstream of the hot process we can combine applications such as a billet tagging robot with a 3D scanning November/December 2020
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HISTORY
Replica of Trevithick’s high-pressure steam engine, the first railway locomotive in the world
Recent issues of Steel Times International have portrayed three of the four dominant 19th century ironworks of Merthyr Tidfil, South Wales. The fourth of these, Penydarren, the last to be established, was opened in 1784, 25 years after Dowlais, the first and longest lasting works. By Tim Smith*
The world’s first steam railway THE Penydarren works was established by three brothers: Samuel, Jeremiah and Thomas Homfray; with the financial support of Richard Foreman, a rich official of the Board of Ordnance in London. Being the last of the four, the best locations had already been taken and the works was built on the same tributary of the River Taff as Dowlais, but further downstream. In times of short water supply, this gave Dowlais first use of available water, starving Penydarren of power. Also, as Penydarren had come late to the scene, although it had iron ore mines, there was no more land to lease for coal and it had to rent mines from Dowlais. In 1788, Penydarren started producing wrought iron bar using Cort’s puddling and rolling process, buying in pig iron from Dowlais. However, puddling grey iron (in which much of the carbon is in the form of graphite as a result of the higher silicon content of iron made from coke) produced a poor quality short wrought iron, cold short due to its high phosphorus content. Friction arose between the brothers on how to run the works and, in 1789, Jeremiah left to set up the Ebbw Vale works some eight miles (13km) to the east. Six years later he sold his shares in Penydarren for an annuity of £2,500 a year. In 1791, Samuel developed a process which enabled good quality puddled iron to be produced. This required remelting the grey iron in an air-blown refining furnace to oxidise silicon (from the coke) and phosphorus (from the ore). The molten ‘finers metal’ was then run out onto a floor
without any mould, forming a slab. The rapid cooling and lower silicon content of this metal would favour the formation of white iron in which the carbon is held as a fine dispersion of iron carbide, more easily refined. The slab was broken up and could then be successfully puddled using Cort’s process. Ironmaking started in 1796 with 4.1kt produced by two blast furnaces blown by steam engine. Output increased to 7.8kt from three furnaces in 1805, and there were four furnaces by 1810, but one had closed by 1812, the remainder each making 150 tons/week. By 1802, Samuel was running the expanding works and became frustrated by hold-ups in receiving and exporting materials to Cardiff on the Glamorganshire canal, cut in 1794 and owned by the four works together. To improve transport he built nine miles of tramway to bypass the head of the Canal, which started at the Cyfarthfa works, joining the waterway at present day Abercynon. Samuel would have liked to extend the tramway all the way to Cardiff, but the trustees of the Canal and of an earlier turnpike road objected. Waggons were first drawn by horse, but, impressed by the Cornish engineer, Richard Trevithick’s trials with high pressure stationary steam engines – Homfray had several at Penydarren – he invited Trevithick to build a locomotive for the tramway. In 1804, the completed locomotive pulled 10 tons of iron as far as the canal, but its weight broke many of the cast iron rails along the
track, thus eclipsing the advent of the first ever steam traction railway. Trevithick’s locomotive ran for a few months, but then the wheels were removed and it became a stationary engine driving a forge hammer at the works, and later, winching trucks up an incline at a nearby coal mine. In 1813, Samuel Homfray sold Penydarren to his London marketing agent, William Thompson & Foreman. Under Thompson & Foreman, Penydarren gained some prestigious contracts including making the wrought iron for the 9 ft (2.75m) links of Telford’s Menai suspension bridge, forged by Hazledine in Shropshire. It also rolled rails for the Liverpool and Manchester Railway. At its peak in 1856-58, seven furnaces were each producing 100 tons/week. Penydarren was slow in adopting hot blast, which Dowlais had done soon after it was patented in 1828, and consequently paid the penalty of higher coke consumption. On the death of Thomas in 1854, Foreman took control, but by 1859 the furnaces were out of blast and the mineral rights sold to Dowlais for £60,000. Penydarren was run by a series of owners over the next five years, but closed within 12 months, ironmaking finally stopping that year. Penydarren was thus the first of the four large Merthyr iron works to cease iron production. Puddling continued under the ownership of the Aberdare & Plymouth Co Ltd until 1887. �
A short video of a running replica of Trevithick’s engine can be viewed at: https://museum.wales/articles/2008-12-15/Richard-Trevithicks-steam-locomotive/ * Consulting editor, Steel Times International November/December 2020
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