CONFERENCE REPORT
TECHNOLOGY
THE HOUR BEFORE DAWN
PERSPECTIVES
We’re in Düsseldorf for the annual EuroCoke 2017 convention
Voestalpine on additive manufacturing
Continuing Mick Steeper’s excellent essays on the global steel industry
Günther Schnell, managing director of Friedrich Kocks
www.steeltimesint.com July/August 2017 - Vol.41 No5
STEEL TIMES INTERNATIONAL – July/August 2017 – Vol.41 No.5
AISTECH 2017 – WE REPORT FROM NASHVILLE, TN STI Cover JULY AUG.indd 1
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CONTENTS - JULY/AUGUST 2017
CONFERENCE REPORT
TECHNOLOGY
THE HOUR BEFORE DAWN
PERSPECTIVES
We’re in Düsseldorf for the annual EuroCoke 2017 convention
Voestalpine on additive manufacturing
Continuing Mick Steeper’s excellent essays on the global steel industry
Günther Schnell, managing director of Friedrich Kocks
1
Picture courtesy of: Midrex
www.steeltimesint.com July/August 2017 - Vol.41 No5
STEEL TIMES INTERNATIONAL – July/August 2017 – Vol.41 No.5
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EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com
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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 Steve Diprose stevediprose@quartzltd.com Tel: +44 (0) 1737 855164
2 Leader By Matthew Moggridge, editor, Steel Times International. 4 News Industry news, diary dates and contract news.
Chief Executive Officer Paul Michael SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com
6 Innovations The latest new products.
Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £178.00 Other countries: £254.00 2 years subscription: UK £320.00 Other countries: £457.00 ) Single copy (inc postage): £40.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England.
12 USA update The uncertainties of the US steel industry.
Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at
14 Latin America update Brazil’s pig iron exports.
Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2017
34 Continuous casting Continuous scrap feeding. Technology 38 Opportunities for 3D printing. 42 Streamlining operations in steel processing by Kloeckner Metals.
16 The hour before dawn Innovation - a two-sided coin.
46 Perspectives Friedrich Kocks: A future-oriented supplier.
18 Iron ore Iron ore exploration tumbles.
48 History Making parts for the first iron bridge.
Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437.
Conference reports 20 Eurocoke: Maintaining your maintenance. 27 Aistech: Trump, China and US steel.
ISSN0143-7798
www.steeltimesint.com
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LEADER
Future Steel Forum 2018 – be involved
Matthew Moggridge Editor matthewmoggridge@quartzltd.com
I was roaming through Europe last month, and by that I mean I’ve been to three different countries in the space of three weeks, departing twice from Gatwick and once from Heathrow and visiting Poland, Sweden and Austria before landing back in the UK on a sunny Thursday evening at the end of June. All three trips were informative in different ways and while I’m not one for blowing my own trumpet, I must say that the first of my three journeys – to Warsaw in Poland – was to the Sheraton Hotel and the inaugural Future Steel Forum, Steel Times International’s first (and highly successful) foray into the world of Industry 4.0 and steel manufacturing. Avid readers will know that the Future Steel Forum has been high on my agenda for some time and it all came together last month when delegates and speakers met to discuss an increasingly important aspect of the steel manufacturing process, that of digitalisation, ‘smart’ production, however you wish to describe it. It was good to hear that delegates enjoyed the conference and that they felt an event on the subject of Industry 4.0 was long overdue – especially an event focused
on steel. All the more reason to announce that there will be a Future Steel Forum 2018, in Warsaw, at the Sheraton Hotel, in Poland. I’m looking for papers now so if you have something to say about Industry 4.0 and steelmaking, get in touch. Hi-tech steelmaking is becoming increasingly popular; everybody’s talking about it and some of the world’s biggest and most progressive steelmakers are rolling up their sleeves and getting on with its development. In South Korea, POSCO and Hyundai are hoping that new technologies can help increase yield rate and reduce defects. POSCO, in conjunction with the SungKyunKwan University’s department of systems management engineering, has developed automatic coating weight control technology based on artificial intelligence (AI) with a view to maintaining an optimal and constant coating weight to automotive steel sheets. Similarly, Hyundai has employed AI, developed by Google subsidiary DeepMind, with a view to achieving maximum solidity and, of course, price competitiveness. There’s a lot to discuss so let me know if you want to be part of the conversation.
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4 NEWS IN BRIEF
Tata reports sales growth Tata Steel has reported a 28% growth in sales volume for Q1 2017, claiming a 16% jump in sales of high-end products for current sales of 2.75Mt. For the same period last year, the company sold 2.15Mt, according to a report by India’s The Economic Times.
JSW purchases rail wagons Indian steelmaker JSW Steel has purchased two railway goods wagons under India’s Liberalised Wagon Investment Scheme of the Railways. Each one consists of 45 wagons and is designed to carry finished products, such as steel, slag and cement from Torangal to various destinations, making JSW a major freight revenue generator for the Indian railway network. During the 2016-2017 period JSW increased crude steel production by 25% when compared with 2015-2016. Source: The Hindu.
Nucor boosts Joy Global employment North America’s largest steel manufacturer Nucor Corporation has increased employment at the former Joy Global steel mill in South Longview, Texas, which it acquired for US$29 million. Nucor plans to have 200 employees by the end of the year and has currently upped staff from 130 to 160, according to the Longview News-Journal. The Longview plant converts scrap metal into plate steel for heavy equipment manufacturers, distribution centres and the oil and gas industry.
INDUSTRY NEWS Enjoy your summer break and come back refreshed for CRU’s North American Steel Conference, in Chicago (October 2-4). Chicago, claims CRU, is home to the greatest concentration of steel users in North America, an ideal place, therefore, to discuss the North American steel market with highcalibre speakers like Wiley Rein’s Alan Price and Dr. Joe Povermo, president, Raw Materials and Ironmaking Consulting. The American steel market has always been an exciting place and now that President Donald Trump is in charge, things are getting even more exciting – and troubling at the same time – as the threat of a trade war with China looms. The event overlaps with CRU’s Stainless Steel Scrap Conference so make sure you find time for a river cruise before heading home.
Get yourself to: the Windy City
Chinese steelmaker Two peeler machines relocates plate mill for Walsin Lihwa Walsin Lihwa Corporation, a stainless steel bar manufacturer, is to install two new high-performance peeling machine supplied by the German SMS group. The PM160 is claimed to be SMS group’s most powerful peeling machine series and can peel bright bars with finished diameters of up to 160mm at tolerances of up to IT9. The contract’s scope includes all bar handling equipment and a special bar end chamfering/facing machine.
Trump wants steep tariffs for China Despite disagreement from his top aides and Cabinet members, Donald Trump, the President of the United States of America, is planning to push ahead with ‘steep tariffs’ on Chinese steel – even if it triggers a trade war. In 2002 President George ‘Dubya’ Bush did something similar and ended up putting 200,000 steelworkers out of business, but that hasn’t phased Trump who has claimed that imported Chinese steel is ‘killing our steelworkers and our steel companies’. Source: Independent.co.uk For more steel news, log on to www.steeltimesint.com July/August 2017
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Shandong Iron and Steel Group Rizhao Co Ltd has contracted Austria-based Primetals Technologies to relocate a 4.3m plate mill from Jinan to Rizhao where it will be upgraded. In its new location, the mill will be part of the Shansteel Rizhao Quality Products Base, an initiative to concentrate and upgrade production facilities in order to improve competitiveness and end-product quality. The relocation is scheduled to be complete next year (2018). Primetals installed the original 4.3m plate mill at the plant in 2010. www.steeltimesint.com
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INDUSTRY NEWS
Astounding Facts and Figures... • In an average-priced conventional car, there can be as many as 70 electric motors, operating everything from power windows, to headlight controllers, to power seat positioners. Luxury cars raise the number of motors to more than 100. Source: ArcelorMittal. • In 2016 the steel industry used about 1.2 billion tonnes of blast furnace iron (hot metal), 520Mt of ferrous scrap and 75 Mt of direct reduced iron - to produce about 1.6 billion tonnes of crude steel globally. Source: worldsteel.
• Assuming 12% annual growth, air passenger traffic in India will double in six years, and possibly double again over the next six. By 2028 or 2030, air travel could be the preferred mode of travel compared to rail travel, assuming rail passenger traffic continues to stagnate and fails to enthuse the customer. Source: Swarajyamag.com
• Russian steelmaker NLMK is a leading manufacturer of pre-painted steel with a market share of approximately 40%. The company delivers over 95% of its pre-painted steel to the construction industry and claims to have more than 20 years of experience developing technologies for the production of galvanised steel with a wide range of polymer coatings. Source: NLMK www.steeltimesint.com
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September 2017 11-14 Cokemaking Course, Materials Processing Institute, UK An in-depth overview of the cokemaking process based around practical, operational and theoretical modules involving lab work,lectures and discussion and a visit to see a coke oven in action. Further details, log on to www.mpiuk.com/courses-steelcokemaking.php
October 2017 02-04 North American Steel Conference, Swisshotel, Chicago, USA If you’re interested in the USA steel industry – and who isn’t? – then attending CRU’s North American Steel Conference is a no-brainer, you must go. Key speakers include Wiley Rein’s Alan Price. Further details, log on to www. crugroup.com 02-04 EMECR 2017, KOBE International Conference Centre, Japan. Organised by the Iron & Steel Institute of Japan An international conference on energy and material efficiency and CO2 reduction in the steel industry and covering ironmaking, the blast furnace route, thermal energy insulation and carbon and material recycling. For further details, log on to www.emecr2017.com
• From 1960 to 2015 the global steel industry decreased its energy intensity, that is energy consumption per tonne of crude steel produced, by around 60%. Globally, the steel industry still accounts for 7% of total CO2 emissions. Source: worldsteel. • An elevator that can move sideways as well as up and down has been developed by German steelmaker ThyssenKrupp’s elevator division. It has been built using the same magnetic technology employed on Japan’s bullet train and has the potential to change the shape of cities. Source: Forbes.
DIARY OF EVENTS
• Imported steel accounted for 30% of US steel usage in 2016, according to figures released by the US Commerce Department – up from 23% of steel consumption in 2009.
24-27 Korea Metal Week 2017, Hall 7-8, Centre 2, Kintex, South Korea International metals industry conference covering many subjects under one roof. For further information, log on to www.korea-metal.com
November 2017 14-17 Metal Expo, Hall 75, VDNkHa, Moscow, Russia Last year it attracted 530 companies from 32 countries, including steelmakers, tube and pipe manufacturers and distributors and engineers. In fact, there’s so much going on, you’d better check the website. For further information, log on to www.metal-expo.ru
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INNOVATIONS
Danieli revels in bar-in-coil line bonanza ABS Italy has ordered a new rotary dividing/ cutting shear, new coilers and controlled cooling systems from Danieli, as well as coil handling and vertical compacting/tying units, to integrate the mill supplied by the company in 2000. The new equipment will enable ABS to expand its original product range of rounds from 15mm to 50mm into 12.6mm to 63mm diameter, in master coil weights up to 4.5 tonnes, as well as to fully exploit the 120 tonnes/hr capacity of the mill.
Italian steel production technology company Danieli claims that its bar-in-coil technology provides superior finished products in terms of coil shape/size and surface quality. This is all down to its advanced design and feeding/delivery
equipment, says the company. In-line coil heat treatment makes direct supplies to final users possible, eliminating, or minimising, the need for traditional off-line downstream processes.
• Chinese Changcheng Special Steel ordered a new bar-in-coil line to be installed alongside its SBQ line at Sichuan. The new mill will produce martensitic stainless steel coils with 20mm to 40mm diameter bars wound at 13mps, in coils weighing up to 2.1 tonnes. Seventy leading steelmakers worldwide benefit from Danieli’s advanced bar-in-coil solutions, the company claims. For further information, log on to www.danieli.com
TMEIC acquires Oz-based process control guru Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) has acquired the process control system solution business of engineering and consulting company Real Time Consultants (Aust) Pty Ltd (RTC). Operation of the newly established company, TMEIC Process Technology Application Centre Pty Ltd, commenced on 30 June 2017. RTC is a leading player in technology solutions for industrial applications, including process models for metal rolling mills, PLC and HMI development, and training and support to companies worldwide. RTC and TMEIC have an established working relationship spanning more than 20 years. The new entity will remain locally managed and staffed in Melbourne by the RTC team. Kazuhiko Uekusa, vice president, Industrial Automation and Drive Systems Division, TMEIC, said that RTC has an international reputation for on-time, on-budget delivery of sophisticated real-time process control projects. “This acquisition offers strong support for our business worldwide,” he said. The direct connection between TMEIC’s integrated products and automation systems business, combined with RTC’s expertise in technology applications, research and development will allow the two companies to quickly align their operations, while optimising product July/August 2017
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improvements through design and development processes. Ken McDonald, the company’s managing director, said that RTC’s approach to modeling, PLC, and HMI development, will enhance TMEIC’s opportunities to provide innovative products and enhanced customer support to improve solutions, product development process
and life cycle management. TMEIC is committed to continuous improvement of its integrated product suites and process control technology to meet the ever-increasing customer requirements for efficient plant operation and product quality improvement. For further information, log on to www.tmeic.com www.steeltimesint.com
18/07/2017 09:00:26
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INNOVATIONS
Improving steel mill furnace rolls reliability
US-based Atlas Machine & Supply presented ESTAD delegates with new methods for improving the reliability of steel mill furnace rolls utilised in the manufacturing process. The third annual European Steel Technology & Application Days (ESTAD) convention held in Vienna, Austria, 26-29 June. Making the presentation on behalf of Atlas was Jeremy Rydberg, vice president of the company’s corporate development group and a recognised authority on advance welding and inspection techniques. The inspection and welding process, developed
at Atlas and claimed to be unique, significantly increases the life of industrial rolls by utilising proprietary welding and phased array ultrasonic testing methods. The advanced techniques produce a level of weld quality and consistency that was previously unobtainable, according to Rydberg. According to Atlas, achieving such a high-quality result is seen as crucial to keep industries in production. The process significantly reduces the risk of unplanned outages caused by failed rolls that can easily cost a manufacturer in excess of $750,000, it is claimed.
Atlas’ advanced process for increasing the life of steel furnace rolls is also transferable to other industries, according to Rydberg. “This is an advanced welding and inspection technique that can be used in any industrial application that utilises temperature-resistant stainless steel,” he said. The process can also be utilised by power generation, nuclear, oil and gas, and petro-chemical companies. For further information, log on to www.atlasmachine.com
VISION BECOMES REALIT Y Slag Pot Transporters in a platform or U-Frame design, Slab and Coil Transporters, Industrial Lift Transporters with cabin on top or under platform – the TII Group offers an extensive range of transporters to meet the requirements of the metallurgy industry. tii-group.com
July/August 2017
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FLAT & LONG PRODUCTS ROLLING MILLS
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• Re Bar Rolling Mill Division • Section Rolling Mill Division • Wire Rod Rolling Mill Division • Gear Box Division • CNC Machines Division • Electrical & Automation Division
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INNOVATIONS
KOCKS understands deformation behaviour KOCKS’ Microstructure Simulator (KMS) brings together 70 years of understanding of the deformation behaviour of materials and their properties. According to KOCKS, the KMS is a semi-empirical model for temperature and process calculation that is used as a standalone tool and to complement KOCKS’ thermo-mechanical rolling equipment for bar, wire rod and tube rolling mills. It incorporates what KOCKS describes as ‘the unique deformation characteristics of the KOCKS 3-roll technology’ and enables rolling mill operators to manage and optimise temperature conditions of the rolled material, to illustrate phase transformations and predict grain size formations
and mechanical properties throughout the cross-section of the finished product. KMS’ customised and open database means that producers can react immediately to market movements and specific requirements, claims KOCKS. Test rollings can be significantly reduced. An important feature of the material databank is that its wide range of information can be supplemented by user-specific material data and plant configurations at any time. KMS is claimed to represent another key element of KOCKS’s philosophy, which is ‘to contribute to their customers’ success by creating the most advanced machinery and processes
available in the industry. For further information, log on to www.kocks.de
Primetals’ bloom caster up and running ahead of schedule Hyundai Steel issued a final acceptance certificate (FAC) for a continuous bloom casting machine supplied by Primetals Technologies to its Dangjin
production facility. The caster is designed to produce 1.1Mt (metric tons) of blooms per year and is part of a new
plant for the production of special steels for the automotive industry, for which Primetals has also supplied a bar mill and a wire rod mill. The order was awarded to the company in early 2014 and the caster was started up in October 2015, one month ahead of schedule. Located in Incheon and Seoul, South Korea, Hyundai is part of Hyundai-Kia Automotive Group and runs six production facilities in South Korea and one in China. The company has finished constructing a new plant at its Dangjin site to produce special steel for the automotive industry. The aim is for bar and wire to be produced here as primary material for engine and gearbox parts. Annual production of 400kt (metric tons) of wire rod and 600kt (metric tons) of straight bar and bar-in-coil is planned. Primetals Technologies’ four-strand continuous bloom caster has an annual capacity of 1.1Mt (metric tons) and is equipped with Mold Expert, a mold-monitoring system. To produce uniformly high quality blooms, a Dynacs 3D secondary cooling system and a DynaGap 3D fully automatic roll-gap control with dynamic soft reduction in the strand guidance system is also part of the set-up. Still hot, the blooms are then fed for direct use in the section rolling lines. This saves energy during reheating and improves operating safety because there is no need to transport the blooms by crane, for example. Special mechatronics packages and an integrated automation solution ensure the necessary high product quality throughout the plant, claims Primetals. For further information, log on to www.primetals.com
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INNOVATIONS
Bronx two-roll straightener for premium quality steel bars
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PANalytical’s new spectrometer PANalytical, has introduced a new Epsilon 1 X-ray fluorescence (XRF) spectrometer. This new member of the Epsilon 1 family, claims the company, has been designed for small spot analysis, and is ‘the most powerful bench-top spectrometer in its class’. According to PANalytical, the new spectrometer provides a compact and cost-effective ‘out-ofthe-box’ solution, ready for the analysis of small objects or small inclusions in rocks, electronic appliances, toys or finished products. PANalytical claims that the new system “can handle a large variety of sample types, from small objects to larger final products. They can all be placed directly in the spectrometer without the need of any sample preparation. The integrated colour camera allows straightforward positioning of the sample directly in front of the small measurement spot. The Epsilon 1 is claimed to be an ideal solution for elemental analysis and can be placed close to the sample location, like production facilities, exploration sites, at a shop’s counter or even taken to crime scenes for forensic investigation”. The performance of the spectrometer meets with standard test methods required by different directives and regulations in various markets, such as RoHS-2, WEEE and ELV for electronics and CPSIA for consumer goods. The Epsilon 1 is specifically designed to analyse a wide range of samples in accordance with these regulations, and meets the performance required by international test methods like ASTM F2617 for RoHS-2. For further information, log on to www.panalytical.com
Global industrial engineering group Fives has been contracted by Baosteel Special Metals Shaoguan to design and supply a Bronx straightening machine to process high-yield, heat-treated premium quality steel bars. The Bronx two-roll straightener PBRV6 is a fully automatic, motorised machine, complete with ancillary electrical and hydraulic control systems, which can process steel bars up to 80mm in diameter at operating speeds of up to 75m/min. The machine will be designed and pre-assembled at Fives’ workshop in England and supplied to China at the end of this year. Jane Zhang, who represents Fives Bronx in China, said it was a very smart machine. “All work roll and guide bar functions are set automatically from the HMI panel, located within the operator’s control desk. Advanced heat treatment processes and profile technology enables the machine work rolls to provide greater product straightness and ‘ovality’ criteria, before re-profiling or roll change becomes necessary”, she said.
Fives has been designing Bronx straightening machines since the 1950s. Today, more than 800 Bronx straightening machines have been designed and supplied in over 50 countries. They are custom-engineered machines suitable for cold or hot rolled bars and they provide straightening solutions for virtually any material composition and any sizes ranging from 5mm to over 200mm, according to Fives. Bronx machines are used worldwide, provide a high level of productivity along with excellent standards of straightness, surface finish and controlled surface hardness, the company claims.
For further information, log on to: www.fivesgroup.com
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USA UPDATE
The uncertainties of the US steel industry Added to lower-than-expected Q2 earnings of certain US steel companies – including Nucor and Steel Dynamics – comments made by steel companies seem to suggest that the steel industry will continue to face uncertainties. By Manik Mehta*
TAKE the case of Nucor, which remarked that non-residential construction markets would continue to tread on an overall positive path, though conditions in Q2 2017 were not as robust as expected. The company added that market conditions for hot-rolled sheet products were more challenging than expected in the earlier part of the quarter. Rising steel imports, generally, were blamed for market conditions and the impact on the steel industry’s profitability. Steel imports surged 18.3% in the first four months of 2017 over the same period a year earlier. Rising steel imports, which continue to bother the country’s steelmakers, are one cause of the recent weakening in US steel prices. Steel imports, which have traditionally plagued the US steel industry, are compounded by external factors, which the industry fears could have an impact on its health. There is, for example, the so-called ‘Brexit’ issue, which was non-existent before 2016. While the British steel industry is equally worried about how Brexit will affect its overall business interests, it is concerned that it could possibly face barriers in the US market as Trump takes protectionist action which is, primarily, aimed at warding off China’s steel dumping. President Donald Trump pledged, during the election campaign and, again, after his inauguration, to protect domestic steelmakers, saying he would ‘fight for
American workers and American-made steel’. Under the terms of the Section 232 investigation by the Commerce Department, huge tariffs could be imposed on imports to protect domestic producers if it is established that foreign steel is endangering America’s national security. While Chinese steelmakers are not responsible for the major part of the 26Mt of steel imported by the US each year, President Trump is concerned that China’s huge steel-making capacity could simply swamp the US market, leading to closures of US steel-making companies. The US insisted that the investigation was not aimed at any specific nation, though it is widely known in the industry that President Trump is targeting China, which produced more than half of the world’s 1.6 billion tonnes of annual steel output. A full English Brexit British Secretary of State for International Trade, Liam Fox, was recently in the US to hold discussions with Commerce Secretary Wilbur Ross on the future Anglo-American trading relationship after Brexit. Many US steel pundits are not sure if – and to what extent – Trump’s protectionist measures against China would have an impact on Chinese exports into Britain, as China will now look for new markets to offset restrictions in the US market. China would be tempted to ship its excessive
capacity to other destinations, including Britain. As the Trump administration grapples to take a major decision on whether to impose new restrictions on steel imports, this recourse seems to have caused divisions within the administration and raised global fears of an impending trade war. The Commerce Department has been reportedly assessing the effect of steel imports on national security. Trump’s decision will be based on the Commerce Department’s recommendation on whether to impose restrictions or not. If the administration decided to impose new tariffs or import quotas – or both – on steel imports, it could provide a bit of relief to the domestic steel industry, but on the flip side this would also result in higher production costs, which would be passed down to consumers and to industries that use steel, the very industries whose interests Trump professed were close to his heart. And, more importantly, jobs would also be lost, thus becoming an antithesis to the job-creation mantra that was drummed into American voters during the campaign. Trump, the job creator, could become Trump the job-slayer. Such a step will also antagonise America’s friends and allies, and could herald a series of retaliatory ‘tit-for-tat’ moves against US companies and products abroad. If the Commerce Department determined
* USA correspondent July/August 2017
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USA UPDATE that imported steel did pose a threat to national security, it will likely use the argument that the US needed a healthy domestic steel industry to manufacture weapons and combat material. The rise in steel imports into the US has given ammunition to those yearning for protectionist measures. Imported steel accounted for 30% of the steel used in 2016, according to figures released by the Commerce Department – up from 23% of steel consumption in 2009. Those supporting imports of steel have argued that if Trump imposed further restrictions, it would have a more damaging impact on US partners and allies. The Canadians, for example, are worried by the imposition of new US restrictions because Canada is the biggest source of imported steel and accounts for some 17% of steel used in the US. The Canadian Government has conveyed its concern to the Trump administration and to Congressmen, highlighting the harmful effects of restrictions on the steel industry of both countries, considering that North American steel is ‘highly integrated’.
Experts say that traditional US allies in Europe would give a ‘befitting reply’ if restrictions were imposed on European shipments; they forewarned that retaliation would come in the form of tariffs on US exports to the EU and could be applied to other product groups, such as agriculture, which has a huge market on the continent. There is also, of course, opposition within US business circles to the imposition of restrictions; the Commerce Department has the unenviable task of doing what should be a ‘very objective evaluation’ of the steel import situation. Commerce Secretary Ross is reportedly working on various models in regard to steel import restrictions. The American Institute for International Steel (AIIS), along with other steelconsuming industry groups, urged Ross to hold an additional public hearing on the department’s crucial Section 232 investigation into the national security implications of steel imports. During a 20 June event in Washington DC, executives from the downstream industry argued that an additional hearing would allow an extensive evaluation of the consequences
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of any trade restrictions resulting from the study. They contend that any imposition of duties will harm steel consumers more than it would benefit producers, recalling that a 232 investigation conducted in 2001 concluded that US national security is not dependent on steel imports. AIIS president, Richard Chriss, called on Ross to decelerate the investigation so that a more thorough examination could be made of the impact restrictions on steel imports could have on consumers and manufacturers, and that an additional hearing would ‘allow us to step back, and take a deeper, more careful look at what we ought to do, and what the consequences of implementing section 232 trade restrictions will likely be’. Another negative fallout from restrictions, experts warn, would be the likelihood of a sharp rise in the price of imported steel, with domestic steelmakers also raising prices and, eventually, resulting in price hikes of products made with steel. The end result: US jobs would be lost and this would be the exact opposite of what one had set out to achieve. �
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LATIN AMERICA UPDATE
Brazil’s pig iron
exports
Brazil is an important player in the global iron and steel industry. However, as expected, its relevance differs among the activities that comprise this value chain, writes Germano Mendes de Paula*
BRAZIL exported 366Mt of iron ore in 2015, which was equivalent to 24.2% of the global figure (Fig.1). Regarding pig iron, the respective numbers were 2.8Mt or 21.1%. Brazil exported 8.7Mt of semifinished steel products, gaining a 16.8% (export) market share. Meanwhile, rolled steel products exports reached 5Mt, with a slight 1.2% participation. Global pig iron exports Before investigating Brazil’s performance properly, it is wise to analyse world exports. The left hand axis of Fig. 2 shows that this amount has initially reduced from 16Mt in 2000 to 12.4Mt in 2002, due to the developed countries’ steel crisis (headed by the USA). However, it recovered quite quickly to 16.6Mt in 2004 and even to 18.2Mt in 2007, which has been the maximum value so far. At that time, the
Fig 2
global steel industry was experiencing a strong growth momentum. It can be affirmed that the sector needed to improve productivity sharply because the idle capacity reached its lowest level in decades. In this context, it was very beneficial to use pig iron, substituting scrap in EAFs, for achieving higher volumes. After the global economic crisis of 2008-2009, world pig iron exports diminished and stabilised at around 12.5Mt.
Fig 1
It can argued that the crucial driver of global iron ore exports is the level of activity in the steel industry, in general, and the degree of capacity utilisation in particular. The right hand axis shows the trajectory of this variable during the period 2000-2017. It is evident that pig iron exports were fostered by lower idle capacity between 2004 and 2007. Conversely, the retraction of capacity utilisation determined the drop of pig iron exports. The reality is that pig iron is predominately produced by the steel companies for their own consumption. In fact, the merchant pig iron market is quite limited. Fig.3 shows that world pig iron exports as a proportion of its output dropped from 2.8% in 2000 to 1.9% in 2007, even when their absolute figures achieved maximum value. This ratio plummeted to 1.3% in 2009 and from
Fig 3
* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br July/August 2017
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LATIN AMERICA UPDATE
Fig 4
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Fig 5 Fig 6
2010 onwards it was maintained around the 1.1% level. Brazilian pig iron exports Brazil’s exports climbed from 3.8% in 2000 to 7.1Mt in 2005 (left hand axis of Fig. 4). As a result, its global market share also improved from 23.9% to 40.7%, respectively (right hand axis). This can be described as the golden age of Brazilian independent pig iron producers (locally termed as ‘guseiros’). Nonetheless, Brazilian exports started to contract prior to the dip in world exports. In 2007, the country’s participation had already dipped to 32.7%. After the 2008-2009 global economic crisis, the nation’s exports diminished to 2.3Mt in 2010, but partially recovered to 3.2Mt in 2012. It was short-lived because it spiralled downwards to reach 2.2Mt in 2016. Not surprisingly, Brazil’s market share diminished to 16.7% that year. Furthermore, the country’s pig iron exports were 42.8% lower in 2016 compared to 2000. Simultaneously, it lost 7.1 percentage points in terms of market share, mainly to Russia and Ukraine. Brazil has three clusters of independent pig iron producers. The most traditional one is located in the States of Minas Gerais and Espírito Santo, both in the industrialised Southeast of the country. Due to their proximity to steel mills and foundries, they typically sell a considerable proportion of www.steeltimesint.com
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their production in the domestic market. The second largest cluster is in Carajás, which comprises the States of Pará (close to a giant and high quality iron ore mine owned by Vale) and export-oriented Maranhão (where pig iron is shipped). In the State of Mato Grosso do Sul (in midwestern Brazil), close to the Bolivian border, is the smallest cluster, which is focused on serving the domestic market. Fig.5 demonstrates that, during the golden years, Carajás’ share of Brazilian pig iron exports rose from 42% in 2000 to 61% in 2007. This cluster is beneficiated to be located closer to the USA and Europe, when compared to its domestic peers. Since then, Carajás’ participation increased to 70% in 2012, but speedily decreased to 39% in 2016. It is important to stress that, in January 2008, there were 17 independent pig iron producers in the Carajás cluster and they owned 47 mini blast furnaces, with a combined capacity of 5.2Mt. Currently, only three companies have survived, with nine blast furnaces boasting a joint capacity of 1Mt. The number of operating blast furnaces shrank from 40 to just six, and it would be difficult to resume Carajás’ pig iron exports, even in the context of exponential international demand. Fig.6 shows two complementary pieces of information. On one side, Brazil reduced its dependency on the US market. The
proportion of Brazilian pig iron exports destined for the USA eased from 86% in 2000 to 62% in 2007 and to 36% in 2016. On the other side, Brazilian participation in the USA’s import market improved from 62% in 2000 to 78% in 2001, but then declined to 18% in 2016. In the first five months of 2017, annualised exports were equivalent to 3.1Mt, just 3% higher than during the same period of 2016. It can be argued that there are at least three important barriers to reboosting Brazilian pig iron exports: a) the low dynamism of the global steel industry; b) Brazil’s declining share in the world pig iron export market; and c) the dismantling of a substantial part of the Carajás cluster. Therefore, a brighter export performance seems not to be achievable in the shortterm. � July/August 2017
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THE HOUR BEFORE DAWN
Innovation – a two-sided coin The third essay in the Hour Before the Dawn series looks at innovation. Innovation is normally the ally of businesses seeking competitive differentiation. Under the special circumstances of their industry however, not all steelmakers see it like that. By Mick Steeper* FIRST of all it will be instructive to recognise a general principle: Innovation is the main factor in keeping technology investment rooted in its place of origin. Once the knowledge behind any manufacturing activity becomes commodity, the right place to carry out the activity is dictated by access to market as the dominant consideration, with operational cost a close second. As long as the activity is evolving though, the location with the expertise is favoured and this invariably favours the current operational base. Taking this idea at face value, established steel companies would be expected to embrace innovation enthusiastically. Most, if not all of them, have a dilemma though. If such innovation were to lead to a decisive process development, then adopting competitors might put them out of business unless they invest in it too. Meanwhile if they were to invest in it, overcapacity would see to it that they could never make a satisfactory return. For these same reasons, low-margin and capital-intensive industries like steel are unrewarding territory for venture capitalists. They confer little firstmover advantage and rather too much first-mover risk. As a result of this, many western steel companies today are limiting their R&D to trying to make new and improved product, and/or trying to make established product more efficiently from existing plant. This is never going to be a robust strategy, however.
Even disregarding the fact that making new steels will usually require a significant level of process alteration, the competition in emerging economies is equipped with newer and more efficient versions of the conventional plant, implicitly capable of
steel have a three-fold business proposition of which the exploitation of new process development is the key one. The other two are a lower minimum economic volume than their established competition and a high-margin product niche. Their target
emulating the original development. In an industry as mature as steel, intellectual property protection is moreover an incomplete remedy. Not only is there discoverable prior art for very many core ideas, but western governments in trade negotiations with developing economies will tend to concentrate their IP defence around emerging and high-value industrial sectors, rather than commodity ones. This is just the type of climate that favours disruptive innovation. Pretty well all of the disruptors (or potential disruptors) in
market needn’t necessarily be high-value and indeed seldom is, because high value applications tend to set quality standards that challenge new entrants. A decisive operational cost reduction is the usual route to the improved margin. The historic characteristics of innovation in the steel industry are instructive here too. In common with other bulk processing industries, the most significant process development tends to exhibit a ‘sea change’ cycle, under which infrequent but major process shifts drive a global cycle of
* Chair of the Iron and Steel Society (steel division) July/August 2017
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THE HOUR BEFORE DAWN
reinvestment. Sea change technology shifts are characterised by process compression and simplification, moving the overall plant configuration towards continuous flow, and also by the realisation of a lowered operational cost base. There are often initial quality and product flexibility limitations, but sooner or (usually) later these are rectified through refinement of the concept. The last completed sea change in steel was fully 50 years ago, with the advent of continuous casting. More recent and as yet incomplete ones are the integration of casting and hot rolling, and the closelyrelated trend to near-net shape. Steel product development too very commonly requires some degree of process reconfiguration to be effective, and the resulting capital intensity plus the uncertainty of return is what gives rise to the low frequency of change but also to the pervasiveness of its eventual adoption. By considering all these factors collectively, we can start to anticipate what kind of technical change is likely in future, where in the world this is most likely to take
hold and which type of steel companies will pursue it. We might also realise just how much innovation is in the pipeline already, at a stage whereby technical feasibility is widely accepted but economic feasibility remains doubtful. History suggests that if and when such ideas break through, they profoundly affect the structure of the global industry. This idea that there is already an imminent
technology change, held back only by the weakness of the economic cycle, will be further developed in the next two essays. The next essay will turn to the market side of our industry, and consider the sustainability of automotive strip as the prime high-volume product. The one after that introduces the increasingly significant issue of steel’s carbon footprint as a change driver. �
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18
IRON ORE
Iron ore exploration tumbles STI reviews a report from S&P Global Market Intelligence and meets its author, Sean DeCoff, S&P’s research analyst – metals & mining.
S&P’s report notes that while iron ore budgets fell again in 2016, certain iron ore prices enjoyed some gains after hitting decade lows in 2015. For all that, S&P Global Market Intelligence identified at least 131 companies that budgeted a total of US$454 million for iron ore exploration in 2016, compared with 175 companies budgeting about US$763 million in 2015. Simply put, this represents a year-onyear drop of US$310 million, or 41%, considerably more than the overall decline of 21% for non-ferrous commodities. Expressed even more bluntly, iron ore’s 2016 exploration budget is down a staggering 84% from the peak of US$2.9 billion in 2012. STI asked Sean DeCoff why the iron ore exploration budgets had plummeted so much. In response, he identified the chief reason: “the falling iron ore price, spurred lower by substantial supply and uncertain Chinese demand.” S&P Global Market Intelligence began coverage of iron ore explorers in 2011; it initially surveyed companies for their total ferrous budgets above and beyond their budgets for core targets. S&P believes that while exploration allocations for certain countries, especially China, are under-represented due to a lack of available information, the US$454 million
total quoted above closely represents a substantial portion of the actual 2016 iron ore exploration budget total. Of all the companies exploring for iron ore in 2016, the top 10 accounted for 57% of the total budget. The top three explorers remained the same: BHP Billiton (BHPB) continues in top place with a US$92 million allocation, followed by Fortescue Metals and Rio Tinto with US$36 million and US$29.5 million allocations respectively. More crucially, and looking to the future with a critical eye, Sean DeCoff informed STI, “these three companies all recorded substantial declines in their budgets from 2012 to 2016, in line with or greater than the 84% fall across the industry noted above. Much of this decline occurred between 2012 and 2014/15. Although budgets have been more stable through 2016, we see no indication that their budgets will rebound substantially in 2017.” Are there any success stories? Looking at iron ore exploration on a regionalised or even national basis, there is one country that remained the favourite destination for iron ore explorers in 2016. Australia accounted for 47% (US$215 million) of the global budget. On a country-
by-country basis, Australia was by far the top destination for iron ore exploration in 2016, followed by China. However, Australia’s budget of US$215 million still represented a US$113 million (34%) yearon-year decline. Despite being under-represented in the data set, China jumped to second place from sixth in 2015, after posting a US$12 million year-on-year increase to US$46 million. The increase can be attributed to Xinjiang Xinxin Mining’s US$21.4 million mine site allocation. There was some jockeying for position among different countries, as India and Brazil swopped places. India moved up one place to third but mainly after its budget declined slightly less than the average decline. Conversely, Brazil dropped to fourth from third place in 2015 after posting a 45% year-on-year decline, which was more than the global average. Fifth place for 2016 went to Canada – but a 77% year-onyear decline resulted in a mere $14 million. Mine site exploration – the future? At each of the three different stages of development for iron ore exploration, there was the same pattern of decline: • grassroots budgets suffered the largest decrease, plummeting 52% year-on-year to
* Chair of the Iron and Steel Society (steel division) July/August 2017
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IRON ORE
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US$62.5 million and falling 17% to 14% of share; * late-stage budgets fared little better, falling 50% from US$163.6 million to US$162.2 million (36% share down from 42.7%); * mine-site budgets increased their share to 50% of the global budget (up from 40% in 2015). This occurred only because they experienced the lowest percentage decline (25%). Mine-site spending will claim the largest share of exploration budgets for the foreseeable future. S&P records in its report that expansions at several of the world’s largest mines have led to increased supply during a period of uncertain future demand. With these mines hosting significant long-term reserves, the interest in exploring earlier-stage assets is expected to remain low. The industry is, therefore, still unattractive for juniors and heavily dominated by the majors. As Sean DeCoff states, “To date, we have not seen any clear indication that juniors are returning to the iron ore exploration sector.”
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Conclusions Although most of the major producers have sufficient reserves to sustain production well into the future, preliminary FY2017 data from several of these producers suggests their budgets have increased slightly from the 2016 low. Nevertheless, we expect iron ore exploration budgets to be flat in
2017, with any modest budget increases by producers to be offset by ongoing weakness in the junior sector. Last words are Sean DeCoff’s: “Given the substantial capacities among the major producers, we do not expect a significant rebound in the junior iron ore sector in the near term.” �
July/August 2017
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CONFERENCE REPORT: EUROCOKE 2017
Maintaining your maintenance Preventative maintenance was a clear theme in some of this year’s presentations at Eurocoke 2017 in Dusseldorf. Matthew Moggridge* reports A key and much-welcomed theme of Eurocoke 2017 was preventative maintenance of coke batteries. In his opening speech to delegates, Dr. Frédéric Honnart, Expert, Coke Plants at ArcelorMittal, discussed ageing coke plants and claimed that service life was dependent upon good management. He argued that mis-management of coke plants was more frequent than good management and said that there were four key parameters – temperature, expansion, cracks and cross leaks – where managerial problems lurked. A loss of skills, gas quality, insufficient cleaning and unstable operation were behind temperature problems. As for expansion, very often no checks are made of the metallic bracing or the roof isn’t sealed properly. Furthermore, elongated tie rods were not strong enough to support the doors and metallics. A lack of maintenance and bracing often leads to cracks, and cross leaks can occur because of dirty, unwelded cracks. According to Honnart, most coke batteries that started life in the 1970s and 80s will end around the same time and will need considerable investment to maintain capacity. However, in a difficult and uncertain economy, fuelled by geopolitical instability and a trend towards short termism, that investment potential might not exist. What Honnart called the ‘prolongation of service life’ depends upon stable operation, which in turn will lead to high reliability in terms of process and operation. He stressed the importance of periodic and preventive maintenance as well as safety and industrial risk management and environmental protection and prevention. In many ways Honnart painted a bleak picture, claiming that coke plant service life is often underestimated and that ‘big troubles’ are often caused by a loss of coke making skills mixed with a lack of
Dr. Frédéric Honnart of ArcelorMittal opens Eurocoke 2017
experience and, in some cases, wishful thinking. Honnart’s presentation was peppered with jokey slogans, such as ‘Relax! Nothing is under control’. But the message was clear: when reliability ‘goes bad’ and when installation conditions deteriorate slowly, the ‘death spiral’ will kick in after a couple of years. Steel plants, he said, would pay dearly for cost-cutting and short termism. To illustrate his point, Honnart said that when the Chinese economy was booming the effect on the coke business
was characterised by expensive coke on the market and coke ovens working overtime and, therefore, unable to be properly maintained. Maintenance backlogs during the 2008 financial crash meant that there were big repairs to be done but restricted funds with which to carry them out. And now that China’s fortunes have changed somewhat, plants not meeting environmental standards are being closed. There are so many knock-on effects. Ageing coke plants are an environmental risk, but plants today are under extreme
* Editor, Steel Times International July/August 2017
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Jim Truman of Wood Mackenzine USA
pressure to comply with environment regulations, certainly within the EU, and there is a real risk of administrative closure, according to Honnart. Honnart’s solution is to evaluate visible emissions; consider door and frame cleaners as important as the pushing arm; maintain and adjust the heating system properly; and follow stack opacity as much as the number of pushes. The alternative, he argues, is closure. Dirty and dangerous If coke plant operators haven’t got enough to contend – what with the need to maintain their plants in the face of rising costs and widespread mis-management – then the problem of attracting young people into the profession must be the straw to break the camel’s back. Honnart argues that coke plants are often perceived as dirty, dangerous and highly polluting places to work; even highly automated facilities require maintenance operatives www.steeltimesint.com
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to don gloves and wear dust respirators, fireproof jackets and gas monitors. “Even if we can find young people we generally do not have a good time for overlap with experienced seniors and for the necessary training,” he said, leading to a loss of continuity and an element of ‘rediscovering the wheel’, which can lead to mistakes and accidents. A skills shortage can have negative consequences for project management leading to leaner and leaner teams and some plant operations being subcontracted. When big repairs or plant renewal projects raise their heads, operators might have difficulty taking people off the plant and placing them on the renewal/ repair project team. Very often, the problem is that people are not adequately trained to know how a coke oven electrostatic precipitator should be built for long service life. But it doesn’t have to be this way, claims Honnart. The keys to success, he
believes, are: to provide stability of process and operation from day one along with preventive maintenance; evaluate the risk of cost-cutting; train people and audit the operation and maintenance standards; check and cross-check the machines, installation, instrumentation, process control, ‘HAZOP’ and ‘SEVESO’ procedures. Lastly, he advised delegates to evaluate the service life of the installation and not treat the coke plant as an‘experimental field’. Good housekeeping is crucial As if to reinforce Honnart’s opening presentation, Mirjam Ballon, managing director of ThyssenKrupp Uhde Engineering Services, opened her presentation with a fact: 49% of all coke batteries in Europe are older than 30 years; and that, after 1960, high capacity ovens boasting a 6m chamber height were born – along with an increase in pollution control legislation. Ballon stressed the need for good housekeeping and maintenance of July/August 2017
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CONFERENCE REPORT: EUROCOKE 2017
CRU’s William May
refractory, bracing and operation. She claimed that maximum production was key in the past and in the present, along with good coke quality, but added additional demands for modern operators, such as gas management and environmental demands. For Ballon, integrated asset management addresses most of a coke plant’s requirements and should cover three key areas: engineering, planning and scheduling and execution. She highlighted refractory service, mechanical service, inspection and procurement deliveries. Ballon’s graphic presentation was a worthy tutorial on how to tackle coke plant maintenance. It was peppered with diagrams and photographs showing areas of maintenance and repair, procurement deliveries, coke oven battery inspection as well as details of service actions split into ‘mechanical’ and ‘refractory’. North American expansion Jim Truman of Wood Mackenzie USA discussed North American expansion plans and the response to Cyclone Debbie. He kicked off by saying that coking coal prices had fallen from US$330 per tonne in 2011 to just US$75 in mid-2016. He said that the price drop was due to serious flooding in Queensland, Australia, and added that the USA has responded quickly and is ‘poised and ready’ to bring on a lot of tonnage. US exports to Asia have increased by 15Mt/yr. Truman said that the decline in mining costs corresponds with the drop in prices, but argued that these costs would increase in 2017 as prices improve and higher cost mines come back a little bit. He referenced a large list of expansions in North America – companies with interesting names like July/August 2017
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ECF Wolverine and Warrior 4 – claiming that these mines have plans to increase production to over 18Mt/yr. These might, however, be ‘high expectations’, he added, as a lot of the companies on the list were fresh out of bankruptcy and, therefore, lacking resources for expansion. Truman spoke of spot prices quadrupling in 2016 and then being halved due to factors such as Cyclone Debbie, a category four system and the strongest tropical cyclone in the region since Cyclone Quang in 2015, which claimed the the lives of at least six people in Queensland, Australia, earlier this year. According to Truman, Cyclone Debbie removed 13Mt of met coal exports causing spot prices to climb to around US$300/ tonne. In 2011 Cyclone Yasi was equally as destructive. Prices dropped and there were around 17,000 lay-offs in the USA due to falling prices, improving productivity at the remaining mines. Over the last few quarters, however, hours have increased, said Truman. And let’s not forget China’s coal supply reform of 2016 and the National Development and Reform Commission’s decision to limit domestic mining operations to 276 days per year, which has since been returned to 330 days. There are three regions of the USA where met coal is mined: Central, Southern and Northern Appalachia. The majority of US met coal production comes from the Central area, which accounts for the majority of US met coal production and 48% of expansion plans. The Southern region accounts for 38% of expansions and the Northern region 14%. Truman said that around 35Mt/yr of US met coal is currently available at US$150/ tonne and an additional 10Mt/yr if labour and equipment could be secured. “We expect the US will reap high prices for a brief period, but will have a limited ability to increase export levels before Australian production returns,” said Truman, adding that gains over previous planned increases may be roughly 1.5Mt. Truman said that US export growth has been hampered by lead times for production and delivery to Asia and that immediate and longer term constraints – such as a seven-week delivery time, low product stocks and a lack of capital – would reduce an 11Mt target to just 5Mt. In summary, Truman said that Cyclone Debbie had removed 13Mt of met’ coal
exports from the market, causing prices to climb to around US$300/tonne. Cyclone Yasi resulted in falling prices in Australia and lay-offs in the US. He said that North American producers want to capture as much high-priced business as possible, adding that 18Mt of possible expansion was on the cards when prices were US$150/tonne. From operating mines, the USA’s met’ coal export capacity stands at around 38Mt/ yr, but labour, equipment and capital are in short supply. Truman argues that the Americans have a brief period over which to reap high prices, but will have ‘limited ability’ to increase export levels before Australian production returns. Truman said that once railroad repairs have been completed and production returns, the market will return to an ample or excess supply situation, which will mean a return to falling prices.
Neil Bristow of H&W Consulting
China and India CRU’s William May argued that China was slowing while India was growing and posed the question: How would such a state of affairs affect the coke industry? With debt in China getting out of control, he said, a boost to total social financing has enabled the country to return to year-onyear growth in terms of metal production. The Central Bank of China (CBOC) has tightened credit, which will affect the Chinese construction industry, a major receiver of financial support, according to May, but will coke consumption slow as a result? According to May, if hot metal production contracts between 2017 and 2021 either capacity utilisation will fall or more coke will be exported and prices will www.steeltimesint.com
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fall. He said that Chinese steel has been contracting since 2014 and would peak by 2027 driven by strong housing demand. However, a growing scrap fund will weigh heavily on hot metal demand to 2035 and CRU forecasts a 2.5% CAGR of coke consumption. May spoke of a ‘huge change’ in blast furnace technology with small-to-medium-sized units being replaced by bigger equipment in the region of 3,000m3 to 4,000m3 and that would increase the coke strength and reactivity (CSR) requirements of blast furnace coke. India May believes that the Indian steel industry is going through a construction-fuelled growth phase and will achieve a 300Mt steelmaking capacity by 2025 and 280Mt by 2035. There has been (and will continue to be) massive growth in both construction and transportation needs and the Indians will learn from China’s growth mistakes. Larger blast furnaces will mean higher CSR so Indian coke technology will have to be upgraded. May says that 32% of Indian cokemakers rely upon stamp charging, which can increase charge density by 37% and overall productivity by 10-15%. CSR can be maintained by using 15-20% less hard coking coal. CRU forecasts that 85% of coke making will be stamp-charged by 2035 and that the process can reduce operating costs and produce a high CSR coke. CRU also believes that non-recovery coke production will be phased out in favour of recovery coke ovens, which recover byproducts generated during the coking process. Tar, sulphur, coke oven gas, crude benzol and ammonium sulphate can be sold into other industries. There are tough times ahead for the coke industry in China as the industry moves towards captive coke production. An increasing scrap fund and falling coke rates won’t help. In India, on the other hand, a boom is on the way. Low-tech operations will close and be replaced by high tech production. In China, growth was all about volume and not caring about margins. India will be far more pragmatic. Eurocoke 2017 was a good event and, as always, well worth attending. It tackled key subject areas such as the volatility of pricing and supply and the need to make cokemakers more flexible. There was a lot of discussion about the need to invest in preventive maintenance and, of course, there were some interesting comparisons between the Chinese and Indian marketplaces. Bristow of H&W consulting wrapped up the event with a few comments on how there had been years of cutting costs with volumes down – certainly within Europe – but now that steel demand was picking up, he argued that the coke industry hadn’t spent the money. How many new batteries have been built in Europe, he asked. “We’ve closed them,” he told delegates. “If we enter a period of stronger steel demand, we’ll need more coke. We’ve been reliant upon Chinese coke to fill the gap and if volumes pick up we could be short of coke again, we’ll have to go to the seaborne market and it may not be there as China is rationalising it’s coal industry.” Bristow said that things are currently looking good in steel, so steelmakers should be improving operations and not thinking of the coke plant as a liability. � www.steeltimesint.com
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Trump, China and US steel Left to right: Randy Skagen (Nucor), George Konig (Hatch), John Brett (ArcelorMittal USA), Theodore Lyon (Hatch), Barbara K Smith (CMC), Jim Dudek (US Steel), Joe Delano (KDKA), Ron Ashburn (AIST)
One of the highlights of AISTech, the Iron & Steel Technology Conference and Exposition, is the Town Hall Forum, moderated by Jon Delano, money and politics editor of KDKA, an affiliate of CBS. Matthew Moggridge* was there. IT’S an event that always attracts the crowds because it’s a chance for delegates to hear the views of steel industry top brass on the matters that count. Jon Delano delights in grilling the great and the good of the American steel industry, which makes the Town Hall Forum unmissable in my opinion. The format is simple: Delano fires questions at the panel and they provide the answers. In the hot seats this year were John L Brett, president and chief executive officer, ArcelorMittal USA; Jim Dudek, vice president of asset revitalisation and manufacturing excellence at US Steel; Theodore F Lyon, managing director, Hatch Associates and president of Hatch Associates Consultants; Randy Skagen, vice president and general manager, Nucor Steel Tuscaloosa Inc; and Barbara K Smith, president and chief operating officer, Commercial Metals Company. George Konig, director of global business and technology development, iron and steel, for Hatch Associates, kicked off proceedings and heaped plenty of praise upon Nashville, the host city for AISTech
2017, and the Music City Centre, the venue, which I described in last month’s issue as ‘an amazing structure with a curvy roof and a tremendous interior depth that dominates downtown Demonbreun Street’. It was an ideal venue to host a premium get-together of the global steel industry. The big news outside of the steel industry in Nashville during AISTech 2017 was the firing of FBI chief James Comey. While Trump lost the popular vote to Hillary Clinton he owes his presidential success to voters in the steel and mining states as he never failed to mention steel and trade wars throughout his campaign, so Delano was keen to find out what Trump’s election to the presidency meant for the panellists. For Nucor’s Randy Skagen it meant just one thing: Optimism. ArcelorMittal’s John Brett commented that ‘optimism abounds’ and CMC’s Barbara K Smith said she was ‘hopeful for change’. Theodore Lyon from Hatch was applauded for a one-word reply, ‘relief’. Delano said that in 2016 the world had the capacity to produce 2.3 billion tonnes of steel but instead produced just 1.6
billion tonnes, half of which was produced in China. The USA accounted for 85Mt and received an additional 20Mt of foreign steel. He said that China had promised to close 150Mt of capacity, but asked the panel, Will China deliver? “I don’t believe it’s getting any better,” said ArcelorMittal’s Brett. “You have to be careful of capacity cuts in China,” he said, adding that most of it is idle for some time, but the most likely scenario is ‘more capacity, not less’. “We’re appreciative of [Trump’s] executive orders, but we’re still operating at under 75% utilisation,” Brett said, claiming that the fundamental issue, the elephant in the room, was China and it needed to be addressed. CMC’s Barbara Smith agreed with Brett and said the problem was not created overnight and it won’t be solved overnight either. “It will take years,” she said, stressing that while China was the biggest issue in the overcapacity argument, it was not the only one to create excess global demand. Jim Dudek, US Steel’s vice president of asset revitalisation and manufacturing
* Editor, Steel Times International www.steeltimesint.com
CONFERENCE Aistech version 2.indd 1
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excellence, who stepped in at short notice to replace the company’s senior vice president for automotive solutions, James Bruno, said the main issue with China was one of transparency. “It’s difficult to know how much has been taken offline,” he said, but agreed with Smith on the fact that the problem won’t be turned around overnight. He said he was encouraged by Donald Trump and said that, hopefully, action would be taken on the issue. Nucor Steel’s Randy Skagen said the truth was in the numbers. “The problem is that China says one thing and does another. The Chinese government owns the steel industry. Who believes ‘no subsidies’? I don’t trust them,” he said. Theodore Lyon criticised the Chinese for not enforcing its own rules. He said there had been a lot of change recently with demand decreasing and capacity increasing, with China exporting the difference. He spoke of China’s environmental problems being solved by capacity shutdowns. Delano asked panellists how the USA should react to China in the light of a Section 232 investigation being launched by Secretary of Commerce Wilbur Ross to ascertain whether or not imported steel from China posed a threat to national security. Nucor’s Randy Skagen said he supported the initiative, claiming it was very important to national security bearing in mind that steel is used by the American armed forces, but, he said, national security wasn’t the whole story. What about jobs? The US steel industry supports over one million jobs and, in addition to the military, steel is used extensively to build America’s infrastructure – pipelines, bridges, railways – “it’s about keeping us working,” Skagen said. ArcelorMittal’s Brett said he was very proud to be a supplier of steel for many national defence contracts, but, he said: “People are looking at it very narrowly. When you need steel, you need steel.” Brett said he was very optimistic. “I think this administration is serious about doing something and he [Trump] will put something in place – more than just a slap on the wrist.” CMC’s Smith spoke of the company’s ‘minor role’ in defence-related products. “For me it’s about having a strong economy, good employment and a proper role for the middle classes,” she said, adding that infrastructure needed to be kept in good condition. www.steeltimesint.com
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US Steel’s Dudek said it was clear that steel was critical to the USA’s economic security and was more than just a product for the military. “Since January 2015 16,000 jobs have been lost and that impacts our ability to be successful,” he said, claiming that US Steel is a supporter of the Trump administration.
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But is Section 232 political posturing? Not according to Hatch’s Lyon. “Something will come of it. The economy is our national security and I believe it is easy to show harm to the extent that the government has to react,” he argued. Delano moved on to NAFTA (North American Free Trade Agreement) and
July/August 2017
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CONFERENCE REPORT: AISTECH
Lyon – ‘relief’
asked whether the USA should leave it as is, revise it or drop it. Nucor’s Skagen said it was 23 years old and in need of some renegotiation. Prior to NAFTA there had been a trade imbalance with both Canada and Mexico, he said, arguing that NAFTA was good for the USA. “Now there are zero tariffs into Mexico, but not if NAFTA is scrapped,” he said. Brett believed the US should keep NAFTA but it needs modification. While there was lots of common ground he said that revisions were needed. “All countries have prospered, but it’s no longer equal,” he said. US Steel’s Dudek said the three countries should work together and collaborate over common steel issues, while CMC’s Smith said it would be hard to tear up NAFTA as the three economies had become intertwined and there were other issues, such as human trafficking, that needed to be addressed. Delano asked whether a trade war was inevitable and if it was a problem? US Steel’s Dudek said, “We’re already in a trade war and it is problem,” and went
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on to mention the 16,000 lost jobs. “It’s economic warfare,” he added and called for change. “Once you lose part of your steel industry you don’t get it back. We can’t just start all over again ‘next season’. Skagen commented, “Trump will reach into the toolbox and use tools not used before.” Delano looked to the future and wondered how steelmakers were preparing themselves for ‘tomorrow’. Dudek said that US Steel makes a broad effort when it comes to people, processes and products. “We have to be successful ourselves and solve our customer problems,” he said, claiming the focus must be on high strength steels. ArcelorMittal’s Brett said the goal was simple: to produce high quality products. “To me it’s all about execution,” he said. Skagen said Nucor wanted to be the leader in all of its markets and was increasing channels to market. “In the past few years we’ve doubled capacity,” he said. CMC’s Smith believes the customer is key. “They have choices so we need to fully understand them and give them something different,” she said.
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CONFERENCE REPORT: AISTECH
Brett – ‘optimism abounds’
Where automotive is concerned US Steel’s Dudek said the market was softening after record years in 2015/2016. “We will continue to see a shift in product mix towards AHSS (Advanced High Strength Steel), which will mean a reduction in volumes over time,” he said, reiterating US Steel’s optimism about the Trump administration. Skagen said the big issue was competing materials, such as aluminium and carbon fibre, but said that innovation would lead the way and that, in his opinion, steel was absolutely winning the battle. But Brett argued that steel was the solution. “I’m confident we can take out weight they’re seeking, but also there are other segments that consume AHSS,” he said. CMC’s Smith, who used to work for Alcoa, said competing materials would always be a reality, but that aluminium represented a significant investment for automakers. “You have to meet customer needs,” she said. On the issue of whether Corporate Average Fuel Economy (CAFÉ) standards would be pushed back now that Trump was in the White House, it wasn’t an issue that panellists were particularly concerned about, certainly not Dudek or Brett, who said it wouldn’t have any impact at all. Delano moved on to discuss to role of www.steeltimesint.com
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technology in the production process. ArcelorMittal’s Brett said automation was an enabler and would create more interesting jobs for employees, countering more negative views about the digital future awaiting steelmakers. Looking at the steel market in the age of Trump, Delano asked panellists what ‘the Donald’ should push for and Randy Skagen said tax reform. “It needs to be done: lower corporate tax rates, and infrastructure spending,” he said. Brett puts infrastructure spending first followed by support for the domestic energy market. “And we must do something about educating future workers,” he added. CMC’s Smith wants trade and tax reform while US Steel’s Dudek wants trade laws enforced, corporate tax reform and commonsense environmental regulations. Hatch’s Lyon said that no president should meddle in the free market economy. He called for regulations reform and wants more action on infrastructure. An ageing population was next on the agenda. Baby boomers are retiring, said
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the middle schools,” he said. CMC’s Smith was the only woman on the panel this year and, she pointed out, the second woman ever to be part of a Town Hall Forum panel. Pointing to US Steel’s Dudek she said he was the youngest – although I think he probably knew that already. Smith said that steel was a maledominated profession, but argued that it wasn’t just women who suffered from work/life balance issues. Family days were also considered an important tool for attracting younger talent into the industry. Skagen said Nucor has family days, but won’t allow under 18s, Dudek said US Steel offers family days and bus tours, and CMC’s Smith said the company encourages family members to visit the plant so as to keep generations interested. Once the Town Hall Forum was over – the last ‘official’ event of AISTech 2017 –delegates made their way to the exhibition hall to see Ernesto Scarpitti (pictured above) win the Chevy Silverado pick-up truck. After that there were visible signs of an event
Scarpitti – riding along in his automobile...
Delano, at a rate of 10,000 per day, the average age of the US steel workforce was 50.1 years, according to AIST and it’s an issue that concerned panellists. ArcelorMittal’s Brett talked about the company’s Steelworker of the Future Programme, which he said was going fine. “But we didn’t anticipate we’d have to do something about perception,” he said, keen to point out that working in the steel industry was intellectually stimulating and already highly automated. “It’s not all dirty work,” he said, explaining how ArcelorMittal went to the high schools where things went a lot better when the parents were there. “Now we’re tackling
closing down for the year. Smaller exhibition stands were quietly dismantled, delegates’ suitcases could be seen grouped together in parts of the convention centre and people prepared for the journey home. Some embarked upon long car journeys – the Americans don’t think twice about 10-hour stints on the Interstate – others readied themselves for long-haul flights. Me? I had the rest of the afternoon off followed by a nine-hour flight to London via Dallas. �
AISTech 2018 will take place in Philadelphia at the Pennsylvania Convention Centre. July/August 2017
14/07/2017 11:30:14
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CONTINUOUS CASTING
The new revamped Consteel, connecting car side
Continuous scrap feeding Ori Martin has completed the revamping and modernisation of the first European Consteel and the installation of a heat recovery system on the primary off-gas line exiting the Consteel, to recover the remaining thermal energy in the off-gas for the production of steam used for district heating and to feed an ORC turbo-generator to produce electric energy. By N Monti* & U De Miranda**
WITH the aim of increasing meltshop flexibility and reduce the cost of steel production, Ori Martin has successfully commissioned and started-up the revamping of the first European Consteel together with the installation of a heat recovery system on the primary offgas line exiting the new Consteel. The joint installation of the latest Tenova technologies has significantly improved Consteel EAF performances and, thanks to the new iRecovery system, an important amount of thermal energy is now recovered and delivered to the City of Brescia district heating grid during the winter and is fed to an ORC turbo-generator to produce electric energy for Ori Martin’s internal use. The new installation allows Ori Martin to have one of the most environmentally friendly and energy-efficient steel making plants in the world.
The new Consteel The main goals of the project included energy efficiency optimisation and improved environmental performance of the plant, which is located close to the centre of the City of Brescia, while keeping production focused on special steels and improving the quality of the product. Numerous tests have been carried out jointly by the Ori Martin team and Tenova’s Engineering and Process departments. The tests have highlighted the need to think about the design of a new Consteel, which has as its objective reduced energy consumption and improved steel melting equipment operational performance. The new Consteel project is based on the following fundamental concepts: • rebalancing the two main components of the melting unit (Consteel and EAF) to achieve productivity efficiently
and continuously; • improve thermal exchange between EAF off-gas and scrap in different charging conditions (greater exposed surface and lower height of the scrap layer); • improve scrap distribution as it enters the liquid steel bath (larger surface area where scrap falls in the steel bath) in order to speed up melting and reduce interference with steel bath stirring; • keep the connecting car pan inserted inside the EAF for any furnace tilting angle, so as to have the metallic scrap charging and the electrical power-on to the EAF electrodes starting together at the earliest opportunity; • reduce ambient air suction inside the Consteel and the primary off-gas line by increasing the efficiency of the Consteel seals and by better controlling ambient air intake through the dynamic seal;
* Tenova S.p.A. Via Gerenzano, 58 - 21053 Castellanza VA (Italy) +39 0331 444111 nicola.monti@tenova.com, ** Ori Martin S.p.A. Via Cosimo Canovetti, 13 - 25128 Brescia BS (Italy) +39 030 39991uggero.demiranda@orimartin.it July/August 2017
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CONTINUOUS CASTING
The new revamped Consteel, offtake hood side
• maintain high temperatures of EAF off-gas; • reduce the off-gas flow rate in the primary off-gas line and, as a consequence, reduce electrical consumption to the fume treatment plant; • improve the conditions of the off-gas at the inlet of the heat recovery system installed on the primary off-gas line. The correct operation of the process is entrusted to a completely new and innovative supervisory and control system that is capable of interacting consistently with the management systems of other production units. This type of process control is characteristic of Tenova’s iSteel, a product designed for the continuous technological improvement of the steel production cycle on a global basis. Automatic spillage control or TAT (Tenova Auto Tapping), has been implemented to control EAF slag flow through the EBT during steel tapping into the ladle and to minimise human intervention during this operation. The melting process in Ori Martin is rather atypical when compared with the other Consteel EAFs. Why? Because it employs limited oxygen and carbon injection and that leads to a modest quantity of energy in the off-gases. The main objective of the revamping is to maximise off-gas recovery by improving heat transfer to the scrap in the heating tunnel and by optimising the conditions of the gases at the tunnel’s exit to properly feed a downstream recovery system. The transfer of heat to the scrap is improved by increasing the scrap-exposed surface through the installation of the widest www.steeltimesint.com
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conveyor (2400mm) compatible with the existing EAF geometry. At the same time the new Consteel drive allows increasing the conveying speed by 2m/min. The changes will result in a reduction of the average scrap height from 800mm to 500mm and that will boost the average scrap charging temperature at the EAF. The hoods of the heating tunnel are being completely redesigned applying the results of a CFD analysis based on actual off-gas flow data. The aspect ratio of the hoods has been changed as they are wider and lower, while the overall section has been reduced by about 20%. The energy recovery efficiency both in the Consteel tunnel and in the downstream iRecovery improves dramatically with the increase of the temperature of the gases. The new Consteel implements a completely redesigned set of seals to minimise the admission of bleed
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air. The sealing chamber at the open end of the conveyor (a dynamic seal) has been reconfigured to achieve the desired result. To seal the gap between the heating tunnel and the EAF shell a new circular flange, divided in to two independent sectors, is installed. The position of the upper flange can be regulated to adjust the quantity of post-combustion air to assure the complete combustion of CO and H2? generated into the EAF. Both flange sections are retractable to give the needed clearance for shell changeover between campaigns. The improvement of the seals and the changes in the design of the dynamic seal allow fumes temperatures to be significantly higher than those observed before both inside the tunnel and at the tunnel’s exit. To reduce the dust load in the fumes sent to the waste heat boiler and improve the deposition of metallic dust particles on the scrap layer, the offtake hood has also been redesigned, increasing both the horizontal section and the height to reduce the vertical speed of the fumes and increase their residence time. The EAF platform cradles are replaced to match the EAF tilting axis and the flange axis, and the connecting car is also improved so that it can be left inserted throughout the process. The iRecovery The heat recovery system, iRecovery, has been running successfully since early 2016. The system, installed downstream of the new Consteel EAF furnace, is tasked to recover some of the energy contained in the fumes generated during the EAF production cycle. The energy extracted from the fumes converts the recirculation
The new iRecovery system
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CONTINUOUS CASTING
The new iRecovery system, A2A exchange section
water of the cooling circuit into steam. This is made possible thanks to the use of cooling water at boiling conditions that, circulating and absorbing energy, will be subject to partial phase change generating saturated steam. During winter the steam produced is sent to a heat exchanger dedicated to district heating for the town of Brescia and managed by A2A Group. During summer months, the steam produced is used to feed an ORC (Organic Rankine Cycle) turbo-generator, supplied by Turboden for the production of electricity for internal use. The heat exchanger, otherwise known as a waste heat boiler, consists of a single convective exchange unit, operating between fumes temperatures of approximately 500-550°C down to a temperature of approx. 200°C. However, since the EAF process generates heat loads that are not constant over time (scrap melting, liquid steel refining and superheating, tapping, EAF preparation), the fumes temperature has a significant variability over time. The recovery of heat and its transfer to the users is carried out according to a continuous cycle where water, coming from the degasser, evaporates into the waste heat boiler, cools down in the heat exchangers of the users and is then sent back in the form of condensate to the degasser, thus closing the thermal cycle. The system is basically divided into the following sections: Heat recovery section, starting from the new off-gas duct, in parallel to the existing off-gas duct to the quenching tower, which branching from the refractory-lined underground tunnel (upstream of the quenching tower), conveys the hot fumes July/August 2017
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in the heat recuperator, waste heat boiler, and then to the primary existing off-gas line downstream of the quenching tower. The waste heat boiler consists of a steam generator with natural circulation water tube bundles fitted with: • casing, namely the fumes flow chamber that contains the convective heat exchange units; • evaporators consisting of bundles of vertical tubes crossed by the off-gas inside which the water (liquid phase) coming from the steam drum undergoes a partial evaporation; • steam drum which consists of a cylindrical pressure vessel installed above the recuperator in which the liquid water is in balance with the steam. From the bottom of the steam drum come out both down take pipes that go to the evaporators and the upwards pipes coming from the same evaporators;
• economisers consisting of bundles of vertical tubes inside which water is coming from the degasser. The economiser tubes are crossed by the off-gas. In the economisers, water temperature is raised from about 105°C to a temperature close to boiling point, at a defined pressure, in the steam drum; thanks to the economizers the temperature of the off-gas coming out from the evaporators can be further reduced; • automatic cleaning system of the recuperator that allows the cyclical separation of dust deposited on the surfaces of the exchange units inside the heat machine; • dust extraction system to collect and convey the dust separated in the recuperator up to a storage bin. Heat exchange section with A2A district heating system: the steam coming from the steam accumulation section is transferring, by condensing, its energy to the water of the district heating grid of A2A thanks to a heat exchange unit that consists of two condensing heat exchangers operating in parallel. A flash tank inside conveys all the condensate, and an additional condenser condenses back the flash steam using the same district heating water. All the condensate is then subsequently sent to the degasser through a booster pump group. ORC section: for converting recovered thermal energy into electrical energy. Consists essentially of a turbo-generator with Organic Rankine Cycle (ORC) that using the steam from the recovery section and converts the recovered thermal energy into electrical energy.
The ORC turbo-generator (courtesy of Turboden)
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Water supply section: composed of a thermo-physical degasser with turret which carries out a dual role: first it ensures continuity of supply to the recuperator in case of non-supply of make-up water; second it allows the elimination of gases dissolved in the make-up water. The water in the degasser is drawn from a group of feed pumps and transferred to the steam drum of the recuperator; the pump group is provided with a level control valve that regulates the flow of water depending on the level of water in the steam drum. Steam pressure accumulation and reduction section: the steam produced by the recuperator is conveyed to a steam accumulator that accumulates thermal energy. In its outlet, on the delivery lines to the end users, there are some thermal expansion valves that reduce steam pressure and ensure that it is below the pre-set value. Furthermore, between the steam drum and the accumulator there is a valve that prevents steam pressure below a pre-determined value. Operating results Considering the first period of operation from the start-up of the new Consteel EAF, followed by the commissioning and start-up of the iRecovery system, analysis of operative data already shows good performances by these two integrated systems. The performances of the new Consteel EAF are measured calculating a cost index that considers energy and media consumptions: the expected reduction of more than 8% of this cost index compared with the previous average values is confirmed. As an additional performance figure, furnace productivity is increased by more than 13%, exceeding all expectations and reaching outstanding reference value in the production of steel via EAF. The performance figures mentioned above are the average of a long production period beginning with the start-up of the furnace. Further developments and continuous improvement are still ongoing in order to exploit the high potential demonstrated by the system to exceed expected values. The operation achieved with the new Consteel EAF is the base from which to reach the expected performance of the iRecovery system with a view to recovering thermal energy from the primary off-gas in the range of 90 kWh/tgb – and more that will be available for the district heating and for the ORC turbo-generator. Controlled steam flow rate Thanks to a continuous commitment to optimise plant tuning, the steam flow rate is now controlled based on the average thermal load of the fumes expected and can now be kept uniform over tap-totap time due to the thermal buffer of the steam accumulator. After the first period of operation, the average results of the iRecovery system during more than one year of operation show that the amount of energy recovered from the off-gas and transformed in to ready-to-use thermal energy is in line with the expected results. The overall integrated Consteel EAF and iRecovery system has performed outstandingly in terms of steel production. With the performance results now fully integrated, the whole system is steady and consistent and gives ORI Martin the opportunity to exploit a more flexible and efficient operation. The potential demonstrated by the system cries out for further development to optimise performance and costs in different scenarios. The revamping and optimisation have lead to Ori Martin being one of the most flexible, efficient and environmentally-friendly steel making plants in the world. � www.steeltimesint.com
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TECHNOLOGY
Opportunities for 3D printing One of the big technology buzz phrases of the moment is 3D printing – or additive manufacturing (AM). The subject has a high profile in the mainstream news media as well as plenty of coverage in the scientific community and the world of books. Dr. Eric Klemp* argues that AM offers many opportunities, but there are risks
ADDITIVE Manufacturing (AM) is in trend and is often described as ‘3D printing’, ‘Rapid Prototyping’ ‘Rapid Manufacturing’ and ‘Rapid Tooling’.There are, meanwhile, many information channels reporting about these topics including news, scientific papers and books. This brings with it a very high awareness and in many cases there is a very optimistic outlook into the future. This gives the impression that AM is an easy-to-use technology and there are more opportunities than risks. On the one hand this is correct, as AM really does offer a lot of opportunities for new design, products, markets and properties of the part being produced. Besides this view, there are also risks to be taken into account, as a lot of know-how and skills have to be available before getting involved in this new technology in order to get a successful product on the market. The risk of failure or disappointment is high unless all constraints are considered. The voestalpine Group, a leading global technology and capital goods group with a unique combination of material and processing expertise, has realised this and is building up competence centres in order to provide solutions for their customers in the field of AM. The AM process is generally different to conventional processes. The main difference is that – normally – conventional machining removes material by using tools. These tools are for cutting, drilling or milling and in many cases they are rotating. By rotation and cutting, material removal takes place. In order to achieve a suitable design of the final parts, components or tools have to be technically designed in line with the restrictions of the production process itself. This means that there are some areas that need special attention, like small walls, undercuts or hollow structures. In general
terms, AM means that, by using additives, material is built up layer-by-layer. This kind of material build-up, for metallic processes, is normally processed in powder, using a laser, and does not require any tools and this means a much higher design freedom, as the build-up process is more detached from conventional production constraints. The starting point of each AM process is a CAD drawing; this means that all information is available electronically and there is ample design flexibility in case of changes. Before the process can start, the entire design has to be cut into these layers, which are normally thinner than a human hair. Each layer should be seen as a simple geometry comparable with a two-dimensional drawing. These layers are being built on each other and the geometry of the part is growing. AM can be seen as a production method for small series production or single parts even if more parts are built in one building job, they might be copies, but generally they are single parts in the machine itself. With these complete new approaches the technology of AM can be described as ‘disruptive’. It is now possible to “let the impossible happen” as designers are given a new freedom to jump over the wall of former constraints. New geometries are possible which are free-formed in structure and allowed to follow the shape of the contour of the part or tool. This kind of cooling design is called ‘conformal cooling’ as it allows for totally new shapes that allow cooling rates to be increased. In terms of injection molding this will drastically reduce production-time, and extend the service life of the tool. But this design is not self-explanatory; it is aimed specifically at AM processes and, therefore, a lot of know-how has to be available. Additionally
this kind of design might also consider the results of a simulation of the mechanical resistance of the thermal conductivity. This tiny example shows that the designer has to know much more about the possibilities of AM-methods and their capabilities in order to find the best solution. To be successful a new kind of thinking has to be developed – which is, to a certain extent, different to existing knowledge.
From a production standpoint this approach can be used for a small series production or for the design of tools. Before this decision can be taken, however, a general decision has to be carefully
* Managing director, voestalpine Additive Manufacturing Centre GmbH July/August 2017
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considered, as there is no rule dictating which number of parts makes technical and/or economic sense. With a small series production, it might make more sense to produce the negative part in terms of the tool rather than the part itself. Also, in terms of possible design changes, AM is a possible solution in order to reduce time; correctly designed, a change might easily be made in the CAD-file – a change that might be completed by changing a number and, therefore, is just ‘a mouseclick’ away. The new part can be rebuilt. It also influences the costs, as the part can be designed with greater ease for the expected use. So customer fulfillment is easier to achieve and, in comparison with conventional machining, the time to market might be much shorter. Products can be developed quicker than following the conventional route, there are no additional production processes to be considered and that includes tool design. As the production of the part is independent of the design,
and the location of the production has lost influence, it is possible to build in additional flexibility as the production unit can be installed in the demand environment – close to the customer – and the electronic file can be sent anywhere in the world by email. Of course, a few more constraints appear www.steeltimesint.com
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here, like the availability of material or machine and capability. On the one hand, this is focused on the hardware as well as the availability of skilled employees. A big advantage is that the cost of logistics can be dramatically reduced along with storage costs and the price of the parts if they (the parts) are only produced on demand. This can only happen if the right conditions and possibilities have been considered - not forgetting the process chain, which has to be installed correctly, and all materials and capabilities are available at the right time. At the end, the quality control process has to be implemented carefully. When compared with conventional processes, the chains and quality approaches are different, so careful thinking is essential prior to initiating the AM process. Another issue to be taken into account is the material, the availability of which corresponds to different technologies, from liquids to plastics to metal. In this article we concentrate more on metal.
One of the first decisions to be taken is: which kind of material is to be used? The choice is dependent upon availability as well as the process ability of the material and, of course, the demands of mechanical properties such as corrosion resistance. AM material is being produced by a few
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different processes. Technically it can be said that powder can differ, which means the powder itself can – even it is the same material – have a different particle size distribution, can have a hollow structure with a different amount of humidity as well as flow ability. The powder itself is produced in a vacuum atomisation rig. Within this rig, the original material is melted and released into a vacuum chamber. This production method demands a lot of know-how and must be adjusted carefully. If parameters are not chosen correctly, the result might be difficult to use for the AM process. After the powder is produced it has to be sieved to the right particle distribution, and here too a great deal of knowledge is needed to achieve the right results using AM machines. As the remaining material can be used for other processes, wastage is low. There is also a high materials usage as both process and customer solutions can be produced. If applicable each user can design their own AM material. This is, of course, a huge opportunity; on the other hand it requires a lot of know-how in the field of material design and usage in AM machines. Each material needs its own parameter settings, more or less, which have to be already available or developed. A lot of research is needed here, as it is, in many cases, basic know-how that has to be built up. Ultimately, it has to be clear that all processes have to be developed in order to provide customer solutions which can be adapted in their facilities, even if they are in different locations around the globe. Rapid development Developments in AM-technology are moving fast. More than 30 years ago, only parts could be produced which were being used as haptic patterns – these are simple patterns of design. These parts have been produced out of liquids with a laser (so called stereolithography) and plastic wires heated in a nozzle (so-called Fused Deposition Modelling). These early parts have only been used as simple examples with no expectation of mechanical resistance. Because of this they have been called Rapid Prototyping. As developments progressed, new processes arrived on the market including processing plastic powder using a laser. The use of these prototype processes increased as they achieved a higher level of toughness. Consequently not only plastic materials are involved; today many kinds of metallic materials can July/August 2017
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be processed in so-called Laser Melting Machines. With this progression, new markets were targetted and today AM can be found in many industrial sectors including automotive, aerospace, medical and special mechanical engineering appliances where the requirements are very different. Meanwhile applications in the aerospace field have reached the required Technical Readiness level (TRL) and are “ready to fly” in commercial aircraft, the parts having achieved a level of trust, which allows them to be used as non-critical parts in an aircraft. With the experience of design and mechanical load capacity (static and dynamic) it can be expected that more and more parts will find their way into the aerospace sector where usage is based on confidence and trust, experience and knowhow. In the field of medical applications AM is used as a production system for dental applications. Crowns and bridges are produced to customer specification. Here – as seen many times before – individual customer solutions have opened up a new market segment. Artificial hip-implants made out of titanium-powder are already state-of-the-art and used successfully in the human body. In the field of medical applications many steps were taken in terms of development before a part was used in the human body, starting with the correct development of the material and the process chain. The journey from idea to end-user is a long one and many development steps have to be taken. The next step – which has already started – is parts support for the automotive industry, which is vastly different from AM’s medical and aeronautical applications, purely because of the large number of parts involved. The production rate of AM
machines is too low for parts production in the mass-produced automobile marketplace, so many other applications will be started first, such as special parts for limited production models, which might be delivered only a few times a week. Here it won’t be economical to produce parts using standard tools. However, AM can and will be used to produce tools for the mass market. With special features in the tools, it might be possible to achieve a higher flexibility as well as a high production rate. This shows that the capability of AM has to be used in the right application. In the near future we will see many more branches that will use AM to provide special solutions.
While AM can be a huge economic advantage in many sectors of industry, not all parts will benefit from being produced this way. In order to support the decision process, each part or tool has to be checked to see which solution provides the most benefits. A lot of know how, therefore, is needed to choose the right process and identify the main functions
as well as choosing the right material. Where the material is concerned, it has to be considered that less material might be used with AM. In aircraft production, the terminology “buy-to-fly ratio“ describes the amount of material being used in the part versus the material being bought as a block. As AM is using only the material for the part, a nearly 100% utilisation rate can be achieved. Here again, high competence and know-how is mandatory to achieve this goal. Standardisation An important issue with AM is the standardisation of materials, processes and parts. Here many national and international approaches are being developed. These standards or recommendations will provide know-how in use and help the end-user with less detailed know-how to achieve a level of confidence. Standardisation can entail the provision of mechanical data of parts or a recommendation for design or even heat treatment of the final part. As standards are only a vehicle, it will build up trust and confidence in AM technology. AM has a huge potential to become a sustainable production method in the future. To achieve this, many technological steps have to be taken and many processes developed before success will be achieved by know-how, education and trust in the new technology. At all steps along the way within the process chain, voestalpine will support its customers and end users, leading to an adapted solution within a “one stop shop”. � For further information, log on to: www.voestalpine.com/ additivemanufacturing
RIP-PROOF TAGS FOR METAL IML’s unique rip-proof tags can be used for track and trace purposes to ensure a minimal loss of stock in the steel, metals and engineering sectors. These tags can be attached to products using metal security clips, wires, a stud welding system or banding/strapping materials.
Temperature Resistant from -40°c to +220°c No memory material so no data loss when crushed Abrasion, weather and resistant to various chemicals Thermal transfer printing available for in-house coding Various sizing options July/August 2017
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TECHNOLOGY
Streamlining o Continually streamlining operations and finding new ways to increase efficiency is a difficult but necessary part of steel processing, says Steven Nghe*
COMPANIES that continue to strive for new ways to streamline will succeed and grow, while companies that become complacent will fail. Kloeckner Metals is always striving to improve the value stream by finding improvements and savings for its customers. This improvement is not limited to just one area of operations but is a company-wide effort. “Operations, to me, are sort of allencompassing,” says Tom Gauger, director of operations at Kloeckner Metals. “It isn’t just what goes on within the four walls of the factory. I look at it as everything that goes on, not just in the manufacturing environment, but also what we do in terms of how we process our accounts payable, how we function within our payroll and our human resource needs. These are all, to me, operational issues that affect our associates and can have an effect on our customers.” The streamlining mentality In order to achieve streamlined operations, employees and management must first adopt the correct approach and mentality. This means embracing change instead of avoiding it. While change is difficult and may cause disruption in a business, it also creates opportunities. You need to make the tough choices and be decisive when committing to a change. “Change is not the enemy, change is really our friend,” Tom says. “Rather than just continuing to do what we’ve always been doing, we have an opportunity to get better.” Affecting change can be difficult because it involves people. People come with different perspectives. Some will resist change while others will be more open to it. The key is to get everyone on the same page. Make everyone understand that the
change is occurring so that everyone can improve collectively. On the other side of the coin, complacency inhibits improvement. A good way to guard against complacency is through visual management. To this end, Kloeckner has created a dashboard where factory metrics can be viewed remotely, in real time. With this tool, anyone from floor managers to the CEO can monitor performance throughout the day. This adds an important level of accountability to ensure that efficiency gains are not shortlived. “Complacency, as we like to say, is the enemy, which is why we are constantly striving to bring greater visibility to anything in the value stream that might negatively impact our ability to make our product faster, better and cheaper,” says Chuck Sudwischer, regional operations manager at Kloeckner Metals. “That’s an example of how we’re using visual management to keep ourselves moving in the right direction.” Continuous improvement While it is difficult to increase efficiency, it is even more difficult to sustain these improvements. It is important, therefore, to adopt multiple tactics to maintain continuous improvement. Best practice sharing is one such tactic that Kloeckner utilises. Using business software, Kloeckner has created a repository where all continuous improvement projects are stored and accessible across the company. All the information for any one of these streamlining projects is cross-linked in the software and can be viewed by any project leader across the country. This prevents information silos, allowing a project leader considering an improvement project to
cross-check for similar programmes across the company. If a similar project has been done before, then the project leader can look at the results and replicate the work. “It has really been a difference maker as far as being able to get information about what is going on in other parts of the company,” Chuck says. “At the end of the day, what is important is getting the results.” Another tactic used by Kloeckner has been adopting the Lean Six Sigma programme for continuous education. Kloeckner employees learn how to improve efficiency using this methodology and work toward various levels of certification. The return on investment for these programmes extends beyond the direct savings found by eliminating waste and includes things like employee satisfaction, increased knowledge, and improved credibility. “We truly believe people are our greatest asset and, therefore, make investing in their continuing education a priority,” Chuck says. “Kloeckner Metals has developed many great internal learning systems that our team members participate in on a regular basis. We look externally for learning opportunities as well.” “We all think we left school and stopped learning,” Tom says. “You have to continue to learn and educate yourself. We don’t do it in the same fashion that we did when we were in college; it is self-learning and reaching out to experts within the industry. It involves attending a lot of shows and doing a lot of reading. There is a wealth of information that is very good that you can get your hands on.” Digitalising information A digital world allows for vast improvements in the way information is
* Digital Product Innovation Manager, Kloeckner Metals. snghe@kloecknermetals.com July/August 2017
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g operations ns in steel processing proc handled. Paper records are much less efficient, so the act of digitalisation is one way to streamline operations across the board. At Kloeckner, just about everything is now done electronically. The days of sending faxes and paper invoices are largely over. For example, customers can now send drawings and information that can be quickly assimilated into programming logic. Drawing files can be uploaded to the system which nests all the parts and then sends the information electronically to a machine. “That machine resides a few hundred feet away, or a few hundred miles away,” Tom says. “These are real game changers to be able to do that.” As part of the digitalisation process, Kloeckner has streamlined a lot in how paper and processing is handled, specifically within the accounts payable department. Whereas in the past, everything had to be approved locally at the branch, typically off of a paper invoice, today the process is virtually paperless. Previously, a large staff was needed to process payments and issue checks. Now, invoices are all sent electronically to a digital mailbox where object character recognition software analyses the invoice. The software automatically presents a PDF document of the information and then lists it, puts it into appropriate fields, and enables the reviewer or approver to look it over. “It is measurable,” Tom says. “You can measure the performance and the turnaround time on all these things, and we can better manage our cash-to-cash cycles.” Remote technologies New technologies have opened up new avenues for streamlining operations. Smart machinery not only means improved sensing capabilities, it also can mean remote troubleshooting. At Kloeckner, it is possible to monitor, diagnose, and provide maintenance and support for many of the www.steeltimesint.com
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machines remotely. Kloeckner has set up systems which enable vendors and partners to remotely access the machines in the factory over a very, very secure network. In some cases, they can troubleshoot and fix things remotely. This saves a lot of time and money compared to waiting for a technician to get to the facility and examine the machine in person. This technology spans multiple machines, facilities, and processes. “We’re enabling these machines to be networked,” Tom says. “So, you talk about the digitally connected factory. As we’re replacing and upgrading equipment, we have an eye on the future of what we’re trying to accomplish there to be able to provide that kind of remote support.” Connected capacity is another concept that is evolving. A programmer sitting in one location can be working on a machine there, but the customer might be hundreds of miles away. If the customer is closer to one of Kloeckner’s other many strategically placed locations, then that same programmer can program the part and send the drawing file to the other factory. The operator at that factory can then produce the part and ship it to the customer, reducing the cost of transporting the part. “Because of our network and where our facilities are strategically located, we can provide a wider array of services to our customers,” Tom says. “It gives us more of a regional capability and a national footprint to be able to reach customers in places where our competitors can’t.” Digital scoreboards One of the major streamlining improvements that Kloeckner has implemented over the past few years is the creation of digital scoreboards
on factory floors. These are electronic displays, line-side, which Kloeckner calls scoreboards. They can be easily seen by any team member working in the area. The scoreboard displays critical input data from the process that impacts the critical output Kloeckner is looking to control, which is cycle time. Cycle time is quite simply how long it takes to produce a unit, such as a flat-rolled coil of steel. “It really helped everyone keep their finger on the pulse while working on the line and keep track of how they were doing throughout the day,” Chuck says. “If you look up there and you are doing better than the target, the numbers will be green. If you are not, then they will be red.” Digital scoreboard Because the project was so successful in reducing cycle time, every flat-roll process in Kloeckner North America now has a digital scoreboard. As time has gone on Kloeckner has refined the electronic reporting so that not only do team members on the floor have a real-time visual reference via the scoreboards, but anyone in the value stream with a computer connected to the network can access a dashboard that displays realtime performance data. This means that even the CEO can, at a glance, take the pulse of all processes, real-time. This visual management creates accountability and guards against complacency. “People are competitive by nature,” Chuck says. “The recording of the information became real-time, and they were able to affect the outcome throughout the day.” Digital fleet management Kloeckner operates a large fleet of trucks to transport goods from the mills and to the customers. These trucks now have computer systems which collect data to be analysed. In addition to safety data and driver metrics, this information can also be used to streamline the efficiency of the fleet. Kloeckner can monitor the location of assets in real time, which creates new July/August 2017
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opportunities for increased efficiency. For example, there might be an opportunity for a backhaul from a mill that arises or a new order that comes in from a nearby facility. The driver can be rerouted. “It not only ensures that our drivers are staying within the federal hours and hours of service, we’re able to also see where those assets are located, estimate when they are going to be arriving at a certain customer destination, and we’re able to connect the capacity that we have within our transportation network,” Tom says. “We now have the equipment – the technology – to track our assets. We know where our
remote assets are located, and we can redirect a truck to a different location if we need to and that gives us a strong degree of visibility that we didn’t have even a few years ago.” Keeping the customer in mind With all these new technologies providing new opportunities for streamlining, it is important not to get lost in it all. You should not streamline or implement technology just for the sake it. In all things, it is important to focus on the customer. Today, customers are really in the driver’s seat. They have access to a cornucopia of
information about what they are buying, who they can buy from, and what other customers think of a supplier. Thus, for a business to survive it must cater to the real needs of the customer, and take cues from customer feedback. “We talk about the B to C economy, but it is really becoming a C to B world,” Tom says. “Streamlining operations and all the technology, we can all get caught up in this stuff, but if it is not adding value to what we do as a company, or to our shareholders, or to our customers, then it is just technology. It doesn’t accomplish anything. We have to be mindful of that.” �
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PERSPECTIVES: FRIEDRICH KOCKS
Kocks: A future-oriented supplier Friedrich Kocks started 2017 in a positive frame of mind with some interesting projects coming to fruition. China remains the company’s busiest place as there is still strong demand for SBQ production, says Günther Schnell* 1. How are things going at FRIEDRICH KOCKS? Is the steel industry keeping you busy? After a quite difficult 2016 we started very positive in 2017. Some major orders are already in and there are still some quite promising projects ongoing, which will be decided over the next few months.
We are currently executing an order from the USA where two of our RSBs are going to be installed in a new SBQ outlet. It is an exceptional concept, which allows for the highest flexibility on the shortest foot print. We were very pleased that this customer, who has already operated two KOCKS blocks for many years, also selected us for its new mill outlet.
2. What is your view on the current state of the global steel industry? It looks like the steel industry is recovering and the positive outlook will support investments. While there are many plans for modernisations, there will also be some green field projects in the short-term. 3. In which sector of the steel industry does FRIEDRICH KOCKS mostly conduct its business? KOCKS’ main business is to supply finishing blocks for long product rolling mills. In particular, we are building Stretch Reducing Blocks (SRB®) for the pipe industry but also Reducing & Sizing Blocks (RSB®) for special bar and wire rod production. Beside those main fields we are supplying reduction mills for the copper industry. Recently we successfully entered the market with our own advanced profile-measuring system for long products – the 4D EAGLE. 4. Where in the world are you busiest at present? Currently, the busiest place for us remains China. There is still a great demand for SBQ production and it looks like it will go on for a couple more years. 5. Can you discuss any major steel contracts you are currently working on?
Günther Schnell
6. How important is the development of Industry 4.0 – or ‘smart production’ for the global steel industry and what, if anything, is FRIEDRICH KOCKS doing to further the development of the digital age? We do see a great potential for Industry 4.0 in various fields, especially for our rolling mills where the degree of automation is constantly growing and our customers are seeking further process transparency in order to better understand the deformation process. Kocks is using relevant key data in order to further automate the rolling
process and offers tools to our customers which either support them in optimising their rolling process or produce excellent quality fully automatically – independent from individual operating crews. 7. Where ‘green issues’ and emissions control are concerned, how is the steel industry performing? There have been great developments in recent years. Steel production is much cleaner than it was decades before. There are various clean green technologies available to reduce emissions substantially, but many steel producers, especially in lower developed countries, are hesitating to invest in such technologies, which is mainly a cost issue. 8. In your dealings with steel producers, are you finding that they are looking to companies like FRIEDRICH KOCKS to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them? We are constantly developing our machines and solutions in order to improve energy efficiency and sustainability. Our 3-roll deformation process is very efficient since almost all deformation forces are converted into elongation of the product rather than into spread. This means less heat-up of the rolled product and less downstream processing for achieving the desired final high quality product. 9. 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
* Managing director, Friedrich Kocks July/August 2017
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losing battle? The steel industry has responded appropriately, but greater political support is needed to further support investments into green technology. To invest into environmentally friendly technologies must be more attractive to steel producers. In the long-term we are succeeding. 10. Where does FRIEDRICH KOCKS lead the field in terms of steel production technology? KOCKS is a future-oriented technology supplier, which is positioned in a highly specialised niche. For more than 70 years our 3-roll technology is setting the standards in Special Bar Quality (SBQ) sizing, but we are also among the leading suppliers for seamless tube production. Recently we launched our newest profile measuring technology, which is also able to detect surface defects – an ideal addition to our 3-roll sizing technology.
must concentrate on reliability, quality and flexibility in order to defend and grow their market position. 13. The Chinese still rely heavily upon Western steel production technology. What is FRIEDRICH KOCKS’s experience of the Chinese steel industry? There are still Western key technologies, which need to be imported in China in order to fulfil the highest market demands. We have supplied our technologies since 2002 to China and customers are expecting short communication ways in national language. About a decade ago we established a local presence, which serves our customers to their full satisfaction. 14. Where do you see most innovation in terms of production technologies in your field? The automotive industry is still growing
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Modern production technologies allow for constant new steel grade developments for various applications. However, the market is limited and there is already a cut-throat competition ongoing among steel producers. In the medium term, already large steel producers will continue to grow in order to further participate on synergies. There will be more overseas investments, joint ventures and strategic alliances between steel producers. 16. FRIEDRICH KOCKS is based in Germany, but what’s happening steelwise in the country? In the last five years we faced a continuous but slight decrease in steel production here in Germany. However, the first six months of 2017 were quite promising since a small increase in production has been observed. We do hope that this trend continues and that the German steel industry is recovering.
11. How do you view FRIEDRICH KOCKS’s development over the shortto-medium term in relation to the global steel industry? We are constantly developing our products together with our customers in order to fulfil their demands. In recent years we lifted our advanced technology to the next automation level and offered our customers tailor-made mechanical upgrades in order to lower production costs and strengthen their position in the market. In the medium term we need to further improve our products and widen our portfolio. As a dedicated specialist Kocks needs to concentrate on what else it can do best and, in addition, offer a great service. 12. China dominates global steel production and is accountable for almost half of total production. How should the industry react to this situation? After very fast production growth China is now facing substantial overcapacities. Along with growth China is also facing considerable environmental issues, which has strongly impacted living quality especially in boom areas and larger cities. A consolidation of the Chinese steel industry is ongoing in parallel with the closure of a few steel production plants. However, steel producers outside China www.steeltimesint.com
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and there is a great demand for special bar quality and wire rod products. Many low quality steel producers are going to invest in projects to supply higher quality steel products. The challenge is to modernise existing plants characterised by limited space using smart modernisation concepts and use tailor made solutions to achieve the highest quality levels. 15. How optimistic are you for the global steel industry going forward and what challenges face global producers in the short-to-medium term? I’m quite optimistic in the short term.
17. Apart from strong coffee, what keeps you awake at night? As a highly specialised niche player, we always need to offer the best technology in our field. Thus, we need to constantly improve our products with great ideas and visions which pop-up time by time also during the night. 18. If you possessed a superpower, how would you use it to improve the global steel industry? The goal can only be to align the steel family and have globally fair trading conditions based on globally binding emission standards. � July/August 2017
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HISTORY Thomas Farnolls Pritchard 1723-1777
Making parts for the first iron bridge The famous iron bridge, which spans the River Severn at Coalbrookdale in Shropshire, has been a source of curiosity and mystery for more than two centuries—where was it actually made? By Harry Hodson* IN 1779 Coalbrookdale had several ironworks established on either bank of the River Severn. They were there because of a ready supply of coal, timber, water and ore – the necessary ingredients for their business. The larger of these concerns was run by the Quaker Darby Dynasty and had been established since 1709. Its founder, Abraham Darby I had been the originator of coke smelting, and the company had prospered since. During this period, getting goods, people, and doing business within the parishes on either bank of the River Severn was totally reliant upon the local ferry. Often out of service during poor weather conditions and incapable of carrying heavy goods, it was decided that it should be replaced by a bridge. In 1773 a number of people put their name forward to sponsor the project. Most of them had in mind a substantial masonry bridge similar to those at Shrewsbury and Bridgnorth, capable of carrying the heavy loads of 18th century traffic. Thomas Farnolls Pritchard (1723-1777) had suggested that the bridge could be made of iron and this had aroused the interest of a few of the sponsors, among them John (iron mad) Wilkinson, and Abraham Darby III. Pritchard favoured Darby to take charge of the project should it come to fruition. Pritchard, a practising Shrewsbury architect who was trained in carpentry, was authorised to put forward plans for the bridge. Government approval for the bridge was given in 1776. Cast iron – the ‘new material’ After some opposition it was finally decided to adopt Pritchard’s idea and build a cast iron bridge using the ‘new material’ fashioned on carpentry practice. Unfortunately he died in 1777 leaving plans and drawings that did not accord to
Inscription on a main rib of the iron bridge with date of construction in Roman numerals
foundry practice. The entire project was now in the hands of Abraham Darby III, a 27-year-old ironmaster who was in charge of the Coalbrookdale Foundry established by his grandfather. After consultation with the older experienced foundry men, Darby estimated the cost of the bridge at £3,000 for the ironwork, which would be paid by the sponsors who would be re-paid from toll money when the bridge was in service. Darby had calculated that about 380 tons of iron would be needed for the bridge parts, this was a problem that needed to be dealt with by increasing the melting capacity of the works. He purchased the nearby Bedlam Blast furnaces to help raise the 380 tons of pig iron needed for re-melting in an air furnace. This allowed him to continue his existing business with the help of iron produced at the nearby Horsehay furnace and his “upper works” one mile upstream from the bridge site. The ‘upper works’ was well-equipped with both blast and air furnaces and capable of dealing with the bridge parts. The largest parts were the main arch half ribs weighing six tons each and measuring 70 feet in length.
Coalbrookdale town square Transporting the 70in x 9in x 6in section ribs to the bridge site would have been a very difficult, and this has led many to believe they were cast on-site. However, talking to the locals seems to convince many people that the largest parts of the bridge were cast at what has now become the town square adjacent to the bridge. This is a level area of shops that has been cut out of the steep sides of the River Severn gorge. The area is large enough to accommodate the making of the open moulds into which the huge 70 feet half-ribs were cast direct from an air furnace at 1400 deg C. The site would have to be protected from the elements by a temporary structure. It is possible that the expense may have been better than casting them at the ‘upper works’ which might have been a ‘logistical nightmare’ in terms of transportation. Today’s bridge is roughly the same as when it was first built bar a land arch added in the early 19th century, which owes its existence to Thomas Farnolls Pritchard whose plans and ideas were adopted by the Coalbrookdale Foundry men – but altered to suit their practice. �
* The author is secretary to the Wealden Iron Research Group July/August 2017
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