October 2014 – Vol.38 No.7 – www.steeltimesint.com
STEEL MARKETS
SPECIAL STEELS IRONMAKING PERSPECTIVES
STEEL TIMES INTERNATIONAL – October 2014 – Vol.38 No.7
Focused on quality and reliability.
X-Cellize® – service modules. Effective and efficient Using our innovative diagnostic methods, we quickly track down the causes of any plant malfunctions. After all, the best brains in the business are behind our Technical Service. Our experts systematically check your plant components and get straight to the heart of the problem. That ensures the performance of your entire plant.
Innovative X-Cellize® service modules and highly qualified service technicians are the vital factors that ensure stable overall productivity of plants at low maintenance costs. To find out more, go to www.sms-siemag.com. SMS Siemag – service is in our genes.
SMS SIEMAG AG
Eduard-Schloemann-Strasse 4 40237 Düsseldorf, Germany
Phone: +49 211 881-0 Fax: +49 211 881-4902
E-mail: communications@sms-siemag.com Internet: www.sms-siemag.com
CONTENTS OCTOBER 2014
Oerlikon Leybold Vacuum provides innovative vacuum solutions for secondary metallurgy applications. Mechanical vacuum systems are practicable, reliable and powerful tools for the efficient operation of steel degassers. State-of-the-art mechanical pumps are designed for the rough steel plant environment and fulfil the highest suction speed requirements when installed in multiple arrangements.
October 2014 – Vol.38 No.7 – www.steeltimesint.com
STEEL MARKETS
SPECIAL STEELS IRONMAKING PERSPECTIVES
EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Consultant Editor Dr. Tim Smith PhD, CEng, MIM
2 Leader 4 News The latest steel industry news from around the world 9 USA update The American steel rennaissance 11 Latin America update Investing to substitute imports
15
Production Editor Annie Baker
SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116
9
Steel markets 15 The importance of US infrastructure Service centres 21 Adding value to the mix
Area Sales Manager Anne Considine anneconsidine@quartzltd.com Tel: +44 (0) 1737 855139
21
Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117
1
Ironmaking 24 The case for high capacity coke ovens by ThyssenKrupp 28 Extending blast furnace life
Advertisement Production Martin Lawrence
Special steels 33 R&D delivers increased corrosion resistance
SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £163.00 Other countries: £233.00
40
2 years subscription: UK £308.00 Other countries: £441.00 ) Single copy (inc postage): £37.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, England. Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood,
40
Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2014
Perspectives 38 Helping steelmakers save energy History 40 Victorian ironware is fashionable, says Harry Hodson
ISSN1475-455X
www.steeltimesint.com
October 2014
2
LEADER
The foundation of continued sustainable development...
Matthew Moggridge Editor matthewmoggridge@quartzltd.com
At a recent conference in New York, ArcelorMittal’s CEO, Lakshmi Mittal, told delegates that steel was the very fabric of life. It doesn’t take a genius to realise that Mr Mittal was 100% on the money with such a remark. Steel, quite literally, is everywhere. It plays a major role in virtually everything we know – from the trains we enjoy as passengers, the cars we love as drivers, the buildings in which we live and work and the bridges we cross simply to reach the other side. In short, it would be impossible to live in the modern world without steel. But, despite its critical necessity for the survival of human society, steel has a reputation to upkeep and if you’re going to maintain your reputation then you need to manage it. Steel production is an energy-intensive affair that starts with an extractive process – iron ore mining – and progresses through a energy-intensive blast furnace or electric arc furnace stage into a converter, then a ladle and finally a continuous caster where the raw material is transformed into various shapes and sizes before making its way to shipyards, automotive manufacturers, the construction and transportation industries
and even on to the strings of violins. But you can’t please all of the people all of the time and, like everything in life, there are problems. There are safety issues at plant level. This month we report that a Tata Steel employee died after falling into a bucket of molten iron. There were casualties after an explosion at a US Steel plant in Alabama and a fire at a Nucor facility in South Carolina – fortunately without any injuries. While safety is crucial, the bigger, global issue for steel – and, indeed, any heavy industrial process – surrounds the environmental cost of production. Great steps have been taken by technology providers to reduce emissions and make steel plants more energy efficient and we all know the issues concerning the phrase ‘a level playing field’. The 48th World Steel Conference in Moscow this month focused on ‘steel as the foundation of continued sustainable development’. Safety, the environmental challenges and the the positive image of the industry were under discussion, providing delegates with an understanding of what needs to be done to repair the reputation of the world’s greatest metal.
& We have exactly the cable you are looking for... 2XU FDEOHV VXLWDEOH WR EH XVHG LQ 6WHHO VHFWRUV DUH SURGXFHG DFF WR VSHFLÀF VWDQGDUGV Standard construction: IEC 60502-1/-2 Chemical resistant: EN 60724-3-5 Conductor construction: IEC 60228 Halogen free: IEC 60754-1/-2 Flame retardant: IEC 60332-1 Low smoke density: IEC 61034-1/-2 Flame resistant: IEC 60332-3-22/-24 Oil resistant: IEC 60811-2-1 Fire resistant: IEC 60331 &HUWLÀFDWLRQV GOST-R UL/CSA Approvals
GAALFLEX® VFD EMV-FC 3GSEGCH
Max. Temperature up to 1565°C - 2849°F
VOLTAGE 3,6/6 KV
GAALTHERM® SPECIAL SIAF/POL VOLTAGE FROM 1,1 KV AT 13,8 KV
WATER COOLED CABLES
Elettrotek kabel S.p.A. Headquarter, Italy,Tel: +39 0522 956001 %UDQFKHV Elettrotek kabel Swiss GmbH. Switzerland, Tel: +41 44 760 36 80 Elettrotek kabel North America Inc. U.S.A, Tel: +1 973 265 0850 Elettrotek kabel GmbH. Germany, Tel: +49 (0) 89 55 27 68 91
www.elettrotekkabel.com October 2014
www.steeltimesint.com
WITH THE TOUGHEST SOLUTIONS FOR THE WORLD’S MOST EXTREME PROCESSES, QUAKERTEK™ SPECIALTY GREASES KEEP YOUR MILL RUNNING SMOOTHLY. With the demands of the modern steel industry, you and your equipment are both feeling the pressure. Taking care of operations doesn’t just mean keeping the mill rolling, but also means finding ways to lower costs, improve performance and extend the life of your machines. Quaker Specialty Greases minimize Total Cost of Ownership while giving you sustainable product solutions that require less volume and reduce energy during use. As the industry-leading provider of process fluids and other chemical specialties, no one else offers the same level of experience and service, and no one else is in more places at more mills. So team up with Quaker, and keep your toughest operations running smoothly.
Trust a partner who knows the steel industry from the inside. Contact our experts today. quakerchem.com | info@quakerchem.com | 1.800.523.7010 © 2014 Quaker Chemical Corporation. All Rights Reserved
4 NEWS IN BRIEF SMS installs hot strip mill SMS Siemag of Germany has supplied a hot strip mill to the Turkish steelmaker HabaŞ, marking the company’s entry into the flat products market. The mill, installed at the steelmaker’s Aliağa plant, is designed for an annual production of 2.5Mt of hot strip with widths varying from 700mm and 2,100mm. According to SMS, the mill is designed to produce a wide range of premium steel grades including carbon and multi-phase steels as well as pipe grades up to strength class X80. Mill capacity may be increased to 4.5Mt per year at a later stage, claims SMS, by installing a second reheating furnace, an additional two-high reversing roughing stand and a third downcoiler.
Burnpur fire extinguished
INDUSTRY NEWS
US Steel cancels expansion US Steel has cancelled plans to expand its iron ore pellet operations at Keewatin, Minnesota, and cease further development of its carbon alloy facilities at the Gary Works in Gary, Indiana. The Keewatin expansion would have increased production capacity by 3.6Mt, taking annual capacity to 9.6Mt. The plan was to upgrade and restart an idled pelletising line and upgrade the mining, concentrating and agglomerating processes. The required permits for this expansion expired last month and will not be renewed. Additional investments planned
for the carbon alloy facilities of the company’s Gary Works in Indiana, will go no further. Started in 2011, the project ‘contemplated the construction of two modules to provide a carbon alloy material used to replace traditionally manufactured coke to the Gary Works’ blast furnaces’. While one module has been built and will be permanently idled, a second will not be constructed, claims US Steel. By not going ahead with these projects, US Steel saves over US$800 million. “We estimate that these two strategic actions will result in a
non-cash, pre-tax charge of approximately US$250 million in the third quarter, which includes approximately US$40 million for Keetac and approximately US$210 million for the Gary Works,” claims US Steel. The company claims that its future raw materials needs for iron ore and coke are sufficient, negating the need for the two projects. “The previously announced examination of alternative iron and steelmaking technologies, such as gas-based, direct-reduced iron (DRI) and electric arc furnace (EAF) steelmaking, are not affected by these decisions,” said US Steel.
Hebei’s 5Mt/yr South African mill ore reserves in the country and will be constructed in two phases. Hebei plans to commence construction of phase one next year. Once completed (by end 2017) it will be capable of producing 3Mt of long steel. Phase two, (2019) will have an annual production capacity of 2Mt
of sheet and section steel. Hebei’s chairman Yu Yong said, “In order to make the most out of the resources we own in South Africa, our company has decided to build a steel mill there...”. Hebei also owns 200Mt of copper ore reserves in South Africa. Source: China Metals.
A fire at Steel Authority of India Ltd’s IISCO steel plant in Burnpur, India, on 25 September, has been ‘immediately extinguished’, claims the Indian steelmaker. The fire in new coke oven battery number 11 broke out during a planned shutdown ‘for carrying out rectification jobs’ in one of the preheaters of the coke oven battery.
A memorandum of co-operation has been signed by the Chinese steelmaker Hebei Iron & Steel Group and the South African Industrial Development Corporation and China-Africa Development Fund to build a 5Mt/yr steel mill. The mill will rely upon Hebei’s 270Mt of high-purity-grade iron
According to SAIL, around 21 people were affected and given immediate medical attention at the plant’s medical unit and at Burnpur hospital. Two contractors were admitted to the ICU.
India the best place to produce steel
Tata employee killed D P Singh, a Tata Steel employee, has fallen into a bucket full of red hot molten iron and died. According to news reports, it is feared that no body will be recovered as it is likely to have been reduced to ashes.
The incident took place at Jamshedpur during the night shift.
Finishing line 32 ready Tata Steel’s EUR12 million finishing line number 32 is up and running in IJmuiden, the Netherlands. The company believes that the new line will strengthen the supply of high-value steels to the automotive sector as well as other markets and will process up to 400kt/yr of galvanised steel coil.
For more steel industry news and features, visit www.steeltimesint.com
October 2014
The project teams of ThyssenKrupp Steel Europe and SMS Siemag after the successful revamp of the 400-ton converter at ThyssenKrupp Steel Europe in Duisburg-Bruckhausen. The new converter is one of the largest of its kind in the world, claims SMS.
JSW Steel plans to acquire Italian steelmaker Lucchini SpA ‘for less than US$100 million. JSW claims that it will start operations on site before the year end and will not be taking on any debt or require any fund raising, says Sajjan Jindal, JSW’s chairman. Lucchini is Italy’s second largest steel plant in capacity terms. The company was declared bankrupt in 2012 after the 2008 financial crash and used to manufacture long products for the railways industry, specialised steel for automotive and wire rod. JSW plans to restructure the business. Also on the agenda for the company is the purchase of Italy’s 10Mt/yr Ilva steel plant where investment is envisaged. Jindal claims that JSW is interested in further acquisitions elsewhere in the world, but is focused upon India because, he says, it is the best place to produce steel. Source: Times
Economic
Times/India
www.steeltimesint.com
INDUSTRY NEWS
Latin American steel stalls The Latin American and Caribbean steel market is showing limited dynamism, according to Alacero, the Latin American Steel Association. Regional consumption of finished steel reached 40.5Mt during the period January to July 2014 and that amounts to 1% growth. Mexico, Columbia and Argentina lead with way with the largest increases in consumption at 14%, 14% and 8% respectively. Venezuela, Ecuador and Chile showed sharp declines in consumption of -43%, -20% and -7% respectively and while Brazil’s -3% decline is not, at face value, a great deal, it does amount to 446kt. Finished steel imports accounted for 32% of regional consumption at the end of July. Regional
trade during the period recorded a deficit of 8.5Mt, which was 13% deeper than in 2013. Most Latin American and Caribbean countries recorded a deficit: Mexico at -2.8Mt, Columbia at -1.3Mt, Peru at 914kt and Chile at 883kt. Latin America produced 38Mt of crude steel between January and July 2014, roughly similar to 2013. The largest producer was Brazil (20Mt) and this figure represented 52% of regional output. Argentinian production was up 11%, Ecuador 10%, Mexico 7% and Peru 4%. On the reverse side, Venezuela and Chile both registered marked declines of - 43% and -19% respectively. Latin America produced 32.6Mt
of finished steel, down 1% yearon-year. Brazil was the largest producer at 14.5Mt (45% of regional output) and Mexico in second place with 10.2Mt (31% of regional production). The greatest increases in finished steel production involved Columbia (up 14%) and Mexico (up 12%). Outputs for Venezuela and Chile fell by 41% and 23% respectively. During August crude steel production totalled 5.7Mt, which was 2% down year-on-year. The cumulative figure for January to August 2014 was 43.8Mt, similar to the same period last year. Finished steel production reached 37.3Mt, down 1% when compared with the same months of 2013.
Ansteel dismantles furnaces Ansteel has started to dismantle six outdated coking furnaces to meet with modern pollution standards. The furnaces – four 4m high units and two 5m high units – have a production capacity of 1.3Mt/yr. China’s Ministry of Environmental Protection blacklisted Ansteel in July after it failed to dismantle its outdated facilities and discharged excessive pollutants. Since
then the company has been under significant pressure to improve its reputation. The plan is to replace its six coking furnaces – originally installed in the 1980s – with two low-emission models. Ansteel promised to invest 7.1 billion yuan (US$1.16 billion) between 2013 and 2015 on 68 pollution reduction programmes. The removal of its six outdated coking
furnaces could reduce smoke and dust by 1,600 tons, eliminate 170 tons of sulfur dioxide and 600 tons of nitric oxide annually. Ansteel, listed on the Hong Kong stock exchange, turned in a profit of 577 yuan (US$94 million) for H1 2014 and sales revenues of 38.2 yuan (US$ 6.2 million) according to its interim report, published last month. Source: China Metals.
NLMK DanSteel plates for wind turbine tests NLMK DanSteel A/S has supplied 200 tonnes of plate steel to the PISA Project, a European research and development programme. The high-strength steel will be used for the experimental foundations of offshore wind turbines. The aim is to improve the construction of the foundations, reduce cost and raise investment appeal. Other Danish companies involved include Dong Energy and Bladt Industries A/S. The PISA project is organised by the UK Carbon Trust as part of the Offshore Wind Accelerator programme (OWA), which is aimed at promoting offshore wind generation and reducing the cost of wind energy. NLMK is the only supplier of thick plate of special dimensions made from high strength steel. www.steeltimesint.com
NEWS IN BRIEF
5
Explosions and fire rock US steel plants An explosion injured three workers at a US Steel plant in Fairfield, Alabama, USA, injuring three workers. Three days earlier a fire broke out at a Nucor steel plant in Huger, South Carolina, causing ‘significant damage’ but no human casualties. The US Steel explosion happened on 21 September, three days after the Nucor fire on 18 September.
Both companies are conducting investigations into the incidents. An ArcelorMittal spokesperson did not disclose details of the people injured or the extent of their injuries. The Nucor fire was attended by ‘multiple fire agencies’ according to news reports.
Tata’s ferro chrome plant The first phase of Tata Steel’s new ferro chrome plant in the Ganjam district of Odisha in India will commence operation by March 2015, according to a report by India TV News. The 55kt/yr plant will be located on a 2,970-acre industrial park for which Tata Steel has already secured ‘in-principle approvals’ from the relevant authorities in India.
The industrial park will consist of a 2,570-acre multi-product special economic zone and a further 400 acres will be occupied by Tata Steel. The site will employ around 400 people both directly and indirectly.
Tata blamed for Dengue fever A news report by Reuters claims that an outbreak of dengue fever in the Indian state of Odisha was caused by a steel plant under construction by Tata Steel.
Stagnant water pools and unsanitary conditions at the plant were reportedly the cause of the outbreak, which infected 280 workers and killed one, claimed the report. The suspect steel plant is scheduled for completion next year. Located in the Jaipur district it will have a capacity of 6Mt/year. Tata Steel has sent in 19 cleanup teams and is engaged in raising awareness of the disease and how employees can protect themselves. A turbo compressor at Russian steelmaker NLMK’s Lipetsk steel facility. NLMK is a leading manufacturer of steel and rolled products and has recently upgraded the air-blowing equipment used in blast furnace operations at Lipetsk. The upgrade will enable the company to reduce its environmental footprint and save approximately RUB 210 million (US$5.2 million) through lower energy consumption.
Source: Reuters.
For more steel industry news and features, visit www.steeltimesint.com October 2014
6 NEWS IN BRIEF
Kocks upgrade Chinese mill Taizhou Daming Stainless Steel Co is to upgrade its existing bar mill with a three-roll reducing and sizing block (RSB) to meet customer requirements for increased product quality and thus strengthen its market position. Taizhou, which employs 400 people, claims that its products are used across a variety of industries including chemical manufacturing, food processing, shipbuilding and the automotive sector. Based in the Eastern Chinese Jiangsu Province, the bar mill is being upgraded by the German company, Kocks. The company intends to supply the latest design of RSB and claims it will be implemented as a finishing block within the company’s 200kt/year stainless steel bar mill, behind a 2-high reversing roughing mill and the intermediate and pre-finishing mill, the latter consisting of 10 twohigh HV stands. According to Kocks, ‘the block will roll straight bars in the range of 16mm and 100mm diameter’. The upgraded mill is expected to start up at the end of 2015.
Nippon Steel’s Nagoya plant back in action Nippon Steel and Sumitomo Metal Corporation’s Nagoya plant, which was shutdown because of a fire last month, is up and running again. The Nagoya facility was built in 1958 and is responsible for 15% of Japan’s total steel production output. The plant has been plagued with problems ranging from power failures to smoke releases since January 2014 and now there are safety concerns. The coke oven where the fire started will not be restarted, but two other coke ovens will be restarted as soon as possible, according to the company. Nagoya produced 6.74Mt of crude steel during the business year to 31 March and is a big supplier to Japanese car manufacturers, including Toyota and Honda. October 2014
INDUSTRY NEWS
Calvert’s spending spree The world’s largest steelmaker, Arcelor Mittal, in collaboration with Nippon Steel & Sumitomo Metals Corporation (NSSMC) has announced two investment projects for their advanced joint venture steel finishing facility in Calvert, Alabama, USA. The plant is currently operating at around 75% to 80% of its designed capacity, having reached 83% back in June of this year. The biggest investment planned for the plant is a US$40 million slab yard expansion. The aim is to increase the plant’s slab staging capacity and efficiency. At present the hot strip mill has three bays capable of staging around 335kt of incoming slabs, but if the plant is to achieve its capacity target of 5.3Mt it needs to increase its staging capacity.
The project is scheduled for completion in Q2 2016 and will create 16 new crane operator positions. According to Chris Richards, president of the Calvert plant, the investment shows the confidence of the Calvert plant’s joint venture partners. An additional US$6.7 million is to be spent on the plant’s number four continuous coating line. The aim here is to ‘significantly increase ArcelorMittal’s North American capacity to produce press hardenable steels’. One such product is Usibor, an aluminium-silicon coated (Al Si) high strength steel primarily for automotive applications. The upgrade of the Calvert facility will also mean that ArcelorMittal Indiana Harbor will not
be the only plant in the Western Hemisphere capable of producing both Usibor and Ductibor, an energy-absorbing high-strength steel offering ductility benefits. Continuous coating line number four currently operates two coating pots, but has a third, which will be modified to enable production of both Usibor and Ductibor. The planned modifications include the addition of a welder, snout articulation and pumps, pot refractory and equipment, drossing robot and coating knife all of which will enable production of aluminium-coated conventional and press hardenable steels. Modifications to coating line four will be completed by the yearend with production of the first coil scheduled for January 2015, it is claimed.
Nucor gains Midwest foothold American steelmaker Nucor has acquired Gallatin Steel Company for US$770 million. The 1.8Mt/yr flat-rolled products mill located in Gallatin County, Kentucky, USA, is owned on a 50:50 basis by ArcelorMittal and Brazilian steelmaker Gerdau and melts scrap, pig iron and hot briquetted iron (HBF) to make a variety of different steels from low to high carbon grades. Nucor hopes the acquisition will strengthen its position in America’s Midwest where it is building a strong customer base in the
growing pipe and tube sector of the market. The Gallatin acquisition is likely to increase Nucor’s total flat-rolled production capacity by 16% to 13Mt and should be finalised by the year-end, subject to the usual regulations, including the Hart Scott Rodino Antitrust Improvements Act waiting period. Where the sellers are concerned, Nucor’s acquistion of Gallatin is good news all round. For ArcelorMittal the deal fits in nicely with its strategy to dispose of what it regards as non-core assets. For
Gerdau it means that the Brazilian steelmaker can focus on its core North American assets. Andre B Gerdau Johannpetter, Gerdau’s CEO, said: “The decision to sell Gallatin was made in order for Gerdau to focus on its core assets in North America.” ArcelorMittal’s CFO, Aditya Mittal, said that the sale of Gallatin ‘unlocks substantial value for ArcelorMittal’s shareholders’ and is consistent with the company’s strategy of selective divestment of non-core assets. Source: Nasdaq.
Moffat steps down at Eurofer After 27 years with EUROFER, eight as director-general, Gordon Moffat (left) is stepping down. Robrecht Himpe, EUROFER’s president, said that Mr Moffat (pictured left) ‘has provided strong leadership in a very challenging policy environment.’ He thanked him for his contribution to the organisation and the industry. Mr Moffat is succeeded by Axel Eggert (pictured right), currently EUROFER’s director of public affairs, who assumes the leadership on 1 October.
www.steeltimesint.com
Your Partner for the Primary Stage of Integrated Steelmaking
Leading in Ironmaking Technology PAUL WURTH is one of the world leaders in the design and supply of the full-range of technological solutions in the field of hot metal production, raw material preparation & related environmental technologies: Blast furnace technology and the entire equipment range Coke oven plants & technology Agglomeration plants
Paul Wurth S.A. 32, rue d’Alsace Tel. +352 4970-1 L-1122 Luxembourg paulwurth@paulwurth.com
Direct reduction plants Environmental, energy-saving & recycling technologies
www.paulwurth.com
Subsidiaries: Brazil, Chile, Czech Republic, Germany, India, Italy, Japan, Korea, Mexico, P.R. China, Russia, South Africa, Taiwan, Ukraine, U.S.A., Vietnam
8 DIARY OF EVENTS October 12-14 Coal Trans World Coal Conference Bella Centre, Copenhagen. A major coal industry conference. For further information, www.coaltrans.com 14-16 China International Heat Treatment Expo Shanghai New International Expo Centre. www.htifexpo.com 21-25 EuroBlech 2014 Hanover, Germany. www.euroblech.com 28-30 Metallurgy India Bombay Exhibition Centre. 5th international exhibition and conference on metallurgical technology. www.metallurgy-india.com
INDUSTRY NEWS
Crude steel up 1.4% World crude steel production for August 2014 was 135Mt, an increase of 1.4% when compared with the same period last year, according to figures supplied by 65 countries reporting to the World Steel Association (worldsteel). China’s crude steel production for the period was 68.9Mt, up by 1% compared to August 2013. Japan produced 9.3Mt of crude steel in August 2014, an increase of 2.2% compared to the previous year. India produced 7Mt, an increase of 5.2% and South Korea’s figure of 5.3Mt was up by 8% on
last year’s figure. In the EU, Germany produced 3.1Mt of crude steel in August 2014, down by 1% compared to August 2013. Spain produced 1.1Mt, down 0.4% compared to the previous year and France’s crude steel production was 1.1Mt, down 9.1% on August 2013. Italy produced 1Mt of crude steel, down by 0.8% on last year. In Turkey, crude steel production for August 2014 was up by 13.9% to 2.9Mt while in Russia 6.2 Mt of crude steel was produced, up by 5.8% over August 2013. Ukraine
produced 1.8Mt, a decrease of 37% compared to the same month last year. The USA produced 7.7Mt of crude steel in August 2014, an increase of 2.9% compared to August 2013. Brazil’s crude steel production for August 2014 was 2.9Mt, down by 1.4% on August 2013. The crude steel capacity utilisation ratio for the 65 countries in August 2014 was 74.2%. It is 1.4 percentage points lower than August 2013. Compared to July 2014, it is 1.2 percentage points lower.
For a full country by country listing visit: www.worldsteel.org/statistics/crude-steel-production.html
November 06-07 STAHL 2014 CCD Congress Center, Dusseldorf, Germany. Organised by Steel Institute VDEh. Conference theme: Perspectives with Steel. www.stahl2014.de 09-11 Alacero-55 – The Latin American Steel Congress Hilton, Mexico City. A conference on the Latin American steel industry, organised by the Latin American Steel Association. www.mexico55.alacero.org 10-14 Metal Expo 2014 The All-Russia Exhibition Center, Moscow. A major metals industry event. www.metal-expo.ru 21-22 Global Steel 2014 Mumbai, India. A conference focused upon the state of the Indian steel industry. Organised by Gujarat NRE and The Economic Times. www.globalsteel.in 28-30 CISSE 2014 China International Exhibition Centre, Beijing. Organised by Yheng International Exhibition Co. www.en.steel-expo.com
For more steel industry news and features, visit www.steeltimesint.com
October 2014
US steel imports up 6% The USA imported 3.8Mt (net tons) of steel in July, including 3.05Mt (net tons) of finished steel – up 6.1% and 11.9% respectively over June 2014 figures. According to the American Iron and Steel Institute (AISI) year-todate total and finished steel imports are 24.9Mt (net tons) and 18.6Mt (net tons) respectively, which is up 37% and 30% respectively when compared with 2013. Annualised total and finished steel imports in 2014 are estimated at 42.8Mt (net tons) and 31.9Mt (net tons), up 33% and 29% respectively when compared with 2013 figures. The AISI claims that key finished steel products with a significant import increase in July compared to June are plates in coils (up 99%), sheets and strip (up 50%),
heavy structural shapes (up 39%), line pipe (up 30%), hot rolled sheet (up 27%), hot rolled bar (up 16%) and oil country tubular goods – OCTG – (up 11%). In terms of year-to-date major import increases versus the same period last year, plates in coils were up 84%, wire rods were up 83% and cold-rolled sheets were up 74%. Sheets and strip galvanised hot dipped were up 58%, sheets and strip all other metallic coatings were up 54% and cut length plate were up 48%. Hot rolled sheets were up 43%, mechanical tubing was up 38% and heavy structural shapes were also up 38% while oil country tubular goods were up 33%, tin plate up 21% and rebar up 13%. The largest volumes of finished steel imports from offshore were
from Asia and Europe, claims the AISI. South Korea supplied 560,000 net tons, up 22% on June 2014 figures. China exported 269,000 net tons, up 17% and Russia came in third with 203,000 net tons, up 112%. The Japanese exported 199,000 net tons, up 44% and Turkey exported 133,000 net tons, down 34%. During the first seven months of 2014, South Korea was the biggest offshore supplier to the USA, up 54% to 3.1Mt (net tons). China was up 66% to 1.7Mt (net tons) with Japan in third place at 1.19Mt (net tons), which was up 8%. Turkey was up 37% at 1.09Mt (net tons) and Russia up a staggering 480% at 799,000 net tons. Source: American Iron and Steel Institute.
Voestalpine’s steel for Russia Despite the uncertainties surrounding Russia and the Ukraine, Austrian steelmaker Voestalpine has announced that it will be supplying a further 120kt of steel for the South Stream project, which connects Europe with the world’s largest gas reserves in Russia. The Austrian steelmaker has already supplied steel to the Rus-
sian-European pipeline project as well as the Rota 3 pipeline project in Brazil and will now supply sour-gas-resistant, high strength line pipe plates for South Stream, which is not affected by Western sanctions against the Russians. Voestalpine’s Russian partner OMK will source half if its requirements for high quality steel plate
from Linz, which Voestalpine claims ‘highlights the professional nature of the partnership between Voestalpine Grobblech and Russian tube manufacturer OMK which stretches back over many years.’ Product delivery will take place between December 2014 through to spring 2015. www.steeltimesint.com
USA UPDATE
9
The American steel renaissance is here There is plenty of talk about a steel renaissance in the USA linked to the controversial practice of fracking. The American Midwest is said to be enjoying an economic boom and a rebound in construction spending too. By Manik Mehta* AS expected, the US Department of Commerce imposed preliminary antidumping duties ranging from 106.19% to 110.25% on carbon and some alloy steelwire rod imported from China. The duty, which is described as preliminary, was imposed on products supplied by China’s Benxi Iron and Steel Group, Exp. Corp and Tangshan Iron and Steel Group because these suppliers had failed to comply with requests seeking information from them. Over and above, they were also viewed as “part of the China-wide entity”. The import volume of these products on what steel circles light-heartedly describe as the DoC’s “hit list” increased to 561kt in 2013, with an estimated value of $313 million, up from 219kt valued at $138 million in 2012, according to DoC figures. The DoC determined that Chinese producers have been reportedly selling their products in the US market at prices that were below the fair value. The DoC’s determination follows the investigation requested by Nucor, Gerdau Ameristeel, ArcelorMittal, Keystone Consolidated and Evraz Pueblo. But the DoC’s final ruling will be delivered around 13 November, after which the US International Trade Commission will establish the extent of material injury caused by such imports to the US industry for the duties to be imposed. The ITC is expected to deliver its final judgment in December. The ITC also ruled on 22 August that imports of oil-extraction equipment supplied by six countries had, in fact, affected the US steel industry, thus paving the way for the DoC to impose antidumping and countervailing duties of up to 118%. The ITC argued that the US steel industry had either been materially injured or faced imminent material injury through the imported oil country tubular goods (OCTG) – these steel products are used in the energy sector – from India, South Korea, Taiwan, Turkey, Ukraine and Vietnam, which had supplied them at prices below the fair value.
Steel industry pundits, in private conversations with Steel Times International, claimed that the imports had led to job losses with workers employed in steel oil-well casings and other OCTG being laid off because of the sharp decline in orders. Trade union members had been protesting across the country to save their jobs. The six defaulting countries together accounted for some 90% of the total imports of such products. Saudi Arabia, which had also been on the original list, was excluded while the Philippines and Thailand, two other defaulters, had reportedly not hurt the domestic steel industry. Applauding the ITC’s ruling, US Democrat Congressman Pete Visclosky was ‘pleased’ with the ‘message’ sent by the ITC to the six countries that “we will not tolerate their illegal imports”. He said that American jobs were threatened, and “these illegal trading practices jeopardise our nation’s industrial base”. Thomas Gibson, the president of the American Iron and Steel Institute, also echoed such sentiments. Leo Gerard, president of
the United Steelworkers’ International, said that the ruling moved the domestic OCTG market “closer to a level-playing field” for the American worker, but added that “more work still needs to be done to enforce existing trade laws”, pleading better funding of the enforcement agencies to prevent a flood of unfairly subsidised imports. On another issue, the DoC dropped a preliminary decision to impose antidumping duties on steel rebar imports from Turkey, a move that has “shocked” US rebar producers, jointly represented by the Rebar Trade Action Coalition, a group composed of US producers who believed they had a strong case. The group was “surprised” that the subsidy findings on Turkish producers “were not found to be at higher levels”. But despite the “tsunami” of OCTG imports, to quote a phrase in vogue in some circles, there is general consensus that domestic steel prices remain higher than expected, thanks to demand and the failure of the import parity pricing model. Some experts believe that the consolidation process in the steel sector
** USA correspondent www.steeltimesint.com
October 2014
10
USA UPDATE
will strengthen domestic prices. But there is also the fear that the process will protect unprofitable business lines covered up by the large corporations. Besides the ITC’s endorsement of the DoC determination of dumping by the aforementioned six countries – this ruling will, no doubt, boost the confidence of domestic OCTG producers – demand from the construction and automotive industries has been particularly strong in recent months, accounting for nearly twothirds of US steel consumption. There has been a rebound in construction spending after it sharply declined in 2011. The automotive industry has also generated strong demand for steel, with car sales reaching pre-crisis levels. This, in turn, has boosted share prices for the majority of stock market listed steel companies. US steel companies are expected to do well this year, with demand expected to grow at around 5%, which is higher than the global average. As the administration continues to side with domestic steel companies and cushion them against imports, the confidence of steel companies has been bolstered. Indeed, there is even talk of a “steel renaissance” in the US
buoyed by the “energy renaissance” and increasing use of shale gas. The American Midwest is basking in the sunshine of an economic boom linked to so-called ‘fracking’. This new – but not uncontroversial – technique is not only generating more energy and revitalising old industries, it is also economically uplifting depressed cities and regions. Steel companies, meanwhile, are aggressively courting, and forming partnerships with, automobile companies, particularly after attempts to project aluminium as a substitute for steel in automobile manufacturing. Thus, the Society of Collision Repair Specialists (SCRS) recently announced that
it was adding a speaker from the Auto/Steel Partnership (A/SP) to its list of speakers for the OEM Collision Repair Technology Summit to be held on November 5 at the Las Vegas Convention Centre during the 2014 SEMA Show. David Rigg, the project lead with the A/SP Advanced High-Strength Steel Repairability Project, will give an extensive overview of market developments and the repair research that is taking place between the steel industry and automakers. The A/SP project, a collaboration between Detroit’s Big Three automakers (Chrysler, Ford and General Motors) and the steel company members of the Automotive Applications Council of the Steel Market Development Institute, pursues research validation and education that can help automakers enhance vehicle safety, fuel economy, design and manufacturing. Terry Cullum, director of the A/SP, said that participation in the SCRS OEM Collision Repair Technology Summit would afford an opportunity for the steel industry to interact with leaders of the automotive repair industry and better understand their needs, “so that we can incorporate them into our project plan”. ᔡ
Liftec Translifters and Cassettes for All Transports in Steel Industry For additional information please contact: Tel. +358 3 3140 1400 | sales@tts-liftec.fi
LIFTEC
www.ttsliftec.com
October 2014
www.steeltimesint.com
11
LATIN AMERICA UPDATE
Investing to substitute imports The Latin American Steel Association claims that between 2000 and 2004 investment in the Columbian steel industry was equivalent to just $7 million per year. However, between 2005 and 2012 it climbed to an annual average of $81 million with a total of $688 million invested between 2000 and 2012. Things are looking good, says Germano Mendes de Paula* COLOMBIA has been experiencing a good macro-economic performance since the early 2000s. GDP expanded over 6% between 2006 and 2007. Even 2009’s GDP expansion rate of just 1.7% was not viewed as unsatisfactory, bearing in mind the global financial crisis. From 2010, Columbia was able to resume good growth rates. Another positive macro-economic factor is that gross fixed capital formation as a proportion of GDP rose from 18% in 2003 to 23% in 2008. After a small retraction to 22% in 2010, it resumed its improvement to 24% in the period 2011-2013. This investment ratio is quite important for long-term economic growth, in general, and for fostering steel consumption, in particular. However, there are some negative macroeconomic indicators. The manufacturing value added as a proportion of GDP maintained a level of around 15%
8 6
to 16% from 2003 to 2008. After that, it has been declining continuously, going down to 12% last year. This signals the de-industrialisation process, which has been affecting most of the Latin American economies. The phenomenon of de-industrialisation is associated with the strong currency appreciation. The Colombian peso appreciated 37% since 2003, based on the concept of a real effective exchange rate. This situation stimulates imports at the expense of domestic production. In addition, currency appreciation restricts profit margins for local players. The position of primary products in Columbia’s total exports improved from 64% in 2003 to 82% in 2012, the last available information. The so-called “primarisation of exports” is usually understood as negative, because it shows a strong dependence upon low valueadded products.
4000 3000
4 2
2000
0
1000
-2
0
-4
1980
-6
Fig 1. Colombia’s GDP growth rates, 1980-2013 (%)
2005 2010 95 2000 Crude Steel Production Crude Steel Apparent Consumption
Fig 2. Colombia’s crude steel production and apparent consumption, 1980-2013 (kt)
3000 2500 2000 1500 1000
06 08 04 export import
10
12
Fig 4. Colombia’s steel export and import, 2000-2012 (kt)
95
90
2000
05
10
Fig 3. Domestic producer’s in Colombian steel market share, 1980-2013 (%) 160
1200
120
800
80
0 02
70 60 50 40 30 20 10 0 1980 85
1600
400
500 70 2000
85
Steel market Historically, the Colombian steel market has been very dependent upon imports. As it can be observed in Fig 2, the nation’s crude steel production improved from 420kt in 1980 to 701kt in 1990. After a decline to 660kt in 2000 (due to a 4.2% involution of GDP the previous year), it doubled to 1.2Mt in 2010 and has remained on this plateau ever since. Crude steel consumption, also shown in Fig 2, has varied from 977kt in 1980 to 1.5Mt in 1990. It reached 2.3Mt in 2000 and climbed to 3.1Mt in 2010 and rose to 4.0Mt in 2013. In this way, the market share of domestic producers jumped from 43% in 1980 to 59% in 1987, but decreased to only 22% in 1999 (Fig 3). This ratio enlarged to 42% in 2009 and reduced to 31% in 2010. Currently, 69% of the Colombian steel market is served mainly by foreign producers. Fig 4 shows further evidence of the
40 2005
2007 2009 semis longs flats
2011 2012 tubes
Fig 5. Colombia’s steel imports, by market segment, 20052012 (kt)
0 2000
02
04
06
08
10
12
Fig 6. Colombia investment in the steel sector, 2000-2012 ($M)
* Latin America correspondent, professor in economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br www.steeltimesint.com
October 2014
12 LATIN AMERICA UPDATE
strong presence of imported steel products in Colombia. Imports jumped from 1.1Mt in 2000 to 2.7Mt in 2012, while exports increased from 105kt to 179kt. Exports can be broken down into flat steel (51%) and tubular products (42%). Long steel and semis, therefore, have a residual share of the exports. In 2013, Colombia produced 1.3Mt (79%) of long steel products and 353kt (21%) of flat steel products. However, it is important to stress that flat steel production is based on imported substrate, as domestic steel companies do not fabricate slabs. The composition of imports is quite diverse and concentrated on flat products. Fig 5 demonstrates that, in 2012, Colombia imported almost 1.4Mt of flat steel. In addition, imports of long steel jumped from 264kt in 2005 to 496kt in 2011 and to 730kt in 2012. It is estimated that it reached 889kt in 2013. With imports skyrocketing, the Colombian government – which is perceived as one of the most market-friendly in Latin America – has imposed anti-dumping duties and other safeguards for steel products. The anti-dumping duties were enacted for the following products: galvanised wire, galvanised sheet, tubes, bolts and nuts. Safeguards were applied on wire rod and are under analysis on tubes. The definitive safeguard on rebar was denied in April 2014. Investments According to the Latin American Steel Association (Alacero) investment in the Colombian steel industry was equivalent to just $7 million per year in the period 2000-2004. Nonetheless, it climbed to an annual average of $81 million between 20052012. The amount invested reached $688M from 2000 to 2012, which is approximately 1.5% of regional figures. In December 2013, Colombian steelmakers announced that they would invest US$310 million during the period 2014-2016. The main goals are to increase nominal capacity, improve operational performance, reduce costs and enhance environmental management. As of 2017, long steel production is planned to reach 2Mt. In addition, in July 2014, a new $250 million long steel mill was announced. Construction is expected to begin at the end of 2014 in the municipality of Barranquilla. The project is a joint venture between Colombian distributor GyJ Ferreterías and Mexican steelmaker Deacero. Dedicated to the production of bar and rebar, it is planned to start up in January 2017. The nominal capacity of the plant was not disclosed. Colombia is one of the most relevant markets for Mexican rebar exports. As a consequence of this new wave of investment in the Colombian steel industry, domestic producers expect to reduce market share currently dominated by imports. ᔡ October 2014
www.steeltimesint.com
Stainless steel analysis Sharpen your steel quality with XRD/XRF/OES Optimizing process and quality control for demanding environments
Contact your local PANalytical sales representative info@panalytical.com www.panalytical.com/metals
CubiX3 Iron high-speed X-ray diffractometer for fast and precise production control
Axios FAST - Simultaneous WDXRF spectrometer for unrivalled speed and throughput in process-critical elemental analysis
AxiosmAX-Metals sequential WDXRF X-ray spectrometer designed to meet tough industry demands
QSG/QSN 750 -II - optical emission spectrometers, ideal for single- or multi-matrix applications
Ultimate Straightening
Engineered for efficiency. The Bronx Six Roll Straightener features a unique design that allows for enhanced efficiency, superior quality and safety. Through their experience and technical knowledge, our engineers have worked to create technologies that you can rely on for minimized set-up time, improved accuracy without surface blemishes on thin walled tubes, enhanced rigidity and consistency straightness/ roundness. Engineered for safety, the Bronx Six Roll Straightener’s drives are located in the back of the machine and the machine’s operator has a complete view of the straightening process from the operating console. Quality, service, and reliability; Trust Fives. Contact us: fivesbronx-sales@fivesgroup.com ultimate machines ultimate factory
www.fivesgroup.com
STEEL MARKETS
15
While the success of the domestic steel industry in the USA relies heavily upon US infrastructure development, sufficient investment in the longterm is essential to the success of the US economy. Myra Pinkham* discusses the issues with leading US steelmakers
WHILE the US steel industry is relieved that Congress approved a short-term extension to the highway bill, it says that only a longer-term solution will give infrastructure construction the boost it needs. “The success of the domestic steel industry relies heavily upon US infrastructure as we both supply materials for steel-intensive projects and require efficient surface and water transportation to move raw materials and ensure just in time deliveries,” Thomas J Gibson, president and chief executive officer of the American Iron and Steel Institute, declares. But the importance of the nation’s infrastructure goes beyond what it brings to the steel industry. Dick Teets, chief operating officer of Steel Dynamics Inc of Fort Wayne, Indiana, recently said that sufficient long-term infrastructure investment is essential to the US economy as it provides an immediate boost to employment levels and makes the United States more competitive in the decades ahead. However, Philip K Bell, president of the Steel Manufacturers Association, observes that as a percentage of GDP, US infrastructure investment is at its lowest level in more than 20 years. In fact, in 2012, the federal Highway Administration found that one-in-nine bridges in the United States were structurally deficient. “That is a sobering statistic as such structures are the backbone of our domestic and foreign commerce,” Bell says. “Our economy cannot thrive without supporting the most basic of our infrastructure needs.” Teets observes that US infrastructure, once number one in the world, has fallen to 19th place in the latest World
The importance of US infrastructure Economic Forum ratings. “Our interstate system is instrumental to the growth of our economy and our emergence as the world’s greatest power, but development hasn’t kept pace with changing demographics and needs,” he says, noting that in the most recent “report card” issued by the American Society of Civil Engineers, the US infrastructure was given an overall grade of D with the trade group also giving road infrastructure a D and bridges a C+. He says that this failure to invest in the nation’s infrastructure also carries with it serious safety and security risks. “Crumbling bridges, bursting water pipes, poorly developed energy systems and congested highways jeopardise the safety of American lives. Bernie Markstein, who until very recently was US chief economist for Reed Construction Data, Norcross, Ga, notes that the Federal Highway Administration (FHWA) said in 2010 that it would take $65 billion per year just to maintain the nation’s roads and bridges at current levels and $124 billion to $126 billion to improve them. “Now seven years after the Minneapolis bridge collapse, people are still acting as if the infrastructure will fix
itself, but it won’t do so.” The lagging construction sector as a whole has been having a negative influence upon the US steel industry, as that sector, when running at normalised rates (which it isn’t doing to date) accounts for about 40% of all steel consumption, says Christopher Plummer, managing director of Metal Strategies Inc, West Chester, Pa. Historically the US consumes 450kt of steel for its bridges per year, Pat Loftus, chairman emeritus for the National Steel Bridge Alliance, a division of the American Institute of Steel Construction, says, noting that it had fallen to an average of 330kt between 2011 and 2013 and that 500kt to 600kt is actually necessary for real growth. This includes structural steel, fabricated plate and structural tubing. Loftus says the grade of steel used for bridges is generally high strength low alloy steel – a very high margin product. The decline has been impacting steel, especially long products, in a big way, SMA’s Bell says, noting that while overall US steel capacity utilisation has been hovering at 75% to 80%, operating rates for long products are generally in the low 60% range. “Sadly spending for infrastructure (or
* USA correspondent www.steeltimesint.com
October 2014
16
STEEL MARKETS
Site preparation. Photo: Big River Steel
public works) construction is very weak,” says Ken Simonson, chief economist with the Associated General Contractors of America. Some areas, however have been faring better than others, Markstein says. For example, put-in-place spending for heavy engineering, or non-building, construction, was up 9.7% year-to-date through June with the highway and street subsector – which includes bridges and accounts for about 30% of all public works construction – up only 1.9% yearto-date. But bridges, which tend to be highly steel intensive, were up 6.3% year-to-date through May. However, Bill McEleney, managing director of the National Steel Bridge Alliance, admits that bridge construction numbers could vary greatly year-on-year given the ebb and flow of projects. For example, there were a number of mega-projects bid in 2012 followed by fewer bids last year and now a big increase in bids thus far this year – as much as 25% year-on-year – for steel bridges. It is not, however, certain how many of these projects will come to fruition. “States aren’t putting all that much work out there as they aren’t sure how these projects will be funded,” McEleney says. “Funding has been erratic for the past five-to-six years and at levels that are too low to even just maintain the condition of the nation’s bridges and highways,” Loftus says. The last long-term highway bill was the $286.4 billion Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA) that was passed in 2005. Once it expired in September 2009, funding had been allocated through a series of 10 short-term extensions until Congress was finally able to pass a new surface transportation, or highway, bill in June 2012. “The $105 billion, two and a half year Moving Ahead for Progress in the 21st Century (MAP-21) bill has some good features, but it was really just another extension dressed up with another name,” Loftus maintains, adding that the problem October 2014
Gridlock is everywhere in the Obama administration and there are structural problems with government funding
with short-term patches is that they don’t allow states and local governments time to plan for new projects. That was the case even with MAP-21, he says. This is definitely the case with the $11 billion extension to MAP-21 that Congress passed at the beginning of August, Plummer says. Set to expire at the end of May, the extension only allows projects that are already under way to continue. “There continues to be uncertainty whether state and municipalities will go ahead with new projects due to the longterm nature of these projects and lack of long-term visibility.” “The problem is that it is just a shortterm solution to a long-term problem,” Bradley MacAulay, steel analyst for Metal Bulletin Research, declares. “Congress needs to come together for a longer-term solution.” Loftus says that the $44 billion per year spending level that Congress has been recently approving and is likely to continue to approve at least over the near or medium term will not move the country ahead. “We will only continue to tread water.” “We are dealing with a 19th century infrastructure and using a 20th century solution to 21st century problems,” Bell says. “That is unsustainable. We can’t
keep on going this way.” Loftus says that it could be possible for a five-to-six-year bill to be passed sometime next year should the Republicans gain control of both houses of Congress in the mid-term election. Others, however, question whether that is the case as the crux of the problem lies not just in the gridlock that has been omnipresent throughout the Obama administration, but in structural problems with the very way that the US government funds infrastructure transportation projects – the highway trust fund. “I think that it will continue to be a problem for Congress to find the revenue it needs to keep infrastructure spending moving up,” Simonson says. He predicts that there will be another series of short-term extensions that will result in a decline in the number of new projects being pursued by states and local municipalities over the next one-to-two years. According to Simonson there will be continued uncertainty surrounding the ability of states and municipalities to receive federal funding for such projects and the likelihood of continued shortfalls in the highway trust fund. Ever since its creation in 1956 the highway trust fund has been funded by the federal gasoline tax, which has remained at 18.4 cents per gallon since 1993 and not even adjusted for inflation. Plummer notes that with people driving their cars fewer miles and cars becoming more fuel efficient, the trust fund has run out of money and needs to be pumped up with “one-time” transfers from the general fund to continue to meet its financial obligations, which the state and local government have to match. It’s certainly been the case this year. Without the new extension to the surface transportation bill, the highway trust fund would have run out of money in mid-August, which, by White House estimates, would have put at risk more than 112,000 highway projects, 5,600 transit programmes and nearly 700,000 jobs. AISI’s Gibson says that the latest shortterm fix prevented this, at least through www.steeltimesint.com
The new world standard in
metal mill maintenance XL 5210 III • Reach 10.8 m (35’4”) • Height without lifting hook 3.2 m (10’ 5”) • Maximum width 3.2 m (10’ 6”)
XL 5310 III • Reach 10.8 m (35’ 4”) • Height without lifting hook 3.4 m (11’ 2”) • Maximum width 2.8 m (9’ 1”)
XL 4210 III • Reach 9.7 m (31’ 11”) • Height without lifting hook 3.2 m (10’5”) • Maximum width 3.2 m (10’ 6”)
Metal Mill Maintenance Machines Rugged machines, each with a strong telescoping, tilting boom for maintenance on:
XL 4310 III • Reach 9.7 m (31’ 11”) • Height without lifting hook 3.4 m (11’ 2”) • Maximum width 2.8 m (9’ 1”)
• BASIC OXYGEN FURNACES (BOF)
• ALUMINUM SMELTING FURNACES
• ELECTRIC FURNACES
• LADLE MAINTENANCE
• BLAST FURNACES
• TORPEDO CAR MAINTENANCE
Metal Mill Maintenance Machines XL 3210 III • Reach 8.8 m (29’ 0”) • Height without lifting hook 3.2 m (10’ 5”) • Maximum width 2.7 m (9’ 0”)
XL 3310 III • Reach 8.8 m (29’ 0”) • Height without lifting hook 3.4 m (11’ 2”) • Maximum width 2.7 m (9’ 0”)
High capacity, truck mounted vacuum loaders with superior forces to quickly clean up solids, liquids, slurries and powders in: • ALUMINUM MILLS
• STEEL MILLS
For information about distributors worldwide, contact: Michael Norman, Director of Sales and Marketing Gradall Industries, Inc. New Philadelphia, Ohio USA mtnorman@gradall.com | Phone 330-339-2211
www.GradallMetalMill.com Certified to ISO 9001:2008.
18
STEEL MARKETS
Ripe for development. Photo: Big River Steel
May, with so-called pension smoothing, which stabilises current pension spending rules, providing relief to companies faced with historically high pension plan funding obligations, as well as by extending expiring customers’ user fees and transferring funds from the leaking underground storage tank (LUST) fund. As this is clearly just a Band-Aid solution, a number of panels are looking at alternative ways to fund infrastructure construction projects, given that, currently, the gasoline tax can’t keep up with rising construction costs. Markstein notes, however, that it gives electric
vehicles, which also use the nation’s roads and bridges, a free ride. In addition to proposals to raise the per gallon rate, as 18 cents doesn’t buy today what it used to 20 years ago, McEleney says a user tax based on vehicle miles travelled is also being considered. That could be based on a requirement to report odometer readings on an annual basis or possibly the mileage could be tracked by special devices that could be required of car owners. However, he notes that there has been some resistance to this with some people being uncomfortable with the possibility of “Big Brother” knowing
where they are all the time. Some state and local governments have been running with the ball either setting up public-private partnerships or increasing the number of toll roads and bridges. Markstein says President Obama has proposed adding tolls on interstate highways, although he thinks that will be a hard sell given that people won’t want to pay for what they currently get free. Public-private partnerships haven’t had a great track record either, Plummer says. They are often funded by foreign companies given tax breaks to do so. Furthermore, there is always the possibility that the concessionaire could increase tolls at their own discretion giving little control to states and the general public over such decisions, McEleney observes. Despite these issues, Plummer believes that the public works sector is in the early stages of a recovery period that could last another four to six years. Such recovery could, however, be limited or even cut off, Simonson says, if the uncertainty brought about by multiple short-term extensions of the highway bill and no real solution to the funding issue prevents states from going ahead with new construction projects. “That will have negative implications not only upon the steel industry but the overall U.S. economy as well,” he says. ᔡ
S2 KODIAK
Online-XRF Real-time Results For Layer Thickness and Elemental Composition of Coatings • Coating thickness for single and multiple layers on steel, aluminum and polymers • Instant results for elemental composition of coatings • Continuous close control of the coating process by online-XRF • Enhanced cost-efficient coating process due to high analytical precision The new online coating thickness and multi-element analyzer S2 KODIAK uses X-ray fluorescence spectrometry to analyze single and multiple layers on materials continuously and in real-time. Precise information about the layer composition and thickness becomes immediately available with the S2 KODIAK helping to optimize the coating process and to enhance cost efficiency. This allows substantially higher product quality of protective or decorative coatings on steel, aluminum and films.
www.bruker.com
Innovation with Integrity
XRF
ŠBICOM_12711.02
0.09.2014
Innovative Vacuum Solutions for Steel Degassing
Reduce power consumption, footprint and CO2 emissions For the newest vacuum systems that are ideal for VD, VOD, RH and other steel degassing processes, depend on Oerlikon Leybold Vacuum. Our state-of-theart mechanical vacuum solutions are extremely robust and compact, giving you superior process control and highest uptime. To increase productivity while decreasing energy use and space requirements, please contact us www.oerlikon.com/leyboldvacuum Oerlikon Leybold Vacuum GmbH Bonner Strasse 498 D-50968 KĂśln T +49 (0)221 347-0 F +49 (0)221 347-1250 info.vacuum@oerlikon.com www.oerlikon.com/leyboldvacuum
SERVICE CENTRES
21
Adding value to the mix After being caught red handed with too much, high-priced inventories on their shelves when North America, followed by the rest of the world, was propelled into recession, steel distributors drastically changed their mindset on how to do business. Even now, nearly six years on, they continue to increase the value-added services that they offer and continue to shy away from the speculative buys that used to be a way of life prior to the downturn. By Myra Pinkham* ONE industrial sector where the words “the new normal” is not just a cliché, but has become a way of life, is the North American steel service centre industry. “Demand is trending in the right direction” helped along with the same incremental improvement of the end-use market that has been occurring since the US economy bottomed out, Bob Weidner, president of the Metals Service Center Institute (MSCI) says. “Demand is okay, but it is just bumping along; it is just sort of blah,” Lisa Goldenberg, president of Delaware Company asserts. She says that while there is an “acceptable” level of business, one that is a little better than it was last year and improving a little bit each month, “It seems as if it should be better than it is.” Todd Zyra, president of Klein Steel Service Inc, says that while demand is growing, it is under-performing when compared with the Standard & Poors 500. Steve Kaminski, director of sales and marketing for Castle Metals, which specialises in long products and plate, said demand had been “sluggish and uneven” with only a few areas of consistent strength, at least for the products his company sells. “However, recent trends leave us optimistic that we will have modest sales growth in 2014,” he says. One factor has been steel prices, Christopher Plummer, managing director of Metal Strategies Inc observes, noting
that while average US steel selling prices were down about 10% in 2013, prices generally troughed last summer, started picking up toward the end of the year and are now up year-on- year. For example, domestic hot-rolled coil prices bottomed out at $572 per short ton in May 2013, reaching $675 per ton by the end of the year and peaking at $692 per ton this May before backing off slightly, back to about $675 in June. North American steel service centre demand, however, varies by country, as well as by region within those countries, as it is a localised business. For example, while US carbon flat roll demand has been moderately better this year, Canadian demand is lagging, Carl Parker, chief procurement officer for Samuel, Son & Co. Ltd observes. This is largely because while automotive is a key market, some Canadian auto capacity is being moved to the United States and Mexico. Canadian distributors, however, are being helped by strength in the energy market, including the railcars that are being used to transport oil and other tanks relating to the storage of energy, Parker noted. This is supported by the latest MSCI data, which shows that while the volumes of overall steel shipments by US service centres were up 4.2% year-to-date through June, first half shipments were down 0.7% in Canada versus those in the
first six months of 2013. Even in the United States, Plummer says that service centre demand from no single end-market was stellar resulting in much variance by steel product, with service centre shipments of carbon flat-roll up 9.9% year-on-year in March, plate up 12.6%, bar up 11.8%, tubing down 0.9%, structural steel up 0.9% and stainless up 15%. Business activity has definitely been better in the second quarter, Parker says. “Nevertheless we aren’t seeing as much pent up demand as we had expected. That is raising some concerns that some of the business that didn’t happen in the first quarter due to weather-related issues could just fall by the wayside.” Jim Barnett, president and CEO of flat steel distributor Grand Steel Products Inc. says he was surprised that June and July has been as strong as they have been, as this is typically a slow time of the year, noting that automotive has clearly been leading the parade with near record sales with residential and light industrial construction seeing a good rebound and an increasing amount of steel being used for pipe and tube. On the long products side, the aerospace and oil and gas energy sectors continue to be the best performers, while heavy equipment, particularly mining and construction machinery, continue to struggle. Kaminski says that some of the
* North America correspondent www.steeltimesint.com
October 2014
22
SERVICE CENTRES
Shipments
% change from
Inventories
% Change from
a year ago
Supply
a year ago
% Mo
% Year
ago
ago -1.0%
J-13
3.35
-4.7%
8.93
-1.0%
2.67
11.3%
J-13
3.46
5.3%
8.94
0.1%
2.58
0.1%
0.1%
A-13
3.63
-0.6%
7.94
-11.3%
2.19
-11.2%
-11.3%
S-13
3.32
7.0%
7.98
-9.0%
2.40
0.4%
-9.0%
O-13
3.71
6.0%
8.01
-4.6%
2.16
0.5%
-4.6%
2.66
2.3%
0.0%
2.86
1.5%
-2.1% -2.1%
N-13
3.08
-0.7%
8.20
D-13
2.91
16.5%
8.32
-2.1%
J-14
3.60
0.1%
8.52
-2.1%
2.36
2.4%
F-14
3.41
0.4%
8.57
0.8%
2.51
0.6%
0.8%
M-14
3.67
7.2%
8.19
-3.6%
2.23
-4.4%
-3.6%
A-14
3.80
4.9%
9.28
3.7%
2.44
13.3%
3.7%
M-14
3.75
2.6%
8.42
4.9%
2.24
-9.3%
4.9%
Table 1 US steel service centre activity (million tons)
improving, albeit incrementally, Lynn Lupori, managing consultant for Hatch Management Consulting in Pittsburgh, says that service centres are still cautious and it is very unlikely that inventories will return to pre-recessionary levels.
Inventories
Carbon Flat
Plate
Bars
Tubing Structural
Jun-13
2,192
323
255
223
215
Jul-13
2,236
335
267
233
Aug-13
2,358
359
274
Sep-13
2,207
334
Oct-13
2,461
Nov-13
2,019
Dec-13
1,929
Months supply
Stainless
Date
MSCI reports that as of the end of June, US service centres were holding only 2.3 months of steel on their shelves. “Everyone is watching their inventories like a hawk expecting a devaluation of steel,” Bill Hickey, president of Lapham-Hickey Steel Corp asserts. Hannah agrees that unlike in the past companies aren’t buying large quantities of steel or being as speculative as they had been in the past when mills announced price increases. “Everyone remembers the Stainless
Shipments
end of 2008 and how fast things could change.” “Service centres have gotten used to operating leaner with many now turning their inventories five times per year as opposed to four times in the past,” John Anton, director of the steel service of IHS Inc. says, adding that he believes that this is a permanent change. He maintains that the only risk to this new way of doing business is if a spike in demand would cause a deficit of metal, but that is not likely to happen, he says – at least not this year, adding that the risk has been greatly reduced by more efficient computerised inventory management. Service centres are also making moves to manage potential risks, such as broadening the scope of the products they offer and looking at futures contracts and other hedging mechanisms to decrease the risk on the price side. “While we can’t turn ourselves into a company that is not cyclical, we believe that we can lessen that cyclicality through diversification,” says Hannah. Anton says one ongoing trend that has intensified since the economic downturn is service centres’ desire to offer more value-added services instead of being so dependent upon their inventories. “We need to play the hand that we have been even in this sluggish economic recovery,” Kaminski asserts. Zyra agrees, observing that the savvier companies are differentiating themselves by providing
Carbon Flat
Plate
Bars
Tubing
Structural
140
4,668
984
698
672
502
245
149
4,535
993
708
682
242
245
155
4,602
990
709
253
222
219
145
4,723
989
388
292
247
238
163
4,742
292
232
206
187
133
644
305
221
187
182
124
Stainless
major players in the construction and agricultural equipment field have recently issued their most optimistic forecasts in many quarters. “If demand for yellow goods does get better, that will be good for steel and steel service centres,” he says. Non-residential construction tends to be the biggest market for not only steel service centres but for steel in general. In fact, David Hannah, chairman and CEO of LA-based Reliance Steel & Aluminum Co. observes that when it is going properly it consumes even more steel than automotive. “It is starting to recover, but we need it to recover more. It continues to be a long way from where it normally would be. Parker agrees, noting that although there are signs of life for commercial construction, funding issues have been having a dampening effect for new bridge and other infrastructure construction projects. Weidner agrees, noting that while the United States desperately needs an overhaul of its infrastructure, which will be hard with the partisan nature of Washington. But even though distributors feel business should be better than it is, Goldenberg says that the recovery for everything except for non-residential construction is actually ahead of schedule, as initial predictions were that demand wouldn’t return to pre-recessionary levels until next year. However, even with their demand
Carbon Flat
Plate
Bars
Tubing
Structural
433
2.13
3.05
2.74
3.01
2.33
3.09
494
432
2.03
2.96
2.65
2.93
2.02
2.90
707
494
440
1.95
2.76
2.59
2.92
2.02
2.84
401
707
484
427
2.14
2.96
1.58
3.18
2.21
2.94
991
690
713
487
440
1.93
2.55
2.36
2.89
2.05
2.70
999
685
709
493
451
0.32
3.42
2.95
3.44
2.64
3.39
4,981
1,037
671
717
486
476
2.58
3.40
3.04
3.83
2.67
3.84
Jan-14
2,368
371
285
238
227
162
5,252
1,017
649
664
500
474
2.22
2.74
2.28
2.79
2.20
2.93
Feb-14
2,220
341
361
216
193
149
5,326
976
648
655
501
471
2.40
2.86
1.80
3.03
2.60
3.16
Mar-14
2,411
364
285
221
217
161
5,027
966
646
654
506
467
2.09
2.65
2.27
2.96
2.33
2.90
Table 2 US steel service centre activity
October 2014
www.steeltimesint.com
SERVICE CENTRES
Date
23
000 Tons
J-13
1,918
J-13
2,052
A-13
2,074
S-13
1,934
O-13
2,001
N-13
1,934
D-13
2,050
J-14
2,002
F-14
1,906
M-14
2,044
A-14
2,013
W E
C O N V E Y
Q U A L I T Y
Hot Sinter Transport
Table 3: Steel mill direct shipments to service centres (000 tons)
solutions that their customers value. “Our customers are demanding more and more from use,â€? Joe Druzak, president and chief executive ofďŹ cer of Kreher Steel Co. LLC says, noting that in response service centres are engaging in different types of processing to help their customers be more proactive in taking cost out. “Service centres like to do as much processing as they can,â€? Hannah says. “It keeps us closer to our customers. Also we usually can do it more efďŹ ciently than they can. However, we also need to be careful that we don’t compete with our customers.â€? A lot depends on how it is done. Zyra says Klein works closely with its customers to become a partner and not just a commodity supplier. “We’ve done this by providing supply chain management services, working hand-in-hand with customers on joint continuous process improvement projects and basically engaging with customers to better understand their long range vision so we can meet their critical needs,â€? he explains, maintaining that this is where the greatest opportunities exist. Weidner says it seems as if the service centres that are doing the best, that are growing faster, are those are those that are providing their customers such value-added services, including more ďŹ rst stage fabrications, engineered products and even ‘kits’. While they have been doing so for a while, this trend could be coming to a higher inection point, he says. Zyra says that ready-to-assemble kits are particularly popular with many OEMs who would prefer to just weld and/or assemble components, “But doing this involves a very different mindset. It is a manufacturing mindset as opposed to a distribution mindset.â€? And there could be a ďŹ ne line between adding more value for customers and competing with them, Parker admits. “We need to be selective about what we do and where we do it,â€? Hannah says, noting that while Reliance acquired one company that was largely a fabricator, it is located in an area of the country where it didn’t compete with our customers,â€? said Parker. Kaminski says that Castle, like some other service centres, is also managing the metals supply chain, especially for some larger OEMs. “More and more we are helping our customers increase their factory throughput and to decrease their vendor management expenses by shipping parts direct to their production lines.â€? Hannah says that while steel service centres “are still not hitting the cover off of the ball,â€? he is optimistic that this year should be at least an incrementally better year than 2013, which was a disappointing year. He is also optimistic that next year will be somewhat better than this year. “There are some encouraging forecasts for non-residential construction next year. If that growth is realised, we should start seeing some real improvement in activity.â€? Until then, however, demand will continue to bounce along with just incremental growth, Goldenberg says. ᔥ www.steeltimesint.com
AUMUND Pan Conveyors s #APACITY UP TO T H s 0AN WIDTH UP TO MM s -ATERIAL TEMPERATURE UP TO ²# s &INES AND LUMPS s -INIMIZED HEAT LOSS s .O GENERATION OF lNES
Sintered and agglomerated Materials
AUMUND Foerdertechnik GmbH 3AALHOFFER 3TR s 2HEINBERG s 'ERMANY METALLURGY AUMUND DE q WWW AUMUND COM
24
IRONMAKING
High capacity coke ovens Reduced emissions, less coal towers, less quench systems and less oven machines, not forgetting lower personnel requirements and an extended operational lifetime – all benefits of high-capacity coke ovens, argues Ralf Neuwirth* HISTORICALLY, most coke oven plants were started-up with relatively small-sized coke oven batteries and fairly low production capacities. They were eventually extended by a number of batteries of similar size as demand for coke increased. Even plants which were designed for larger capacities from the beginning usually consisted of a number of coke oven batteries with small oven dimensions, as larger production units were not available at that time. Even though there was a constant development of coke ovens with increased sizes and production capacities, the number of coke oven batteries with large chamber dimensions was quite limited. Most of the world’s coke production is still based on coke oven batteries with chamber heights of 5m to 6m, chamber lengths of 14m to 16m, chamber widths of 0.40m to 0.45m and production capacities of between 300kt and 500kt of coke per year. In many cases the reluctance to invest in modern, high capacity plants is due to the requirement that new plants have to be adapted to existing facilities, connection points or plant dimensions. However, extremely low budgets deter operators from considering the long-term economic and environmental advantages of modernisation against old fashioned and familiar designs, which offer limited benefits. Most coke oven batteries with large chamber dimensions were built to accommodate high production capacities but were constrained by limited construction space. However, high capacity coke ovens offer some remarkable advantages over their smaller counterparts, which shall be explained in this article, including data from some reference plants. Definition “High-capacity coke ovens” are defined as ‘coke oven batteries, which allow for a production of more than 1.5Mt of coke per year through one operational unit.’ The term ‘operational unit’ refers to ‘a number of coke oven batteries, that can
be operated with:• one set of coke oven service machines • one single coal tower • one single coke quenching system • one single coke wharf • one crew of operators per shift Coke oven dimensions At the beginning of the 20th century coke oven dimensions were limited to chamber heights of 2.5m to 3m, chamber volumes of 10m3 to 15m3 and production capacities of 7 to 10 tonnes per oven. The development of chamber heights and chamber volumes during the past century are shown in Fig 1. and Fig 2. The Schwelgern coke plant in Duisburg, Germany, which was completed in 2003, represents the very latest in the development of oven dimensions with a chamber height of 8.43m, chamber length of 20.8m, chamber width of 0.59m and an effective volume of 94m3, producing 55 tonnes of coke per oven and with a total production capacity of 2.7Mt of coke per year from two batteries of 70 ovens
each. These dimensions are enormous and in the early stages of the project there was considerable doubt about its requirements and whether the design and operational challenges of such a plant could be mastered. But it was the only way to install a plant with the required coke production capacity within the limits of the construction space available. There are, however, other significant factors related to that type of plant, which are essential when it comes to investment decisions and convincing authorities to approve the operation permit. Advantages A first impression of the advantages of high-capacity ovens is provided by a comparison of plants with different sized ovens for a production capacity of 2Mt/yr as shown in Fig 3. It is obvious that with increased chamber dimensions the required number of batteries and ovens can be reduced and this results in: • A reduced number of pushes and charges. As most of the emissions from coke ovens occur when the chambers are 8m
Fig 1. Development of oven heights 7m
6m
4m 3m
2.5m
1900
1915
1925
1930
1985
2003
* Head of Coke Oven Department, ThyssenKrupp Industrial Solutions AG October 2014
www.steeltimesint.com
IRONMAKING
Oven height Number of batteries
60 tons of coke per over
Number of ovens
76m3
50 40
53m3
30 20
Useful volume p. oven Numb. of pushes/charges p/day Total length of sealing
39m3 32m3
Required space for the batteries
chamber volumes
10 0 1920
1940
1960
opened for pushing and charging, this reduces the total amount of emissions. • A reduced length of sealing surfaces for the oven closures. This provides for fewer emissions during the carbonisation period. • A reduced size requirement for the plant area. This is essential when boundaries for plants cannot be extended and it can save on land procurement investment. • A reduced number of sets of oven machines, coal towers, coke quenching systems and coke wharves. This is one of the main factors reducing the investment cost of the plant. • A reduced requirement of operating teams. Reduced manpower requirements are not only related to the operation, but also to the maintenance of the plant. This is one of the main factors effectively reducing the production cost. Where reduced manpower requirement is concerned, a good example is a German plant where, in an old facility, there were ovens with a 4m to 6m chamber height and a production capacity of 2.5Mt/yr. The specific manpower requirement for operation and maintenance stood at 336 people per million tonnes per annum. After replacement of the plant with modern ovens with an 8.4m chamber height and a production capacity of 2.7Mt per annum, the specific manpower requirement could be drastically reduced to 106 persons per million tonnes per annum. A further advantage – especially for wide chamber ovens – is increased service life. The service life of a coke oven battery is determined by the status of the refractory brickwork of the oven chambers. Mechanical stress introduced during pushing and thermal shock when opening and charging the ovens is the main cause of brickwork damage. According to international surveys, the typical service life of a coke oven ranges between 12,000 and 15,000 pushes. Major repairs to refractory brickwork can extend the service life of a coke oven. Based on these experiences, by increasing the chamber width, the www.steeltimesint.com
6.0m
2
4
4.3m 5
220
325
590mm
450mm
450mm
76m3
34m3
20m3
135
300
520
4.8km
6.0km
6.5km 55,000m2
(doors, standpipes, charging holes)
13m3
1900
7.6m 140
Oven width
94m3
25
1980
2000
40,000m2
50,000m2
Sets of oven machines
2
3
5
Operation teams
1
2
3
Fig 2. Development of chamber volumes
battery service life can be considerably extended. This comparison can only be made between ovens with the same wall stability and, more importantly, similar operating conditions. As mentioned above, one of the major causes of refractory brickwork damage – and a major influence on coke oven service life – is the mechanical stress introduced during coke pushing. The force required to push the coke from the oven determines the extent of mechanical stress. Carbonisation tests in coke ovens with different chamber widths have shown that coal shrinkage is considerably extended when the coking time is prolonged. As can be seen in Fig 4. – which compares the shrinkage in oven chambers of 450mm and 590mm width – this is also true for extended coking time in wide chamber ovens. In a wide chamber oven, therefore, there is a sizeable gap forming between the coke cake and the chamber wall, which reduces friction between the coke and the oven wall brickwork, resulting in a reduced pushing force. This is another important factor in favour of an extended service life. Design criteria For optimisation of oven chamber dimensions the following main criteria must be considered: Oven chamber length • Enlarging oven chamber length is the most economical way of increasing production capacity, as this causes a linear increase in the amount of refractory material required as well as of the dimensions of the battery substructure. The quantity of mechanical and electrical equipment as well as instrumentation remains almost unchanged. • Oven chamber lengths above 16m should only be selected in connection with chamber widths above 500mm. This is because higher coal shrinkage reduces the required pushing forces to acceptable values. • The longer the length of the oven chamber, the more complex the
Fig 3. Comparison of plants with different sized ovens
adjustment of heating media distribution. This can be simplified by arranging the supply of heating media and the discharge of waste gas on both sides of the battery. On the other hand, a double-sided media supply will increase investment costs. One-sided systems have already been successfully installed for batteries with up to 20m chamber lengths. However, precise adjustment of the heating system takes time. Oven chamber height • Enlarging the oven chamber height is the most expensive way of increasing production capacity. First, in order to keep wall stability at the same value, the oven wall width and the oven pitch must be enlarged and this results in a more than linear increase in the quantity of refractory bricks. Furthermore, the quantity of mechanical equipment will rise, increasing the investment cost. • Large oven chamber heights increase the requirement for precise operation due to greater (and expected) absolute coal shrinkage. This results in an enormous gas collecting space during the latter stages of the carbonisation process and a tendency towards overheating and a build-up of carbon deposits. Such negative effects are avoidable by taking this into account when selecting and preparing coals and by precise coal charging, ensuring the correct temperature and distribution and adhering to an exact pushing and charging schedule. • With increased chamber heights the adjustment of vertical temperature distribution becomes more complex. It is important, therefore, to have a precisely adjustable and staged supply of combustion air as well as a waste gas recirculation system – both are mandatory for such ovens. Oven chamber width • Oven chamber width has almost no effect on plant capacity. In fact, the production capacity of an oven slightly decreases with an increased chamber width, as the prolongation of the coking October 2014
26
IRONMAKING
Client:
POSCO Group
(more shrinkage = less pushing force)
2 590mm 3 4 5 6
Capacity: 2,800,000 t/y of coke 4 batteries, 50 ovens each 7.63 chamber height, Gas treatment plant with a capacity of 175,000 Nm3/hour Start-up: 2010
1000 800 600 400 200
Coke temperature in °C
450mm
coking time 590mm chamber width
coking time 450mm chamber width
1 Coal shrinkage in %
Location: Gwangyang, South Korea
1200
0
Client:
Capacity: Phase 1+2: 3,300,000t/y of coke, 4 batteries, 60 ovens each, Phase 3: 1,870,000t/y of coke, 2 batteries, 70 ovens each, 7.63m chamber height Phase 1+2: Gas treatment plant with a capacity of 215,000 Nm3/h Phase 3: Gas treatment plant with a capacity of 125,000 Nm3/h
0 0
2
4
6
14 18 12 16 20 coking time in h 590mm chamber width 450mm chamber width 8
10
time is disproportionate to the increase of the chamber width. • The extension of the chamber width causes a slight increase in the quantities of refractory material and mechanical equipment. • Wider ovens increase coking time and reduce the number of pushes and charges. The chamber width should be decided such that the optimum number of pushes and charges for the oven machines can be achieved. • Less pushes and charges mean reduced emissions. • Increased coking time results in greater coal shrinkage, which can lead to a reduction of pushing forces. Reference plants The technology of high-capacity coke ovens is not new. Over the past 10 years, ThyssenKrupp Industrial Solutions AG, formerly ThyssenKrupp Uhde GmbH, has built a number of high capacity units including the coke plant Schwelgern and the HKM coke plant, also in Duisburg, Germany, where one coke oven battery was commissioned in 1984 and the second battery recently completed in 2014. Those are the only reference plants in Europe with a size and production capacity as defined earlier in this article. Other high capacity coke oven plants built by ThyssenKrupp Industrial Solutions AG are located in China and South Korea. Among those plants, the facilities constructed for POSCO and Hyundai Steel Company (HSC) in South Korea are examples of concepts where the coke plants were developed with an open mind and full consideration was given to the advanced technology available and the implications for the investment, operation and maintenance costs. The configuration of those plants are explained in Fig 5. In both plants four coke oven batteries were installed in two phases on one common centre line, with one set of October 2014
22
24
26
Start-up: Phase 1: 2009, Phase 2: 2010, Phase 3: 2013
Fig 4. (above) Comparison of coal shrinkage
Fig 5. (above right) Plant configuration of South Korean plants for POSCO and Hyundai Steel Corporation
Hyundai Steel Corporation (HSC)
Location: Dangjin, South Korea
Pressure control system for oven chambers Coke transfer car COKE-SIDE & PECS
COAL BIN COMBIFLAME Heat-system
One spot quench car
Fig 6. Coke oven batteries and service machines – typical design
2/1 pushing cycle
Underjet type One-sided media supply
oven machines serving each phase (two batteries) plus one set of oven machines as common stand-by for both phases. Each phase has its own wet quenching system comprising a low emission quenching tower with a quench water settling plant and a coke wharf. At POSCO the wet quenching systems are for emergency use only, while in normal operation, the coke is cooled by dry quenching plants. At HSC the coke is only cooled by wet quenching; so there is an additional stand-by plant installed between the two phases. In both cases the gas treatment plants are designed as single-line plants with a capacity to treat the raw gas from four batteries. This allows for the installation of a small amount of high capacity equipment, which optimises operational and maintenance costs. Coal treatment plants were designed as separate lines for each phase, but with several interconnections between the lines to make it possible to treat the coal for two phases using just one coal handling line – with a reduced handling capacity. The typical design concept of the coke oven batteries and service machines for POSCO and HSC is illustrated by a typical battery cross section in Fig 6.
After a few years of operation, the concepts and technologies selected for the POSCO and HSC coke plants have proven to be very effective and reliable. Potential capacities The table opposite (Fig 7.) shows the main technical data of the reference plants in Korea as well as the data of plants which could be designed for production capacities ranging from 1.45Mt/yr to 2.25Mt/yr, considering the present limitation of NOx-emissions in Europe of 500mg/Nm3. Those examples of plants with highcapacity coke ovens are based on the main dimensions of the reference plants operating successfully in China and Korea plus the option to extend the oven chamber length from 18m to 20m, which enables a 10% capacity increase at an expected increased investment of 5% and an increase in operational and maintenance costs. Concepts for project execution Besides the selection of the plant concept and technologies, the concept for the execution of the project is of utmost importance for the quality of the plant. Fig 8. provides information about the www.steeltimesint.com
IRONMAKING
27
Fig 7. Coke Oven Batteries – Potential Coke Production Capacities for Reference Plants in Korea Battery
Oven
Oven
no.
no.
dimensions
[-]
[-]
2
100
2
120
2
140
Volume
[m]
Coking
Average heating
time
flue temperature
[m3]
[h]
Pushes per day
[°C]
[-]
~27.0 7.63/18.0/0.590
76.25
NOx - limit
Total coke
at 5%-O2
Production *)
[mg/Nm3]
[Mill.t/a]
89 ~1,275
~27.0
1.400 <350
107
~27.0
124
1.680 1.960
*) depending on coal data and number of operation days /y
For NOx value of <500mg/Nm3 with COG heating Battery
Oven
Oven
no.
no.
dimensions
Volume
Coking
Average heating
time
flue temperature
Pushes per day
[°C]
[-]
NOx - limit
Total coke
at 5%-O2
Production *)
[-]
[-]
[m]
[m3]
[h]
2
100
7.63/18.0/0.590
76.25
~26.0
92
1.450
2
100
7.63/20.0/0.590
84.72
~26.0
92
1.600
2
120
7.63/18.0/0.590
76.25
~26.0
111
2
120
7.63/20.0/0.590
84.72
~26.0
2
140
7.63/18.0/0.590
76.25
2
140
7.63/20.0/0.590
84.72
~1,300
[mg/Nm3]
<500
[Mill.t/a]
1.750
111
1.900
~26.0
130
2.050
~26.0
130
2.250
*) depending on coal data and number of operation days /y Start-up
Client,
Basic Eng.
Detail Eng.
Plant location 2014
HKM, Huttenwerke Krupp Mannesmann
Process relevant
Refractory
Bulk
equipment
material
material
Construction
Commissioning
Uhde
Uhde
Uhde
Uhde
Uhde
Uhde
Uhde
Uhde
Uhde+P
Uhde
Uhde
Uhde+P
Client Uhde:SV
Client Uhde:SV
Uhde
Uhde+P
Uhde
Uhde
Uhde+P
Client Uhde:SV
Client Uhde:SV
Uhde
Mainly client
Mainly client
Client
Client
Client: Uhde:SV
Client Uhde:SV
Uhde
Uhde+P
Uhde
Uhde
Uhde+P
Client: Uhde:SV
Client: Uhde:SV
Uhde
Mainly client
Mainly client
Client
Client
Client: Uhde:SV
Client: Uhde:SV
Uhde
Mainly client
Mainly client
Client
Client
Client: Uhde:SV
Client: Uhde:SV
Uhde
Mainly client
Mainly client
Client
Client
Client: Uhde:SV
Client: Uhde:SV
Uhde
Mainly client
Mainly client
Client
Client
Client: Uhde:SV
Client: Uhde:SV
Uhde
Uhde
Client Uhde
Client Uhde
Client Uhde
Client Uhde
Client Uhde
Duisburg, Germany 2013
Hyundai Steel Comp (HSC), Phase 3 Dangjin, Chungnam, South Korea
2010
POSCO, Gwangyang Works, Phase 5 Gwangyang, South Korea
2010
Zhangjiagang Hongfa Steelmaking Co Ltd (Shagang) Zhangjiagang, China
2009
Hyundai Steel Comp (HSC), Phases 1+2 Dangjin, Chungnam, South Korea
2009
Shougang Jingtang United, Iron & Steel Company, Caofeidian, Hebei China
2008
Wuhan Iron & Steel Corp (Wugang) Wuhan, Hubei, China
2006
Maanshan Iron & Steel Co (Magang) Maanshan, Anhui, China
2006
Taiyuan Iron & Steel Co (Tisco)
& 2013
Taiyuan, Shanxi, China
2003
Carbonaria/TK Schwelgern
Fig 8 (above). Project Execution Concept (Uhde+P: Uhde plus local partner
actual split of work for the reference plants mentioned above. The Chinese clients kept the provision of services and supplies within their own scope due to budget restrictions. These plants were based on the same technical concepts and the same basic technologies as the plants in Korea. However, when comparing results, differences in quality and function become obvious. The following guidelines should be considered when allocating the responsibility for who does what. The minimum tasks provided by the contractor (provider of technology) are: • Complete engineering • Provision of key equipment relevant to process, function and plant performance • Supervision of erection and commissioning • The supply of refractory material is a crucial item to secure the construction schedule and the quality of the plant. For www.steeltimesint.com
complex logistics and quality control a special expertise is required. • The success of a project depends upon on the right split of services and supplies and on the quality of communication, trust and understanding between client and contractor. As the decision on the project execution concept and the division of labour between client and contractor is of great importance for the success of the project, this matter should be given the utmost consideration during project planning. Advantages The main advantages of high-capacity coke ovens are: • Optimised requirement of construction space • Reduced emissions • Reduced numbers of oven machines, coal towers and quench systems • Low personnel requirements
• Extended operational plant lifetime Such advantages can only be realised when the technical concept, as well as the concept for project execution, are wisely selected and implemented in good faith and understanding between client and technology provider. Care has to be taken for optimum plant adjustment, precise operation and preventative maintenance. There are many examples where plants with high-capacity coke ovens have been implemented with great success. Where new build (or rebuilt) large capacity plants are concerned, highcapacity coke ovens are perfect for securing cost-efficient and environmentally friendly coke production for decades. ᔡ
* This article is based on a paper presented at the EuroCoke Summit 2014 in Edinburgh. October 2014
28
IRONMAKING
Extending blast furnace campaign life Abrasion wear of copper staves is a leading cause for early relines of blast furnaces. Such wear often proceeds undetected until a water passage has been breached, by which time the ribs on many staves may have worn off. Without ribs to retain a protective accretion, the staves are vulnerable to further wear and, without prompt intervention, the blast furnace is at risk of a cascading series of water passage failures leading to process instability, loss of production and an early reline…but help is at hand. By Andrew Shaw1, Afshin Sadri1, Ian Cameron1, Maciej Jastrzebski1, Rick Brown1, and Barry Hyde*
SHORTLY after the first water passage fails, there is still time to take corrective action and extend the remaining campaign life; however, until recently, the tools available to achieve this have been limited. To enlarge this toolkit, Hatch has developed Low Frequency Pulse Ultrasonic (LFPU) technology to accurately measure both stave and accretion thickness from the outside of an operating blast furnace. Furthermore, working from its long experience in the non-ferrous industries, Hatch has developed a unique copper ‘finger’ cooler that can be installed into a damaged copper stave to restore cooling performance. When combined with good operational practices, these tools form the basis of the following three-pronged strategy for campaign extension: – Diagnosis: Use LFPU to measure all copper staves to determine the remaining rib depth. – Remediation: Install finger coolers into failed or heavily worn staves to restore cooling and provide anchor points on which grout/accretion can be retained. – Protection: Review and adjust the blast furnace process to promote the formation of a stable protective accretion and, where necessary, supplement this accretion with injected grout. When applied shortly after the first water passage failure, these powerful tools can enable the blast furnace operator to proactively extend the campaign life of copper stave-cooled blast furnaces. Background Early test installations of copper staves in blast furnaces were very successful and test staves were recovered with minimal hot face wear after substantial service life[1]. With copper staves, a thinner wall
design could be employed that increases the blast furnace working volume by 10-15% without a shell replacement. The opportunity to extend blast furnace campaign life and increase the furnace output at low cost led to widespread adoption of copper staves over the last 20 years. Unfortunately, the reliability of copper staves on many blast furnaces has not lived up to expectations, with premature failures from abrasive wear of the hot face occurring in the first 10 years of operation (Fig 1). Abrasive wear occurs when a robust and stable protective accretion is not maintained on the hot-face of the staves, allowing the relatively hard iron ore and coke to come into direct contact and abrade the comparatively soft copper. These accretions are difficult for operators to maintain for two reasons. First, accretion formation is complex and based on multiple mechanisms; at the lower elevations molten liquids produced in the cohesive zone freeze onto the copper stave hot face while in the ‘dry’ region above the cohesive zone, alkalis and zinc vapours condense and bind with
burden fines against the copper staves. Secondly, there has been no accurate on-line method of measuring accretions, which could be used to fine tune the blast furnace process. The difficulty of retaining a protective accretion is exacerbated once the copper ribs featured in most copper stave designs wear off, leaving a very smooth and nearly vertical copper face. At this point, stave wear accelerates, water passages fail and the stave operates at higher temperatures and is even less able to form a protective accretion. Stave thermocouple temperature alarms become more frequent, to the extent where production cuts are considered to reduce stave temperatures and/or tuyeres are plugged below the damaged stave as a last resort to keep the furnace in operation. These actions create uneven burden descent and process instability that can further damage exposed copper staves. In many cases, the blast furnace is ultimately shutdown early to replace damaged staves, and often within 10 years since blow-in. To help operators maintain a stable accretion throughout the blast furnace life,
Fig 1. Copper stave wear after blow down at Ternium Siderar BF2 [2]
*Hatch, 2800 Speakman Drive, Mississauga, ON, Canada L5K 2R7. Phone: 1 905 855 7600. Email: AShaw@hatch.ca; ASadri@hatch.ca; ICameron@hatch.ca; MJastrzebski@hatch.ca; Rick.Brown@hatch.ca; BHyde@hatch.ca October 2014
www.steeltimesint.com
Step 1: Diagnosis Before developing a plan to manage a furnace with worn staves, it is highly useful to measure the existing stave wear in order to better understand the extent of the problem. This is a challenging assignment in an operating blast furnace due to the substantial nature of the heavy steel shell, composite ‘castable’ and copper staves used. Traditional NDT techniques, such as ultrasonic systems[4], or low frequency systems (Hatch’s AU-E [5] ), either cannot penetrate to the staves or do not have sufficient resolution to measure the difference between the root and ribs[4] (Fig 2). Some other available techniques are in use and have certain advantages. Thermal modeling certainly provides indicative results but does not provide definitive thickness readings over the stave surface ‘map’. Similarly, probes have proven to be accurate, but invasive installation is required, and measurements are only available at the point where the probe is installed (single point)[6]. Hatch thus recognised a need for a new method of accurately measuring stave and accretion thickness in a non-intrusive and non-destructive manner, which can be applied to a large number of staves. To fill this need, Hatch developed Low Frequency Pulse Ultrasonic (LFPU) technology and tested it at a number of different blast furnace operations. LFPU can be used to measure both cast iron and copper staves. The difference between LFPU and other ultrasonic systems is that the former is capable of delivering a test signal with sufficient energy and in the frequency range required to detect small changes in copper thickness from virtually any point on the cold face of the blast furnace shell. The LFPU penetrates through the shell, castable and cooling circuits and reflects off of the stave hot face, accretion/refractory and burden interfaces as shown in Fig 2. The resultant broad-spectrum frequency response produces results accurate to within 2mm [4] . LFPU measurements can be performed while the blast furnace is in operation. NDT specialists at Hatch take LFPU data measurements. Site preparation is minimal www.steeltimesint.com
29
Accretion
Stave
Castable
and thereby prevent the ribs from wearing off, Hatch is developing a novel on-line accretion measurement tool based on the LFPU technique described below. While promising, this forthcoming technology is of little consolation to an operator dealing with already worn staves. For this situation, Hatch has developed a powerful three-pronged strategy of Diagnosis, Remediation, and Protection and supported it with the stave measurement and remediation technologies described in this paper.
BF shell
IRONMAKING
Ultrasonic - Application: Detection of shell thickness - Unable to penetrate the castable layer
Low Frequency Pulse Ultrasonic (LFPU) - Application: Detection of fin/rib/tip - Intermediate wavelength is able to penetrate the castable and detect the fin/rib/tip
Acousto Ultrasonic-Echo (AU-E) - Application: Detection of refractory/hearth thickness - Wavelength larger than fin/rib/tip
Fig 2. Wavelength comparison of various ultrasonic/ acoustic methods to measure copper stave thickness.
Unworn stave
Worn stave
root measurement interface measurement
rib measurement poor signal due to castable
build-up
Fig 3. LFPU site measurement set -up
Fig 4. LFPU results of thickness measurements on two cooling staves
Copper stave Protruding finger to retain accretion or grout
Grout
Steel shell
Fig 5. Schematic of a Hatch Finger Cooler incorporating a thermally conductive joint
Robust thermal contact at the interface joint
Springs provide a known pressure at the joint and can adjust to accommodate thermal expansion/contraction of the stave
Bolts are tightened to apply pressure at the thermal joint
October 2014
IRONMAKING
Hatch finger coolers
Unit: °C Time: 1
1/14/2014 11.24am
400 300 268.75 237.5 206.25 175 143.75 112.5 70.646 min 50
Fig 6. Thermal modeling results for a copper stave with two failed water passages in the centre for a heat flux of 100 kW/ m2. Results for both standard cigar coolers and Hatch finger coolers are shown.
October 2014
Protection Staves must be protected from the descending burden by an accretion or grout layer to avoid abrasive wear. The presence of worn staves in a blast furnace indicates that at some point during the campaign the accretion layer has been unstable or absent. It is generally assumed that stable accretion layers will form when good operational practices are adhered to. In the mid-1990s, ThyssenKrupp compiled a list of measures that it used to prolong blast furnace campaign life while maintaining or even enhancing productivity [3] ThyssenKrupp’s priority list is reproduced in Fig 8. below. Many other blast furnace operators adhere to a similar philosophy to assure a long and predictable campaign life. Once worn staves are discovered, it is worthwhile reviewing blast furnace operational aspects cited in Fig 8. are in good order as well as considering a programme of grout addition. Stable operation can bring the fastest improvements to campaign life and this is especially important as the campaign advances, the refractory lining wears and the worn copper stave hot face is
HMI Stave
Step 2: Remediation The ability of damaged staves, with worn ribs and failed water passages, to retain protective accretion/grout and remove heat is compromised. This leaves already worn staves more susceptible to further wear at an accelerated rate. Typical remediation technology is to install cigar or plate coolers in holes cut through the shell and staves. These supplemental coolers protrude and provide anchors/ ledges on which a localised accretion can form or injected grout can be better retained. As further stave wear occurs, the supplemental cooling offered by the cigar or plate coolers can protect the furnace shell from being overheated and cracked/ damaged by the hot blast furnace gases. While beneficial, it is predicted that heat transfer between a typical supplemental cooler and a damaged stave is very low. High joint resistance is expected even if a relatively conductive graphitic grout
is installed, because of a lack of joint pressure, and the possibility of forming small thermally insulating gaps at the grout-copper interface when the stave thermally expands or contracts. To restore cooling performance in the damaged copper stave, Hatch has developed special finger and plate coolers (patent pending) to dramatically improve the thermal conductivity at the stave-tocooler interface and hence extract heat from the stave body. This is achieved by utilising a spring-loaded wedge or collet on the supplemental cooler to create a thermally conductive pressure connection between the supplemental cooler and the copper stave. To reduce the potential for water leakage as the finger wears, all cooling channels are limited to the cooler body and do not carry to the protruding tip of the finger cooler. In addition to the finger cooler design, Hatch developed all the required implementation procedures needed to install the copper fingers during a series of blast furnace shutdowns. The copper finger cooler design is illustrated in Fig 5. A finite element thermal model result is shown Fig 6 which illustrates the
BF shell
and limited to clearing the shell of debris, marking the shell at desired intervals, applying ultrasonic gel and placing probes on the designated position (Fig 3). Each measurement takes a few minutes and the probes can be moved to the next location. After the signals are collected and transferred to the analysis software, thicknesses are computed and cross sections generated as shown in Fig 4. For LFPU signals to reach the stave tip, a tight bond between steel shell, castable and stave must exist, otherwise ultrasonic signals cannot transmit through the gap between the material layers. In the case where gaps are present, the NDT operator can move the measurement slightly to the left or right to a region with adequate bonding and continue the thickness measurements. The locations where gaps are identified can be corrected by grouting.
Accretion?
Type: temperature
Cigar coolers
dramatic difference that establishing a thermally conductive pressure connection has on the stave body temperature in the damaged stave. Providing additional cooling to a damaged stave will reduce the stave temperature and prolong stave life, as well as reduce the frequency of operational slowdowns or stops in response to high stave temperatures. The protruding finger enables the retention of an accretion that can further protect the damaged area. Hatch finger coolers can be pre-emptively installed on worn staves between active water passages, in advance of any water passage failures. This is particularly useful for extending overall blast furnace campaign life if only a small number of staves are heavily worn.
Castable
30
Fig 7. Schematic view of a continuous thickness measurement system
www.steeltimesint.com
IRONMAKING
Measures to prolong BF campaign life
•Physical and chemical quality of charged materials •Low input of chlorine, zinc and alkalis •Stable blast furnace operations •High automation level •Optimised burden distribution and gas permeability •Sufficient drainage conditions in the hearth •Modified profiles of the blast furnace •Optimised cooling system and refractory layout •Intermediate repair and modernisation strategy Fig 8. Priorities to prolong campaign life at ThyssenKrupp [3]
exposed to blast furnace process gases. If an independent review is desired, Hatch’s blast furnace specialists, working handin-hand with blast furnace operators, can help assure that the operation is optimised. To help operators measure protective accretion, and thereby more reliably control it, Hatch can extend the capability of LFPU technology with a system that can be permanently installed and operated on a continuous basis. Automation will bring several advantages to the traditional handheld inspection method including, but not limited to, the ability to continuously monitor stave/accretion thickness and improved measurement
repeatability and accuracy[7] (Fig 7). ᔡ Acknowledgements Discussion, input and support from Dave Rudge, Sean Southall, Robert Veenstra, Bert Wasmund, Brad Dempsie, Peter Szyplinski and Winnie Ying were essential to developing the technologies presented in this paper. References 1. Heinrich, P.; Hille, H.; Bachhofen, HJ.; Kowalski, W.; ’Copper blast furnace staves developed for multiple campaigns’, Iron and Steel Engineer, February 1992, p. 49/55 2. Cenga, G.; Lingiardi, O.; Mustante, R.; ‘Copper Staves Wear – Ternium Siderar BF2 Experience’, Association for Iron and
31
Steel Technology Conference (AISTech 2014) Proceedings, May 5-8, 2014, Indianapolis, USA. 3. Peters, M., Schmöle. P. and Ruther, P.; ‘Blast furnace campaign prolongation philosophies’, 34th McMaster University Symposium on Iron and Steelmaking, May 8-10, 2006, pp 154167. 4. Sadri, A., Hyde B., Dempsie B., and Mirkhani K.; ‘Accurate and Flexible NDT Measurements of Copper and Cast Iron Stave Thickness in the Blast Furnace’, Association for Iron and Steel Technology Conference (AISTech 2013) Proceedings, May 6-8, 2013, Pittsburgh, USA. 5. Sadri, A.; ‘An Introduction to Stress Wave Non-Destructive Testing and Evaluation (NDT&E) of Metallurgical Furnaces and Refractory Condition Monitoring’, CINDE Journal, Vol. 29 No2, March/April 2008, pp.711. 6. Berry Metal Company. http://www. berrymetal.com/pdf/wear_monitoring.pdf; viewed February 6,2014. 7. Mirkhani, K. and Sadri, A.; ‘NonDestructive Testing (NDT) and Monitoring of Cooling Elements in Metallurgical Furnaces’, Proceedings of NDT in Canada 2011 Conference, November 2-4, 2011, Montreal, Canada.
Do you receive our FREE weekly newsletter? Keep up-to-date with the latest industry news and receive the free weekly newsletter straight to your inbox
Register now online at www.steeltimesint.com/e-newsletter www.steeltimesint.com
October 2014
Remain competitive in the global steel market by gaining command of cutting-edge innovations, and discover dynamic solutions to everyday business challenges. AISTECH 2015 WILL FEATURE ◆
400+ Technical Presentations ◆
North America’s Largest Steel-Related Exposition Keynote Presentations by Today’s Industry Leaders
◆ ◆
Steel Plant Tours
AISTech.org
Save US$100 Register by 31 January 2015 to save on Full Conference registration. Registration opens 1 December 2014 (only one discount per registrant).
SPECIAL & STAINLESS STEELS
33
R&D delivers increased corrosion resistance
Constantly increasing operational levels and efficiencies within production and process plants mean that pushing the envelope in materials research and development is a continuous operation and one that Sandvik regards as essential. By Eduardo Perea*
Continuous steel casting plant at Sandviken, Sweden
seawater. However, in niche applications, such as heat exchangers and condensers utilising hot seawater, where high deposits are experienced along with crevice formation, nickel alloys were being favoured.
STRIVING to research, develop, test and introduce the next generation of stainless steel material grades is key in order that industrial plants utilise the most efficient materials to maximise operational efficiency, reduce plant maintenance cycles and lower equipment life cycle costs. The development of duplex and superduplex stainless steels has led to greater operational capabilities. The material has been used in some of the most demanding applications throughout the world. Standard duplex grades have been used extensively in chloride containing environments at high temperatures for more than 30 years. However, as demands increase on plants and equipment, especially in seawater applications using chlorination, it was clear that a new grade was required to withstand the increasingly tough operating conditions. The introduction of Sandvik SAF 2507 (UNS S32750) gave great improvements in pitting and crevice corrosion compared to standard duplex grades. It has proved to be an excellent material for seawater applications such as umbilicals and seawater coolers using chlorinated Sandvik grade
Next generation stainless steels In order to address the situation Sandvik worked extensively on the development and introduction of a next-generation stainless steel with greatly improved corrosion resistance. The result was the introduction of Sandvik SAF 2707 HD (UNS S32707), a high-alloy duplex (austenitic-ferritic) stainless steel, referred to as hyper-duplex, which shows unprecedented pitting and crevice corrosion resistance compared to other duplex grades, and also better or equivalent resistance to many nickel alloys – especially in chlorinated seawater. On its introduction hyper-duplex grade stainless steel extended material performance levels beyond existing superduplex grades. It has significantly improved corrosion resistance in chloride solutions compared to super-duplex stainless steels Mn
SAF 2507 (UNS S32750) and the 6Mo austenitic stainless steels UNS S31254 and is suitable for use in aggressive acidic, chloride-containing environments. This makes it ideal for applications in tubular heat exchangers for process industries, such as oil refineries; petrochemical; and chemical plants, particularly where hot seawater is used. Chemical composition The high corrosion resistance of Sandvik’s SAF 2707 HD is mainly because of its chemical composition (see Table 1) and levels of chromium (Cr), molybdenum (Mo) and nitrogen (N). Chromium is the most common element that enhances stainless steels’ resistance to both general and localised corrosion (see Table 2). In comparison, Alloy 625 nickel-chromium alloy contains 21% Cr and Sandvik’s own super duplex SAF 2205 contains 22% Cr. The 27% Cr chemical composition of Sandvik SAF 2707 HD instils the material with superior corrosion resistance. Notable characteristics of Sandvik SAF 2707 HD include its relatively low
UNS
C
SI
P
S
Cr
Ni
Mo
Others
Super-duplex -SAF 2507
S32750
≤0.030
≤0.8
≤1.2
≤0.035
≤0.015
25
7
4
N=0.3
PRE 43
Hyper-duplex-SAF 2707HD
S32707
≤0.030
≤0.5
≤1.5
≤0.035
≤0.010
27
6.5
4.8
N=0.4
480
Co=10
Table 1. Nominal chemical composition of Sandvik SAF 2707 HD compared with super-duplex Sandvik SAF 2507 stainless steels, wt%
* Global technical and marketing manager, Sandvik Materials Technology www.steeltimesint.com
October 2014
34
SPECIAL & STAINLESS STEELS
Grade
ASTM
UNS
%Cr
%Mo
%N
Sandvik 3R12
304L
S30403
18
-
-
18
Sandvik 3R60™
316L
S31603
17.5
2.6
-
26
Sandvik SAF 2304 Sandvik 3R64 Sanicro 41 Sandvik 2RK65
-
S32304
23
0.3
0.1
26
317L
S31703
18.5
3.1
-
29
-
N08825
20
2.6
-
29
‘904L’
N08904
20
4.5
-
35
Sandvik SAF 2205
-
S31803
22
3.1
0.2
35
Sanicro 28
-
N08028
27
3.5
-
38
Sandvik 254 SMO™
-
S31254
20
6
0.2
43
Sandvik SAF 2507
-
S32750
25
4
0.3
43
Sandvik SAF 2707 HD
-
S32707
27
4.8
0.4
48
Alloy 625
-
N06625
21
9
-
51
Alloy C-22
-
N06022
22
13
-
65
Alloy C-276
-
N10276
15
16
-
68
Table 2. Alloy composition for some common stainless steel grades. Each grade’s Pitting Resistance Equivalent (PRE) value is shown in the far right column – the PRE number is a means of ranking a material’s resistance to pitting and crevice corrosion in chloride environments. It is defined as, in weight %: PRE = %Cr + 3.3 x % Mo + 16 x % N.
10
NaCI,%
15
20
25
300 (570) 20
40 60 CH3COOH, Weight-%
80
100
250 (480)
SANDVIK SAF 2707 HD
150 200 (300) (390)
UNS N08028
304/304L
100 (210)
100 (210) 80 (175)
SANDVIK SAF 2707 HD
50 (210)
5
Temperature °C (°F)
UNS S32507 SANDVIK SAF 2707 HD
60 (140)
Temperature °C (°F)
CPT °C (F°) 600mV SCE 80 90 70 (175) (160) (195)
120 (250)
100 (210)
Research and development is central to the Sandvik materials programme which is one of the most extensive in the world of steel
PRE
316/316L 0,0001
0,01 0,001 Ci-, Weight -%
1
10
Fig 1. Critical pitting temperature measured in modified G48A and “Green death”. Critical crevice corrosion temperature obtained in testing with a crevice specified in the MTI-2 procedure
Fig 2. Critical pitting temperatures (CPT) at varying concentrations of sodium chloride, from 3 to 25% (potentiostatic determination at +600mV SCE with surface ground with 220 grit paper)
Fig 3. Isocorrosion diagram in naturally aerated formic acid. The curve represents a corrosion rate of 0.1mm/ year (4mpy) in a stagnant test solution
percentage (4.8%) of molybdenum (Mo) in comparison with many nickel alloys, like Alloy 625 that contains up to 10% Mo. The 4.8% Mo content is more akin to super-duplex steel grades, like Sandvik SAF 2205, which contains 3.1% Mo. The hyper-duplex grade has a balanced chemical composition that is 50% ferrite and 50% austenite, which is crucial to its superior pitting and crevice corrosion resistance in chloride-contaminated media such as seawater, neutral salts and brines. The chemical composition offers significant advantages over the microstructure variations and instabilities of nickel alloys. Nickel has little impact on the corrosion resistance of stainless steel, but it is an important austenite stabiliser. Since nitrogen also stabilises the austenitic phase, the nickel content of Sandvik SAF 2707 HD can be kept as low as 6.5%. This gives the steel its duplex (austenitic-ferritic) microstructure for better mechanical and physical properties and ease of fabrication. Hyper-duplex stainless steel grades like Sandvik SAF 2707 HD are designed for highly corrosive conditions. It was initially developed as an advanced grade to replace super-duplex steel, but the performance of Sandvik hyper-duplex was even better
than expected. Tests clearly demonstrated that the material can be an alternative to nickel alloys in aggressive environments as a high strength, corrosion-resistant and cost-efficient material. Increased resistance to pitting and crevice corrosion is a direct result of the combination of chromium, nitrogen and molybdenum. Important in a duplex material is that the Pitting Resistant Equivalent (PRE) number of the two phases is similar in order to prevent corrosion attack in the weaker phase. The new grade offers a nominal PRE value of 48, which is significantly higher than currently available super-duplex stainless steels. Nominal chemical composition of the grade is shown in Table 1, as a comparison with the established superduplex stainless steel grade Sandvik SAF 2507 (UNS 32750).
undetected until severe damage is caused resulting in penetration of the tube within a heat exchanger, which causes system failure. For this reason, extensive research at the development stage of a new grade is imperative in order to identify its operational characteristics and, more importantly, its corrosion resistance and suitability in given applications. A severe pitting and crevice corrosion test applied to stainless steel is testing in 6% FeCl3, according to ASTM G48. In a modified version of the test, SAF 2707 HD was exposed to the solution and the temperature increased stepwise 2.5ºC/24h until corrosion attack was observed. The resultant data defined the critical pitting temperature (CPT) of SAF 2707 HD as 97.5ºC. For super-duplex grade SAF 2507 (UNS S32750), the corresponding figure is around 80ºC. Crevice corrosion tests were performed on the material with an artificial crevice mounted on the test sample. Here too the critical crevice corrosion temperature was significantly higher than for UNS S32750, see Fig 1. This form of corrosion develops in small crevices on the metal and can be found in flange joints, beneath deposits, on the
October 2014
Corrosion All the experience gained from previous grades was used to optimise operational performance, particularly in chloridecontaining environments. As previously mentioned, pitting and crevice corrosion can be more detrimental than general corrosion. They often go
www.steeltimesint.com
35
SPECIAL & STAINLESS STEELS
Sandvik’s state-of-the-art tube mill at Sandviken is one of a number of mills around the world
Close liaison with customers is essential including visits to processing plants
-225
CPT green death -175
-75
0 -25 Temperature °C
25
75
125
Temperature °C
100 (210) 80 (175)
Temperature °C (F)
UNS S32507 SANDVIK SAF 2607 HD
Boiling point curve
SANDVIK SAF 2607 HD
60 (140)
CCT
100 200
300 400
CPT G48
Longitudinal Cross section
0
Impact toughness (J)
120 (250)
Impact toughness of Sandvik SAF 2707 HD (Charpy-V 10x10mm
HCOOH, Weight -%
Fig 4. Isocorrosion diagram in naturally aerated acetic acid. Here the curve represents a corrosion rate of 0.1mm/year (4mpy) in a stagnant test solution
Fig 5. SCC resistance in oxygen bearing (abt. 8 ppm) neutral chloride solutions. Testing time: 1000 hours. Applied stress equal to proof strength at testing temperature
Fig 6. Impact energy curve for Sandvik SAF 2707 HD using standard Charpy V specimens 10x10mm (average of 3 at each temperature)
surface or in welds that have incomplete penetration. Potentiostatic tests in varying concentrations of sodium chloride (NaCl) from 3% to 25% and neutral pH with an applied potential of 600mV vs saturated calomel electrode (SCE) are shown in Fig 2. While a potential of 600mV is not normal in applications containing chlorides, the possible application temperatures of chloride containing media in process streams in refineries or natural unchlorinated seawater, would typically be higher than the critical pitting temperatures (CPT) obtained in these tests. To determine the level of corrosion resistance capabilities of SAF 2707 HD, in acidic, lower pH, chloride solutions, a ‘Green Death’ test solution (1% FeCl3 + 1% CuCl2 + 11% H2SO4 + 1.2% HCl) was used – see Fig 1. The CPT of the material increased by 25ºC when compared with SAF 2507 (UNS S32750) and by 27.5ºC over 6Mo+N. The service life of any stainless steel can be limited by general corrosion. As illustrated in Fig 3. and Fig 4., the hyperduplex grade exhibits a high resistance to corrosion by organic acids (formic acid
HCOOH and acetic acid CH3COOH). This makes it a competitive alternative to highalloyed austenitic stainless steel and Nibased alloys. Standard austenitic material corrodes at a high rate.
provides yield strength of around twice that of austenitic stainless steel with corresponding pitting corrosion resistance. Substantial reductions in the thickness of tubular materials, due to higher strength, can be achieved meaning lower weight and reduced installation cost. As a result, tensile values for heat exchanger tubing in annealed condition are: Yield strength: Rp0.2 min. 700 MPa (min.101 ksi) Tensile strength: Rm 920-1100 MPa (133–160 ksi) Elongation: min. 25% Hardness: )34 HRC
www.steeltimesint.com
Stress corrosion In industrial processes, one of the most serious forms of corrosion is stress corrosion cracking (SCC), which can lead to rapid material failure. In standard austenitic grades, cracking can occur at relatively low chloride levels. Super-duplex stainless steels can overcome this problem as illustrated in Fig 5. Results confirm that SAF 2707 HD displays an excellent resistance to chloride corrosion, even at high temperatures. Samples were tested for a period of six weeks and throughout fresh NaCl solution was pumped through the chamber. The test confirmed no signs of SCC up to 1,000 ppm Cl-/300ºC and 10,000 ppm Cl/250ºC. This demonstrates that SAF 2707 HD will offer ideal resistance to chloride SCC in critical heat exchanger applications in the process industry. Mechanical properties The duplex structure of the SAF 2707 HD
Impact strength Sandvik SAF 2707 HD offers good impact strength. Fig 6. illustrates the impact toughness (J) through the temperature range -200 to 100ºC. Samples were taken in the longitudinal and transverse direction of a 200mm x 13mm hot extruded and solution annealed pipe. Like other duplex stainless steels with a ferritic base matrix, SAF 2707 HD is embrittled at lower temperatures. The same is valid for higher temperatures due to decomposition of the ferrite phase, October 2014
36
SPECIAL & STAINLESS STEELS
i.e. so-called 475ºC embrittlement. The overall operational temperature range is around -50 - 300ºC.
the use of matching filler metal to obtain a weld with optimum corrosion resistance and mechanical properties.
Fabrication and welding High ductility of the material grade means that there is no requirement for specialised fabrication. The force required for bending is higher than for standard austenitic stainless steels, which is a natural consequence of higher proof strength. Cold bending can be carried out using normal bending methods and the grade’s high ductility means that it can be bent to extremely close bending radii, making it ideal for heat exchanger tubing. When expanding tubes into tubesheets normal methods can be used, but the expansion requires higher initial force as part of a one-step process. Where high chloride concentrations exist, tube to tubesheet joints should be welded to reduce the risk of crevice corrosion. In applications, the grade has good weldability and the austenite reformation in the heat-affected zone is good and provides the welded joint with excellent strength and corrosion resistance. TIG welding with nitrogen additions in the shielding gas is recommended, as is
Operationally proven Designed and developed to increase operating performance and extend service life in severely corrosive heat exchanger applications, the operationally proven grade is already achieving longer run times. In order to verify the new grade and gain industrial reference information, Sandvik SAF 2707 HD heat exchanger tubes have been evaluated over time in a variety of refinery applications. Several years ago an oil refinery in the USA re-tubed the tube bundle in a top pump-around exchanger on an atmospheric distillation unit with hyperduplex Sandvik SAF 2707 HD. The previous carbon tubes had a life expectancy of around nine months with most difficulties having been caused by chloride attacks and increased corrosion from greater use of lower quality crude oils. To date, the Sandvik tubes have performed without problems. ᔡ For further information, visit www.smt. sandvik.com/tube
High Temperature Insulation LUBISOL #2-SL 1600 Lubisol Engineering Co. is offering a new type of refractory foamed material for high temperature insulation. Lubisol #2-SL 1600 (Supper Light) has a low specific density of 0.3 kg/dm³, a very high working temperature of 1600 °C and very low thermal conductivity: 0.05 W/m.K at 20 °C. Heated at higher temperatures it does not melt, but only starts shrinking. It is supplied as a wet mix of granules, packed in plastic bags, ready for use. The application is done by light ramming. The new material is very suitable for thermal insulation of all kind of industrial furnaces, kilns and heating appliances. ___________________________________________ Contact: Prof. S. Lyutskanov, G. Manager www.lubisol.com e-mail: office@lubisol.com October 2014
www.steeltimesint.com
VACUUM DEGASSING EXTENDED ABSTRACT
37
Explosion risk in vacuum degassing With the introduction of mechanical vacuum pumps for degassing, methods of efficient gas cooling and dust separation become necessary to avoid the risk of a critical off-gas composition along with an ignition point that results in an explosion. This article reviews how to undertake a risk assessment and equipment to mitigate the risk. By Wilhelm Burgmann* & Uwe Zöellig** IN all processes of vacuum steel degassing the gases and vapours formed may be dangerous if they combine with oxygen at high temperatures or combine together. Also, inert gases, such as N2 and Ar, are used and they require careful handling because of the risk of suffocation. Generally, CO and H2 – as well as the vapours of volatile metals – are released. The metal vapours condense on colder areas of the plant and are partially oxidised to form a fine dust, which must be collected in special containers, cyclones and bag filters to prevent them reaching the vacuum pumps. The flammable gases CO and H2 can only ignite when there is sufficient oxygen present and the temperature is high enough, at which point there is a danger of an explosion. Besides the temperature, the oxygen concentration in the off-gas is important as oxygen may react with metal vapours as well as CO and H2. The article concludes that: • Explosion protection in vacuum plants, especially those that generate a large quantity of CO by the use of oxygen for decarburisation has so far
been assured by the use of overpressure flaps at the metallurgical reaction vessels, alarm devices for water leakage, sensors for pressure and temperature as well as emergency venting with nitrogen. • Following the introduction of mechanical vacuum pumps, efficient installations for gas cooling and dust separation have become necessary. • Continuous off-gas analysis, now standard for VOD plants for process control with whatever vacuum pump system is employed, is not necessarily optimised to avoid explosions. Knowledge that there is a flammable gas mixture is insufficient to prevent ignition. • The user should understand that the use of primary pumps cooled by an air-inlet is not recommended since they operate independently of an ignition source and the oxygen content is always high. • Mechanical vacuum pumps meeting higher standards are available to fulfil safety requirements including pressure shock resistance of up to 10 bars according to EN 1012-2. However, their use does not automatically mean that they are not an ignition source for gas mixtures. In cases where there are uncertainties regarding the flammability of gas mixtures in the
pump sets, this problem can be solved for all vacuum processes effectively with an ATEX - certificate zone 1, category 2 (interior) pump for gases. The user, therefore, can reach the highest safety standard for people and equipment at a relatively low investment. • To prevent a potential excess gastemperature, additional gas cooling and temperature monitoring should be installed between each pump stage. All pumps are regulated and monitored by specially programmed frequency converters. • The gas mixture and ignition possibilities described in this article are typical for the VOD-process. The same considerations are also valid for all vacuum processes with forced decarburisation such as VD-OB and RHO. • The off-gas composition and the moment of appearance of a flammable mixture are very different in each of these processes. The ATEX-equipment described is also a solution for these situations. • The user should make a risk analysis regarding gas composition and ignition sources for the whole vacuum plant including reaction vessel, suction pipe, shut-off gear, cyclone, cooler and filter. ᔡ
View or download the full article on-line at http://www.steeltimesint.com/features/view/mitigation-of-explosion-risk-in-vacuum-degassing-plants
Right: Layout of a Roots pump to enable an ATEX safety certificate Too less fuel: Lower explosion limit LEL
Too much fuel: Upper explosion limit UEL
Oversized bearings for extreme durability
Contact-less seals
Encapsulated motor without shaft seals and magnet coupling
Pressure
Minimal ignition pressure
Inverter with pump overload protection
Ignition zone
Atmospheric pressure
Safe zone
0 Vol -% Fuel in air
100 Vol -% fuel in air
Pressure dependence of the lower and upper explosion limits
Anti-static lubricant
Effective water cooling integrated into housing
*Consultant for vacuum metallurgy, (Strasbourg), e-mail wburgmann@burgmann-net.de **Oerlikon Leybold Vacuum GmbH (Cologne/Germany), e-mail Uwe.Zoellig@oerlikon.com
www.steeltimesint.com
October 2014
38
PERSPECTIVES: OERLIKON
Helping steelmakers save energy Oerlikon Leybold Vacuum pioneered vacuum technology and since 2009 has been a major supplier of mechanical vacuum systems for steel degassing applications. Uwe Zöellig, the company’s head of global market segment process, argues that steel will remain competitive in the face of competition from aluminium in the global automotive industry
1. How are things going at Oerlikon Leybold Vacuum? Is the steel industry keeping you busy?
Where the steel industry is concerned, we have been delivering vacuum pump systems for metallurgy applications for decades and since 2009 have been a major supplier of mechanical vacuum systems for steel degassing applications. Founded in 1850, Oerlikon Leybold Vacuum is the oldest established brand of vacuum products for industrial and scientific applications. We are pioneers of vacuum technology and are serving a multitude of markets worldwide.
an order for the biggest vacuum system we have ever supplied. It will deliver an effective suction speed of more than 600.000 m³/h and will be installed at a 150t RH degasser.
Very likely Jay, as the amount of steel will continue to shrink. 9. It is always claimed that aluminium is the ‘greener’ metal when compared to steel. What’s your view?
This depends on the energy source used for the production of the aluminium, which requires a lot of electrical energy. If we could supply this energy from renewable sources, then this would become a “green” advantage for aluminium. But steel plants are becoming “greener” too. For example, the usage of our mechanical vacuum system reduces the energy demand of the vacuum system compared to a conventional steam-ejector system by >90%.
2. What is your view on the current state of the global steel industry?
Generally the steel industry is going through a transformational phase as it tries to reduce over-capacity. China, the world’s biggest steel producer, is closing down its most polluting factories and trying to modernise its production facilities. Worldwide, we are seeing a great deal of consolidation among steel producers and there is increasing demand for higher grade steels from the automotive and aviation industry. 3. In which sector of the steel industry does Oerlikon Leybold Vacuum mostly conduct its business?
Our vacuum products are delivered into all steel plants that produce refined steel and demand vacuum treatment during the secondary metallurgy stages of the process. Our customers range in size from small mini mills to huge integrated steel plants. 4. Where in the world are you busiest at present?
It’s hard to say as projects come from all over the world. China is a major driver of business, plus upcoming countries such as India and Mexico. We are kept busy. 5. Can you discuss any major steel contracts you are currently working on?
We are not allowed to disclose details of our contracts, but we recently received October 2014
8. “Within the next 15 years or so there could be a nearly even split between steel, aluminium and carbon fibre content in the average North American-produced light vehicle.” So said Jay Baron, president of the Centre for Automotive Research. Who is closer to the truth – Dick or Jay?
6. “Aluminium will always out-perform steel on a weight basis; and on the stiffness issue alone it will carry the day,” said Alcoa’s chief technology officer Ray Kilmer speaking about aluminium usage within the global automotive industry. Where do you stand on the aluminium versus steel argument?
The amount of steel in modern cars will decrease as we will see replacement by lightweight materials such as aluminium or composites. On the other hand, the steels still used will be of higher quality and will very likely require vacuum treatment during production, which is a good trend for us as a producer of vacuum products. 7. “While there will be increased aluminium penetration, vehicles will continue to be predominantly steel,” said Ducker Worldwide’s Dick Schultz. Is he right or wrong?
I would assume that steel will remain competitive as it becomes more and more sophisticated. We will continue to see steel in cars for some time.
10. “…any hint of doubt when it comes to predictions of climate doom is evidence of greed, stupidity, moral turpitude or psychological derangement.” This is a quote from Bret Stephens writing in The Wall Street Journal. Do you sympathise with his view?
A provocative statement, but I also believe that we are messing with our climate with our greenhouse gas emissions. By firing hydrocarbons as oil or coal we bring CO2 back into the atmosphere, which was taken out there millions of years ago. This must have an effect on our climate and we are advised to start strong measures against this effect. 11. In fact, talking of ‘green issues’ and emissions control, how is the steel industry performing in this respect?
Things get better, but not fast enough. Especially in highly atmosphere-polluting countries such as China or India, steps to reduce greenhouse gas emissions must be strengthened. www.steeltimesint.com
PERSPECTIVES: OERLIKON
12. In your dealings with steel producers, are you finding that they are looking to companies like Oerlikon Leybold Vacuum to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them?
competitive and technically sophisticated nation. On the one hand this endangers established steel suppliers outside of China, but on the other hand all producers will then fight with the same weapons and it will be the quality suppliers who survive.
The whole idea of using mechanical vacuum pumps is driven by operational cost reductions. With these modern systems, we enable the steel producer to save significant amounts of energy – and thereby costs – which, as a side effect, also reduces the CO2 platform of a steel plant.
17. The Chinese still rely heavily upon Western steel production technology. What is Oerlikon Leybold Vacuum’s experience of the Chinese steel industry?
13. How quickly has the steel industry responded to ‘green politics’ in terms of making the production process more environmentally friendly and are they succeeding or fighting a losing battle?
The biggest problem for the steel industry is that the ‘green politics’ worldwide are not uniform. Producers in regions with higher requirements on the reduction of greenhouse gas or particle emissions feel they are being treated unfairly if they need to compete against international competitors who don’t adhere to such demands. In times of ‘low-cost country sourcing’ international politics are needed to harmonise such requirements worldwide. The situation is improving, but maybe not as fast as we all hope and will require global co-ordination. 14. Where does Oerlikon Leybold Vacuum lead the field in terms of steel production technology?
We produce the most innovative mechanical vacuum solution for steel degassing systems and offer the highest system uptime by combining the most up-to-date vacuum components with the most compact, noise-reduced solutions. Our systems are highly energy efficient and available at reasonable investment costs. 15. How do you view Oerlikon Leybold Vacuum’s development over the shortto-medium term?
We are aiming to become the leading supplier of vacuum systems used for steel degassing worldwide. 16. China dominates global crude steel production and is accountable for almost half of total production. How should the steel industry react to this situation?
The Western world must stay competitive by innovation. In China labour and energy costs are going to increase to western levels quite soon. The Chinese government wants China to move away from being a low-cost producer and closer to a highly www.steeltimesint.com
There are many producers of vacuum components in China, but so far they are still on a lower technical level. But, they learn quickly and we see growing competition for more demanding applications. What we can learn from the Chinese is to produce products that simply deliver what the end user expects and no more. Our engineers often strive to create perfect products with features that most customers might never use.
39
21. OERLIKON is based in Switzerland, but what’s happening steel-wise in the country?
Oerlikon is based in Switzerland, but Leybold Vacuum is based in Germany. The European steel industry is under pressure from a growing number of international competitors, stringent European emission control requirements and increasing energy costs. We will not see investment in low-level steels but only speciality steels, which enable our local producers to differentiate based on their extremely
18. Where do you see most innovation in terms of production technologies – primary, secondary or more downstream?
As we are only involved in the secondary metallurgy processes and only in vacuum treatment, I don’t have a view on this. As far as I can judge, most vacuum processes used [in secondary metallurgy] have been established for decades. Innovations come in smaller steps and are driven by more capable process control systems or new items, such as mechanical vacuum pumps. 19. How optimistic are you for the global steel industry going forward and what challenges face global producers in the short-to-medium term?
The mass production of “me-too” steels will decrease and suppliers will consolidate. Suppliers must find their profitable niche with special steels. 20. What exhibitions and conferences will Oerlikon Leybold Vacuum be attending in the near future?
We are participating in more than 60 fairs and exhibitions.
22. Apart from strong coffee, what keeps you awake at night?
As I do not even drink coffee, this is gladly not my problem. I try to use my nights to relax from often-stressful days and I am quite good at switching off after work, so mostly I sleep well. Nevertheless, when working on a new and challenging project it could happen that I wake up at night, full of ideas. Experiencing this, I often get up for five minutes and make notes. Having done this I typically can calm down again and relapse into sleep quickly. 23. If you possessed a superpower, how would you use it to improve the global steel industry?
I would use it to drastically reduce emissions. I’ve spent too much time in China where I have had a hard time seeing the building next to my hotel, as the smog is so dense. Having the power to do so much for the environment and the future of our children would be marvellous. ᔡ October 2014
40
HISTORY
Victorian iron-ware is fashionable In recent years, antique ironware has become highly collectable by those wishing to adorn their houses and gardens with what was fashionable when they were first built. By Harry Hodson* CAST iron railings, park benches, lamp standards, railway memorabilia, there is a very good market in the reclamation business for these artefacts. There is also limited supply, which drives up prices, and this has led a few enterprising people to manufacture reproductions for which there is now a steady market. Due to modern casting techniques, the reproductions are of high quality and are made from iron or aluminium, which are quite fit for purpose. As the industrial revolution gathered pace, the Georgians were the first to realise that there was a demand for ornamental cast-ware. People became more affluent, and the new ‘middle classes’ wished to enhance their houses with furniture and porcelain from Thomas Chippendale and Josiah Wedgwood, and furnish their gardens and exteriors with ironware. Victoriana The end of the Georgian age in the 1820s coincided with the age of the railway, which increased demand for both cast and wrought iron. Wrought iron was used extensively in the construction of railway bridges and pressure vessels, such as boilers for locomotives. The new breed of railway builders had no confidence in cast iron for railway bridges; its greatest exponent, Thomas Telford, died in 1834 and one wonders how he would have addressed the problem. Cast iron was, however, used by a few confident engineers to build some railway bridges. Two fine examples, by the Coalbrookdale Company, are still in use today in the Severn Valley in Shropshire, UK. The railway companies became the new ‘ironmasters’ by building their own foundries and forges to build locomotives and maintain thousands of miles of track and stations. Although many of these stations were demolished during the Beeching era in the 1960s many still remain. This is where the best examples of Victorian cast iron architecture can still be seen in use after 150 years. Railway enthusiasts tend to collect whatever ironware escaped the attentions of the scrap dealer, which were mostly informative and trespass nameplates at stations and alongside the track. Some collectors focus their attention on “street furniture” which falls into the category of
Above: Victorian cast nameplates Left: One of a pair of lamp standards restored in situ by the author Centre: Early 20th century stove-enamel signs often seen at restored railway stations
cast iron railings, lamp standards, park benches, old horse troughs, water pumps, and even old red telephone boxes, which only appeared on our streets as late as 1926. Genuine Georgian cast-ware is scarce, so would-be collectors should focus their attention on Victoriana.
Ardwick Ironworks’ cast iron nameplate
Steel From the 1860s steel became available to the industrialised nations on a massive scale; its greatest consumers were shipbuilding, railways and civil engineering. In due course other consumer markets joined the fray and by the beginning of the 20th century it was used extensively by the automotive and domestic appliance industries. Car manufacturing and domestic goods required sheet steel and this new spin-off became known as the ‘tinplate’ industry. The tinplate industry included corrugated steel which soon replaced wood and slate in the building industry. Sheet metal signs appeared above shops and buildings advertising the latest products in food and household goods. They were stoveenamelled in bright colours and attractive designs and were on display until the 1950s when they were replaced by plastic. Original stove-enamelled metal signs now command high prices and are much sought after by collectors. ᔡ
* Email: harryhodson39@ntlworld.com
October 2014
www.steeltimesint.com
E10001-M1-Z50-V1-7600
“Others are experimenting. We are producing. In endless mode.” Giovanni Arvedi, inventor of the Arvedi ESP process, trains the next ESP operators in his plant that's operated successfully since start-up in 2009 – implemented with Siemens VAI. siemens-vai.com
Evolution of the ESP process 1992 – Start-up of ISP plant 2004 – ISP caster upgrade by Siemens VAI 2006 – Order for first ESP plant to Siemens VAI 2009 – Start-up of first ESP
After five successful years of operation at the patented ESP plant in Cremona, Italy, the Arvedi ESP technology rollout starts now with the next two installations in China. At these new plants the operators will undergo comprehensive training at the plant in Italy, and Arvedi experts will support a smooth ramp-up to high-quality production in the first year of operation.
Highlights since 2009: t Certified API X70 production t Attested 131.6 kWh/t energy consumption t Only five breakouts per year t 0.1% cobble rate t 98% yield from liquid steel to coil t Thin strip down to 0.8 mm at full width and productivity 2013 – Order for next two ESP plants from Chinese customer
Answers for industry.
just...
...convincing
THE Tapping Technology TMT â&#x20AC;&#x201C; Tapping Measuring Technology SÃ rl 3 2 %R[ / /X[HPERXUJ Â&#x2021; UXH GC$OVDFH / /X[HPERXUJ 3KRQH Â&#x2021; )D[ Â&#x2021; ( 0DLO FRQWDFW#WPW FRP 0DQDJLQJ 'LUHFWRUV 'LSO ,QJ $UQR 'LHQHQWKDO Â&#x2021; 'LSO ,QJ &ODXGH %RGHYLQJ Â&#x2021; Registration No. B 91897
www.tmt.com
TMT â&#x20AC;&#x201C; Tapping Measuring Technology GmbH 3 2 %R[ ' 6LHJHQ Â&#x2021; +DJHQHU 6WUDÂ&#x2030;H ' 6LHJHQ 3KRQH Â&#x2021; )D[ Â&#x2021; ( 0DLO FRQWDFW#WPW FRP 0DQDJLQJ 'LUHFWRUV 'LSO ,QJ $UQR 'LHQHQWKDO Â&#x2021; 'LSO ,QJ &ODXGH %RGHYLQJ Â&#x2021; Registration No. +5 %
A joint company of DANGO & DIENENTHAL and PAUL WURTH