Steel Times International October 2016

www.steeltimesint.com October 2016 - Vol.40 No.7

STEEL TIMES INTERNATIONAL – October 2016 – Vol.40 No.7

BRAZIL’S STEEL INDUSTRY. AN ENDLESS NIGHTMARE? STI Cover sept.indd 1

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CONTENTS - OCTOBER 2016

www.steeltimesint.com October 2016 - Vol.40 No.7

1

Picture courtesy of Leybold.

Mechanical vacuum system for secondary metallurgy steel degassing (ATEX certified 8-2-24 system configuration)

STEEL TIMES INTERNATIONAL – October 2016 – Vol.40 No.7

BRAZIL’S STEEL INDUSTRY. AN ENDLESS NIGHTMARE? STI Cover sept.indd 1

18/10/2016 12:46:18

EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Consultant Editor Dr. Tim Smith PhD, CEng, MIM

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Production Editor Annie Baker Advertisement Production Martin Lawrence SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116 Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117 Managing Director Steve Diprose stevediprose@quartzltd.com Tel: +44 (0) 1737 855164 Chief Executive Officer Paul Michael 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 £173.00 Other countries: £247.00 2 years subscription: UK £311.00 Other countries: £445.00 ) Single copy (inc postage): £39.00 Email: steel@quartzltd.com

2 Leader 4 News The latest steel industry news from around the world.

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8 USA update Chinese dumping saga continues.

24 Rolling Engineered surface textures.

11 India update Iron ore exports hurt Indian steel.

29 Process control Industrial wireless technology.

13 International business Nigeria bets on mining and steel.

36 Conference report Steel Success Strategies XXXI.

15 Ironmaking Ironmaking’s key - the quality of coke.

38 Perspectives Tenova is riding the wave.

20 Conference report An endless nightmare?

40 History Casting railings for St Paul’s Cathedral

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.

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Contents.indd 1

October 2016

18/10/2016 14:06:56

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LEADER

There’s bad news... and there’s good news

Matthew Moggridge Editor matthewmoggridge@quartzltd.com

There are plenty of jokes online that follow that tried and tested formula of delivering the bad news followed by the good. Like the joke about the man who visits his doctor for a physical and is told he has cancer and Alzheimer’s. “Well, at least I don’t have cancer,” the man replies. Or the man in hospital who is told that both his legs must be removed, the good news being that the man in the next bed wants to buy his trainers.

The global steel industry at present suffers from a good news/bad news ailment. There are snippets of good news floating around, but the doom and gloom of overcapacity and plant closures persist and things start to resemble a huge pair of scales or a see-saw dipping one way and then the other. Life, as they say, has its ups and downs. You must take the rough with the smooth or, to quote the late Lemmy Kilmister from Motörhead, “You win some, you lose some, it’s all the same to me.”

In Brazil, the steel industry is being described as an ‘endless nightmare’ with the Brazilian Steel Institute’s executive president telling delegates at ACO Brazil’s 27th annual conference that 74 facilities

Amazing Facts and Figures • The world’s top 30 steel companies are collectively in debt to the tune of $150 billion. China’s steel sector debt is estimated to be in the region of $500 billion. Source: EY.

• If you try to swat a solitary wasp, it could “call for back-up” (a pheromone is released which attracts nearby wasps) and you could end up being attacked by a swarm.

Source: BBC News.

October 2016

Leader.indd 1

• From 2000 to 2006, energy subsidies for Chinese steel producers grew by 1,365%. Total energy subsidies from 2000 to mid-2007 reached $27.1bn and in 2013, subsidies accounted for 47% of listed Chinese steel companies’ total profits. This ratio amplified to 80% in 2014. The conclusion to be drawn, therefore, is that China’s steelmakers have survived mainly due to generous governmental hand-outs.

• Japanese, Taiwanese, and Turkish rebar imports increased 160% between 2013 and 2015, and have remained significant in 2016.

Source: Wiley Rein LLB.

• In 2015 the Chinese economy grew by 6.9%, it’s slowest in 25 years, but thanks to steel and oil refining, things are looking up for China, with profits jumping 19.5% in August 2016 to 534.8 billion yuan ($80 million). Source: Reuters.

were temporarily or permanently idled in 2014 and 2015, including five blast furnaces, eight steel shops, 14 rolling mills, one coke oven battery and one sintering plant. An additional 23 closures were planned for H1 2016, writes Germano Mendes de Paula in this issue.

The good news for Brazil is that 2018 will mark the start of a sustainable recovery.

While delegates at Steel Success Strategies XXX1 in the USA were relieved to discover that the conference was not ‘all about China’, the saga of China’s steel dumping continues despite political and legal steps taken by US steelmakers to curb unwanted Chinese steel. And the good news? The AISI reports that US steel mill shipments in September were up 2.6%.

As Jimmy Cricket, the 1970s Irish comedian, used to say, “there’s more”.

In fact, the bad news for the British steel industry was Tata Steel’s decision to pull out of the UK. The good news? British Steel, which rose out of the ashes of Tata Steel UK’s long products division, recently announced massive investment and a return to profit for the year ending March 2017. What goes around, comes around.

British Steel’s integrated steel works in Scunthorpe, UK – facts and figures

• 4.5m tonnes – the annual capacity of Scunthorpe – is enough to build 615 Eiffel Towers or 80 Empire State Buildings.

• The sprawling Scunthorpe site is more than 2,200 acres and has more than 100 miles of its own rail network.

• The lengths of rail they make for Network Rail are up to 216metres long.

• The four blast furnaces on site are named after past queens, Mary, Bess, Anne and Victoria.

• The site uses 40 million gallons of water every week, taken from local rivers.

• The temperature in the blast furnaces can reach 2,200 degrees Celsius www.steeltimesint.com

19/10/2016 10:08:04

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4 NEWS IN BRIEF

NLMK and Kamaz ‘intensify’ co-operation Russian steelmaker NLMK Group and KAMAZ, Russia’s leading heavy-duty truck manufacturer, have held their first Co-ordinating Council in Naberezhnye Chelny.

The two companies discussed steel deliveries and the possibility of manufacturing new machinery for NLMK, using the Russian steelmaker’s premium Quard 450 steel, an abrasion-resistant premium steel for semi-trailers used in the transportation of coils, and tipper trucks with a reinforced frame.

MMK steel used on Nord Stream pipeline A ceremony was held in Chelyabinsk, Russia, to celebrate the shipment of the first batch of large-diameter pipes for the construction of the Nord Stream 2 gas pipeline.

The event, which was attended

by Boris Dubrovsky, governor of Chelyabinsk, marked the occasion of the first 3.3kt of pipes produced by the ChelPipe Group making their way to the construction site.

The pipes used steel produced by one of the world’s largest steel producers and leading Russian metals companies OJSC Magnitogorsk Iron and Steel Works (MMK).

TUBACEX announces Awaji Materia JV TUBACEX, a leading multi-national group with industrial facilities in Spain, Austria, the USA, Italy, China and India, has agreed to create a joint venture business with Awaji Materia – a Japanese manufacturer of stainless steel and carbon fittings – to manufacture special stainless steel components at its factory in Thailand.

TUBACEX’s joint venture with Awaji Materia enables the Spanish industrial giant to maintain its commitment to the Asian continent, which it believes is one of the fastest growing markets.

STI Industry 4.0 conference launched Future Steel Forum is a new conference focused entirely on digital manufacturing. The event is organised by Steel Times International and takes place in Warsaw, Poland, at the Sheraton Hotel 14 -15 June 2017.

October 2016

Industry news.indd 1

INDUSTRY NEWS

Global steel demand to increase 0.2%

The World Steel Association (worldsteel) forecasts that global steel demand will increase by 0.2% to 1.5 billion tonnes in 2016 following a contraction of 3% in 2015. In 2017, it is forecast that global steel demand will grow by 0.5% and will reach 1.51 billion tonnes.

Worldsteel’s short range outlook was made public at the 2016 World Steel Association conference, held in Dubai, where T V Narendran, chairman of the worldsteel Economics Committee told delegates that the steel industry environment remains challenging, with escalated uncertainties driven by geopolitical situations in various parts of the world.

“Recently, the UK referendum outcome [on membership of the European Union] has further raised uncertainty on the long-awaited recovery of investment in the EU,” said Mr Narendran.

A stronger steel demand recovery, claims worldsteel, is being held back by weakness in investment globally. However, a better than expected forecast for China – along with continued growth in emerging economies – will help the steel industry move back to a positive growth path for 2016 and beyond.

“We expect this slight growth momentum to remain weak for the time being due to the continued rebalancing in China and weak recovery in the developed economies,” Narendran commented.

High corporate debt and the real estate market situation in China present downside risks to worldsteel’s outlook, according to Narendran. Likewise uncertainties surrounding Brexit and further escalation of instability in some regions present a risk, although steel demand in emerging and developing economies, excluding China, is expected to accelerate to show 4% growth in 2017 and this is at-

tributed to the resilient emerging Asian countries and the stabilisation of commodity prices.

According to worldsteel, investment is subdued in many regions, not only China, which is undergoing a rebalancing away from investment-driven growth. In the developed world private investment remains weak, despite persistently low interest rates and this is because of a pessimistic outlook on future demand.

Governments, claims worldsteel, have only limited monetary and fiscal policy tools to help confidence and boost investment. In many emerging and developing economies, weak commodity prices, geopolitical tensions and highly leveraged corporate sectors add up to undermine momentum for the needed investment.

China Where China is concerned, it is estimated that GDP growth will be at its lowest level since 1990, but with a higher contribution from services and consumption. A number of mini stimulus measures were undertaken by the Chinese government to boost infrastructure spending, the real estate market and automotive sales. As a result, steel demand decline this year will be less severe than worldsteel’s April 2016 forecast. It is argued that the rebound in the real estate market is limited and not sustainable as inventory levels remain high and apartments are increasingly unaffordable to most residents. Steel demand, therefore, will continue to be ‘dragged down’ by the construction sector and there is only limited room for recovery.

Steel demand in China is expected to decline by 1% in 2016 and by 2% in 2017.

There are signs of stabilisation in some low-performing emerging economies. In Brazil, following two consecutive years of double-digit

contraction, steel demand will kick start a moderate recovery in 2017.

Russia’s decline was stabilised in part by a minor rebound in oil prices, according to worldsteel ,and thereby prevent further deterioration of the Mexican, South American and GCC economies.

Lower and unstable oil prices, however, and geopolitical instability will continue to undermine the outlook for the MENA region.

Solid growth is expected for Indian steel demand over the 2016/17 period backed by ‘consumption-boosting’ reforms and infrastructure investment. However, its sustainability is under question as key levels of investment are being provided by the government while private investment remans weak.

Stable macroeconomic policies in the ASEAN countries will continue to drive strong steel demand growth, worldsteel claims.

Steel demand in emerging and developing economies is expected to expand 2% this year and 4% in 2017.

In Europe, resilient consumption and a mild recovery in construction has kept the EU’s steel demand recovery on track, despite Brexit uncertainties. UK steel demand for this year and next is expected to reduce because of the referendum result, but the longer term effects of Brexit are difficult to predict at present. Other challenges facing the EU are the refugee crisis, although the initial impact on steel demand appears to be minor.

The US economy continues to show strength, according to worldsteel, but steel demand in the USA is struggling to grow because of a strong dollar and the collapse in shale-related investments. Similarly, in Japan, steel demand growth is subdued due to structural issues and is negatively affected by the appreciation of the yen following the UK’s EU referendum. www.steeltimesint.com

18/10/2016 08:43:03

INDUSTRY NEWS

NEWS IN BRIEF

Liberty’s green steel vision Liberty Metal Recycling (LMR), has been launched by the Liberty House Group and is claimed to represent ‘a major step towards the achievement of its green steel vision to create a competitive and sustainable steel sector in the UK’.

LMR intends to develop a network of advanced collection and processing facilities for ferrous and non-ferrous metals across the UK, USA and continental Europe. The new company will be led by two experienced and respected figures in the global metal recycling industry.

Tom Bird (pictured) previously of SIMS and Van Dalen, will head up the UK and US parts of the new enterprise while Matthijs de Jong, formerly with Euro Scrap, TSR Recycling and the Alba Group, will lead the mainland Europe operation.

According to Liberty, it is intended that the new international business will be free-standing and profitable in its own right. It will supply the Group’s fast-growing integrated steel business in the

UK, which will be based increasingly on domestic scrap, melted in electric arc furnaces and powered by renewable energy.

LMR plans to set up a processing centre in Newport, South Wales, where the Group already operates a 1Mt/yr hot strip mill and where it aims to recommence liquid steel production in the near future from recycled scrap. The Group’s aim in the UK is to locate recycling centres in regions of high scrap metal generation and close to Liberty’s steel melting and rolling facilities.

These regions are likely to include the South East, Midlands, North East and Scotland.

Liberty hopes that within five years the business will be recycling 5Mt/yr of metal in the UK alone.

Simultaneously, the company will develop its recycling business in the USA and in continental Europe where it has already opened a scrap collection and trans-shipment operation in Gdansk, Poland.

Tom Bird will be chief executive officer of Liberty’s UK and US recycling businesses. Mr Bird has more

than 30 years’ experience in the industry. Matthijs de Jong has held key positions in the metal recycling industry across the world over the past 20 years.

Liberty House executive chairman, Sanjeev Gupta, described the launch of LMR as: ‘a very significant step on the journey towards the delivery of our green steel vision.”

He added that the projected growth in the supply of scrap in the UK and in other developed economies over the coming years will provide the basis for a strong, competitive and sustainable steel industry for the future. “The fact that we have recruited two of the most prominent and accomplished individuals in the global metal recycling industry shows how serious we are in delivering on this vision, he said.”

SMS-group breaks slab casting record From left to right: Stefan Logsch, project director, SMS group GmbH; Dr. Ralf Bruckhaus, head of steel plant, AG Dillinger Hüttenwerke; and Lothar Schaps, project manager E&A, SMS group GmbH. SMS-group and steelmaker Dillinger Hüttenwerke (Dillinger) are claiming to have set a milestone in thick slab casting technology.

The commissioning of a new two-strand vertical slab caster has helped Dillinger set a new world record by being able to produce 500mm thick slabs for premium metallurgical grades.

Dillinger invested EUR400 million on its Continuous Caster 6 (CC6) – one of the biggest ever single investments in the history of the plant – and is now on track to expand its range of high-grade www.steeltimesint.com

Industry news.indd 2

products because, during casting, the slab will not be subjected to any bending or straightening.

CC6 uses SMS-group’s new pinch-roll technology, otherwise known as X-Pact Strand Centering Control, which allows Dillinger to continuously cast steel grades. Up until now they could only be produced via the less efficient ingot casting route.

Dillinger’s entirely vertical continuous casting plant for thick slabs was jointly developed by SMS-group and the steelmaker.

“The jointly developed design

concept includes extremely exacting solutions to cope with the very heavy loads and to transport the cast strand. A big challenge had been to conceive a design that would securely hold and transport a strand weight of up to 500 tons while preventing the slabs from moving out of the vertical due to the enormous roller forces acting on the slabs,” said SMS-group.

Dillinger’s head of steel plant, Dr. Ralf Bruckhaus, commented: “This continuous caster is an outstanding plant providing great potential for current and future developments in terms of both quality and productivity. It’s fun to produce on the new CC6 casting machine.”

SMS-group and Dillinger have been partners for many years. In 1961 they worked together on the supply of the latter’s first continuous slab caster. In 1998 CC5 was built and then revamped in 2010 when it became the world record holder producing slabs up to 450mm thick. Now CC6 has smashed that record with its 500mm thick slabs.

5

NSSMC sets up Vietnam subsidiary Nippon Steel & Sumitomo Metal Corporation (NSSMC) has announced that it will be setting up Nippon Steel & Sumitomo Metal Vietnam Company (NSSMV) in response to Vietnam’s growing economy and the expected growth of the country’s infrastructure and energy sectors.

At the present time, Vietnam is represented by Nippon Steel & Sumitomo Metal (Thailand), which is headquartered in Bangkok.

NLMK sets up shop in Peru Russian steelmaker NLMK Group has opened a new sales office in Lima, Peru, to bolster the company’s position in the promising Peruvian steel market and provide convenient supply routes to the entire South American Pacific coast.

The new sales office will focus on supplying plates for the production of equipment and abrasion resistant components for the mining sector.

ArcelorMittal’s rail contract continues The world’s largest steelmaker, ArcelorMittal, will continue with its rail supply contract to Deutsche Bahn (DB), the German train operator, for another year.

The two companies are also cooperating on the development of new rail products.

DB will receive rails from ArcelorMittal´s production facilities in Spain and Poland, totalling an annual amount of up to 147kt or 2,500km in length.

Primetals’ Nucor contract Primetals Technologies is to supply Nucor Steel Berkeley with a SIAS surface inspection system for its hot strip mill in Huger, South Carolina, USA. The surface quality of the hot strip will be checked after the finishing mill on the top side and before the down coiler on the bottom side. Improved quality control, claims Primetals Technologies, will optimise production costs and maintenance activities.

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

October 2016

18/10/2016 08:43:06

6 INDUSTRY NEWS

ArcelorMittal’s auto steel A new steel for the automotive industry is being produced by ArcelorMittal Ostrava in the Czech Republic.

Flat bars are being produced on the plant’s medium section rolling mill and will be used to make leaf springs, which are used in a vehicle’s suspension system.

Leaf springs are commonly used as parts of service vehicles, such as vans, lorries, pick-ups and trucks.

They are also found on SUVs, railway carriages and agricultural vehicles.

ArcelorMittal Ostrava, a 2Mt/ yr operation, is the ArcelorMittal group’s first European plant to produce flat bar steel for leaf springs. Up until now, the company has relied upon plants in Brazil and Canada.

Leaf springs are highly stressed machinery parts and, as such, need steel that offers outstanding elastic formability, hardenability and resilence, all qualities ArcelorMittal attributes to its high quality, low-alloy chromium vanadium steel, which is now being produced at the Ostrava plant.

An investment of EUR7.7 million was necessary to modify the Ostrava rolling mill and now the plant is on a special list of suppliers capable of producing bars for the production of leaf springs, a pre-requisite for any new product to be used in the automotive industry.

NLMK’s new slag system NLMK has completed hot-testing of its new crushing and screening unit for the processing of steelmaking slag at its Lipetsk plant.

The project will double the amount of scrap, or ‘metal inclusions’ extracted from waste and returned to the production process.

The new unit will process 2.4Mt/yr of slag, replacing an obsolete unit, which processed 1.7Mt/yr.

Metal extraction efficiency at the new unit will be as high as 95%, which will minimise iron ore consumption and scrap in pig iron and steelmaking operations through replacement with recoverables.

October 2016

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Technology transformation needed A report by CDP, formerly known as the Carbon Disclosure Project, has produced a new report in which it claims that the steel industry needs to reduce emissions by over 70% by 2050 to meet the Paris Agreement objectives.

Highlighting information available from the World Steel Association, the CDP report states that the global steel industry is responsible for 7% of emissions, but, according to the report, no progress has been made to reduce emissions in a decade.

According to CDP, “progress on research and development (R&D) in emerging decarbonisation technologies is limited and at early stages. With low industry profitability, R&D expenses have been cut by 14% in US$ terms in recent years and there are no commercially available technologies today which can achieve these targets.”

CDP claims that the threat to the industry is urgent as over 70% of world steel production will be

subject to a carbon price by the end of 2017.

The CDP report will no doubt ruffle the feathers of those within the steel industry who are investing heavily in developing emissions reduction technologies,

as it claims there has been no industry-wide progress in improving emissions and energy efficiency levels in a decade.

The new report claims that over 40% of the 14 global steel companies analysed have not published

any emissions reduction targets beyond 2016.

“The steel industry will have to play a huge part in achieving the 2-degree scenario laid out in the Paris Agreement,” said Drew Fryer, senior analyst, investor research, at CDP. “However, there has been no progress in reducing its emissions over the past decade,” Fryer added, stressing that steelmakers need to prioritise funding of a technology transformation to reduce emissions and ensure targets are met.

Progress, Fryer said, has been ‘far too slow’ to realise the potential of carbon capture and storage (CCS) with no pilot projects underway in the steel industry.

The report has benchmarked leading steel companies on their management of climate issues and found that POSCO from South Korea and Hyundai Steel are among the best performing, while Tata Steel and US Steel rank lowest among those who disclosed.

The benefits of ‘connectivity’ Nearly all companies who have embarked upon ‘a connected product journey’ report both financial and customer experience benefits, according to a recent market report published in the USA. The Internet of Things Journey surveyed 600 product companies, whose primary headquarters were based in the USA, and other discrete manufacturers in various stages of deployment and found that 87% have seen revenue improvements as a direct result of connecting a product, and over 90% saw improvements in business efficiencies and product uptime, it is claimed.

The biggest improvement, claims the report, was in customer insights. Only 25% of all companies surveyed expected customer and product insight improvements when they started their ‘connected product project’, but 95% of

these manufacturers reported valuable customer insights including customer behaviour, needs and modes of interaction as real and tangible benefits of product connectivity.

Furthermore, 93% reported customer support as a business improvement since connecting products, and 88% also cited improved customer relationships.

For 44% of companies surveyed, who were engaged in both early and active ‘Internet of Things’ (IoT) deployment, data management was the biggest challenge they faced in terms of using IoT data to make better business decisions.

Of the organisations with existing IoT deployments, the report claims that 43% cited integration with existing business systems as one of their biggest challenges.

Jessica Groopman of Harbor Research commented, “With

proper strategy design and data management in place, the IoT can offer a range of benefits to businesses.” She added that customer and product data are worth their weight in gold, but only if actionable. “In order to achieve the customer and business value of the IoT, data must be properly managed and integrated with critical support tools like CRM systems,” she said.

In other key findings, the report found that revenue was not the key project driver, but was a strong benefit; that business efficiencies were the key project driver; that companies underestimated the complexity of security; and that ‘interoperability’ is a design and early deployment headache.

The research was undertaken by Harbor Research and was sponsored by LogMeln, both based in the USA. www.steeltimesint.com

18/10/2016 08:43:07

INDUSTRY NEWS

Sandvik Materials Technology has inaugurated a new, state-ofthe-art automatic ultrasonic pipe testing facility for the oil and gas industry.

Per Olsson Artberger, Sandvik’s global product manager OCTG, said the new facility represents a key milestone in the company's ‘enhanced strategic focus on demanding applications’ within the oil and gas industry.

“The new ultrasonic testing facility allows us to increase our capabilities and capacity significantly. Despite the current downturn in the oil and gas market, we see continued good business opportunities for Sandvik material grades, especially in the Middle East and Caspian Sea regions.

What the new, automated facility provides us with is a much speedier throughput and greatly enhanced testing capabilities which meet the toughest require-

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Sandvik opens OCTG testing facility ments for defect detection,” he said.

Sandvik decided to invest in the new facility because of the importance of the oil and gas sector to the company. Ultrasonic testing, said the company, was the limiting factor in achieving maximum output with its existing facility so it

invested not only in capacity, but also state-of-the-art technology to meet the industry's toughest requirements for defect detection.

The new facility allows Sandvik to meet and exceed all customer requirements, putting the company in a world-leading position as an OCTG manufacturer.

On track after 100 days After 100 days of trading, newly formed steel manufacturer British Steel claims that it has hit key targets and is on track to return to profit for the financial year ending March 2017.

At a packed press conference held at its integrated steel works in Scunthorpe, United Kingdom, senior executives from the business told journalists that things were looking up and that the company was active across a number of markets including automotive, construction, energy and power, lifting and excavation, defence and security, rail infrastructure and consumer goods.

Launched on 1 June this year, British Steel is claiming to be ‘well on course to complete its return to sustainable growth, after successfully implementing the first stages of its turnaround plan.’

The company claims that £50 million of capital investments have been earmarked for this financial year and are focused on

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Industry news.indd 4

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several major projects designed to improve competitiveness and broaden the company’s customer offering. These include a £7 million investment in the replacement of gasholders; a £10 million cash injection into efficiency improvements at the company’s Appleby coke ovens and by-products facilities; a £4.2 million upgrade of the Scunthorpe Basic Oxygen Steelmaking plant; and a £1 million investment at Hayange in France involving the plant’s new main drive armature.

British Steel has invested heavily in its workforce with 48 new apprenticeships and 80 former agency workers being given full-time contracts.

Some 17 graduates and 16 undergraduates have joined the company as full-time employees and on placement schemes respectively; and seven ‘degree apprentices’ have gained university qualifications alongside practical experience.

19-22 Korea Metal Week, Seoul, South Korea.

Korea Metal Week embraces a number of events under one roof all based on metal production technologies. The event is billed as the biggest metal industry and machinery fair in Korea.

For further information, log on to www.korea-metal.com

23-25 BIR World Recycling Convention, Amsterdam.

All the big decision makers in the world of recycling attend the BIR Recycling Convention, according to the BIR. For further information, log on to www.bir.org

November 2016

Safety drones at Emirates Emirates Steel, the only integrated steel plant in the United Arab Emirates (UAE), has introduced a ‘groundbreaking’ safety and inspection system utilising unmanned aerial vehicles (UAVs) – otherwise known as drones.

According to Emirates Steel, this project is ‘a major step towards achieving increased plant availability, and maintaining efficient production by implementing a regular maintenance programme based on reliability and risk inspection’.

The implementation of drones is part of the steelmaker’s maintenance strategy and enables the company to track maintenance risks, analyse them and plan a safer and customised repair programme avoiding possible shutdowns.

Phase one of the project includes the use of drones to inspect live flares at two direct-reduction (DRI) plants.

08-11 Metal Expo 2016, Moscow.

Last year’s event attracted 28,000 visitors and 570 exhibitors from around the world. This year, the organiser – Metal Expo – claims the event will be even bigger.

For further information, log on to www.metal-expo.ru

14-16 ASEAN Iron & Steel Sustainablity Forum, Bangkok, Thailand.

A major conference examining all aspects of the steel industry in the ASEAN region and its end user markets.

For further information, log on to www.seaisi.org

24-25 Metal Additive Manufacturing Conference, Linz, Austria.

Chaired by Franz Rotter, member of the management board of voestalpine AG, this event will cover a range of topics including powder for MAM; systems and engineering for MAM and additive design and engineering.

For further information, log on to www.mamc.org October 2016

18/10/2016 08:43:14

8

USA UPDATE Speak to anyone in the US steel industry, and the conversation will turn to China, which has become the bête noire that hurts the US steel industry most. US steel companies see China as the architect of the problems faced by them because of its steel dumping practices.

By Manik Mehta*

Chinese dumping saga continues MAJOR US steel producers have initiated a number of political and legal steps to curb the unwanted Chinese steel that is finding its way into the US market through the maze of unfathomable manipulations and subsidies that characterise China’s export strategy. Indeed, some of the top US steel executives and officials believe that many Chinese steel companies owe their existence to steel dumping in the United States, much to the detriment of US companies.

But mounting pressure is making China offer some sops: comments from Chinese politicians suggest that that country may be willing to slash production by about 100Mt to 150Mt in the next half decade, though many in the US steel industry are skeptical about this promise which, they say, “does not anyway mean much”.

“The steel industry is not overjoyed by such concessions. It will take a wait and watch attitude until it has irrefutable evidence of this intention,” says one New York-based steel analyst on condition of remaining anonymous. China has, after all, been promising such production cuts for two years, but has only gone on to set a new production record. Even if China did cut its production by this quantity, that would still be a “small part” of the 400Mt + of excessive production it dumps.

Political powder keg Cutting such a vast amount of production

in China is a politically sensitive issue; let’s not forget, China is still a communist country that has what is known as a “commando economy”. Cutting steel production is a political powder keg for China’s present authoritarian ruler President Xi Jinping for whom social unrest, arising from job losses, can seriously challenge his power base.

Steel dumping is just one major thorny issue. US steel companies also complain of cyber attacks by Chinese hackers who allegedly steal their secrets. Neither the Republican nor the Democrat candidate can ignore the problems of the steel industry in a presidential election year in the US. Of the two rival candidates – Donald Trump (Republican) and Hillary Clinton (Democrat) – the former has reportedly been telling the industry and workers that he would slap protectionist tariffs of up to 45% on Chinese imports; such statements anger the proponents of free trade, even among Republicans who believe that Trump’s trade war could, in fact, lead to wiping away US jobs and usher in a dangerous global downturn. The US is already mired in a trade battle, if not a fullfledged war, aimed to curb China’s steel dumping, a direct result of that country’s production, which has surged from roughly 130Mt in 2000 to slightly over 820Mt in 2014. Much of China’s overcapacity lands in the US market, hurting the US steel

industry and, in effect, the economy.

US steel companies say that China’s dumping practices have also hurt steel companies in other countries, including in Europe, with thousands of steel workers staging protests in Brussels and urging European parliamentarians to stop cheap imports from China.

In response, the European Parliament quickly passed a resolution that would shatter China’s hopes of getting the coveted “Market Economy” status later this year, and deny Chinese products easy access to the European Union market. The US steel industry has been calling for similar US action against China.

Other problems Besides China, the US steel industry also faces other problems manifested in the challenging economic environment in the US, volatility in financial markets, sluggish growth in global trade, and low oil and commodities prices.

While the automobile and construction sectors generate demand, the steel industry suffers from inadequate investment, continued weakness in the manufacturing sector and steel imports, and not just from China, into the US. High levels of imports and lower drilling activities by energy companies have continued to put pressure on pricing and shipments.

* North America correspondent October 2016

USA.indd 1

www.steeltimesint.com

18/10/2016 08:44:22

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USA UPDATE

Steel demand from energy companies is still weak due to declining capital expenditure budgets. US Steel, the biggest supplier to energy companies in North America, as well as AK Steel and ArcelorMittal USA, have been affected by the slowdown.

China argues, in response, that protectionism has, in fact, made US-produced steel less competitive. China’s Commerce Ministry recently scoffed at US efforts to protect its steel industry, saying such attempts will not solve the sector’s fundamental problems, which stem from past protectionist measures. The ministry posted these comments on its website after the US International Trade Commission said it would continue probing imports of certain steel products – carbon and alloy steel – from 12 countries, including China and Korea.

The US slapped Chinese steelmakers with final import duties of 522% on cold-rolled flat steel after determining that their products were being sold in the US market below cost and with unfair subsidies. Chinese officials have been saying that 30 years of protectionism and subsidies have distorted the US steel market, resulting in a loss of competitiveness.

China not problem, says China In addition, China says that the majority of its steel exports to the US comprise moulded steel and flat steel products that the US does not produce and, therefore, have not resulted in real harm to its producers, a Chinese Commerce Ministry statement said, adding that in view of the difficult times and overcapacity, countries needed to co-operate with each other to address the problem rather than imposing protectionist measures.

Apparently alarmed by this possibility, China’s vice finance minister Zhu Guangyao noted that trade disputes between the two sides should be addressed in accordance with World Trade Organisation principles, adding that China opposed “abusive trade remedy measures”.

US Steel filed in late April a case under the US’s Section 337 rule, which allows trade sanctions for intellectual property theft. The company alleged that some four dozen Chinese companies and their US subsidiaries had both acted as a cartel and benefited from cyber theft.

The US International Trade Commission (ITC) allowed the case to proceed, triggering a legal battle that experts say will probably take more than a year for an administrative judge to decide.

Under the law, US presidents have 60 days to block ITC decisions on Section 337 cases, although according to the ITC “such disapprovals are rare”.

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

What if Trump wins?

Should he win November’s election, a decision in favour of US Steel could enable Trump to quickly deliver on his campaign promises to crack down on China and its trade abuses. “If China wants to trade with America, they must agree to stop stealing and to play by the rules,” his campaign website proclaimed.

On the other hand, if Democrats won the election, it would force Hillary Clinton to have an early showdown with China over the politically sensitive steel industry.

But some US free-trade experts, alarmed by the prospect of a fully-fledged ban on Chinese steel imports becoming a reality, warn that the ban would set a bad precedent for protectionism under the next US Presidency. �

www.steeltimesint.com

USA.indd 2

18/10/2016 08:44:23

11

INDIA UPDATE

Iron ore exports hurt Indian steel The Indian government’s move to reduce export duty will run domestic steel mills dry of raw materials.

As Dilip Kumar Jha* reports, the industry believes imports of finished product would go up in future.

SUSPENSION of iron ore mining, and part restoration thereafter, have pushed India’s steel industry in to the doldrums. To make iron ore adequately available for domestic steel mills, the government initially levied 30% export duty on both lumps and fines.

But, export duty was later rationalised on fines to 10% leaving the same unchanged for lumps. Now, India’s steel ministry has indicated that iron ore would be exempted from export duty. This means, Indian miners would be encouraged to supply iron ore to overseas steel mills, deserting Indian primary steel producers from raw material supply.

“We have protested the government’s proposed move which would contradict the government’s own mineral preservation policy. Apart from that, India would end up importing more finished products – steel – and that would hurt domestic steel mills that have expanded capacity adequately in tune with the government’s vision to achieve 300Mt by 2025,” said Dr Sanak Mishra, secretary general, Indian Steel Association.

Supply neck-to-neck Iron ore demand and supply is fairly balanced in India presently. Some steel mills reduced their operating capacity to the alarmingly low level of up to 35% due to the lack of raw material two years ago, which was later restored gradually on increasing availability of iron ore. Currently, the average capacity utilisation rate of

steel mills in India works out to 76-78%.

A further increase in capacity utilisation, however, would increase India’s iron ore requirement proportionately. Thus, the intricate balance between supply and demand of iron ore in the domestic market will be distorted if export duty is reduced.

Apart from that, the standalone pellet makers have a total production capacity

of around 30Mt. Assuming average capacity utilisation of 45% with an iron ore requirement of 1.10 ton per ton of pellet production, the iron ore demand by this sector would be an additional 15Mt. Over the last five years, iron ore production declined by 33% to 139Mt in 2015-16 from 208.15Mt in 2010-11. Iron ore stocks remained almost unchanged in

India’s 2015-16 iron ore demand and supply scenario (million tons) Demand For production of

Iron ore requirement

Hot metal

57.13

91.4

Pig iron

10.22

16.3

Sponge iron

22.40

35.8

Total

143.5

Supply Iron ore production

139

Export

6.0

Import

11.3

Total

144.3

Source: Joint Plant Committee

Table 1 Iron ore production and stocks (million tons) Financial year

Closing stocks

Production

Exports

Import

Price ($/ton)#

2010-11

120.63

208.15

97.66

0.63

151.6

2011-12

125.65

167.29

61.74

0.97

173.6

2012-13

119.87

135.85

18.66

3.05

132.9

2013-14

124.22

152.18

14.41

0.37

110

2014-15

128.66

128.91

6.12

15.07

89

2015-16*

129.00

139.00

5.32

11.26

45

Source : Joint Plant Committee, Steel Mint, Platts, * Provisional, # Price as of March 31

Table 2

* India correspondent www.steeltimesint.com

INDIA.indd 1

October 2016

19/10/2016 09:32:09

12

INDIA UPDATE

Production status Financial year

Iron ore

Output

2010-11

208.15

68.62

2011-12

167.29

(-)20

75.70

10

2012-13

135.85

(-)19

77.62

3

2013-14

152.18

12

81.69

5

2014-15

128.91

(-)15

88.98

9

2015-16*

139.00

8

89.78

CAGR

Steel

% Growth

(-) 6.51%

Output

% Growth

1 4.58%

Source : Joint Plant Committee, * Provisional

Table 3

spite of sharp swings in production and exports due to inadequate logistics. Nonavailability of iron ore forced many mini and medium-sized mills to shut down. Iron ore production, however, is yet to achieve the pre-2010 levels to accommodate exports.

The current level of exports with 30% duty will maintain domestic demand and supply.

“There will be a significant shortage of iron ore if steel mills decide to ramp up their capacity utilisation from the current level of 76-78%. Hence, the government needs to encourage exports of finished products for better realisation rather than raw material for a penny,” said H Shivram Krishnan, director (commercial), Essar Steel India.

Captive stocks – not for export Of the 129Mt of iron ore inventory that lies with various ports and iron ore miners in

India, captive users like the governmentowned Steel Authority of India Ltd (SAIL) and Tata Steel contribute 32% (41Mt) and 2% (2.71Mt) respectively. The quantity held by captive users is, therefore, not available for export.

This means, merchant miners hold 66% (85.29Mt) and exports, if any, could come from this stock. Since merchant miners in mineral rich states like Goa face quantity restrictions on ramping up mineral excavation, a sudden increase in iron ore production looks impossible.

A subdued price trend in the international market has made mining unviable for local miners, especially in Goa. The Supreme Court has allowed miners to mine 20Mt of iron ore per annum. In Goa, total iron ore output has been capped at 20Mt. For the financial year 2015-16, Vedanta and others have produced just 5Mt (up to March

2016). Smaller miners have been excluded due to the low price of iron ore, claiming that mining at this price is simply not viable Data compiled by the Joint Plant Committee (JPC) of India’s Ministry of Steel showed a sharp decline in iron ore output over the last five to six years. From the 2010-11 level of 208.15Mt, iron ore production declined by a compounded annual rate (CAGR) of 6.51%, to 139Mt in 2015-16. By contrast, however, steel production steadily rose by CAGR 4.58% to 89.78Mt in 2015-16 from 68.62Mt in 2010-11.

This simply indicates that iron ore output lags far behind the growth of steel output.

Iron ore production, therefore, has to attain double digit growth in the coming years to match upcoming domestic steel demand.

The Indian government has drawn a roadmap in its latest steel policy to achieve output of 300Mt by 2025. The industry needs additional capacity of 180Mt in eight to 10 years for which an additional 290Mt of iron ore would be required.

Conclusion Any exports of iron ore at this stage would put more pressure on increasing production of the commodity to match domestic demand. Steel mills believe that the government of India would encourage finished steel imports by promoting exports of iron ore which will prove an impediment to the growth of Indian steel industry. �

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www.steeltimesint.com

19/10/2016 09:32:10

INTERNATIONAL BUSINESS

13

Nigeria bets on mining and steel Africa’s second-largest oil producer is looking to diversify its economic mix, and the country is betting that the mining and steel industries will help achieve just that. By Lynn Cielec* LAST year, mining in Nigeria contributed just 0.3% to the country’s gross domestic product, but within a decade, that number will rise to 7%. At least that’s what Solid Minerals Development Minister Kayode Fayemi believes, and what the Nigerian government hopes will happen if the West African country can convince investors to contribute $7 billion to its mining and steel industries, Bloomberg reports. Currently, crude oil accounts for roughly 70% of the country’s revenue and 13% of its GDP. By investing in its gold and iron ore extraction industries and meeting annual demand for steel, Nigeria’s government leaders expect the country’s economy to prosper.

Distributing the investments According to Fayemi, about $5 billion of the sought-after investments will go directly to the mining sector. “In two to five years, we want to have started production of iron ore, lead, zinc, bitumen, nickel, coal, and gold at a serious scale,” the minister told Bloomberg. Because the country hasn’t yet tapped into the majority of its mining assets, the minuscule 0.3% the sector contributes to Nigeria’s GDP represents merely a fraction of its true potential, AllAfrica reports.

The remaining $2 billion will be used to restore the Ajaokuta steel complex, which fell dormant early in its construction because the government was failing to pay its builders on time. In 2004 Global Steel Holdings of India acquired the plant, but after four years, it also had yet to produce any steel. 2008 marked the beginning of an eight-year legal battle over Ajaokuta, and it was finally decided this year that the Nigerian government would take over the facility.

Currently, Ajaokuta has the capacity to

produce 1.3Mt of steel per year, but the ministry wants that number to increase fourfold. To expedite the construction and get operations started as soon as possible, the government is currently in negotiations with partners like Technopromexport of Russia, and China’s Ansteel Group Corp.

Attracting investors The Ajaokuta steel works

But before the country can start seeing progress in its mining and steel industries, it first has to woo investors, which Exxaro Mining founder Richie Seun Johnson says shouldn’t pose a problem. “The ministry is doing good work right in trying to actually

procure and attract investors into the sector,” he told CNBC Africa.

Fayemi has already presented a plan to President Muhammadu Buhari, and is developing legislation to help regulate the industry.

As it stands, the ministry is responsible for all regulatory proceedings, including monitoring, licensing, and inspection, and prospective investors are raising concerns about the “uncertain regulatory environment.” Instead, the minister is proposing the setting up of an autonomous agency, which he says will be able to better focus on the sector’s performance and efficiency.

The bill will also include incentives to attract foreign investment, which includes allowing full foreign ownership of mining projects. Multiverse Mining & Exploration Plc of Lagos and Australia’s Kogi Iron Ltd. are just two of the companies considering investments in Nigeria’s mining sector, and many more are sure to line up behind them.

Stay tuned for what should be a series of fascinating developments in the story in the coming months and years. �

* Industrial Business Unit Manager at Midwest Industrial Supply. www.steeltimesint.com

Business.indd 1

October 2016

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IRONMAKING

15

Ironmaking’s key – the quality of coke Commissioned in 2011, the largest blast furnace in the NLMK Group failed to meet expectations after a year of operations. International experts were called in to assist and helped NLMK to increase coke strength after reduction (CSR) to 60-64%, essential for the high gas, coal and oxygen injection rates aimed at, as well as increasing tuyere diameter and improving burden distribution. By S V Filatov* & I F Kurunov** quality coke. A radical increase in the coke CSR is needed which means more expensive coke to many companies when implementing high PCI, a technology which started in the 1980s (Fig 1). Such injection is accompanied by a significant decrease in the total consumption of fuel for making hot metal.

NSC

1981

Inland

540

Sumitoma

A reduction in coke production costs by using a cheaper coal blend results, even in the best case, in a loss of hot metal production, excessive coke consumption due to a deterioration in coke quality and overall additional financial costs. In the worst case, a serious disruption in blast furnace operation results in huge financial losses.

BHP

1-2 CB

Y= 0,0385x -5,8802x+681,15 R2=0,7807 2

520 500 480

1989

460 440 25

35

45

55

65

75

CSR,%

560 Fuel consumption, kg/1

THE key factor for greater efficiency of iron production at NLMK between 2013 and 2015 was improved coke quality. An increase in the coke strength after reaction (CSR) value from 45-50% to 60-64% enabled an increase in the output of the blast furnaces by 15-25%, by enabling an increase in injected fuel and a lowering of coke consumption by 5-10%. There was also a decrease in silicon content of the iron.

Under the strongly competitive conditions of the present steel market, the efficiency of a company in converting liquid iron into steel is determined, first of all, by the cost per tonne of hot metal. However, this does not directly depend on the production cost of the coke used in the blast furnace.

Modern blast furnace injecting a high proportion of natural gas and/or pulverised coal (PCI), make it impossible to achieve efficient furnace operation if using low

70,0 65,0 60,0 55,0 50,0 45,0 40,0 35,0 22

25

CSR,%

Fig 1. Dependence of total fuel consumption on coke strength after reduction (CSR)

AK 5-6 CB

30 CSI,%

35

40

Fig 2. Relationship between coke strength after reduction (CSR) and weight loss on reaction (CRI)

*Managing director, **Chief expert ironmaking division, Novolipetsk Steel, Lipetsk, Russia. e-mail: kurunov_jf@nlmk.ru www.steeltimesint.com

IRONMAKING NLMK.indd 1

October 2016

19/10/2016 10:13:56

16

IRONMAKING

Expert Opinions Ioahim Buchwalder, international blast furnace production expert, Germany The specialists at NLMK Group for coke, sinter and iron production have put in a lot of effort to improve the quality of coke and sinter. This enables them to achieve a new level of blast furnace technology, which has led to better performance of all the furnaces involved.

Conference presentations by NLMK personnel have covered the influence of coke CSR on the performance of blast furnaces, including BF Rossiyanka, made at the 7th European Conference on Iron Metallurgy and METEC in Düsseldorf in June 2015. These were heard by my foreign colleagues with genuine interest.

Mr Luengen - manager of the Metallurgy department of the Association of German Metallurgists offered public congratulations to NLMK’s iron makers.

He noted that he was surprised by the significant results obtained by the team of NLMK’s process specialists.

Maarten Geerdes, international ironmaking expert, the Netherlands: I would like to note the high professionalism of blast furnace specialists in NLMK Lipetsk. The results achieved at the blast furnace Rossiyanka are at the global class level. It is not only the experience of technical personnel, but also

Taking this into account, the core of the programme at NLMK to achieve a saving in iron and steel production costs was to achieve an improvement in coke quality. This was targeted at increasing the CSR value – this being considered the most important characteristic of coke as it determines the efficiency of blast furnace operation. Such a conceptual approach towards the economic stability of the company results from the following factors: • Many years of the company’s own October 2016

IRONMAKING NLMK.indd 2

Ian Cameron, senior director, iron and steel, Hatch, Canada If BF Rossiyanka goes on low quality coke, then one can expect a rather fast wear of the lining in the lower hearth which would shorten the furnace campaign. Switching to cokes with CSR 63-65% is the only

Oscar Linghiardi, World Steel international iron-making expert, Argentina As at NLMK Lipetsk, Argentina’s blast furnaces run with high rates of natural gas and a high oxygen-enriched blast.

We arrived at the necessity to produce coke with high strength after reaction (65% and more) in the late 1990s. The performance of Lipetsk blast furnaces using coke of CSR close to this level is rather remarkable, especially furnace productivity. Also impressive is the attained coke rate of 390kg/t with a natural gas injection rate of 130nm3/t.

the quality of coke and raw materials (that achieves this). High CSR is a pre-condition for using high rates of natural gas. The use of such coke is the guarantee of the successful Rossiyanka operation with PCI after the completion of construction of the injection system.

working experience in operating blast furnaces on coke with relatively low CSR (45-55%).

• The experience of leading iron and steel companies, which justified the higher CSR level, which is necessary for efficient production (CSR≥ 65 %).

• The efficiency of blast furnace operation on coke with CSR 65-75%, produced from imported coals, enabling PCI rates of 200-280kg/t hot iron.

• The beginning of mastering PCI

way to prolong the operating life of the hearth. If today’s requirement to use cokes with CSR above 70% for the blast-furnace process is respected, it would not only reduce the coke rate but also extend the furnace’s campaign.

Yakov Gordon, Technical Director, Ironmaking, Hatch, Canada Regarding the performance of Rossiyanka, I recall my visit to the blast furnace plant of Akme Steel in the USA in 2001. I was amazed at the prime quality of the coke used. To my inquiry about the cost of that coke, Jack Garzella, manager of the coke plant, said: “What I care about is not the cost of coke, but its quality, which lowers the cost of iron, and it is my duty to make the coke which would minimise this cost.” All foreign metallurgical plants appreciate it, and it is good to know that so do the senior managers of the leading Russian steel producer - NLMK.

Karl Doering, member of the Board, NLMK Group For the past three years, the trends of blast-furnace parameters have been in line with the best global results. That is very positive. The specialists chose to follow a strategy based on the consumption of quality coke, which is also the global practice. Today it is affordable and absolutely necessary.

technology in NLMK and the commitment to fully use PCI design capabilities.

Implementation of measures to achieve a significant increase in coke CSR started at the close of 2012. The percentage weight loss (CRI), known as the reactivity, and strength after reaction (CSR) were measured in the four coke batteries of NLMK and in five batteries at Altai-Koks. This confirmed the relationship between the two properties (Fig 2). www.steeltimesint.com

19/10/2016 10:13:57

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THE Tapping Technology TMT – Tapping Measuring Technology Sàrl P.O.Box 2233 - L-1022 Luxembourg • 32, rue d`Alsace - L-1122 Luxembourg Phone: +352 261920-0 • Fax: +352 261920-2779 • E-Mail: contact@tmt.com Managing Directors: Dipl.-Ing. Arno Dienenthal • Dipl.-Ing. Claude Bodeving • Registration No. B 91897

www.tmt.com

TMT – Tapping Measuring Technology GmbH P.O.Box 101355 - D-57013 Siegen • Hagener Straße 103 - D-57072 Siegen Phone: +49 271 4014-0 • Fax: +49 271 4014-210 • E-Mail: contact@tmt.com Managing Directors: Dipl.-Ing. Arno Dienenthal • Dipl.-Ing. Claude Bodeving • Registration No. HR B 5741

A joint company of DANGO & DIENENTHAL and PAUL WURTH

IRONMAKING

65,2

Capacity, t/day

70 60

51,7 65,6

84,8

103,2

450,1

417,4

395,5

Oct-Dec 2012 Jan-March 2013

50 40 30 20

10 0 1-15 09 2015

Fig 3. An improvement of 3.3% in specific fuel consumption achieved with higher coke CSR at NLMK’s largest furnace, Rossiyanka

The improvement in coke CSR and in the quality of sinter charged to the blast furnace enabled process engineers to use available technical and process resources better, that is to significantly increase the PCI rate, intensify furnace reactions by increasing the oxygen content of the blast, increase top gas pressure, optimise the distribution of the charged burden at the top of the furnace, increase the smoothness of furnace operation and the stability of hot metal composition, which showed a fall in silicon level. The advantages of operating with coke of satisfactory quality is illustrated by the performance of the 13.1m hearth diameter at Rossiyanka - the largest blast furnace in NLMK (Figs 3-5).

Rossiyanka furnace performance The productivity and fuel consumption achieved one year after start-up of the Rossiyanka furnace (end of August 2011) had not reached the performance level of the best European blast furnaces, a result which neither satisfied the process engineers or the company’s management.

In addition to unsatisfactory coke quality, the situation could not improve as the process engineers had no experience in operating the blast furnace with copper plate cooling staves in the bosh and bottom part of the shaft and the new asymmetric profile of the bell-less-top (BLT) hoppers, which were totally different from the profile of those at BF 6, which are close to being symmetric. The new BLT hopper profile required detailed investigation of sinter and pellets segregation as they are discharged into the furnace from the October 2016

IRONMAKING NLMK.indd 3

14000 12000 10000 8000 6000 4000 2000 0

CSR, % 60,2

65,2

60

51,7

50 40 7961

500

70

10303

12391

30 20 10 0

Oct-Dec 2012 Jan-March 2013

1-15 09 2015

450 400 350 300 250 200 150 100

Heat loss, MJ/t

CSR, % 60,2

65,2

70

51,7

60 50 40

353

Oct-Dec 2012

277

Jan-March 2013

30 20

231

CSR, %

CSR, %

Heat loss, MJ/t

60,2

CSR, %

NG (coke equa.), kg/t

Capacity, t/today

Coke consumption, kg/t

750 650 550 450 350 250 150 50 -50

CSR, %

Coke & NG consumption (coke equ.) kg/t50

18

10 0

1-15 09 2015

Fig 4. Greater daily productivity at Rossiyanka blast furnace with increasing coke CSR values

Fig 5. Reduced heat losses into cooling water at Rossiyanka BF with increasing coke CSR

hopper. Without this, it is impossible to achieve the optimum burden distribution at the furnace top. These problems motivated a search for technological solutions to improve the situation, including nonstandard approaches. For this purpose, between 2012 and 2015, the company invited international experts in blast furnace production to come from a number of countries - Germany, the Netherlands, Argentina, Canada and Ukraine. Their participation in the analysis of the situation made it possible to eliminate some of the problems in the charging system and improve the charge distribution. In addition, these experts advised on the production of coke with greater CSR, approaching the required level and so providing a reduction of hot metal and steel production costs.

Significant improvement of the furnace operation came after an unorthodox solution was applied - the diameter of the tuyeres was increased, which, when operating with coke with CSR 63-65%

(which is close to that required for such furnaces - CSR>65%), helped intensify the furnace reactions, enabling an increase in natural gas injection, a decrease in heat losses into the water cooling the staves and reduced coke consumption.

The furnace achieved a daily output record of 13,300t/day (98.7t/m2 per day) and an average monthly production capacity of 12,500t/day (92.8t/m2 per day).

Total fuel consumption in February 2016 fell to 464kg/t. It is also worth noting that the specified indicators were achieved in spite of a relatively low iron content in the charge of 57.2-58% Fe and consequential high slag output ~380kg/t of hot metal.

The use of coke with a CSR approaching the desired level (CSR>65%) enabled an increase in the efficiency at all the company’s blast furnaces. As a result of all this work, total pig iron production in the company now reaches 38 to 39kt/day at an average specific fuel consumption of 480485 kg/t. � www.steeltimesint.com

19/10/2016 10:14:05

20

CONFERENCE REPORT

An endless nightmare?

Thousands of steelworkers laid off, 74 plants closed or temporarily idled in 2014/15 and further job cuts expected. For some, the situation can only be summarised as an endless nightmare. Germano Mendes da Paula* reports from Sao Paulo, Brazil ACO Brasil (the Brazilian Steel Institute) organised its 27th annual conference in early-June 2016 in São Paulo. Roughly 500 delegates attended the event, showing a 17% decrease in comparison with the previous year. Attendance aside, the event delivered high quality presentations, demonstrating the organiser’s efforts to preserve its reputation.

China One of the main themes of this year’s conference was China. Professor Usha Haley, from West Virginia University, analysed whether China could be considered a market economy. It has been well documented that the Chinese government wants to be granted Market Economy Status (MES) by the World Trade Organisation (WTO) as of 11 December 2016. However, the possibility of MES being granted to China has been strongly criticised by steel and aluminium producers around the world. In fact, this issue, together with trade defence measures and high idle capacity, are the main issues affecting the global steel industry today and are rarely discussed in isolation to one another. High excess capacity has precipitated aggressive export practices,

resulting in an increase of anti-dumping and countervailing duties being initiated, particularly against Chinese steel exports.

If China was granted MES, trade defence measures against Chinese exporters would be difficult to initiate, it is argued.

Professor Haley, who published the book Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy with George Haley, stressed that China uniquely synchronises the Communist Party, the government, the military, and the economy. In this context, the control of capital is very important, despite the fact that flows of capital are poorly understood.

According to Professor Haley, China heavily subsidised its manufacturing activities, such as the steel, glass, paper, autoparts and solar photovoltaic industries.

These are, in general, capital-intensive industries, in which labour is equivalent to just 2% to 7% of total costs. Furthermore, the market structure is characterised by fragmentation, with limited appropriation of economies of scale. Despite lacking technological advantage when compared to their Western peers, Chinese companies adopted aggressive commercial strategies (substantially lower prices). Chinese manufacturing firms were awarded various

subsidies related to financial support (free or low-cost loans), energy, inputs, land, and technology.

Having closely studied the Chinese steel industry, Professor Haley highlighted that, from 2000 to 2006, energy subsidies grew by 1,365%. She estimated that total energy subsidies from 2000 to mid-2007 reached $27.1bn. More recently, in 2013, subsidies accounted for 47% of the listed Chinese steel companies’ total profits. This ratio amplified to 80% in 2014. Therefore, it can be concluded that China’s steelmakers have survived mainly due to generous governmental support.

Professor Haley showed that the financial performance of the Chinese steel industry has been disappointing. The sector’s profit margin, for instance, halved to 0.3% in 2014, when compared to the previous year.

Looking only at members of the China Iron and Steel Association (CISA), after obtaining low profits along the period 2012-2014, it registered losses in 2015. Fig. 1 shows that the steel enterprises’ total debt skyrocketed from roughly RMB750bn in 2005 to some RMB3.2tn in 2015. Meanwhile, the total debt-to-asset ratio, also shown in Fig. 1, expanded from 57% to over 70%. Bearing this high debt proportion in mind, it is fair

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

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CONFERENCE REPORT

70% 3,000

50%

840

40%

820

21

65%

2,000

60%

1,000

55%

0 2005

2007 Total debt

2009

2011

2013

30%

800 2010

2015

2011

2012

2013

2014

2015

Total debt/asset

Fig 1: Chinese steel company’s total debt (RMB bn) and total debt-to-asset ration (%). Source: Professor Usha Haley

Fig 2: Jointly participation of top 10 regarding Chinese crude steel production 2010-2015 %. Source: Professor Usha

2010 Rio BHP FMG Roy Others 2016 Tinto Hill Fig 3: Breakdown of Australisan iron ore supply growth, 2015-2016 (Mt). Source: CRU

Haley

to assume that the Chinese government’s financial support to Chinese steelmakers will continue over the coming years.

Where market structure is concerned, Professor Haley indicated that the Chinese steel industry has become more fragmented. Output of China’s top 10 steelmakers combined diminished from 52% in 2010 to 35% in 2015 (Fig.2). It is worth remembering that the Chinese government’s top priority has been to increase output and improve the sector’s profitability. The actual trajectory, however, followed the opposite route from the governmental intention.

Professor Haley also investigated the excess capacity in the Chinese steel industry.

During the 2011-2015 period, 94.7Mt of capacity was eliminated in contrast to the original goal of 85.6Mt. However, only 17% of plant closures were permanent. In 2016, some 42Mt of capacity is expected to resume operations, bolstering the conclusion that plant closures have been more temporary than permanent. In this context, Professor Haley mentioned that, in January 2016, China agreed to cut 100150Mt of capacity over the next five years.

Nonetheless, in her opinion, the country needs to shut down an additional 200Mt (or about 25% of production) to restore the supply-demand balance.

China, MES and Latin America Dr. Rafael Rubio, general director of the Latin American Steel Association (Alacero) discussed market economy status for China, from the perspective of the region’s steelmakers. For these companies, the concept of MES for China goes beyond the text of Article 15 of China’s protocol in the World Trade Organisation (WTO). In fact, the legal discussion is just a part of the bigger picture: the role of the Chinese steel industry in the global steel market.

According to Dr. Rubio, there are two www.steeltimesint.com

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industrial models in the world steel market: one in which private companies compete in accordance with market conditions; and one in which companies operate under government guidance and receive all types of subsidies. The distinction is important because it doesn’t create a level-playing field in the market. Moreover, its consequences in terms of production, profitability, employment, market share, trade flows, and sustainability are critical.

On an economic level, Dr. Rubio highlighted that the rhetoric of the 13th 5-Year Plan (2016-2020), elaborated by the Chinese government, is to rebalance the economic strategy. Nonetheless, in practice, the Plan does not change the relationship between the State and the market. In fact, China’s central government maintains a command and control presence over the economy.

Looking at the steel industry specifically, Dr. Rubio mentioned the increasing number of problems, such as: a) low prices; b) debt complications; c) “zombie companies”; d) debt-for-equity swaps; e) the poor reform of state-owned enterprises (SOEs); f) export needs; g) environmental restrictions; h) multiple unfair cases; i) requirement to diminish overcapacity. Moreover, it is not clear if, when and how these hurdles will be overcome. Not surprisingly, the impacts of these imbalances to the rest of world’s steel industry are acute.

Dr. Rubio also emphasised that the Steel

Industry Adjustment Policy (2015 Revision), as part of the 13th 5-Year Plan, dictates everything regarding the competitive arena: structure, size, mergers, output, product mix, location, technology and innovation.

Therefore, it can be concluded that the Chinese steel industry acts very far from typical market conditions. For that reason, Alacero and other trade associations (inside and outside of the region) have been engaged in a strong public campaign against the formal recognition of China as a market economy by their respective governments.

Raw materials Sarah Macnaughton, cost analysis consultant at CRU, described the outlook for iron ore and metallurgical coal and its implications for the Brazilian steel industry.

She observed that, during 2014 and 2015, bulk raw materials, especially iron ore, witnessed steep price falls. Indeed, from January 2013 to January 2016, iron ore and hard coking coal (HCC) prices dropped 60% and 40%, respectively. However, since January 2016, iron ore and met coal prices increased by over 20%. Her presentation aimed to explained the reasons for such change and if this new trajectory is persistent or temporary.

Regarding the iron ore market, Macnaughton stressed that price escalation was derived from steel mill restocking and a 130Mt (annualised) shortfall in seaborne supply. Nevertheless, in her opinion, this supply weakness is temporary, as a poor performance in Q1 2016 increased the chances of stronger shipments in the second half of 2016. Fig.3 shows that CRU expects Australian exports to grow from 810Mt in 2015 to roughly 845Mt in 2016, and this, to a large extent, is explained by the start-up of the Roy Hill project. CRU predicts that the iron ore fines CFR China will reduce to over $40/t as of Q4 2016.

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CONFERENCE REPORT

CSN market cap (R$ bi) coking coal

1%

60 40

iron ore

$200

-

$100

-5%

16 H1

16 H2

Fig 4: Chinese metallurgical coal production, 2015-2016 (y-o-y change, %). Source: CRU.

2008*

2009

25,2

20

$0 15 H2

120 111,3 38,2 80 20,8 29,4 31,4 20,0 29,3 11,9 7,74 10,3 40 23,6 15,6

2010

2011

2012

2014 06/06/16 2008* 2013

2009

2010

2011

8,8

2012 2014 06/06/16 2013

47,1 40

15 H1

Gerdau market cap (R$ bi)

42,3 37,0

20

-1% -3%

63,4

12

13

14

15

16

17

18

19

-

2008*

20,5 13,4 13,5 13,8 8,8

2009

2010

3,5

Usiminas market cap (R$ bi)

2012 2014 06/06/16 2011 2013

Fig 5: Iron ore and coking coal prices, 2012-2019 (US$/t).

Fig 6: Source:Brazilian Steel Association based on Sao Paulo Stock

Source: CRU. Note: Prices are nominal.Iron ore refers to 62% Fe

Exchange

fines, CFR China; coal is HCC, FOB Australia

A key factor underpinning the price increase of met coal was the permanent and temporary mine closures in China.

There was a substantial improvement of Chinese imports in March 2016, which can be linked with important measures imposed by the Shanxi Province’s government.

The measures included a reduction in the number of operating days from 336 to 276; the permanent closure of illegal mines accounting for a combined 32Mt/ yr; and momentary mine closures following multiple fatalities in Anping.

Fig.4 demonstrates that China’s met coal production retraction started in H2 2015, a trend that became stronger in H1 2016, but CRU expects that this situation will not continue in the latter half of the year.

Consequently, HCC spot prices are going to decline to an $80/t plateau in Q4 2016.

Currency appreciation Macnaughton provided a medium-term price forecast for the period 2017-2019.

CRU expects oil prices to rise, although insufficiently to recover the level registered in 2014. Currencies from large raw material October 2016

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exporters (Australia, Brazil and Russia) will appreciate, putting pressure on miners’ costs. It is estimated that 63% of mining costs in Q1 2016 are characterised as non-controllable costs (associated with macro inflation) and, conversely, 37% are controllable. She concluded that “low-costs are not here to stay”. In other words, iron ore and coal mining costs will rise from 2017 onwards.

According to Macnaughton, coal miners have suffered deeper and longer losses than iron ore producers. Consequently, poor

profitability has discouraged the addition of new met coal capacity. As demand would amplify more than the timid supply expansion, she expects that the coking coal market will rebalance by 2018. In the case of iron ore, this equilibrium will require longer. She did not mention specific data, but implicitly it can be concluded that this will happen from 2020 onwards. Fig.5 shows that CRU forecasts that iron ore prices will reach some $40/t in 2017 and $60/t in 2018-2019. In the meantime, HCC prices will achieve roughly $90/t and $120/t, respectively. Thus, the raw material

price rebound will be observed in 2018.

The last part of Macnaughton’s presentation dealt with the impact of raw materials prices on Brazilian steelmakers.

Low seaborne input prices have reduced the captive advantage of Russian steel mills when compared to their Brazilian peers. The difference concerning HCR production costs diminished from $200/t in 2011 to $30/t in 2016. While seaborne raw materials prices are forecast to rise, a stronger Rouble will keep the spread narrow, particularly in 2017.

Since 2015 Brazil has become more competitive with US BOF mills, claims CRU, and this situation is expected to continue until at least 2019, making Brazilian slab exports attractive while anti-dumping duties on flat-rolled products are in place. Brazil’s mills can also exploit the opportunities derived from the possible closure of European mills, which are badly positioned along the cost curve. Again, Brazil’s exports increase seems to be limited to slabs, which has been the country’s largest exported steel product since the 1980s.

Brazilian steel market Brazil is facing astonishing economic and political turmoil. In 2015, GDP shrank 3.8%, its worst annual performance since 1981. Inflation reached 10.7% at the end of 2015, a 12-year-high. Moreover, the unemployment ratio increased to 9% in 2015.

The political arena has been shaken by corruption and the Presidential impeachment. ‘Operation Car Wash’ was the name given to an investigation launched in March 2014 into allegations that Brazil’s biggest construction firms overcharged the state-owned oil company Petrobras for building contracts. Part of their windfall would then be handed to Petrobras executives and politicians who were in on the deal. www.steeltimesint.com

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CONFERENCE REPORT

Political uncertainty On 31 August 2016, the impeachment trial against president Dilma Rousseff was concluded, turning Michel Temer into the new president.

It is important to remember that Rousseff was accused of budget manipulation, not corruption. Since Temer was acting as interim president since mid-May 2016, the degree of political uncertainty was high at the time of the Brazilian Steel Institute conference.

During the conference, weakening domestic steel demand prompted the Brazilian Steel Institute to revise downward its predictions for the local steel sector in 2016. The association expects that Brazil’s crude steel production will reach 31Mt this year, compared to its March forecast of 32.9Mt. If confirmed, the figure would mean a retraction of 6.8% from the 33.3Mt of crude steel produced in 2015.

Tough consequences For the Brazilian steel industry, the combination of problems related to the global steel business and domestic political and economic turmoil have tough consequences.

The market capitalisation of CSN, for instance, diminished from R$63.4bn on 5 May 2008 (its historical maximum) to R$10.3bn on 6 June 2016, implying an 84% drop. Gerdau experienced a retraction from R$111.3bn to R$8.8bn, or a 92% decrease. For Usiminas, market capitalisation plummeted from R$47.1bn to R$3.5bn, representing a 93% drop.

23

Waiting for a recovery In this context, Brazilian steelmakers wait for a recovery (or a partial recovery) of their profit margins, which require a considerable resumption of domestic demand.

This will not happen in 2016, as an additional 3.2% GDP retraction is expected in the latest weekly poll by the Central Bank.

However, recent economic indicators have improved the chances that 2017 will register a positive (albeit tiny) 1.3% GDP growth, while 2018 would be the beginning of a sustainable recovery. �

Domestic steel sales The Brazilian Steel Institute also expects that domestic steel sales will reach 16.4Mt in 2016, down from 17.4Mt in the previous forecast and from 18.2Mt in 2015.

Apparent steel consumption is estimated to total 18.2Mt in 2016, against a previous forecast of 19.4Mt and 21.3Mt in 2015.

A 14.4% retraction is awaited concerning internal demand y-o-y.

Exports have been increasingly understood as a way of partially offsetting the weakness of the Brazilian steel market.

However, due to the proliferation of trade defence measures, this opportunity is not easy achievable. The association expects that exports will be in the region of 13Mt, against a previous prediction of 14Mt and the 13.7Mt observed in 2015. The respective figures for imports are 1.9Mt, 2Mt and 3.2Mt. According to Marco Polo de Mello Lopes, the Brazilian Steel Institute’s executive president, 74 facilities were temporarily or permanently idled in 2014 and 2015, including five blast furnaces, eight steel shops, 14 rolling mills, one coke-oven battery and one sintering plant.

An additional 23 closures were planned for H1 2016. As a result, in 2014-2015, 29,740 workers were dismissed and another 2,296 employees were temporarily laid off. An additional 11,332 job positions are expected to be cut this year. The situation can be summarised as an endless nightmare. www.steeltimesint.com

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ROLLING

Roll texturing for cold rolling mills Pomini Tenova has recently decided to research and design its own roll texturing system and has successfully developed a machine to meet the texturing needs of cold rolling mill work rolls.

By Massimo Cavallari1, Paolo Gaboardi2 and Rick McWhirter3 WHILE current texturing processes are capable of controlling some of the important surface texture parameters, they cannot always control the parameters independently of each other to create the optimum surface texture for each particular application. There are significant differences in the sheet producers’ manufacturing processes, sheet applications and individual customer specifications and requirements.

As a result the individual process requirements, limitations and production challenges can vary greatly between each facility.

The Pomini Digital Texturing system can engineer the surface texture by individually controlling surface texture parameters on the work roll, to give the best combination of features for roll performance, sheet production and sheet end user. It is the work roll’s surface texture characteristics and subsequently the texture that is transferred to the surface of the rolled sheet that have a significant effect on work roll and rolled sheet performance. For optimum performance during rolling, forming and painting, the characteristics of the surface texture can be measured by a variety of 2D parameters including: Roughness average (Ra), Peak Count (Rpc), Skewness (Rsk) and Waviness (Wa) as well as 3D parameters such as the density of craters and volume of closed voids (Vcl).

Development Depending on the application, the end user often requires a sheet surface texture that has a combination of a number of different surface attributes, such as a high roughness, ‘dull’ finish and isotropic appearance that cannot be achieved by * The authors all work for Pomini Tenova and can be reached at the following email addresses: massimo.cavallari@tenova.com; paolo.gaboardi@tenova.com; rick.mcwhirter@tenova.com October 2016

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ROLLING

a ground roll finish and so some form of texturing process must be used.

Pomini Digital Texturing (PDT) uses highfrequency lasers controlled by software to apply the texture to the surface of the work roll.

The PDT process was initially developed using a prototype machine for texturing cold rolling mill work rolls to achieve the basic texture requirements and test the mill’s performance with respect to texture transfer to the sheet and the wear characteristics of the roll. During this period the various components and pieces of equipment were designed and tested and from the initial testing it was apparent that the technology was very flexible and offered huge potential to improve work roll performance and the quality of the rolled sheet. The two main surface characteristics – Ra and Rpc – could be controlled independently, opening up a wide range of possibilities which, when combined with control of the Rsk, allow optimisation for each rolling process. This has led to the investigation of the effects of various parameters on roll and sheet performance and engineering the texture to meet often conflicting requirements of the rolling mill and end user.

The first production machine was designed in-house at Pomini using the latest available technologies proven for use in high quality machine tools.

The brief was to produce an environmentally friendly machine that offers high precision, efficient operation, reliability, low maintenance requirements and ease of installation with minimal foundation and floor space requirements.

Laser technology was chosen as it is a clean and efficient system, and while not new technology it has the added benefit of undergoing continuous development and improvement. The particular type of high frequency lasers used are suitable for software switching and control and this combination creates an accurate, flexible and efficient texturing system using a highly reliable laser source that is low on maintenance and proven in a large number of industrial applications. A fibre optic delivery system allows for flexible positioning of the texturing head (Fig.1) and eliminates alignment and focus issues associated with older laser texturing systems.

Surface texture can be designed using computer simulation to create the desired texture matrix. The dimensions of craters www.steeltimesint.com

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25

Fig 1. Pomini Tenova digital texturing head

Gloss

0.001

Orange peel

DOI

0.01

0.1

1

Shape

10

100

Wave length (mm)

Fig 3. Surface wave length components

and peaks can be controlled using the software operating the laser system. In addition to each crater’s dimensions the relative proportions of the peaks and craters can be altered as can the shape of the crater and the profile of the peaks.

The ability to control crater and peak dimensions allows roughness and skew to be determined, while the production of broad peaks enables very good roughness transfer and wear characteristics in the rolling mills.

A wide range of surfaces can be produced using the texture matrix software ranging from Deterministic through to Stochastic. By altering the spacing parameters the density of the surface texture can be changed to produce ‘open’ or ‘closed’ surfaces.

The production machine in Fig. 2 has either met or exceeded the design criteria to produce a compact installation with low energy consumption and no specific foundation requirement.

The first Pomini Digital Texturing machine was commissioned at the start of 2015 and immediately commenced production of textured work rolls for sheet production in several rolling mills.

Testing The initial period of testing was focused on the ability to transfer the Ra and RPc from the roll to the sheet and that roughness parameters were maintained for a reasonable length of time. Almost immediately it was recognised that by altering the parameters of the PDT surface texture, it could dramatically affect both the transfer of roughness and wear rate of the work roll. Equally important was that the PDT process proved to be consistent, accurate and repeatable and could easily alter the roughness parameters via the software.

The transfer of the surface texture Ra and Rpc from the work roll to the sheet was found to be typically 20% higher than EDT textures, particularly if using rolls with a positive Rsk. By using peaks with a more rounded shape, it was also found to extend wear life and reduce fines generation.

For different applications depending on the hardness of the material being rolled and the amount of rolling force, the diameter of the craters was found to have a significant effect on the transfer ratio. For harder materials much larger craters were necessary to ensure a suitable transfer ratio.

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ROLLING

Smaller craters could be effectively used for softer materials.

To improve sheet performance during forming it is possible to increase the number and volume of closed craters on the strip. This is achieved by using a positive Rsk on the roll to produce a sheet with negative Rsk. More specifically, selecting a suitable crater size and minimal crater overlap produces an increase of up to 50% in the Vcl measured on the strip. It is also considered that a negative Rsk on the strip is less prone to “galling” during forming operations.

The finished painting appearance of the sheet is determined by many factors such as: gloss, DOI and orange peel, each of which

Fig 4. Pomini Tenova Digital Texturing Machine

Design criteria • • • • • • • •

Software control for maximum flexibility Various Modes of operation and adjustable parameters Automatic adjustment for different roll types and sizes Robust design for continuous Industrial operation Clean and environmentally friendly High efficiency and low power supply requirements Compact and symmetrical to allow installation into existing roll shops Standard commercial components, common spares for roll grinders

Fig 5. PDTTM Surface Texture

Evaluation profile

8,0 6,0 4,0 2,0 0,0 -2,0 -4,0 -6,0 -8,0 -10,0 -12,0 0,0

2,0

4,0

6,0

8,0

10,0

12,0

Fig 4. Roughness and waviness profile

relates to a specific area of wavelength components in the surface texture on the rolled sheet as shown in Fig 3.

It is also considered that deterministic texture patterns, such as those produced

by Electron Beam Texturing (EBT), have reduced waviness.

This effect can be seen in Fig.4, where the Roughness Profile is shown in blue and the waviness component in red. The waviness component is mostly evident where there are overlapping craters or peaks; therefore, by designing a surface with less crater overlap, the waviness will be reduced and the number and volume of October 2016

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closed voids increased.

From these tests and previous investigations it can be concluded that there are a number of desirable features on the work roll and sheet surface texture that improve the performance during cold rolling, forming and painting. The ability to control as many of these features independently can significantly improve performance and results.

Engineered textures With the development of PDT it is now possible to accurately and independently control many of the important surface

texture parameters. This high degree of control allows the ability to optimise the performance of both the work roll and the rolled sheet for each particular application using textures with particular combinations of parameters. The PDT process also allows new surface textures to be developed that were previously not possible to produce.

Such textures may have the following features that have proved to be desirable for good performance during forming and painting: • Increased uniformity/reduced irregularity (Stochastic/Deterministic) of the texture • Optimum size and ratio of closed voids (valleys to plateaux) on the rolled sheet • Negative skew (more valleys and less asperities) on the rolled sheet • Reduced Ra of the rolled sheet while maintaining formability by improved texture characteristics • Optimum Rpc to provide sufficient valley dimensions and good paint appearance www.steeltimesint.com

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2,00

Strip roughness

0,80

1,80

0,60

1,60

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1,40 Roughness Ra

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0,00

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0,20 0,00

-080 Coil No.

Coil No.

Fig 6. Ra Evolution

Fig 7. Rsk Evolution

• Reduced waviness on the rolled sheet for improved paint appearance • Optimised crater shapes to transfer the required texture to the sheets Initial PDT surface textures replicated the overlapping matrix of craters, similar to the surface produced by EDT, but with improvement of specific attributes to provide better performance. A typical PDT surface is magnified in Fig. 5 where the random and isotropic arrangement of uniform craters can be seen. This particular surface has a high degree of crater overlap to simulate a typical EDT arrangement, but with much better crater and rim definition resulting in discrete craters and broad peaks.

In one finishing mill application the aims were to improve Ra consistency, produce negative skew on strip surface and prolong the usable life of the work roll. The results achieved can be seen in Fig. 6 and Fig. 7. The useable roll was almost double that of the current textured and ‘post processed’ work rolls and the negative skew was maintained on the rolled sheet throughout the roll life with good quality surface appearance. Whereas the current process with EDT textured work rolls always produced a positively skewed strip surface.

It is generally considered that negative skew (less protruding peaks) and increased bearing area on the work roll texture improves work roll life. This is confirmed by the results in Fig. 6 and Fig. 7, which show that as the roll wears and the skew on the roll becomes less positive the rate of wear in Fig. 6 decreases.

Unfortunately, producing negative skew on the work roll to improve roll life produces positively skewed roll sheet

Random spacing, open surface and minimal crater overlap

Random spacing, higher crater density increased overlapping

Random spacing, larger craters and increased overlapping

Evenly spaced orderly arrangement

Fig 8. PDTTM crater matrix

texture, which is known to be detrimental to forming and painting. The PDT textured rolls in this application were able to produce a negatively skewed strip surface while significantly increasing the useable roll life.

Because the surface texture matrix is controlled by software in the PDT system, it allows a wide range of surfaces to be produced ranging from Deterministic to Stochastic. By altering the spacing parameters the density and crater overlap of the surface texture can be changed to produce ‘open’ or ‘closed’ surfaces as shown in Fig. 8. Varying the matrix of craters textured onto the work roll allows the degree of uniformity (Wa); quantity of valleys; and volume closed voids (Vcl) on the sheet to be controlled, all parameters that affect the formability and paintability of the rolled sheet, according to previous investigations.

It is also possible to create various combinations of effects such as fixed crater size and random placement or variable crater sizes with fixed placement.

By adjusting the texturing parameters it is also possible to produce a variety of crater shapes on the roll that can be transferred

to the rolled strip. The main emphasis is on engineering the surface texture on the roll to generate the required texture after rolling in each particular application while maximising work roll performance.

Conclusion The Pomini Digital Texturing process has proved a great success both in production and in tests and has considerable potential for future development and applications.

The clean and safe technology exhibits maximum efficiency and minimal waste.

The machine boasts modern design features and minimal hardware and the majority of the technology resides in the control software. The range of surface textures that can be produced is extremely flexible in order to meet a wide variety of industry requirements now and in future.

This disruptive technology has the ability to engineer an optimum combination of surface texture features to provide improved performance for sheet producers and excellent sheet surface characteristics for end users. It has also created a completely new capability to produce surface textures for sheet applications that previously were not possible. �

Pomini Tenova is been a leading supplier of fully automated roll shops and roll shop equipment for hot and cold rolling mills. www.pomini.com

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PROCESS CONTROL

29

Industrial wireless technology

Examples of control systems using wireless communication to replace hard wired links are examined regarding technical detail and financial benefits. Their implementation at various SAIL plants has provided a 37% reduction in delays at a steel shop and a 33% reduction in off-blast at a blast furnace as well as improving operator safety. By I Banerjee, A Goswami & B B Agrawal* RELIABLE wireless communication is a key component of modern steel production as it reduces maintenance work, increases efficiency, and reduces the risk of accidents.

Wireless transmission is a technology that enables the sending and receiving of signals without the need for physical wires, as in mobile phones, Wi-Fi and pagers.

Wireless transmission of signals is arriving in industry in a major way and is destined to become the technology of tomorrow. Some examples of applications follow.

Wireless concast plant[1] The caster turret to hold the ladle is vital equipment in a continuous caster. The example of wireless communication here refers to the caster at the Rourkela Steel Plant (RSP). The caster is equipped with a turret to hold two ladles, one active, filling the tundish, the other position ready to accept a full ladle to be swung into the active position once the active ladle

is drained. Because the turret rotates to achieve this, previously all electrical signals provided by cables had to be routed via a slip ring located inside the turret well. The location of the slip ring made maintenance difficult and any breakdowns of control cables and slip ring caused the caster to be stopped resulting in loss of production.

The former method of signal transmission is shown in Fig.1.

Electrical equipment such as limit switches, proportional valves and load cells are mounted on the turret. All control cables for these were routed via a slip ring assembly located such that it is impossible to approach during casting. Also, the drop in the strength of the single over lengthy cable runs between the turret and control room increased the inaccuracy in the turret weighing system.

Any problem with the slip ring assembly or the associated control cable resulted in stopping production. A new method

of signal transmission involving a radio modem, valve amplifiers and weighing controllers is shown in Fig. 2. This was designed and implemented by SAIL Automation and Engineering. The use of slip rings has been eliminated for control transmission and the newly designed automation system is now in use by Rourkela Steel Plant.

Wireless raw material handling In the raw material handling plant (RMHP) at Durgapur Steel Plant (DSP), conveyors A9 and A10A are used to stack screened lump ore onto beds. Conveyor A10 is used to stack base mix using wing trippers. Control cables used for the motors of conveyors A9, A10 and A10A were very old and some were in extremely bad condition. Many times, the signal from the motor house to the control room was lost. This adversely affected the tippling and screening operation and production of the base mix.

The authors are with the Automation and Engineering section, Research & Development Centre for Iron and Steel, Steel Authority of India Ltd, Ranchi, India indranil@sail-rdcis.com www.steeltimesint.com

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PROCESS CONTROL

To ensure reliable communication of the control signals to the conveyor motors from the drive houses to the lime plant substation, a wireless network was designed and implemented. The network works on a point to multi-point configuration, where one master station communicates with three remote stations.

This comprises transmitters using a radio modem and Remote Terminal Unit (RTU) which are integrated with the existing Programmable Logic Controller (PLC). The RTU unit of the three remote stations (drive houses) is equipped for 10 Digital Input (DI) and 10 Digital Output (DO) signals while the RTU at the master station (Lime Plant Substation) caters to 30 DI and 30 DO signals. The implemented wireless scheme at RMHP is shown in Fig. 3.

With the introduction of the new wireless signal transmission, other necessary process and safety interlocks, such as detecting slow running motors and chute jamming, are now also transmitted through the same wireless network. The distance between the remote stations and master station is approximately 1km and there is no clear line of sight between them. Therefore, to have a secure and reliable wireless network, a licensed frequency band is used. This innovative automation scheme has enabled the operation of tippling and screening operation without frequent breakdowns.

Blast furnace mud gun The blast furnace is the most critical unit responsible for liquid iron production.

Liquid iron from the blast furnace is

Load cells

Valves Lights

Limit switches

Siren

Junction box PLC

Fig 1. Original scheme of signal transmission in Continuous Caster of Steel plan Implemented scheme

Radio unit in control room

Radio unit on turret

Limit switch, valve and load cells

PLC

Fig 2. Implemented Wireless scheme at Continuous Caster

transferred to the steel melting shop for further processing. Thus the availability of hot iron from the blast furnace is key to sustained productivity. Blast furnace # 4 at RSP has two tap holes from where liquid iron and slag are periodically run.

The Mud Gun and drill machines are respectively vital for sealing and tapping the furnace. When the furnace is ready for tapping, the drill machine is used to drill through the tap hole to release liquid iron.

There are two mud guns – and one drill machine. The mud gun and drill machine Implemented scheme

Interface relay panel

Interface relay panel

Wireless unit

Wireless unit

Field signals

Field signals

are operated from two control desks, one for tap hole #1 and the other for tap hole #2. Previously, a bunch of cables ran between the control desk and the hydraulic room. This used to breakdown on a regular basis. Also the close vicinity of the operator desk to the tap hole posed a life threat to the operator. A new wireless system has been implemented, schematically shown in Fig. 4. This has made the mud gun and drill machine operation more consistent and safer for the operators.

Earlier scheme showing slip ring inside turret well

Interface relay panel

Designing wireless transmission Technical papers were referred to in order to know more about industrial wireless applications, protocols, frequency hopping techniques and time division multiple accesses among other things [2], [3], [4]. The objective was to get rid of issues related to signal transmission using slip rings, control cables and intermediate junction boxes.

The existing systems were examined and the issues discussed below were considered before a design was finalised.

Line of sight Line-of-sight (LOS) propagation is a characteristic of electromagnetic radiation and acoustic wave propagation.

Electromagnetic transmission includes light emissions traveling in a straight line. The rays or waves may be diffracted, refracted, reflected, or absorbed by the atmosphere and obstructions and generally cannot travel over the horizon or behind obstacles.

Obstacle-free Line of Sight is illustrated in Fig. 5.

Display Programing station

Wireless unit Portable radio remote control

Field signals

Receiver modem PLC panel

Relay panel

Relays Receiver panel

Wireless receiving station

Fig 4. Implemented wireless scheme at Blast Furnace of Rourkela Steel Plant

Fig 3. Implemented wireless scheme at RMHP

Tx Antenna gain Gtx

d Fresenel zone r

Feeder loss accounted in antenna gain

Signal strength reduces with distance Sending antenna

Fig 5. Obstacle free line of sight

October 2016

PROCESS SAIL.indd 2

Hydraulic valve stand

PLC

Receiving antenna

Transmitter

Distanced

Fig 6. Free space path loss

Receiver

Transmitter

Rx Antenna gain Grx

Signal strength reduces with distance Distanced

Feeder loss accounted in antenna gain

Receiver

Fig 7. Antenna gain and path loss

www.steeltimesint.com

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PROCESS CONTROL

Free space path loss The free space loss is an attenuation of the electromagnetic wave while propagating through space. Referring to Fig. 6, consider the loss to be the same in air as in the vacuum of space. Loss is calculated using the following formula: Free space path loss = 32.4 + 20 x Log (F) + 20 x Log (R) Where F = the RF frequency expressed in MHz R = the distance in kilometres between the transmitting and receiving antennas

Also free space path Loss = (4 ∏d /�) 2 � is the signal wavelength (meters) d is the distance of the receiver from the transmitter (meters) Antenna gain on path loss The free space path loss equation does not include any component for antenna gains. It is assumed that the antenna gain is unity for both the transmitter and receiver. In reality, all antennas will have a certain amount of gain and this will affect the overall signal level. Any antenna gain will reduce the loss when compared to an assumed gain of unity. The figures for antenna gain are relative to an isotropic source, ie an antenna that radiates equally in all directions. Referring to Fig. 7: Path Loss (dB) = 20 log10 (d) + 20 log10 (F) +32.44-Gtx-Grx

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Frequency versus propagation The higher the frequency[5],[6],[7] the greater will be the range, but penetration will be poor, ie radio waves need unobstructed line of sight. Whereas at lower frequencies the range is shorter but penetration greater even with partially obstructed line of sight. As frequency increases, the signal is absorbed more by physical objects (atmospheric moisture, trees and buildings).

Hence more power is needed to make up for signal loss. For constant power, the range decreases because the signal losses increase with increasing frequency. (This energy transfer to physical objects is the principle behind microwave ovens which operate at 2.45GHz and transfer the

transmitted energy to water molecules in the food).

Frequency versus height of antenna For efficient radiation of electromagnetic energy, the height of the radiating antenna should be of the order of one-quarter or more of the wavelength of the signal radiated. Since the relationship between wavelength and frequency is: Frequency = (speed of light)/ (wavelength) As we increase frequency, the wavelength decreases until the product of both equals the speed of light (a constant). Thus, as the wavelength decreases, the corresponding size of antenna also decreases.

Fade margin With any radio link installation, it is desirable to have the signals strong enough to maintain communication regardless of weather or environmental extremes.

Every radio link will have a threshold signal strength below which the signals are too far buried in the noise of the radio channel to be received clearly. Ideally, radio links should be engineered to work with signal levels at least 100 times (20dB) greater than the absolute minimum workable signal.

In this way, even during severe weather extremes or environmental factors such as summer leaf growth on trees that can attenuate signals, 20dB of ‘fade margin’ will ensure that a working link is maintained even if signal strengths are temporarily affected.

The fade margin of a link is, therefore, the amount that the radio signals are above the bare minimum threshold. An installer will temporarily fit coaxial attenuators into the coaxial cable feed to one of the antennas, adding extra attenuation until a point is reached where the link is just failing. The amount of attenuation that the installer fitted gives the ‘fade margin’ for that radio link, eg 20dB + 6dB. The attenuators are removed once this test is completed.

For long distance radio hops, or where there are dense obstructions, a 20dB fade margin may not be achievable, sometimes as little as 10dB has to be accepted. A signal with 10dB fade margin is 10 times stronger than the threshold signal level. On some higher radio frequencies having just 10dB fade margin may mean that some extreme weather phenomena could cause temporary radio link failure. The maximum path loss is given by: Maximum path loss = transmit power – receiver sensitivity + gains – losses – fade margin.

Benefits The response of the new wireless systems is much faster and more reliable than the previous cable systems. With the implementation of wireless signal transmission, accuracy and reliability of equipment automation has increased.

Dependence on the slip ring, control cable and junction boxes has been substantially reduced. This has helped reduce breakdown time leading to increased production. The various benefits reaped by introduction of these new innovations are listed below: Technological • Availability of plant has improved because of reduced breakdowns. www.steeltimesint.com

18/10/2016 12:41:35

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Applying Industry 4.0 to the steel industry FROM THE PUBLISHERS OF STEEL TIMES INTERNATIONAL What is Industry 4.0 and how can it assist the global steel industry in its quest for greater efficiencies? Two questions, among many others, that will be answered by the experts at the Future Steel Forum in Warsaw in June 2017.

The Future Steel Forum is a live discussion of the issues surrounding Industry 4.0 or ‘smart manufacturing’ and will endeavour to cover all bases, including the all-important subject of cyber security, the role of human beings in the factory of the future, how to survive a cyber attack and the allimportant process safety and control.

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

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PROCESS CONTROL

• Enhanced accuracy of the ladle weighing system at the caster.

• Reduction in off blast at the blast furnace due to greater availability of the stacking conveyors at the raw materials handling plant.

• Chance of slag carryover to tundish in continuous casting machine is reduced.

Financial • Improvement has been observed in the tonnage of crude steel produced by 0.48%.

• A reduction in steel returned to the steel plant from the caster of 4.5% as unpredictable caster stoppages are reduced.

• Reduction in steel plant delays by 37% and blast furnace off-blast conditions by 33%.

it was inaccessible during casting.

At the blast furnace, personnel used to stand near the tap hole to operate the mud gun and drill machines, putting their life at risk. With implementation of the new remote control system, their life has become easier and safer.

Technicians no longer need to enter hazardous places for any kind of maintenance or troubleshooting using the new wireless systems. The safety features embedded in these new control systems make them indigenously designed automation schemes.

In conclusion, the successful use of wireless technology has immense potential in a steel plant where a harsh operating environment exists including dust, smoke, vibration, EMI/noise, and extremely high

35

conventional slip ring and control cable methods. The implemented scheme has resulted in significant benefits including operator safety, an increase in crude steel production, and elimination in breakdowns.

Most significantly, this effort has helped to develop the necessary level of expertise in the field of wireless signal communication in steel plant operation, which can be gainfully extended in numerous other critical areas. � Acknowledgments The authors are grateful to the Operation, Electrical and Mechanical department of SAIL plants, and the respective research and control labs. The authors are also grateful to the management of respective SAIL plants and RDCIS for their continuous support, guidance, encouragement and all the necessary facilities provided for smooth execution of the above mentioned projects.

References

Expertise development A large amount of expertise has been developed by the Research & Development Centre for Iron and Steel (RDCIS) SAIL enabling it to embark on many ambitious projects involving wireless signal transmission in the hazardous locations of integrated steel plants.

Safety of personnel has also improved.

The second and third rules of personnel safety, security and efficiency require effective communications. Without a doubt employees and contractors are the most important assets of a facility. Their safety is paramount. Previously, the caster technicians had to enter the turret-well to trouble shoot any problems of the slip ring assembly or the associated control cables etc. The location of slip ring was such that www.steeltimesint.com

PROCESS SAIL.indd 4

temperatures. The systems developed have huge possibilities of technology transfer in all hazardous areas such as status monitoring, precise control of network operations and productivity enhancement.

Wireless signal transmission has been successfully implemented in some of the most hazardous areas of steelmaking.

The systems comprise a radio modembased signal transmitter and receiver, weighing system controllers, hydraulic valve amplifiers, PLC integration and special fire resistant panels. The broadcast frequency for all the applications has been chosen after thorough design considerations.

The application and control software has been developed in-house. The new schemes have demonstrated successful signal transmission without depending on

[1] Indranil Banerjee, B N Ghosh, B K Prasad, Anup Prasad ‘ Development of non-contact system of signal transmission for rotating Ladle turret of continuous caster at Rourkela Steel Plant, India’. 2014 International Conference on Control, Instrumentation, Energy and Communication (IEEE) [2] B&B Electronics Mfg Co, ‘ Ten commandments of wireless communications’ WP-33-R2-1112-1/6©2009by.Inc.http://www. bb-elec.com [3] Gerrit Lohmann, ‘Wireless HART™’, Technical White Paper, Wireless Technology , Part. No. 217955 02/11 01, http://files.pepperl fuchs.com/selector_files/navi/productInfo/doct/ tdoct1841a_eng.pdf [4] Taylor Reynolds, ‘Advanced wireless technologies and spectrum management, Workshop on radio spectrum management for a converging world’, ITU new initiative programme, 16-18 Feb, 2004 Geneva.

[5] Data Communication Fundamentals, Version 2 CSE IIT, Kharagpur. http://nptel.iitm. ac.in/courses/Webcourse- contents/IIT%20 Kharagpur/Computer%20networks/pdf/M2L1.pdf [6] Angeliki Alexiou1, Monica Navarro and Robert W Heath Jr,’ Smart antennas for next generation wireless systems’, EURASIP Journal on Wireless Communication and Networking 2007, 2007:020427 doi:10.1155/2007/20427 [7] Andreas Willig, Kireten Matheus, and Adam Wolisz, ‘Wireless technology in industrial networks’ Proceedings of the IEEE,Vol 93, No 6,June 2005 October 2016

18/10/2016 12:41:38

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CONFERENCE REPORT

It’s not all about China While China understandably attracted considerable attention at the Steel Success Strategies XXX1 conference in New York, other interesting regions were also discussed. By Manik Mehta* IN a discussion panel, George Matta, director of EZZ Steel, an Egyptian steel company, provided insightful information about the steel industry in the Middle East and North Africa (MENA) region, focusing on Iran, Egypt, UAE and Saudi Arabia. Steel production in Iran and Saudi Arabia, he said, had contracted by 1% each, primarily because of the decline in oil prices, resulting in infrastructure projects being postponed or shelved.“2015 has been a challenging year for steel producers in Egypt. China’s oversupply has created pressures on prices.

Egypt has imposed 28% duty on rebar.

Iran has raised duty from 10% to 25% on imports. Construction projects in Saudi Arabia and Iran have been cut. Countries in the region are increasingly leaning towards protectionism,” Matta said, adding that economic growth is “slowing but not collapsing”. He cited some “grounds for optimism”, pointing out that amid declining prices, output of oil and gas had risen, with the Gulf Co-operation Council member states diversifying their economies and many governments willing to shoulder short-term deficit to maintain growth.

However, the political conflicts in Syria, Iraq and Yemen posed risks to the wider region.

The dark horse in the region could well be Iran, which Matta described as a “regional export powerhouse”. Iran has benefited from the recent ending of banking restrictions on it, thus easing its export

volumes. Iran had been active in billet sales in the last six months. Steel producer Esfahan, for example, had doubled its exports in 2015/16 and targeted one million tonnes in 2016/17 while Mobarakeh sold 1.8 million tonnes in 2015/16. Iran is building up its steel capacity.

Some notable developments in Iran’s steel sector include: plans by Pars Kohan Diarparsian (PKS) Steel to build a 1.6 million ton DRI-EAF facility at the Poscoat Chabahar Free Economic Zone; ArcelorMittal to invest in a 3.5 million ton Bonab steel mill in Tabriz; and Kish South Kaveh Steel to build a 2.4Mt DRI-EAF facility in the Persian Gulf Free Economic Zone.

Impressive growth forecast With China’s economic growth slowing down, attention is turning to India which is forecast to post impressive growth rates in the coming years.

In an interview with the Steel Times International, Vinay Shroff, executive vice president of JSW Steel Ltd., Mumbai, said that India’s steel consumption rose by 5%.

Indian steel industry faced a “big challenge” in the form of rising iron-ore prices.

“Though India has its own iron-ore reserves, the prices of iron ore in India are higher than the global prices,” he maintained.

Manufacturing and infrastructure construction are growing and this would fuel steel consumption. India’s crude

steel production rose from 82Mt in the fiscal 2013/14 to 87Mt in 2015/16. India’s infrastructure outlay is estimated to be about $1 trillion. “When disposable income rises, the demand for white appliances and other consumer goods which use steel, also rises,” Shroff explained.

But India, he said, faces a surge in imports which increased by 17.5% while exports declined. China was flooding the Indian market with cheap steel; this was expected to rise further when India joins the China-led Regional Co-operation Economic Partnership (RCEP) which many see as a counterweight to the US-led Trans-Pacific Partnership (TPP); however, both Trump and Clinton, the two presidential rival candidates, have opposed the TPP. India’s steel manufacturers have applauded the Indian Government’s prepared response to China supplying cheap steel in the Indian market. India’s Minimum Import Price (MIP) on imported products would create, the industry says, a level playing field for India-made products.

JSW currently produces some 18 million tonnes steel annually which Shroff predicted would rise to 40 million tonnes by 2025. The Indian Government has set an ambitious target of 300 million tonnes for Indian steel-producing companies by the year 2025. India’s other key steel players include SAIL (Steel Authority of India Ltd), Tata Steel and Essar. �

* USA correspondent October 2016

SSS conference 2.indd 1

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18/10/2016 09:00:54

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PERSPECTIVES: TENOVA

Tenova is riding the wave Tenova’s metals division is active globally and has many projects underway in Europe, North America, Russia and the Middle East. A key recent project for the business was the supply and commissioning of a twin ladle furnace for ArcelorMittal Gent. Sustainability, says Ernesto Bottoni*, is considered one of the company’s core pillars

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

The steel industry in the past years has been fighting negative global macro trends, which have put pressure not only on technology suppliers like us, but also our customers. Tenova has been very busy working together with its customers to find added value to optimise production and relevant costs.

with our customers around the world.

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

Tenova has successfully commissioned a twin ladle furnace for ArcelorMittal Gent and is actively working on several projects that will be put into operation shortly.

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?

It will depend on the vehicles and the OEM. It is also true that emissions legislation all over the world could influence this process.

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

We foresee that the current global scenario will show signals of recovery in the next years due to relocation and optimisation of production capacity.

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

Tenova’s metals division offers a fully integrated range of high quality products, technologies and services for steel-making, from iron and ferro alloy ores and scrap to liquid steel. The company is a combination of several competences capable of supplying worldwide direct reduction plants, pyro-metallurgy solutions for ferro alloys and base metals, re-heating furnaces, heat treatment furnaces, strip processing lines, cold rolling mills, roll grinding machines and roll texturing, heat treatment furnaces for aerospace and automotive components.

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

With offices in 24 different countries we are covering different projects in collaboration

studies show that in the next decades, many vehicles will be redesigned as multimaterial, incorporating high-strength steel and aluminium automotive body sheet with mild steel content reduced significantly. The proportions are likely to vary significantly from vehicle to vehicle and from OEM (Original Equipment Manufacturer) to OEM, and this trend will be an opportunity for development in technologies and research.

6. “Aluminium will always outperform 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 steel versus aluminium argument?

In terms of improvement of technologies, competition between aluminium and steel could only be a win-win strategy for both industries. In the automotive market, recent

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? Possible increased aluminium penetration will be counter-balanced by improved steel parts, lighter and with better mechanical properties.

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

Protection of the environment is one of the challenges of the last 20 years for the steel industry and developments in all the technologies related to steel are focused

* Senior VP global sales metals division, Tenova October 2016

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PERSPECTIVES: TENOVA

in this direction. Also steel recycling is becoming more and more important.

10. “…any hint of doubt when it comes to predictions of climate doom is evidence of greed, stupidity, moral turpitude or psychological derangement.” This is a quote from Bret Stephens writing in The Wall Street Journal. Do you sympathise with his view?

We consider sustainability one of our core pillars and in this respect we work with our clients to enable them to reduce energy and raw materials consumption, limiting the environmental impact and developing a sustainable business.

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

Tenova is a trusted leader in the steel industry with a broad product portfolio, ranging from DRI plants to roll shops, steel making, heating and processing equipment.

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

Tenova carefully follows the requirements of the market and, therefore, adapts and anticipates its dynamics and changes.

For example, we launched a digital transformation project to enhance our offer with Industry 4.0 technologies.

11. In fact, talking of ‘green issues’ and emissions control, how is the steel industry performing in this respect?

In order to meet the Paris Agreement objectives the steel industry is required to reduce its emissions by over 70% in the next 30 years. It is a challenging target that needs strict co-operation between steel makers and technology providers and we as Tenova are riding the wave.

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perspectives Tenova.indd 2

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

For all three sectors, the protection of the environment and the optimisation of production capacity will be the most important drivers in the development of production technologies.

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

We consider the protection of the environment and production capacity optimisations as chances to improve our technologies and our market opportunities.

20. What exhibitions and conferences will TENOVA be attending in 2017?

Tenova is planning to attend more than 15 global exhibition and conferences.

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

Tenova HQ is in Italy where many of its historical and well-reputed clients are located. During recent years, we have successfully upgraded existing plants, for example the Tenova Energy Recovery solution adopted by Ori Martin in Brescia, as well as new solutions for environmental protection and energy saving.

12. In your dealings with steel producers, are you finding that they are looking to companies like TENOVA to offer them solutions in terms of energy efficiency and sustainability? If so, what can you offer them?

Yes, there is an increasing attention to environment and the consequent use of natural resources. Tenova, among its full range of products, also supplies its customers with energy recovery solutions and processes that reduce scrap and emissions of fumes and waste water.

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?

So far the response has varied from region to region, but global agreements in terms of the environment will force all the players to comply with the green requirements.

been – and is – one of the most important markets for Tenova with high potential to be exploited.

16. How should the industry react to China?

The current overcapacity situation sees different countries trying to limit the huge increase in Chinese steel exports with antidumping actions.

17. What is TENOVA’s experience of the Chinese steel industry?

Competition between Western and Eastern technologies has intensified, but China has

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

A double Jack Daniel’s on the rocks.

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

The protection of the environment is the one of the most challenging and important issues at present. I would use my superpower to improve recycling in order to reduce waste and limit the use of natural resources. � Octobert 2016

18/10/2016 09:26:31

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HISTORY

Casting railings for St Paul’s Cathedral This year saw the 350th anniversary of the Great Fire of London of 1666. In September, the UK capital marked the occasion with the burning of a 400’ (122m) scale model of part of the City, built of wood on barges on the Thames. By Tim Smith* CHRISTOPHER Wren is famous for his role in rebuilding St Paul’s Cathedral along with some 80 of London’s other churches.

Despite approval by King Charles II of the domed design so emblematic today, the bishops opposed the design as placing them ‘too close’ to the congregation.

Nevertheless, Wren surreptitiously went ahead with his work, although it took nearly 50 years to complete.

Surrounding the Cathedral were iron railings – most of which have been removed today, but a length remains at St Paul’s and short sections are displayed elsewhere.

Consisting of over 11,000 individual pieces and weighing a total of some 200 tons, these were cast at Lamberhust furnace, (also known as Gloucester furnace following a visit by the young Duke of Gloucester with his mother Princess Anne). The furnace is located about 7km south east of Tunbridge Wells, Kent.

Work commenced in June 1714 and was completed by December that year. We are fortunate in having the surviving accounts for the work, which details the number of each part cast and its price. For example, 2,316 small balusters and 149 large balusters were cast as well as 5,051 spikes and 12 access gates. The total cost of the work then was £11,430.12d, equivalent to about £1.46 million today. The average price per ton at £56 was 3-4 times that paid for casting ordnance – an important output for that furnace.

The components would have been cast in sand box moulds – probably with several cast from one runner – with the two halves of the mould carefully aligned together after a wooden pattern had been impressed into each half of the mould box.

The pieces were then broken from the mould, separated, if cast in groups, cleaned

and shipped to St Paul’s – probably via ox cart to the nearest navigable river and then by boat around the coast and up the Thames. Here they would be assembled using rivets and iron pegs to fasten the horizontal rails, and the spikes – which were cast with a coarse screw thread, screwed into place.

We are also fortunate in having a description of the furnace in Swedenborg’s book ‘de Ferro’ published in 1734. The

Section of St Paul’s railings now located by Lamberhurst village War Memorial Detail of scroll work attached to large baluster by an iron pin

furnace, like all of those on the Weald of southern England, was charcoalfired and used local siderite (carbonate) ore. According to the Swedish Lord Commissioner, Kahlmeter, who visited the site, and passed his observations to Swedenborg, Lamberhust was one of the largest furnaces in the Weald standing 28’ (8.53m) high, the stack tapering out to the bosh supported on a square base, 7’ (2.13m) high. The interior shaft was square, measuring 22” (0.56m) at the top, broadening out to 8’ x 7.5’ (2.29 x 2.44m) at the top of the bosh, then tapering inwards to form a shaft just 6” (0.15m) square and 18” (0.46m) deep above the hearth to prevent ore and charcoal falling into the hearth. It is in this narrow shaft, immediately above the tuyere, that melting takes place. For large castings – such as cannon – the hearth was 5’ (1.52m) long, 2’ 2” (0.66m) wide and 1’ 6” (0.46m) deep.

The molten metal rose to this full depth reaching the tuyere opening.

The furnace was known to operate from 1695 to 1787 and was built close to the site of an earlier refining forge, using the existing series of ponds to supply water to an overshot wheel to drive the bellows.

Today, little remains to be seen of the furnace apart from some robbed stonework in a nearby farm building and a scatter of glassy dark green slag. Nearby Furnace Mill House is believed to date from around 1722, the site was later used as a water powered corn mill from 1812 to the 1920s.

Examples of St Paul’s railings can be found at St. Paul’s Cathedral and the Victoria & Albert museum in London, as well as the grounds of Lewes Castle in East Sussex, and the Eden Valley museum in Edenbridge, Kent, not forgetting, of course, Lamberhurst, also in Kent. �

* Chairman Wealden Iron Research Group. www.wealdeniron.org.uk October 2016

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