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5N Plus chief
Arjang Roshan
on team
chemistry
TOP STEELMAKERS
2017 EDITION
Steel technology
and product
advances
June
Features
20 20 49 56
Cover story Indian iron ore Steel tech from a US
Arjang Roshan, the ceo How the Indian perspective
of 5N Plus, explains governments influence How American
that good business is on the countrys iron ore steelmakers are using
about people and team 5N PLUS
industry is shaping its new technology to
chemistry potential and scope develop an increasing
range of grades of
Top steelmakers Steel technology finished products
27 52 61
Top steelmakers 2017 A big picture New plant orders
edition How todays technology The latest quarterly list
Metal Bulletin publishes is connecting production of plant orders for new
its annual table of the fundamentals with projects and revamps
top global steelmakers, commercial imperatives
and our correspondents
around the world assess 36
their regional steel
markets
36
Optimism grows
for Turkish steel
MB reporters review
Turkeys steel prospects
in dynamic international
markets
SHUTTERSTOCK
Iron ore
44 Visit the website
metalbulletin.com
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Turbulent times for
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Interplay between supply
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BOLIDEN
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New appointments End-user
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12 industry developments in
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Steel news review
A round-up of important
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April averages
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EGYPTIAN STEELALISED HANDLING
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Regional review
Correspondents in
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CONSTELLIUM
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ABB
Chartist 67
Chinese steel production
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CONSTELLIUM
located to supply automakers in centre for rock drilling products.
the Southeast USA and may be The expanded factory will
expanded to 220,000 sq ft to Constellium may expand its new automotive aluminium plant if strengthen our delivery process,
meet customers supply needs in there is the demand for further increased output enhancing productivity for our
the future. customers globally, said Helena
Being closer to our business from a commodity Manturov said. According to Hedblom, president of Atlas
customers assembly plants will producer to a high-margin state plans, production should Copcos Mining and Rock
allow us to better serve aerospace and automotive be significantly expanded at the Excavation Technique business
automakers in their mission to supplier. majority of Russias largest area. It will also ensure the
make vehicles lighter and safer vanadium fields over the coming development of competitive
and to respond to the industrys DGCX launches Shanghai years. products at a faster pace.
growing demand for aluminium A spokesman for Manturov
structural parts, said Paul gold futures said the expansion will be
Warton, president of The Dubai Gold and achieved by paying subsidies to
Aqua Metals acquires
Constelliums Automotive Commodities Exchange the countrys largest vanadium Ebonex IPR
Structures & Industry business (DGCX) has launched a producers, directly and through Aqua Metals has acquired
unit. yuan-denominated gold indirect support, such as tax UK-based Ebonex IPR Ltd, a
contract known as the DGCX breaks. He said subsidies of up to company with an extensive
Viant joint venture Shanghai Gold Futures. The 2 billion roubles ($35 million) portfolio of patents and other
listing comes after the DGCX will be made available to each intellectual property focused on
with KME said in October last year that it supported company this year, advanced lead-acid batteries.
Singaporean metals trading firm had obtained a licence from the with the money being spent by The company said Ebonexs
Viant Commodities has launched Shanghai Gold Exchange to use September. advanced materials have the
a joint venture with international the Shanghai Gold Benchmark potential to advance lead acid
copper giant KME, which is as the pricing mechanism for the Three aluminium chemistry with higher energy
based in Switzerland. Tekvalia contract. The contract marks density, increased cycle life and
AG, run from Viants office in the first-ever usage of the projects halted in China faster charging. If successful, this
Zug, will combine KMEs Shanghai Gold Benchmark in The local government in could mean high-performance
expertise in manufacturing international markets, according Xinjiang, western China, has lead acid batteries that can be
copper products with Viants to DGCX. halted three new aluminium distributed through existing
financing capabilities and trading projects with a combined closed loop supply chains and
networks. Tekvalias ownership Russia to increase capacity of two million tonnes then fully recycled.
is split 51% to Viant and 49% for violating rules aimed at Aqua has said that this year it
to KME. vanadium production curbing capacity, according to plans to continue to expand its
The Russian government is an official statement posted on Nevada refinery, expand its
Arconic sells Fusina planning to significantly the government website of technology licensing
increase the volume of domestic Changji County in Xinjiang. The programme and look to build
rolling mill vanadium production, halted capacity includes more refineries.
Arconic has confirmed the sale according to a statement from 800,000 tonnes from Xinjiang
of its Italian Fusina rolling mill to Russias minister of industry and East Hope Nonferrous Metals, China Nonferrous and
Slim Aluminium, owned by trade Denis Manturov to Metal 800,000 tonnes from Xinjiang
German private equity firm Bulletin. Qiya Energy Aluminium Yunnan Copper set for
Quantum Capital Partners AG. Russia has the worlds largest Electric and 400,000 tonnes smelting jv
The plant, which came under deposits of vanadium-titanium from Xinjiang Jiarun Resources China Nonferrous Mining
Arconics ownership after Alcoa magnetite ore. The reserves of all based in Xinjiang. The Corporation (CNMC) and
split its upstream and the Ural Kachkanarsky field are decision to suspend the capacity Yunnan Copper will set up a
downstream businesses late last estimated at approximately 9 was made in accordance with refined copper smelting joint
year, was mothballed in 2013. million tonnes of vanadium, China State Council guidelines venture in the Democratic
Arconic said that the sale comes while in the case of Chineyskoye, on curbing excess production Republic of the Congo, Hong
as part of a thorough review which is located in Transbaikal, capacity, according to the Kong Stock Exchange-listed
process that aims to convert the [it is] up to 5 million tonnes, statement. CNMC has said.
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May 15
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Without any further policy correction and adjustment
stimulus, prices may struggle to after the market rallied too far,
rally further. Good dip-buying strength of real consumption. too fast last year, reaching Lead is sensitive to the
appetite has been providing a Meanwhile, NBS data the $2,577/tonne in November. auto market and the recent
firm floor, and this should latest print of which suggests Even as most of the other deterioration in sales data
continue. We have our doubts Chinese aluminium production metals were putting in decent is a clear cause for concern.
about data that may be creating a grew in April at 7.7% month-on- rebounds in the second half of And the hoarded scrap
falsely bullish impression of the month and 5.9% year-on-year May lead continued to attracted into the supply
fundamentals if taken at face is understating domestic output. struggle. chain by the Q4 2016 price
value. WBMS data indicating a A reality of less demand and We think it will catch up, spike has postponed the
global 8.3% year-on-year more supply than reported is not but if we are looking for some emergence of a sustainable
increase in apparent demand bullish and should cap the upside fundamental reasons why it refined market deficit until
during Q1, including 21.3% in for prices. Our Q2 cash price seems reluctant, there are after the scrap glut has been
China, is overstating the forecast remains $1,960/tonne. a few. worked through.
Copper Nickel
Q1 mine losses not fully priced in Supply outlook raised, price forecasts lowered
Our outlook for copper has LME cash price, $/t Our base case price forecast for LME cash price, $/t
been bullish for Q1, neutral 7,000 Q2 was $10,350/tonne. It was 16,000
for Q2 and we are bullish never really asking too much of a 14,000
again for Q3-Q4. market that was toying with 12,000
So far the market is moving 5,000 $11,000/tonne as recently as
10,000
nicely in line with this view. March and has been primed for
Our Q1 price forecast turned LME/MBR short-covering rallies. 8,000
LME/MBR
out to be 98.7% accurate and 3,000 We had factored in 6,000
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largest zinc smelters is a key are assuming the Chinese conditions within China that
factor and production has government succeeds with eventually led to a price crash in
slipped to an annualised concentrate output increased by reported plans to permanently March this year. We anticipate
5.6-5.7m tpy pace in April from 6.2% year-on-year or around close all steelmaking induction mills will cut production from
around 6.0-6.1m tpy in Q1 and 70kt. furnaces by the end of June, May/June in order to restore the
6.5-6.5m tpy in Q4 2016. For Even assuming that Glencore China would cut 150-200 modest profitability gained over
zinc bulls the big question now is keeps its shuttered capacity million tonnes in gross terms. the past year. MBR forecasts a
how quickly will the supply off-line this year, available We have seen positive sentiment modest increase in production
response from miners lead to a guidance suggests full-year created over potentially by 1% in 2017, to 816 million
rebound in smelter output. With output is set to increase by a tightening supply, if more in tonnes.
all Q1 results now in from our not-insignificant 440kt in 2017. long- than flat-rolled products.
sample set of around 70% of We have lowered our Q2 price Does that mean China will Analysis by Duo Fu,
global mine production outside forecast to $2,650/tonne, but reduce production this year? By Metal Bulletin Research
China, we can see that zinc still expect higher prices in H2.
Every month an MBR analyst answers a question raised by
Analysis by Andy Cole, base metals analyst and editor of MBRs Base readers. If you have a question for our analysts, please email:
Metals Weekly Market Tracker. Email: Acole@metalbulletinresearch.com acole@metalbulletinresearch.com
provides independent, detailed and timely analysis on the latest data, For free samples of MBRs reports, please call Harriet Hall
price movements and developments that impact the market conditions (tel: +44 (0)20 7779 8000) or access
and outlook for LME-traded base metals. www.metalbulletinresearch.com/freesample.aspx
Alba Line 6
1.35
KM
Making us the
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MBR analysis
Steel Steel raw materials
Signs of revival beginning to appear Supply-side pressure on raw material prices
After sharper than expected 110 A strong Chinese market drove 140 Jan 2012 = 100
MBR
drops through April steel has 100 bullish sentiment in Q1 2017,
begun to revive, driven by 90 fuelling steel production and iron 100
developments in China, most 80
ore consumption. However,
70 60
notably flat-rolled products. steel run rates slowing down is
60
Deducting for local taxes, prices likely to pull down iron ore
50Jan 12 20
Jul 12
Jan 13
Jul 13
Jan 14
Jul 14
Jan 15
Jul 15
Jan 16
Jul 16
Jan 12
Jul 12
Jan 13
Jul 13
Jan 14
Jul 14
Jan 15
Jul 15
Jan 16
Jul 16
Jan 17
May 17
Jan 17
May 17
of HRC across the three Chinese consumption rates while
markets MB covers have revived Global flat products index restricting growth in imports, Asian import HMS No1 CFR
by close to $30/tonne over the Global long products index Jan 2012 = 100 which have grown more quickly Fines 63.5% cfr main China ports ($/tonne)
past month to an average just Steel price index MBR than demand. The result has Australian hard coking spot fob price (metric)
For access to MBRs detailed product and regional price, supply and demand forecasts or for a free sample of MBRs Steel
or Steel Raw Materials Market Trackers: www.metalbulletinresearch.com/freesample.aspx
In this section, MBRs steel and steel raw materials team summarise their in-depth reports to highlight key
factors driving the markets and short-term price forecasts. MBR is a leading independent supplier of product and
regional price, supply and demand forecasts for steel and raw materials. For free samples of MBRs reports, call
Harriet Hall (+44 (0)20 7779 8000) or access www.metalbulletinresearch.com/freesample
5N PLUS
When Arjang (AJ) Roshan took jumped at the opportunity, feeling engineer and wanted to do more
over as president and ceo of 5N that the company was undervalued with people
Plus, he had a tough task ahead of and would present an interesting Ford was my first job after
him. The companys share price challenge. college, and I loved working with
was languishing at all-time lows at An American national with cars. I liked engineering, but Im
the end of 2015, shortly before his much of his life spent on the east not your typical engineer Im
appointment, and the metal prices coast and mid-west regions, more extroverted and like more
to which the company was Roshan began his career as an interaction with people as it helps
exposed were also at multi-year engineer with Ford Motor me learn, he recalls.
lows, further hurting the Company some 25 years ago, After Ford, he worked for Bosch
companys bottom line. before moving to Bosch in 1995 as a project manager and three
Nevertheless, when approached to and later joining Degussa. He years later, when Degussa, active
join the stressed company, he never felt entirely satisfied as an in precious metals, wanted to
Umicore years
I had a very good mentor at
Umicore in the US. I had a boss
who early on taught me that the
greatest legacy a manager leaves
behind is the people in his or her
team you can develop a great
business and it can disappear but if
you develop the people in the
business, years later, you can look
back and derive pleasure from
seeing them thriving. You can really
feel part of their success story and
it is a fantastic feeling so my
motivation is not purely altruistic.
What followed was years of
night school as Roshan took his
MBA with Michigan State
University and an executive
education programme with the
University of Michigan. I was
going to school at night a lot
because I wanted to learn more
about leadership and how you
develop business and put the
infrastructure there to make it industry after all. I had a lot of
more sustainable... So now Ive got respect for them and knew they
a few degrees and have put a lot of were going through some tough
money into the education system! times and thought I could do
Roshan worked for Umicore for something about it. I have
18 years in various roles across experience with turnarounds and
North America, Europe and Asia, thought I could be of help in
before moving back home to the setting the company on the right
USA. He was in charge of path.
Asia-Pacific for Umicores He explains that companies go
Automotive Catalysts business through different cycles: Some
based in Shanghai and ran the start with an entrepreneur and
region, which gave him valuable eventually need an operator you
exposure to running a business in need different skills at different
that part of the world and within times in a companys life and
the precious metals industry. evolution. I think 5N Plus has a lot
After this assignment he was asked of the basic elements needed to
to move to Europe and was put in succeed and now we need to bring
charge of a global division based in it all together and selectively foster
5N PLUS
company was damages done various ski slopes in the mountain When you come from people and what he
during 2015 a difficult year for passes of Vermont and New calls team chemistry. He believes
the whole minor metals market a Hampshire.
build a strong that HR can and should be used as
time when 5N Plus opted for In a given month Im in team, if you an advanced function in order to
renegotiation and in select cases Montreal for at least two weeks, I are not around give the company a competitive
discontinuation of certain travel to our global sites one week the next day, advantage.
contracts. While this happened and then I go home. I work out of a Look, with enough money, you
prior to Roshan joining the home office one week a month, and the business can buy anything technology,
company he viewed the issue as try to be home on the weekends as continues to you can even buy good people, but
one of his priorities to address: much as I can as Ive got small kids, move forward the thing you cannot buy is
When you end up in this situation its a mix between driving and chemistry. Thats when things
your best choice is to be flying to Montreal You get tired come together. There has been
transparent about the past and of all those security checks and many soccer teams with a bunch of
look for ways to amend the sitting in the tin can. superstars but no success. In
relationship this is why I This gives him time to reflect on almost every case what lacked was
emphasise more and more having the key building blocks of the team chemistry, and I think this is
strategic relationships with our company, and how he wants to the most under-represented,
suppliers and not every supplier is position it moving forwards. The under-appreciated element in
going to be on that list. If you look diversity of the industry is what running a business, he stresses.
at some of the quarterly reports, keeps things interesting. There are We tend to have certain cult of
you will notice that we have gone so many places to get involved, personalities in our industry where
through a great deal of effort to anywhere from space to consumer it can be all about one person, and I
restructure our supply contracts in electronics, pigments, energy dont want to be one of those. If we
a manner which protects the generation, nutrition, medical are successful and are one of the
interests of both parties. industry, security, chemicals and best of breed, five years from now,
He says that, a few years back, so on. A few years ago, for all intent it will be our management team
some market participants and purpose this company was a that have enabled that success.
displayed irrational exuberance solar company now its much This path to success is surely more
and moved too quickly and more than that. You look at the sustainable.
without consideration for the minor metals space and its linked He says it also means stability:
fundamentals: If you look at the to a number of megatrends. So I When you build a strong team, if
enthusiasm around minor metals, think a good company is one that you are not around the next day,
the speculative buying and how selectively picks its place and the business continues to move
fast people were signing contracts; doesnt shoot at everything that forward which is important for a
in hindsight, it was a recipe for moves. publicly traded company. It sounds
disappointment. This being said, He says that the company has like lip service, but in good companies
the answer is not to unilaterally also engaged in commercial this is visible look at Apple. After
demand change. By 2016, 5N hedging: We look to close some of taking over from Steve Jobs, what
Plus had engaged its supply base to the metal position associated with Tim Cook and his team have
address these issues, Our focus our products in a manner which achieved speaks for itself.
was to sit down with our suppliers secures our product margins and You tend to see good CEOs
and work things out. We reduces our exposure to earnings spend 30-40% of their time on
recognised that the situation had volatility we call this commercial talent development, nurturing and
changed, there were new hedging. People that come from coaching.
realities this is what I mean when the trading side think were crazy Clearly Roshans heart is in the
I talk about collaborative efforts to because they see metal prices minor metals business which he
seek win-win versus looking for being low and see upside, but if you describes as infectious and he
the short-term gains. aim to address volatility with will continue building 5N Plus into
We had to do what we had to do tactics like commercial hedging what he hopes will be a very
in 2015 it was a difficult year. Im the time for it is when metal strong company based on quality
not going to second guess the notations are low and there is a of earnings, esprit de corps, and
previous management. All Im reception in the market place. At high-performing teams.
going to say is that, on the supply the end of the day I do not believe He concludes: I find the
side, we have amicably resolved all anyone in our industry can industry exhilarating, in addition
issues and we are now focusing on completely eliminate volatility, to its fertile learning grounds, for
the customer topics, he adds. this being said, good companies me, perhaps the most enjoyable
with long-term perspective of the part of my job is about building
Home and work market seek to reduce it as best as strong teams. We have some very
Roshan commutes between his they can. good individuals in our company,
home in Boston and office in and I see my legacy to be helping
Montreal every couple of weeks, Building teams them reach their potential as they
often driving between the two and For Roshan, the key element for seek to deliver outstanding results
sometimes taking advantage of the the success of his company will as a team.
Hogg joins Liberty House reporting to cfo Eeva Sipil. Metsos Clark resigns from
previous cio, Pirkka Penttinen, is
Peter Hogg has left British Steel, leaving Metso on his own initiative.
Wolf Minerals
where he was a director, to join the Russell Clark has resigned as md of
speciality steel unit of Liberty House. OHegarty moves to tungsten miner Wolf Minerals and
Hogg has become coo of the cfo Richard Lucas has taken over on
companys electric arc furnace ADM Services an interim basis. Over the last three
steelworks and bar mill in Diarmuid OHegarty has joined and a half years Russell has
Rotherham, north-west England, LME Category 2 member ADM transformed Wolf from an Australia-
BOLIDEN
which Liberty House recently Investor Services as compliance based project developer into a UK
purchased from Tata Steel UK. Monica Quinteiro director. OHegarty, a former deputy producer through the construction of
Additional senior appointments by ceo of the London Metal Exchange, theDrakelandsproject,Wolfchairman
Liberty House include Jon Bolton as replaces Charles Brimble. John Hopkins said in a statement.
ceo of Libertys speciality steels unit, OHegarty, who resigned from his
moving from his role heading up role as coo at the LME in August Chiles CAP names president
Libertys steel development unit and 2013 and left the exchange in
Scottish-based steel plate business, February 2014, has also been made The Board of Directors at Chilean
and Chris Kirby who joins the an honorary member of the LME, in long steel and iron ore producer
speciality steel division as cfo. recognition of his contribution to the Compaa de Acero del Pacfico
development of the bourse over (CAP) has named Fernando Reitich
Centaurus non-executive more than 15 years. as its new president. He replaces
Roberto de Andraca, who resigned
GARMCO
Shon Loth will lead Englehart with technical responsibility for both
Commodities Trading Partners
NanoSteels new cfo existing by-products and the
metals and minerals division after the Rhonda Landers NanoSteel has announced that development of new ones.
commodities trader reshuffled its Rhonda Landers has joined as chief
senior management. Loth was financial officer. Rhonda is an WireCo confirms
formerly head of BTG Pactuals accomplished executive with
warehousing and metals trading arm expertise in financial operations and OLearys roles
before it became Englehart CTP. M&A within high-growth, WireCo WorldGroup has confirmed
The companys head trader innovation-led organisations, said the appointment of James OLeary as
Ricardo Leyman, who has also been David Paratore, president and ceo of ceo and executive chairman after he
working as ceo, will remain as chief NanoSteel. Her successful track served in both roles on an interim
trader but chairman Huw Jenkins record in value creation will be basis after former ceo Chris Ayers
will now become ceo. central to our strategy as we move to stepped down in January. OLeary
commercialisation with our sheet previously served as chairman and
Interim ceo at Garmco steel products and expand our ceo at Kaydon Corp.
offerings in metal powders for 3D
Gulf Aluminium Rolling Mill printing.
(Garmco) has announced that
Simon Heale retires as
Mohamed Essa Ebrahim, the current chairman of KAZ Minerals
general manager of operations, has
Trafigura India hires Simon Heale, the non-executive
become the acting chief executive senior trader chairman of KAZ Minerals, will retire
officer. Trafigura India has hired Amol from the board at the end of 2017
Mehra as senior trader and head of after11years,includingfiveaschairman.
New chief information trading for its Lykos platform. Based He will be replacedbycurrentceoOleg
LIBERTY HOUSE
Technology helps people to adapt to changing environments. It gives you control, but it should
never control you.
2015
2017 Midrex
Midrex Technologies,
Technologies, Inc. Inc. All rights
All rights reserved.
reserved.
Top steelmakers in 2016
Top steelmakers
steel prices started to recover in the
first quarter of 2016 and really
began to pick up steam in the
second quarter, before backing off
slightly later in the year but never
2017 edition
getting back down to 2015 levels.
After a short pause, they began to
move up again starting in late-2016
and continued climbing until they
peaked this April. Although they
could continue to ease downward
As global steelmaking capacity continues to through the second half, John
Anton, director of steel analytics for
outpace demand, mills continue to jostle for the pricing and purchasing service
advantage through strategic innovations and of IHS Markit, says that he does not
believe that they will crash. In fact,
governmental interventions on international trade. they could find some upward
support by a combination of
Metal Bulletins correspondents around the world conventional anti-dumping trade
review developments in their regional steel sectors cases, the possibility of Section 232
tariffs and the Trump
in 2016 and the consider outlook for 2017 administrations Buy American
push for both the energy and
manufacturing sectors.
NORTH AMERICA According to the American Iron While he does not believe it is
and Steel Institute (AISI), following likely, Anton says that should the
Growth year expected a 0.5% decline in 2016, US raw steel Section 232 and the Buy American
Even though it seemed as if the production had increased by 34% order both of which are at the
North American steel market had year-on-year to the end of March, discretion of US president Donald
recently peaked, all indications now allowing domestic mill capacity Trump go through in their
are that 2017 will be another utilisation to inch up from the low strongest form, they would result in
growth year. 70% level to 74.1% as of mid-May. a tightening of the US steel market
While last year was very volatile, Lastest AISI data show that and possibly as much as a 20-30%
it was definitely better than 2015, adjusted year-to-date production to rise in product prices.
which was a dreadful year, says Amy the end of 20 May 2017 was Recently, despite the numerous
Bennett, principal consultant for 34,665,000 net tons, at a capability trade cases, US steel imports have
Metal Bulletin Research, who says utilisation rate of 74.3%. That was been rising and, especially given the
this turnaround was made possible up by 3.0% from the 33,644,000 strong US dollar and the fact that
by a number of production cutbacks net tons during the same period last US steel prices are generally higher
at several US integrated producers. year, when the capacity utilisation than those elsewhere in the world,
Not only did United States Steel rate was 72.1%. they could continue to do so. US
Corp. (which has fallen one place to Steel operating rates are steel imports reached a two-year
No. 24 in Metal Bulletins global top expected to remain fairly steady high in April. AISI points out that
steelmaker rankings this year) this year despite the ramping up of US steel imports were up by 23.5%
permanently close its blast furnace Big River Steel, which began year-on-year to the end of April,
at its Fairfield, Alabama, works late production in December, and following a 14.9% decline for the
in 2015, it also idled its Granite Commercial Metals Corps second full year in 2016.
City, Illinois, mill. While it restarted rebar mini-mill later this year in Volatile steel raw material prices
the finishing end at Granite City Durant, Oklahoma. According to have been, and continue to be, a big
early in 2017, the hot end of that Christopher Plummer, managing factor in the US steel market.
mill remains closed and US Steels director of Metal Strategies Inc, Plummer points out that after
plans to add an electric arc furnace while Acero Junction the former they more than doubled last year
(EAF) at Fairfield remain Wheeling Pittsburgh Mingo there has recently been a sharp
indefinitely on hold. Junction, Ohio, mill was reversal.
Also, late in 2015 AK Steel Corp. reopened this year, its hot end Underlying steel demand has
(which has fallen to No. 64 from No. remains closed, at least for the time been fairly steady. Bennett notes
62) idled its Ashland, Kentucky, being. that while automotive demand is
mill, and has no immediate plans to While there were also a number easing somewhat, energy and
restart it. ArcelorMittal SA (which of trade cases filed in 2015 and construction demand is picking up,
remains No. 1) had idled one of its 2016 and even a few in 2017 although not booming. On the
two blast furnaces at its Indiana Bennett says it was largely because whole we are optimistic about
Harbor West works, but brought it of these production cutbacks, as 2017, she says.
back on-line earlier this year. opposed to the trade cases, that Myra Pinkham
Ranking Company Country of origin/ 2015 2016 Ranking Company Country of origin/ 2015 2016
2 016 2015* Main domicile Output Output 2 016 2015* Main domicile Output Output
1
1 ArcelorMittal SA
Luxembourg
92,500 90,800 39 40
40 41
Pingxiang Iron & Steel Co Ltd
Techint Group
(Ternium SA) 4
China 9,672 10,081
Luxembourg 9,600 9,764
- 2 New Baowu Steel Group 1
China - 63,805
41 45 Panzhihua Iron & Steel Group China 8,968 9,267
3
3 Nippon Steel & Sumitomo Japan 44,530 45,170
Metal Corp 42 44 Zenith Steel Group China 9,082 9,240
4 2 Hesteel Group Co Ltd 2
China 47,745 44,919 43 46 Erdemir Turkey 8,930 9,185
5 4 POSCO Korea (South) 42,199* 42,210 44 48 Nanjing Iron & Steel United China 8,590 9,009
Co Ltd (NISCO)
6 6 Jiangsu Shagang Group Co Ltd China 34,200 33,250
45 55 Steel Dynamics Inc 5 United States 7,737* 8,621
7 8 Anshan Iron & Steel (Group) Corp China 31,582 33,194
46 47 Xinyu Iron & Steel Co Ltd China 8,644 8,570
8 7 JFE Steel Japan 32,414 33,138
47 53 CITIC Pacific China 7,612 8,404
9 9 Shougang Group China 28,553 26,797
48 52 Metinvest Holding LLC Ukraine 7,669 8,393
10 11 Tata Steel Ltd India 22,902* 24,185
49 54 SSAB AB Sweden 7,593 7,988
11 12 Shandong Iron & Steel Group China 21,692 23,017
50 50 voestalpine Group Austria 7,740 7,470
12 13 Hyundai Steel Co Korea (South) 20,455 20,436
51 60 Esfahans Mobarakeh Steel Co Iran 6,978 7,460
13 14 Nucor Corp 3 United States 17,503* 19,307
52 57 Shaanxi Iron & Steel (Group) China 7,466 7,303
14 15 Maanshan Iron & Steel Co Ltd China 18,820 18,630 Co Ltd
15 16 ThyssenKrupp AG Germany 17,200 17,240 53 56 Kobe Steel Ltd Japan 7,520 7,259
16 20 Jianlong Group China 15,141 16,500 54 59 Celsa Group Spain 7,078 6,942
17 19 Novolipetsk Steel (NLMK) Russia 15,855 16,440 55 49 Tangshan Guofeng Iron & Steel China 8,292 6,898
18 25 SAIL - Steel Authority of India Ltd India 14,390 16,117 56 61 Salzgitter AG Germany 6,652 6,804
19 30 JSW - Jindal South West Steel Ltd India 12,560* 15,800 57 58 Riva Forni Elettrici Italy 7,460 6,320
20 17 Gerdau SA Brazil 16,862 15,677 58 73 Jiangsu Binxin Special Steel China 4,483 6,058
21 22 Valin Group China 14,874 15,482 Material Co Ltd
22 24 China Steel Corp Taiwan 14,480 14,890 59 92 Tangshan Donghai Iron & China 3,301 5,901
Steel Group Co Ltd
23 21 Benxi Iron & Steel (Group) China 14,991 14,402
Special Steel Co Ltd 60= 66 Tsingshan Holding Group China 5,380 5,800
24 23 United States Steel Corp United States 14,600 14,218 60= 69 Ilva SpA Italy 4,700 5,800
(US Steel Corp) 62 64 Minmetals Yingkou Medium China 5,680 5,776
25 27 Rizhao Steel Group China 13,999 13,856 Plate Co Ltd
26 29 Fangda Group China 13,214 13,677 63 51 Jiuquan Iron & Steel (Group) China 7,685 5,500
Co Ltd (JISCO)
27 28 Hebei Xinwuan Iron & China 13,461 13,669
Steel Group 64 62 AK Steel Corp 6 United States 6,431 5,490
28 26 Evraz plc Russia 14,351* 13,527 65 65 Saudi Iron Steel Co (Hadeed) Saudi Arabia 5,229* 5,461
29 31 Magnitogorsk Iron & Steel Russia 12,236 12,544 66 77 BlueScope Steel Ltd 7 Australia 4,215 5,430
Works - MMK 67 95 Essar Steel Ltd India 3,250 5,220
30 32 Baotou Iron and Steel China 11,863 12,303 68 70 Lingyuan Iron & Steel China 4,638 4,880
(Group) Co Ltd (Group) Co Ltd
31 33 Severstal Russia 11,451 11,630 69 71 Jindal Steel & Power Ltd India 4,520 4,800
32 35 Liuzhou Iron & Steel Co China 10,827 11,051 70 72 Metalloinvest Holding Co Russia 4,501 4,662
33 39 Jinxi Iron & Steel Group Co Ltd China 9,768 11,050 71 74 Ahmsa - Altos Hornos de Mexico 4,460 4,650
34 34 Hebei Jingye Group China 11,317 11,013 Mexico SA de CV
35 36 Anyang Iron & Steel Group China 10,740 10,483 72 75 Quzhou Yuanli Metal Co Ltd China 4,387 4,392
Co Ltd (AISCO) 73 76 Mechel OAO (Mechel) Russia 4,321 4,252
36 42 Fujian Sansteel (Group) Co Ltd China 9,575 10,389 74 84 Rashtriya Ispat Nigam Ltd, India 3,640 4,175
37 38 TISCO - Taiyuan Iron & Steel China 10,256 10,282 Visakhapatnam Steel Plant
(Group) Co Ltd (Vizag Steel)
38 37 Handan Zongheng Iron China 10,380 10,232 75 80 Zaporizhstal Integrated Iron Ukraine 3,979 3,891
& Steel Group Co Ltd & Steel Works JSC
76 67 CSN - Companhia Siderurgica Brazil 5,200 3,800 109 114 Zhuhai Yueyufeng Iron & Steel China 2,521 2,564
Nacional Co Ltd
77 93 Ezz Steel Co Egypt 3,281 3,700 110 110 Qatar Steel Co Qatar 2,619 2,544
78 91 Delong Holdings Ltd China 3,306 3,686 111 123 Acerinox SA Spain 2,320 2,475
79 89 Henan Jiyuan Iron & Steel China 3,405 3,603 112 106 Saarstahl AG Germany 2,779 2,451
Group Co Ltd
113 122 Outokumpu Oyj 11 Finland 2,381 2,444
80 82 Nisshin Steel Co Ltd Japan 3,790 3,600
114 117 Xingtai Iron & Steel Co Ltd China 2,512 2,414
81 88 Khouzestan Steel Co (KSC) Iran 3,441 3,590
115 128 Shanxi Jianbang Group China 2,171 2,394
82 96 Shandong Shiheng Special China 3,138 3,541
Steel Group Co Ltd 116 126 Feralpi Group Italy 2,223 2,390
83 86 Tianjin Rockcheck Steel Group China 3,553 3,507 117 125 Badische Stahlwerke GmbH Germany 2,243 2,372
Co Ltd 118 85 Chongqing Iron & Steel China 3,589 2,350
84 79 Shanxi Jincheng Steel Holding China 4,000 3,502 (Group) Co Ltd
(Group) Co Ltd 119 130 Bazhou Xinli Iron & Steel Ltd China 2,128 2,336
85 83 Hebei Qianjin Steel Group Co Ltd China 3,651 3,495 120 121 AG der Dillinger Huttenwerke Germany 2,401 2,267
86 133 Hebei Tianzhu Iron & Steel China 1,839 3,490 121 127 Tokyo Steel Manufacturing Japan 2,189 2,241
(Group) Co Ltd Co Ltd
87 81 Xinxing Ductile Iron Pipes Co China 3,833 3,475 122 118 Belorussian Steel Works (BMZ) Belarus 2,510 2,193
88 87 Commercial Metals Co 8
United States 3,482 3,453 123 134 Colakoglu Metalurji AS Turkey 1,800 2,150
89 90 Dongkuk Steel Mill Co Ltd Korea (South) 3,322 3,287 124 97 Dazhou Iron & Steel Co China 3,102 2,096
90 94 Shandong Taishan Iron China 3,260 3,283 125 131 Jinding Heavy Industries Co Ltd China 2,095 2,007
& Steel Co Ltd
91 100 Diler Group Turkey 3,000 3,200
92 99 Emirates Steel United Arab Emirates 3,006 3,149
Industries PJSC
93 68 Usiminas - Usinas Siderurgicas Brazil 5,007 3,143
de Minas Gerais SA
94 119 Industrias CH SA de CV Mexico 2,449 3,080
95 98 Tangshan Ganglu Iron & Steel China 3,068 3,066
Co Ltd
96 109 Sichuan Tranvic Group Co Ltd China 2,663 3,023
97 111 Hebei Wenfeng Iron and China 2,616 3,005
Steel Co Ltd
98 112 Yancheng Lianxin Iron & Steel China 2,582 2,977
Co Ltd All figures in thousand tonnes
99 101 Acciaieria Arvedi SpA Italy 2,988 2,947 1 Baowu is the result of the merger between Baosteel and Wuhan Iron & Steel
100 78 Icdas Celik Enerji Tersane ve Turkey 2,940* 2,940 2 Listed as Hebei Iron & Steel Group Co Ltd in last years ranking
Ulasim San AS 9 3 Nucor figure converted from reported figures in US tons to (metric) tonnes
primetals.com
Top steelmakers in 2016
(NSSMC), which means Baowu will Baosteel and Wugang, would need Altos Hornos de Mxico
be comfortably established in the to continue taking place, Gu said. (Ahmsa), the best-ranked Mexican
second position for the time being. The rest of the world will be surely steel mill in the Top Steelmaker list,
NSSMC, it is worth mentioning, watching and hoping. in position 71, saw its output slightly
managed to beat Chinas Hebei Iron Juan Weik rise to 4.65 million tonnes last year,
& Steel Group (Hesteel) by just over from 4.46 million tonnes in 2015, as
250,000 tonnes, one year after LATIN AMERICA a result of the ramp-up process of an
seeing the Chinese rival take its No.2 expansion project. In terms of
spot in 2016s ranking. Because of Tough markets financial results, however, the
Baowu, however, the Japanese In Latin America, 2016 was company reported a net loss of 3.17
steelmaker ranks third in this years considered one of the toughest years billion Mexican pesos ($101.70
list. if not the most difficult for the million) in 2016, an improvement
Other Asian mills had mixed fates steel industry. from a net loss of 4.28 billion
in last years list of the worlds largest The Brazilian steel sector went Mexican pesos ($137.31 million) in
steelmakers. Japans JFE Steel, for through its worst ever crisis last the previous year.
instance, moved from the seventh to year, with local demand levels Mexican steel producers have
the eighth place, displaced by reaching their lowest annual volume been severely affected by the
Chinas Angang because of a mere since 2009s 18.80 million tonnes. entrance of low-priced steel
difference of 55,600 tonnes Apparent steel consumption imports, which forced them to
33.194 million tonnes against amounted to 18.20 million tonnes in reduce output levels and diminish
33.138 million tonnes. Indias Tata 2016, down 14.40% compared with sales prices in the domestic market.
Steel, on its turn, saw its output 2015, according to national steel
increase 1.28 million tonnes to institute Ao Brasil. 2017
24.18 million tonnes last year, Brazils political crisis, which In April this year, the Mexican
moving from eleventh to tenth. resulted in the impeachment of government, in an attempt to
Two other Indian mills, Steel president Dilma Rousseff at the end protect the national steel industry,
Authority of India (SAIL) and Jindal of August 2016, has contributed to has extended, for a third time, a 15%
South West Steel (JSW), registered worsening national economic tariff imposed on imports of slab,
even more remarkable results. SAIL conditions, affecting the countrys hot rolled coil, heavy plate, cold
moved from No.25 to No.18 with industrial sector. rolled coil and wire rod.
an increase of 1.72 million tonnes in In this scenario, crude steel The duty will be valid for a further
its output, while JSW saw a boost of output in Brazil fell by 9.15% six-month period from 7 April
3.49 million tonnes last year, which year-on-year in 2016, to 30.21 2017, according to the countrys
took it to No.19 from No.30 in the million tonnes from 33.26 million Economy Secretariat. The lack of
ranking. tonnes, Ao Brasil figures show. conditions for healthy competition
For now, the spotlight remains on Brazil-based companies present between steel industries of different
China and on the capacity cuts being in Metal Bulletins Top Steelmakers countries persists, making
implemented on its steel industry as list, such as Gerdau, Usiminas and necessary the renewal of the 15%
part of the countrys supply-side CSN, all cut production last year, tariff against imports, the
reform. In January 2016, the including the shutdown of some Secretariat said at that time.
Chinese government set out a target steelmaking facilities. Long Ahmsa has welcomed the
to eliminate 100-150 million tpy of steel-focused producer Gerdau, measure, saying that the extension
crude steelmaking capacity over a ranked 20 in the MB list, saw its of the 15% duty guarantees the
five-year period, with more than 65 global crude steel output drop to continuity of Ahmsas operations
million tpy achieved in 2016 and a 15.68 million tonnes in 2016 from and investments to supply
further 50 million tpy planned for 16.86 million tonnes a year before. high-added value products.
2017. Ranked 93 in the MB list, In Brazil, meanwhile, local
Capacity cuts coupled with other flat-rolled steelmaker Usiminas steelmakers continue operating
mergers would bring a reported a crude steel production of amid a slower-than-expected
much-needed relief to Chinas 3.14 million tonnes last year, down market recovery, with a rebound in
fragmented steel industry, which from 5 million tonnes in 2015. And the Brazilian market expected to
has been partially behind the pricing CSN, ranked 76 in the list, saw its start to be seen in the second half of
pressure seen on the metal for the crude steel output plunge to 3.80 this year.
past several years. In a conference at million tonnes from 5.20 million In Brazil At the end of April, Ao Brasil has
the end of December, Gu Jianguo, a tonnes in the same comparison. steelmakers reduced its forecast for steel sales in
vice- president at the China Iron & In Mexico, meanwhile, apparent 2017, due to the weak performance
Steel Assn (Cisa), noted the steel steel consumption increased to
continue of the countrys economy. The
industry concentration ratio was 25.40 million tonnes in 2016 from operating association now expects domestic
still very low in the country, with the 24.20 million tonnes in 2015, amid a slower- steel sales to reach 16.70 million
top-ten biggest mills controlling according to figures published by than-expected tonnes this year, down from its
only around 30% of the market. the World Steel Association. But previous prediction of 16.92 million
In that sense, the so-called most of this increase in local demand market tonnes, published in November
megamergers, like the one between was met by imported goods. recovery 2016.
Gerdau, for instance, predicted in Iron & Steel Conference in Dubai The Middle East products made locally, especially
early May a gradual recovery for (MEIS 2016) on December 12-14 government sector projects, Saeed
the Brazilian steel sector. The December 2016.
and North Africa Ghumran Al-Romaithi, said.
biggest challenge [for Brazilian Rebar production capacity in the (Mena) region The UAE applies 250 dirhams
steelmakers] is the revival of the long GCC is much higher than [local] will continue ($68) per tonne duty on scrap
steel market, Gerdau ceo Andr demand. And while we have very to see steel exports from the UAE, and this
Gerdau Johannpeter said. We used low import duties compared with helped local producers source their
to have an annual long steel demand other countries in the world, our demand growth raw materials, according to
of 9.50-10 million tonnes, but production costs keep rising due to in the years to Emirates Steel.
current levels are 6-6.50 million increases in the prices for power and come
tonnes. natural gas, he said, adding: How Iran
Usiminas, meanwhile, announced will producers survive and compete Iran recorded the highest crude steel
in mid-May that it will restart the with low-priced imports? output in the region, with 17.90
No. 1 blast furnace at its Ipatinga Saudi Arabian flat steel coater million tonnes, up by 10.83% from
works, in the countrys south-eastern Unicoil is focusing on the 16.15 million tonnes in 2015. The
Minas Gerais state, in April 2018. standardisation and use of country ranked as the 14th largest
This move may be considered one high-quality coils, while highlighting steel producing nation in 2016 the
of the first signs of a positive the disadvantages of low-quality same rank it held in 2015.
perspective for Brazils steel imported coated coils. The In the last Iranian year (20 March
industry. In May 2015, Usiminas company is working with the Saudi 2015 to 21 March 2016), the
decided to temporarily halt Standards, Metrology and Quality countrys apparent steel
operations at the No. 1 blast furnace Organization (SASO) to establish consumption was assessed as 15-16
at Ipatinga, as well as the No. 1 unit high standards. million tonnes, according to
at its Cubato works, in So Paulo GCC countries started a safeguard estimates by market participants.
state, because of weak market investigation into coated flat carbon This was down by around 1-1.5
conditions. steel in widths of 600 mm and million tonnes year-on-year. The
Ana Paula Camargo above, under import tariff codes problem is in the lack of investments
721070 and 721090, in June 2016, in steel-consuming sectors, a
MIDDLE EAST after an application filed by Unicoil. producer told Metal Bulletin in
December 2016.
Production and protection UAE The World Bank expects growth
Middle East crude steel production Crude steel production in the UAE in gross domestic product (GDP) of
increased by 7.60% in 2016, with a totalled 3.15 million tonnes in 2016, around 4% for Iran this year, with
total output of 29.03 million tonnes up by 4.76% on an annual basis from increased activity in the oil & gas
compared with 26.97 million tonnes 3.01 million tonnes in 2015. sector contributing 2.60% of this
in 2015. The Middle East and North In September 2016, rebar growth. The balance will come from
Africa (Mena) region will continue industry participants in the UAE the services sector.
to see steel demand growth in the met to discuss ways to promote the However, steel-intensive sectors
years to come despite short-term use of locally produced rebar and to such as construction and
challenges, regional executives said stem the increasing volumes of infrastructure are not expected to
at the worldsteel 50th conference in cheap imports, particularly those show sizeable growth until later in
Dubai, UAE, on 11 October 2016. from China and Turkey. They 2017. The countrys government
Demand is always there in the formed the Magnet initiative. plans to increase annual steel output
region. Potential has always been Several Magnet meetings have been to 55 million tonnes by 2025, with
there. Construction is always a held since then, with the focus to the largest portion of steelmaking
driver behind steel, Saeed reduce dependency on imports. projects to be commissioned in the
Ghumran Al-Romaithi, ceo of Members of Magnet include next three years.
Emirates Steel, said. Emirates Steel, Conares Steel, Jindal
The steel producers in the region Shadeed Iron and Steel, Hamriyah Saudi Arabia and Qatar
continued to focus on encouraging Steel and Union Iron & Steel. In Saudi Arabia produced 5.46 million
use of local products rather than May 2017, they noted that steel tonnes of crude steel in 2016, a
imports, and to look for ways to limit producers in the UAE have enjoyed 4.44% increase compared with 5.23
imports and bring in new an increased market share for locally million tonnes a year earlier,
regulations. produced rebar recently, and expect according to worldsteel data.
The import duties imposed on to see good demand for continuing Demand for rebar imports
rebar imported to the Gulf projects in the region, especially remained weak in 2016, and so far in
Co-operation Council (GCC) region those related to infrastructure 2017, as local material was
must, and soon will be, increased to developments for the World Expo sufficient.
at least 10% from the current 5%, 2020 in Dubai. Qatar produced 2.52 million
Naushad Ansari, ceo of Omans Current market sentiment is tonnes of crude steel in 2016, a drop
Jindal Shadeed Iron & Steel said in positive. We are here to encourage of 2.78% from 2.59 million tonnes a
an interview on the sidelines of the UAE infrastructure year earlier.
Metal Bulletins 20th Middle East development sector to use steel Serife Durmus
STANBUL
PLANT
HATAY
www.mmkturkey.com.tr
PLANT export@mmkturkey.com.tr
Turkish steel
SHUTTERSTOCK
invest in crude steel and flat steel between Turkey and Russia to
production, potentially in Romania recover, which had been tense
or Russia. since November 2015 when
Turkeys Atakas Steel started tpy continuous pickling line in June Long steel producers Turkish F-16 fighter jets shot down
production of cold rolled coil 2016. The company also started are hopeful a Russian military aircraft, under
(CRC), hot-dip galvanized and commercial production of about 2017, with the countrys rules of engagement,
pre-painted galvanized steel, also galvalume in December last year. expectations of above the border with Syria, as
known as colour-coated coil, in The galvalume line, located in better demand and global and regional powers became
2016. All its production lines had Kartepe, close to Istanbul, has a stronger prices embroiled in that countrys
reached their full capacity by early capacity of 350,000 tpy, producing internal upheavals.
2017. The company also has a 1 0.30-3 mm galvalume coils. Turkey and Russia resumed talks
million tpy pickling line and can Turkish steelmaker Tosyali Toyo on the planned Turkish Stream gas
produce coil in gauges of 1.50-5 will start commercial production pipeline in August last year and on
mm and widths of 600-1,550 mm. soon, the companys chairman said 10 October they signed an
The CRC lines have a capacity of in April 2017. The mill started trial inter-governmental agreement to
700,000 tpy and can produce coil production in December last year, restart the project. The Turkish
0.25-5 mm thick, and 600-1,550 and has total capacity for 1.2 Stream pipeline will include the
mm wide coils. The hot-dip million tpy of CRC, tinplate, construction of at least one
galvanizing line has a capacity of hot-dip galvanized, and colour- offshore strand, which will link
400,000 tpy, and can produce coil coated coil. The mill in Osmaniye, Russia and Turkey under the Black
0.25-3 mm thick, 600-1,550 mm southern Turkey, is 51%-owned by Sea by the second half of 2019,
wide, and with zinc coating from Turkeys Tosyali Holding and with the possible construction of
60 g/sq metre to 600 g/sq metre. It 49%-owned by Japans Toyo another line.
also produces PPGI in gauges of Kohan. The first line will carry gas for
0.25-1.5 mm and widths of The Turkish Steel Producers Turkish domestic consumers,
700-1,530 mm. Paint can be Association forecast for 2017 is 36 while the second is planned to
applied to one side or both, using million tonnes of steel end-product transport gas onward to Europe.
polyester, PVDF, plastisol or consumption and 35 million
polyurethane upper layers. tonnes of crude steel production. Changing export regions
Phase 2 of the companys In the first four months of the year,
investment will include a cleaning LONG PRODUCTS Turkish steel exports rose to 6.9
line, and annealing and skin-pass Turkish rebar and billet markets million tonnes, around 4 million
lines. The project is planned for were impacted in 2016 by political tonnes of which was long steel
completion in the last quarter of and economic problems within the products, according to CIB.
2017. country and by turmoil in January-April steel exports were
During a planned third phase of neighbouring nations, notably Syria. up 23.9% year-on-year, while the
investment, the companys port Nevertheless, Turkish sources value of the exports was also up, by
construction will continue, for were still optimistic about the 42.8% year-on-year, to $4 billion.
which the opening is targeted for prospects for the market in 2017, Turkish steel exporters looked
the last quarter of this year. The and prices were expected to for different destinations for their
company also plans to invest in a increase slightly because of products as the demand in their
power station. How this will be reduced competitive pressure usual markets, like the Middle East
fuelled has not been revealed but, from Chinese mills. and North Africa, was sluggish.
since Atakas also deals in coal, it is On 15 July 2016, members of They significantly increased exports
likely to be coal-fed. the Turkish army attempted a to East Asia, Southeast Asia and
Turkish flat steel re-roller and military coup but failed to take Latin America over the period.
coater Tezcan Galvaniz reached control of the countrys Turkey increased its exports into
full capacity at its new 1.2 million government. The effects of this East Asian and Southeast Asian
countries by more than six-fold We forecast anticipated decision on strengthening steel industry,
year-on-year to 557,000 tonnes in Wednesday 1 March. Habas and he added.
the first four months of the year,
an increase in Icdas received preliminary The IB also expects better
while exports to Latin America Turkeys steel dumping margins of 5.29% and market conditions in 2017, with
rose by 80% year-on-year to production 7.07%, respectively, with a domestic demand being supported
538,000 tonnes. In the same in 2017, in preliminary margin of 6.20% by new projects and urban
period, Turkish exporters shipped applying to all other Turkish transformation schemes. Turkeys
2 million tonnes of steel products parallel with producers and exporters. steel industry produced 31.5
into Europe, just over double the countrys Two-and-a-half months later, million tonnes of steel products in
year-on-year. growing the US Commerce Department set 2016, ranking it as the ninth-
The country also exported 1.60 final anti-dumping margins on biggest steel-producing country
million tonnes of steel products
economy rebar imports from Turkey and globally. It also ranked tenth
into the Middle East, 953,000 Japan in a decision announced on globally for exports, shipping 16.1
tonnes to North America and Tuesday 16 May. The US million tonnes. The country was
565,000 tonnes to North Africa in Commerce Department set also the second-biggest rebar
the January-April period. The 6.90 anti-dumping rates of 6.94% on exporter in the world in 2016,
million tonnes total for the period Turkey the so-called all others according to the IB.
included 2.30 million tonnes of exporter rate compared with The Turkish steel industry
rebar, 1 million tonnes of HRC, 6.20% in a preliminary ruling on 1 wants to maintain its position in
632,000 tonnes of steel pipes, March. Habas and Icdas received the steel industry in 2017 and aims
551,000 tonnes of wire rod and final rates of 5.39% and 8.17%, to increase its exports by 3%, IB
517,000 tonnes of sections. respectively. Turkeys Habas also said. Our industry will have a
We continue [on from] the received a big countervailing better year in 2017 with the news
increase we gained at the beginning margin, of 16.21%. All other that public investment will be
of the year, [breaking an] 11-year Turkish exporters face a increased, some important projects
record with 6.90 million tonnes of countervailing rate of 1.25%. will start, [there will be] increasing
exports in the first four months of urban transformation and [there
the year, CIB chairman Namik Outlook will also be] better demand in the
Ekinci said. [Rising] steel export Market participants remained white goods and automotive
prices in global markets optimistic for 2017 with sectors, Namik Ekinci said.
especially in China [have had a] expectations of increasing steel About 70% of the raw material
positive impact on the Turkish production and lower pressure usage in Turkey is scrap. Scrap
steel industry. [And] we expect to from the Asian steel markets. We prices were comparatively cheaper
catch the record-breaking 2012 forecast an increase in Turkeys than iron ore in 2016 and this
export figures if these conditions steel production in 2017, in increased the industrys
last, he added. parallel with the countrys growing competitiveness. A continuation of
However, Ekinci admitted there economy, Veysel Yayan, TD this situation will positively affect
had been a big drop in rebar general secretary said. sales figures in 2017, he added.
exports to more local export The overcapacity in Asia will The recovery in the US, EU,
destinations. We had serious remain a threat for Turkish Japanese and Chinese domestic
losses in rebar exports into Middle industry [because it creates] low markets will also positively affect
East countries in the given period, prices, but China will not be as our exports, especially in flat
[with] the war in the area and comfortable as it used to be with products.
protectionist actions against our the strong reactions from steel- Relations between Asia and US
exports [slowing] trading importing countries, Yayan said. president Donald Trump are
activities, he said. There have been political another factor that will have
For instance, Turkish exports problems all the time. But the consequences for the Turkish
into Egypt fell by 91.20% year-on- [over-arching] problem is that we market, some market observers
year to 35,000 tonnes, while have more problems than usual believe. The main driver for the
exports to the UAE fell by 81.70% today, he added. Turkish steel industry will still be
year-on-year to 89,000 tonnes, We expect that the chaos in Asia, a Turkish trader said.
he explained. But we managed neighbouring countries will be I think relations between
to compensate with sales into resolved and stability will be Trump and Asia will determine the
[East Asian and Southeast Asian] re-established in 2017. This will future. I do not expect raw material
countries, such as Singapore, not happen in one day, but the prices to weaken much in 2017.
Hong Kong and Malaysia, he ending of the upheavals in the The changes in the oil, iron ore and
added. region will lead to a very fast coking coal prices will not be more
recovery in the economy, Yayan than 20%, [and this] will cause
US trade measures said. With a recovery in the better demand and [make it] a
The US Commerce Department region, oil prices will rise and better year, he said. Especially,
set preliminary anti-dumping delayed investments will get back the USA will focus on its domestic
duties of 5.29-7.07% on Turkish into action as a result. We expect market and demand will improve,
rebar imports, in a widely 2017 to be a positive year, with a he concluded.
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Iron ore
Price fluctuations
Iron ore prices began a sudden climb in
November last year, peaking at $80.83 per
tonne (index of spot market iron ore prices
delivered to China, normalised to Qingdao
and 62% Fe) on November 28 before
becoming volatile. They have since remained
volatile, reaching $94.86/tonne on February
21 the highest price in 30 months before
VALE
16
16
16
16
16
16
16
16
16
16
16
16
16
17
17
17
17
17
17
17
r1
r1
t1
t1
ar
ar
ay
ay
according to data released by the Pilbara Ports
ay
Ap
Ap
Ju
Ju
Oc
Oc
De
De
Fe
Fe
Ja
No
No
Au
Au
Se
Se
Ju
Ju
M
M
08
25
12
27
16
04
20
01
16
13
29
09
27
03
20
07
22
08
22
10
25
11
28
23
Authority. Source: Metal Bulletin
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50
40 36%
Production (%)
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21% 22%
20
15%
10 6%
0
0.8 - 1.0 1.0 - 1.2 1.2 - 1.5 1.5 - 3.0 > 3.0
Strip thickness (mm)
The BHP Billiton view on steel trade flows While big miners are planning to increase scenario that would see imports reduced.
is that China will export steel to feed part of production and ship much of their output to However, that is very unlikely.
emerging Asias market demand. As a result, a China, the countrys domestic producers are
greater share of Chinese steel production will continuing with iron ore production Australian view
be drawn from the countrys south-east coast, themselves, despite steelmakers preference The Australian government does not appear
which will support modest growth in global for higher grade imported material. Slavov to view either increased domestic ore
demand for seaborne raw materials over the estimates that about 75% of Chinese iron ore production in China or a potential move
next decade or so, he added. production is losing money. However, they towards more scrap use in steelmaking there
In conclusion, Basto said: The growth of can continue to produce iron ore at a loss as issues for concern. The report Resources
seaborne iron ore supply is expected to because many of the mines and mills are and Energy Quarterly, published in March by
outpace total demand over this period. integrated. While they are [effectively] losing the Department of Industry, Innovation and
Overall we believe we are well positioned, as money mining the ore, they are still in profit Science in Australia, states: Growing supply
low-cost iron ore producers in established with the finished steel that is produced from [of iron ore to China], primarily from
locations are expected to lead this supply. that mined ore. Australia and Brazil, is expected to steadily
Fortescue Metals Groups confidence in the Asked how recent price fluctuations have outpace demand growth over the rest of 2017.
demand for the iron ore it mines is reflected in impacted on domestic Chinese production, The same report also acknowledges
the news that its second seaborne iron ore carrier, Ramsay says: The latest price fall has had a stockpiling of ore in China. Chinas iron ore
the FMG Grace, was delivered in February direct impact on Chinese iron ore production. port stocks have steadily risen in the
and more are being built. In a press release When you look at all the other [material] December and March quarters, to reach 130
detailing the companys March quarterly producers in China, they had an unusually million tonnes the highest level on record.
results, Fortescue said: Construction of the strong month in April. If you look at crude Yet the department takes a positive view on
remaining six vessels [for shipping seaborne steel, iron production, coal production and the continuing export of iron ore from
iron ore] continues on schedule with total coke production, Aprils figures were Australia to China, stating: However,
FY17 capital expenditure of $270 million and significantly higher than in March. The only anecdotes suggest that a large share of this
$180 million in FY18. exception was iron ore. It could be an early [Chinas stocks] comprises low-grade iron
Fortescue has reported shipments of 39.6 indicator that prices around $60 are starting ore, while demand for higher grade ore
million tonnes of iron ore with cash production to cause problems. remains strong the supply of high-grade
costs of $13.06 per wet metric tonne (wmt) in He added that steelmakers have not put iron ore should increase and persistently high
Q1 2017 a 12% improvement over the prior prices up as much as MBR thought they rising stocks will eventually place downward
comparable period of Q4 2016. would and that is because iron ore prices have pressure on the price.
been so low that they have not needed to put The report also analyses other markets:
Vales record output their prices up by much to remain profitable. Indias iron ore production is projected to
Despite the lower exports of iron ore from Chinese domestic iron ore production was grow at an annual average of 2.8%, to reach
Brazil described earlier, Vale achieved a discussed at the 20th Annual Global Iron Ore 188 million tonnes in 2022.
record of 86.2 million tonnes of iron ore and Steel Forecast Conference, in March, by However, the reports authors are
production in the first quarter of 2017, 11.2% Kellie Parker, Rio Tintos managing director untroubled by this increase in Indian
higher than the same period in 2016 due to for planning integration and assets. During domestic production as it continues: Indias
the ramp-up of the S11D and Itabiritos her speech, she said: We are also seeing a consumption of iron ore is projected to
projects in the Southeastern System in Brazil. restructure within Chinas steel industry that outpace domestic production in 2019,
While many smaller mining operations are, is being driven by the governments resulting in India becoming an increasingly
like Chinese ore producers, struggling to commitment to reducing pollution and important source of global iron ore imports.
make money as they are unable to produce improving steel mill profitability. This is Indias iron ore imports are projected to grow
iron ore at sufficiently low cost to be resulting in the shutdown of smaller, less almost seven-fold over the next five years, to
competitive, a relative newcomer to the efficient, more polluting blast furnaces. With reach 38 million tonnes by 2022,
market, Roy Hill, is looking to challenge the production expected to then refocus on the underpinned by Indias rapidly growing
dominance of the established suppliers. newest and largest blast furnaces. Additional domestic steel industry.
Based in Western Australia, it loaded its capacity in Brazil and Australia [to feed these Ultimately, the performance of seaborne
first shipment of ore for export on December blast furnaces] is already reflected in iron ore iron ore on the international market will be
10, 2015 and has since loaded multiple prices, so the potential reboot in Chinese iron dictated by demand for steel. Suggestions of a
shipments to key markets in Japan, Korea, ore production is the main source of slowdown in steel demand in China, the
China and Taiwan, reaching the 30 million uncertainty and therefore the likely factor that largest consumer of steel, could have a large
tonne milestone at the end of will result in price volatility. part to play in the direction iron ore prices
February 2017. The company has also What effects, if any, increased Chinese iron take over the next 12 months, regardless of
reported that over the initial 18-year life of the ore production may have on the market for surplus stocks and increased production by
high-grade project, 4,957 million tonnes (dry) seaborne iron ore remains to be seen, since mines globally.
of material will be moved, equating to an there is still surplus material available to Ramsay, however, is of the opinion that
average yearly mining rate of about 270 steelmakers. Ramsay says: The local [iron ore suggestions of a slowdown in Chinese steel
million tpy (dry), to produce around 69 production] market will never be able to cope demand may be misplaced. Chinese demand
million tpy (wet) of run-of-mine ore feed for with the demand in China. Potentially, if is continuing to outperform expectations.
the processing plant. This, the company China does take steps to reduce its The second half of the year should be weaker
states, will make Roy Hill one of the largest environmental impact, and in doing so makes for seasonal reasons but it may not be as bad as
mining operations in the Pilbara area of more use of scrap, that will affect the demand we have anticipated because it has been doing
Western Australia. for iron ore, but that would be the only better than expected in the first half.
SHUTTERSTOCK
mines, which started in 2011. The able to face competition from mineable ore will lift our resource
curbs have been relaxed since then, imports is specious. Their base further, says Kumar.
but not fully. counterparts elsewhere are not to be Indian iron ore Sharma says that, based on global
Much to the dismay of an iron ore heard complaining about free exports are climbing empirical evidence: The greater the
industry struggling to return to pricing of this feedstock and other demand, driven either by exports or
normality, comes the news that the raw materials. domestic use, the more intense
steel ministry has before it a Sharma says after the Indian steel exploration will be, leading to
proposal to end a free price-regime industry got protection from discovery of new deposits. This has
for iron ore. Steel minister imports by way of safeguard duty, happened in Australia, Brazil and
Chaudhary Birender Singh took the minimum import price and India. You see between 2000 and
position that, for the benefit of anti-dumping duty besides the 2013, Indian extraction of iron ore
steelmakers, prices of iron ore regular import duty, it should not amounted to 2.041 billion tonnes,
should be as competitive as be asking for any more concessions. when the resource base got
possible. The steel ministry is Kishore Kumar, ceo of Vedanta- expanded by 9.215 billion tonnes.
awaiting a report from an expert owned Sesa Goa, which is Indias The phenomenal increase in
committee before it tells miners largest private-sector producer of resource in all the three countries
whether to keep the ore within iron ore, says that merchant miners resulted from strong export
recommended price bands or to are at all times Price takers and not demand, mainly from China.
follow a cost-plus formula. Neither price givers. Why introduce any Ahead of imposition of high export
will find favour with miners. price control when the best duty on lump ore and fines and
The (Narendra Modi) reference point for price discovery court-ordered large-scale
government-sponsored policy here is global iron ore price indexes suspension of mining in India, there
think-tank Niti Aayog (National run by [price reporting] agencies? were years when exports would
Institute for Transforming India), The countrys new steel policy claim more than half the countrys
which replaced the six-and-a-half- wants steel production capacity to production of ore.
decade-old Planning Commission in be raised to 300 million tpy by 2030
January 2015, suggested control on from the present 126 million tpy. To Resource nationalism
prices of the principal steelmaking support use of that kind of capacity, Succumbing to intense pressure
ingredient in October 2016, when it Indian iron ore production is to be from the steel lobby that iron ore
also recommended another look at raised to 480 million tonnes from an exports should be stopped in order
the countrys steel policy. The idea estimated 180 million tonnes in to preserve the resource for local
of regulating iron ore prices was floated 2016-17. value addition in future, the
to test reaction. This has provoked a government started charging export
strong reaction from merchant Exploration implications duty at increasingly higher rates
miners, who slammed the suggestion The deposits discovered so far, rich from March 2011. This
of ore price-control as being designed local entrepreneurial talent and the undesirable indulgence in resource
to support steelmakers at the government allowing 100% foreign nationalism coupled with mining
expense of ore producers struggling direct investment in the mining restrictions saw our iron ore exports
to recover from major dislocations sector should make it possible for collapsing from a record high of
in production and export. the country to scale up iron ore 117.37 million tonnes in 2009-10 to
An enraged RK Sharma, director production in a big way, provided 4.50 million tonnes in 2015-16 (see
general of the Federation of Indian the policy environment remains table). Expectedly, ore production
Mineral Industries (FIMI), says: If supportive. Anil Agarwal, chairman during this period also took a hard
at all the government is thinking of a of Vedanta Resources, believes that knock of 62.65 million tonnes to
price cap, then it should ideally be on Indias iron ore resource, discovered 155.90 million tonnes. Stocks at
steel, which impacts any number of and still hidden under the earth, puts mine heads are now around
50 79 30 13 82
Sn
N
Au
GOLD
Zn
ZINC
Al
ALUMINIUM
Pb
LEAD
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Iron ore
145 million tonnes; mainly fines Indian iron ore production Captive mines
causing environmental hazard and Indian steelmakers are keen seekers
big losses to producer groups, says
and exports* of iron ore deposits for captive use.
Sharma. Year Export Production Mine ownership is sought for
Disruptions of mining on account 2009-10 117.37 218.55 long-term raw material security of
of a near elimination of exports 2010-11 97.66 207.15 supply.
caused mine job losses for 2011-12 61.74 168.58 Tata Steel and the government-
thousands. Unfortunately it took the 2012-13 18.37 136.61 owned Steel Authority of India
government a long time to realise 2013-14 14.41 152.43 Limited continue to secure full
the futility of burdening iron ore 2014-15 6.12 128.91 supplies from mines that they own.
with export duty of 30% when the 2015-16 4.50 155.90 As they are expanding steelmaking
local demand for the mineral was *Million tonnes. Source: Indian Bureau of Mines capacity, they have made known
growing at a slow pace. Not only was (for production); other agencies (for exports) their intention to get more deposits.
the economy of areas around mines Some smaller steel producers,
damaged iron ore bearing states between three and five years to open such as Usha Martin, also have
also suffered a big loss of revenue as mines after going through the captive iron ore mines. So strong is
royalty income shrank. A country lengthy process of securing a large the desire of some steelmakers to
perennially in trade deficit, India number of state and central level own mines that at recent auctions
could ill afford the major foreign clearances. Land acquisition and held in the southern state of
exchange income loss from much the resettlement of people to be Karnataka, one leading steel group
lower ore exports. displaced in order to open new paid premiums at levels of more
mines also remain a major challenge. than double the base (pre-set
Policy reversal An industry suggestion that is minimum bid) price to acquire
Unnerved by the diminished state of receiving the attention of the deposits.
the iron ore industry, New Delhi government is that it should make FIMIs Sharma does not
finally, on 29 February 2016, arrangements for auctions to be held understand Indian steelmakers
announced that export duty on ore at least six months ahead of all the strategy: Why should Indian
fines with iron content below 58% is iron ore leases that on court order steelmakers be expending energy in
reduced from 10% to nil while the are to expire by March 2020. mining when the challenge they face
levy on lumps with iron content less Restarting closed mines is a is to produce metal at costs that will
than 58% is made nil from 30%. time-consuming and expensive automatically discourage imports?
Because of this, and also helped by process as recent experience in Goa They must also in alliance with
mine operations progressively and Karnataka has shown. leading foreign groups start making
returning to normal under the watchful those varieties of steel for which we
eye of the government, iron ore exports Production caps remain import-dependent.
in the 11 months up to February In the meantime, mines in Goa Sesa Goas Kumar says:
2017 were 25.22 million tonnes and Karnataka are highly under- Steelmaking is a highly capital
against 4.5 million tonnes in 2015-16 using their capacity, says Kumar, intensive pursuit which ideally does
(April to March). Improvement in because of the Supreme Court- not leave room for dabbling in
local supplies has also led to falling ordered cap in production. The captive mining. It will be wise for
imports. Ore production in 2016-17 court has said that Goa can produce Indian steel groups to buy ore from
was up 24.10 million tonnes to 180 20 million tpy of ore and Karnataka merchant miners like their peers
million tonnes the largest annual 30 million tpy. abroad and concentrate on
production figure since output topped However, an expert committee steelmaking.
200 million tonnes in 2010-11. appointed by the court says the cap Not long in the past, however,
The countrys new mineral for Goa should first be revised to 30 some parts of the Indian iron ore
exploration policy announced in million tpy, and then to 37 million industry itself have attracted court
June 2016, which opened up tpy, once a road corridor now and government actions on grounds
exploration of mineral assets to under construction for transfer of that have included allegations of
private domestic and foreign groups ore from mines to port without acquiring mining leases in a
and thereby ended the monopoly of causing disturbances to the non-transparent way, violation of
government-owned agencies the environment and inconveniences to forest and environmental norms,
Geological Survey of India and the the local community is ready. and extracting ore in areas adjacent
Mineral Exploration Corporation, For Karnataka, the committee to leasehold lands. With the
should see acceleration in the says the cap should come for Ministry of Mines launching a
discovery of new mineral deposits, revision in two phases: first to 40 mining surveillance system using
including iron ore. million tpy and then to 50 million space technology and remote
At the same time, government tpy. The respective state sensing imagery, any such
agencies will have to speed up the governments are keen to raise their transgressions will become even
process of making new blocks of ore production limits. Before court easier to monitor.
deposits auction-ready and sell these intervention back in 2011, Goa and
to the highest bidders. Kumar says: Karnataka had produced double the The author is a specialist writer based
In our country, it takes anything capped amount. in Kolkata
A big picture
Steel technology depends on understanding and
controlling multiple points of detail, many of which are
interdependent. Richard Barrett sketches out a big picture
of how todays technology is connecting production
fundamentals with commercial imperatives in
competitive global steel markets
A first-time visitor to a major Monitoring and control loadings, ladle volumes, furnace
conference and exhibition of steel At any given stage of the capacities, pump flow rates,
technology can become easily steelmaking process, plant tundish dimensions, gearbox sizes,
overwhelmed by the breadth and operators have a number of roughing and finishing stand
depth of their content. At the fundamental parameters to numbers/configurations, off-gas
biggest, hundreds of stands and/or monitor and depending on and dust handling, cooling bed
hundreds of technical papers jostle exactly which step control to a lengths, water-spray nozzle layouts
for attention. lesser or greater extent. and coiler speeds. The civil
Similarly, our quarterly new Chemical composition is one. engineering design work needed to
orders list spans dozens of Exactly what relative volumes and accommodate all of the above must
investments in plant along the full type of scrap are being charged to match the overall design.
length of the steel supply chain: an EAF, for example. Or what are How accurately and consistently
from raw materials, melting and the desired percentages of each the fundamental factors can be
casting, on through hot and cold element in a ladle full of molten controlled, and the ranges over
rolling, or forging, to processing steel after treatment at a ladle which they can be varied, directly
lines, and back around the loop by refining station? influence the type of steel that can
means of production- or Temperature is another. At what be produced, how quickly it can be
post-consumer scrap. Their size in temperature is the steel ready to be made, in what volumes, and
terms of value ranges from cast and how rapid does the rate of particularly importantly for
hundreds of thousands of dollars to cooling need to be in the caster to different types of application to
tens or hundreds of millions. achieve the right size and speed of what level of quality.
At steel technology events, casting for slab, billet or bloom? As It is a simple commercial fact that
ranges of equipment that at one end strip emerges from a hot rolling output needs to satisfy all customer
of the spectrum are concerned with mill, how rapidly does it need to be specifications to avoid rejects, but
the microscopic size, orientation cooled in order to achieve the right at the same time by as small a
and boundaries of the grain strength and formability when it is margin as feasible to minimise
structure within steel, but at the coiled? production costs. Expectations
other are designed to handle Pressure is a third. How much vary by market sector, but also, to
multi-tonne coils of strip or rod, are force needs to be applied at each some degree at least in a globalised
on display. stand in a rolling mill, for example, industry, by regional requirements.
Every aspect of plant to achieve the right dimensions and At any given time and site, the
performance is factored into the Every aspect internal structure of the hot rolled technological priorities of any given
design of the many process steps of plant steel that it produces? And, for a steel plant also depend on the costs
and variables it encompasses, and performance cold rolling mill, how much to and availability of inputs raw
the means of its improvement achieve the right surface quality, materials, energy, cooling water
through new or enhanced
is factored temper and finish? and the overall costs of their
technologies is analysed. into the design The means by which such consumption for conversion into
Sometimes it is helpful then to of the many fundamentals are measured and steel semis and finished products.
zoom out to consider the big process steps applied, singly or in combination, Local labour costs and the levels of
picture and think about the basic, are the stuff of steel technology. In environmental protection
or fundamental, factors on which and variables it turn, they determine factors like demanded must be added to the
steel technologies rest. encompasses transformer or motor ratings, crane equation.
SMS GROUP
expansion steps. The steelworks was is able to produce sizes ranging from
commissioned in December 2016 914-1,880 mm wide and 1.4-0.28 mm
together with the CSP plant. An thick. Twin-ladle furnace (LF) in operation
SMS GROUP
SMS GROUP
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Superimpose on all this the commodity-grade steels such as metal production feature section
vagaries of any given steel market, for rebar, are actually looking for next month.) The competition to
in terms of local demand levels, the most economical solutions with make sense of the best way to
political decision-making, and limited bells and whistles on their extract value through the use of the
associated national or international equipment. latest IT hardware and software has
economics and trade, to Not so many decades ago, the become intense.
understand a growing demand for instruments of plant control were At the plant operational level, 3D
plants with greater flexibility to analogue and dominantly the simulation has become a useful tool
respond to prevailing market domain of mechanical and both to train new operators during
trends. electrical engineers. The term plant construction and to model
mechatronics gained currency. how changes to existing plants can
Digital world Today, digital automation and to be managed to achieve
Major plantmakers understand all some degree robotics are to the fore improvements. Effective means of
of these factors. Their mission is to and the data associated with them debottlenecking can also be
develop technologies that improve are becoming ever more integrated planned and trialled before the
productivity, and/or or that deliver with setting key performance targets, expense of installing new systems.
new or expanded ranges of production scheduling and overall When the capabilities of existing
products at a price their business management software. plants need to be extended,
customers can afford but also Big data, Industry 4.0, and the plantmakers stand ready to offer
naturally at a cost at which they can Internet of Things are already customised solutions based on the
turn enough profit themselves to beginning to sound like clich many dozens of technological
reinvest in further R&D to stay terms, but the potential they offer if packages they have developed and
ahead of competitors. successfully harnessed to advantage continue to design.
They also recognise that some is enormous, and much of it As steel technology coverage in
smaller mills, notably in developing remains to be unlocked. (Those will MB Magazine has stressed in
countries, producing standard form the topic of our software for recent years, major plantmakers
have also become keenly aware that Operations will quantity of plants within a group of in a steel plant not only to
their own emphasis has needed to similar design can be monitored, automate a rolling mill or a casting
shift from the turnkey plant
learn more as there is also the opportunity for machine, but make complete
contracts of the boom years of the smart mill benchmarking to enable shared production by networking
major capacity expansion to melts and rolls best practice. together all of the machines. This is
multiple modernisations and more tons Continuous in-line digital- the future.
revamps, often deploying camera-based monitoring of In a cover profile interview with
technologies specifically designed product surface quality has become MB Magazine published last
for retrofitting within the large fleet a well established technology and a December, Danieli chairman and
of existing plants to suit an era of tool that can be used to adjust ceo Gianpietro Benedetti stressed
steelmaking overcapacity. process settings to reduce or the new era in which the global
eliminate flaws or occasionally to steel industry now operates, and
Steelmakers strategies alert operators to the need for outlined the strategy which the
The money for capital investment urgent upstream repairs. Italy-headquartered international
in steel technology and the The latest machine-vision plantmaker is applying in response
day-to-day responsibility for its technology also fits into a broader to it.
successful application lies in the Smart Factory concept, whereby Digital technologies that
hands of steelmakers themselves. highly automated, self-monitoring connect business operations with
Some prefer to go-it-alone to a plants learn from their own production plants form one of the
significant degree, seeing their own performance and adjust their own key concepts. Practically, in our
skills in running a plant to best operating parameters to achieve opinion, digitalisation means that
commercial advantage as core and consistency or improvements. you start inputting your orders and
something that the less they reveal you start to follow your scrap or
to others the greater will be their Joined-up thinking iron ore from the site at which you
commercial advantage. David Stickler, ceo of Big River are purchasing it, so that you
Sometimes, detailed analysis of Steel, Arkansas, USA one of the effectively have travelling stocks: a
their own workflows and newest high-tech steel plants to train can be storage, Benedetti
operational practices can achieve have started up recently has said, as one example.
quantifiable savings by finding new stressed that the business is as After the raw material arrives
ways to make the best use of their much about technology as and the process is started, it then
existing equipment or to identify steelmaking. We embrace the use needs to be optimised to match
relatively small amounts of capital of automation and technology, he your orders, to produce the right
expenditure that can buy told MB Magazine in our cover quality, and to reduce changes.
additional technology to reduce or profile interview for the April 2017 There have to be enough sensors
eliminate time- and hence issue. He added: Years ago, the along the line to be able to eliminate
cost-wasting steps or routines. steel industry was 80% brawn and volatility in the process. You need
Others, perhaps less experienced 20% brains. Today, at Big River to be 99.9% sure that if you want to
steelmakers, value the on-going Steel, were 90% brains and 10% produce 30 tonnes of a certain
support of their technology brawn. product to a certain tolerance, you
providers. Others still a small but He explained that the companys can do that. You will follow your
important minority are willing to operations will learn more as the finished product into the
incentivise their plant suppliers by smart mill melts and rolls more customer, said Benedetti.
linking payments to plant tons. The goal is to combine big Automation of production
performance and availability. data, software and the latest stages like scrap handling and
Whatever their strategy, their equipment to create a steel mill blending is another example of
plants will age. Plant and in capable of optimising production digitalisation, within the process
particular key plant component with minimal manual intervention. itself, which Benedetti identified.
condition monitoring is already Speaking about the capabilities Making connections between
widely in use. Remote condition of steel and metallurgical plant what were once islands of
monitoring is a service that technology in a cover profile production equipment, while
technology suppliers are keen to interview with MB Magazine harmonising and optimising
provide as a service throughout a published in July last year, SMS business with production processes
plants lifetime. A seamless group supervisory board chairman upstream and downstream are
connection with their own Heinrich Weiss head of the steps that some steelmakers are
maintenance teams and spare part Germany-headquartered already taking. Benedetti said that
departments is of genuine value to international plantmaking business the development and exploitation
steelmakers that prefer to which supplied much of the of digital technologies will be
outsource or simply do not have equipment for Big River Steel (see really a high-speed evolution.
ready access to repair or box) said: Now that we have the The next issue of MB Magazine
replacement engineers. It is also complete process in hand and will look in more detail at examples
prized by plantmakers keen to digitisation has become more of the progress being made in
foster long-term relationships with important, we have a base to make software (and associated hardware)
their global clients. If a sufficient a network for a full production line for metal production to date.
US steelmakers
widen range
Myra Pinkham highlights how American steelmakers
are embracing new technology to develop an increasing
range of grades of innovative finished products
Innovation continues to be a big vice-president, automotive at the
focus for the US steel industry, Steel Market Development
which is not surprising given both Institute (SMDI) of the American
the challenges and the Iron and Steel Institute.
opportunities that the industry The beauty of this phase of the
is facing. evolution of technology is that we
The demand for high-strength can probably access cheaper
automotive steels continues to solutions that are very flexible, even
drive advances in both process and in existing installations, Travaglini
product, Ronald Ashburn, says.
executive director of the To do this, steelmakers are
Association for Iron & Steel working more closely with their
Technology (AIST) says, explaining customers to understand what their
that with US steelmakers current and future needs are and
collectively operating at or below how they can help to meet those
75% of capacity, the pressure is on needs, Meghan Cox, a
for them to move product spokeswoman for Pittsburgh-based
portfolios up the value chain, United States Steel says: But the
necessitating investment in process of doing so has been
research and development. changing.
We dont have much choice but She explains that while in the
to invest in technological past such requests came from
innovations given external threats, customers, particularly original
such as imported steel and equipment manufacturers, now
competing materials, and steelmakers are looking to lead the
structural limitations of older, way by developing new materials
so-called legacy, assets, which even before customers ask for
werent designed with the future in them. This, she says, comes after
mind, says Carlo Travaglini, collaborating with them to
AK STEEL
www.metalbulletin.com
60 | Metal Bulletin Magazine | June 2017
New orders
EGYPTIAN STEEL
Commenting on the agreement,
Egyptian Steel Group ceo and
chairman Ahmed Abou Hashima
said: We are raising the benchmark
Harsco Corporations Metals & the contract is for the provision of Egyptian Steel has of the steel industry and becoming a
Minerals division has signed a new, mill services at Egyptian Steels Al signed a $60 million leading player in Egypt and the MENA
10-year mill services contract with Ain Al Sokhna plant a new service contract with region. This new contract will help us
Egyptian Steel. Valued at steelmaking facility under Harsco for work at in utilising state-of-art, eco-friendly
approximately $60 million in construction in support of Egyptian its Al Ain Al Sokhna technologies to deliver organisational
projected revenues over its duration, Steels market expansion. plant excellence in a safe environment.
Glasgow, Scotland-based supplier example of an innovation that brings Aggrekos manufacturing and
of power generation equipment cost-effective, reliable, uninterrupted Nevsun will be using technology centre in Dumbarton,
and of temperature control power with additional fuel solar-diesel hybrid Scotland. The diesel generators are
equipment, will supply 22 MW of flexibility to customers, said generators, supplied monitored by using Aggreko
diesel and 7.5 MW of solar- Aggrekos ceo, Chris Weston. by Scottish business Remote Monitoring telemetry to
generated power for Nevsuns Aggrekos solar-diesel hybrid Aggreko, at its Bisha ensure optimum operational and
copper and zinc operations. power package combines mine in Eritrea fuel efficiencies.
America for its aluminium forged KAAP has now announced plans announcement of plans to increase
automotive suspension products. for an additional expansion the heat treatment equipment and
Established in 2003 as a joint programme, which will see it invest KAAP is continuing surface treatment equipment at its
venture by Kobe Steel, Mitsui & about US$53 million on the to expand in Moka Plant in Moka, Tochigi
Company and Toyota Tsusho installation of an additional melting North America Prefecture, Japan, to meet growing
Corporation to produce aluminium and casting line and two more to meet demand demand for automotive aluminium
forged suspension products in the forging presses. Start-up is to begin for aluminium panel material in the country. Total
USA, KAAP began production in in stages from autumn 2018, with forged automotive investment is projected to reach
2005. The companys first expansion completion scheduled for early suspension products about 20 billion yen ($175.6
began at its Bowling Green, 2019. When completed, production million) and construction is
Kentucky, plant in November 2015 capacity will increase to 970,000 anticipated to begin within the
with the installation of a melting pieces per month, and employees current fiscal year (ending March
and casting line and two forging are anticipated to total 600. 2018).
12th Asian Stainless Steel Conference North American Ferro-alloys 5th Asian Nickel Conference
14 15 June 2017 Conference 27 - 28 September 2017
Hong Kong 7 - 8 September 2017 Manila, Philippines
A key event focused on market Chicago, USA The biggest Asian event for the global
fundamentals and end user In 2016, more than 150 delegates from nickel industry, the 2016 conference
applications, attracting major companies across the industry welcomed more than 100 delegates
companies in the region. spectrum, including raw material from over 70 companies from around
metalbulletin.com/events buyers from major steel producers in the globe.
the region, attended the inaugural metalbulletin.com/events
AMM & WSD Steel Survival
SHUTTERSTOCK
feasibility.
Mining Cumbre allows mining metalbulletin.com/events More than 120 delegates from over 80
corporates seeking investment, companies attend this conference
investors looking to strike deals and Chicago 22nd Galvanizing & Coil Coating each year as it brings together the
government ministers the opportunity Conference North American stainless steel industry
to engage discussions about new 13 - 14 September 2017 to discuss market drivers that will
projects in Latin America. Abu Dhabi, United Arab Emirates shape the industry in the year to come.
miningcumbre.com An event focused specifically on the amm.com/events
commercial and technical aspects of
2a Excelencia Estratgica en la the coated flat steel market. This years 21st Arab International Aluminium
Minera conference will include a workshop Conference (ARABAL)
29 - 30 August 2017 with Unicoil and an optional field trip 6 - 9 November 2017
Chile to Al Ghurair Iron & Steel LLC, the steel Muscat,Oman
Launched in 2016, this event provides cold rolling and galvanising complex in ARABAL has become an internationally
the opportunity to hear first-hand the UAE. recognized event attended by a broad
from the CEOs of the South American metalbulletin.com/events spectrum of industry leaders, top
mining industry and learn from their executives as well as key investors,
experience. Automotive Supply Chain Conference major suppliers and manufacturers
metalbulletin.com/events 18 -19 September 2017 from over 150 global companies. This
Dearborn, Michigan, USA years conference will focus on -
16th International Stainless and With more than 85 companies in Driving strategic growth across the
Special Steels Conference attendance, including OEMs and global aluminium industry.
5 - 7 September 2017 manufacturers of steel, aluminium arabal.com
Ljubljana, Slovenia and various composite materials, this
With three days of expert content and is the best opportunity to network with Metal-Expo 2017
two field trips for both flat and long the entire automotive supply chain 14 - 17 November 2017
products planned for 2017, this from across North America and Mexico. Moscow, Russia
conference continues to be a prime amm.com/events Last years Metal-Expo saw over 500
event for all those involved in the companies, including steel producers,
stainless and special steel markets. 32nd International Aluminium tube and pipe manufacturers, and
metalbulletin.com/events Conference steel product distributors, from 32
25 - 27 September 2017 countries participate in the event.
Manana, Bahrain metalbulletin.com/events
With more than 400 delegates in
attendance each year, this event is
essential for all those involved in the
global aluminium supply chain. Key
decision makers from over 240 companies
and 52 countries attended in 2016.
metalbulletin.com/events
mt annualised
and consumption rose year-on-year in
$/tonne
650
600
550
2016, compared with expectations of big 450 400
350
falls at the start of the year. Sectors that 250 200
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issue Chartist).
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Production Apparent consumption Net exports US premium USA China
What has been truly astounding is that in Source: Chinese Customs, WSD, NBS
www.hydro.com