Category Archives: BRIC Steel

Primetals Technologies to modernize hot strip mill “HSM 2000” of Severstal in Cherepovets

Width control, thickness tolerances and overall product quality is improved

Primetals Technologies has received an order from Russian steel producer PAO Severstal to modernize the company´s hot strip mill “HSM 2000” in its Cherepovets steel works. Main targets are to improve tolerances of product width and thickness control as well as to improve overall production quality for further processing and efficient production of new products. Also, operational safety and working conditions will be improved. To these ends, an edger of the hot strip mill will be upgraded, short stroke HAGC (hydraulic gap control cylinders) will be installed in the finishing mill, and the cooling line will be outfitted with a Power Colling unit. The latter allows for an alloy-saving production of high-end steel grades. In addition, a Primetals Technologies level 2 control model consisting of physical process models with advanced optimization strategies and neural network algorithms for adaptation will be installed.

New components improve product performance, operational and workplace safety

Severstal Russian Steel Division is a part of PAO Severstal, a vertically integrated steel and steel-related mining company with major assets in Russia as well as investments in other regions. Steel production volume of PAO Severstal in 2017 was around 11.65 million metric tons of liquid steel. The steel is used to make a large number of end products, including hot- and cold-rolled flat steel, galvanized and coated products, and long products. At the “HSM 2000”, Primetals Technologies will install new mechanic, hydraulic and electric equipment and implement the corresponding automation solutions and process models.

Level 2 process control with physical process models provide high degree of automation

To improve strip thickness control in addition to the existing mechanical screw down system, short stroke hydraulic gap setting cylinders will be implemented in the first three stands (F6 to F8) of the finishing mill. The technological key functions will be replaced with the latest state of the art control algorithms. The existing level 2 system will be upgraded to extend lifetime and include present technological models. Profile and flatness control models will be added as new functions.

Power Cooling from Primetals Technologies in a hot strip mill

 

Production of high-end grades is made more efficient, saving alloys, using Power Cooling

The cooling section will be controlled by an entirely new automation system, ensuring the correct cooling strategy and cooling path as defined by the coiling temperature and the cooling rate is followed. Strip temperature tracking already starts at the roughing mill exit. A Comprehensive Temperature Control will be supplied for coordinated control of finishing mill speed, inter-stand cooling and coiling temperature. The cooling section control includes intelligent water management to cope with the highly dynamic requirements of large water flow rates. The run-out roller table downstream from the finishing mill conveys the strip through the laminar cooling line to the down coiler groups 1 and 2. In cooling section 1, right after the finishing mill, a new Power Cooling system will be installed. Also, the laminar cooling headers in this section will be renewed. In section 2, only the trimming headers will be replaced.

Source: Primetals Technologies

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Section 232 Continues to Cast a Shadow Over Emerging Steel Markets

Brazil

Brazilian steelmakers are optimistic about the strength of domestic consumption in 2018, highlighting improving market fundamentals in both the local and global steel markets. Additionally, Brazilian exports to the United States are temporarily exempt from measures related to the Section 232 investigation.

Russia

Negotiations in the Russian Federation remain arduous. Trading houses continue to be frustrated with the pricing positions adopted by their domestic suppliers. The latest initiative is viewed as unwarranted and not supported by underlying demand.

India

The Indian steel industry is forecasting that underlying demand will remain strong until mid-June, supported by government infrastructure spending and strengthening consumer demand. Nonetheless, MEPS notes growing resistance from end-users to the recent price increases. Moreover, the Modi government signalled it planned to formally lodge a trade dispute against the United States, at the World Trade Organisation (WTO), if the Trump administration does not exempt Indian steel goods from rising tariffs.

Ukraine

Supply chain participants report no changes to business activity, in the Ukrainian steel market. Stockists are concerned about carrying too much inventory over the next two months, fearing a downward price correction. Export activity is stable, with prices under renewed negative pressure following developments in the Chinese market.

Turkey

End-user demand in Turkey is tepid, disrupted by Mustafa Kemal Atatürk (National Sovereignty and Children’s Day), and renewed political uncertainty. Presidential and parliamentary elections are scheduled for June. The depreciation of the Turkish lira against the US dollar further exacerbated the situation. Scrap brokers predict that the domestic mills will try to push scrap prices down again in the near future, as both export and local demand remains slow.

UAE

Challenging business conditions persist, in the United Arab Emirates. Distributors are adopting a “wait-and-see” attitude, expecting purchasing activity to slow down ahead of the festive month of Ramadan. However, the outlook for the remainder of 2018 is positive, after the announcement of new commercial, residential and infrastructure projects, in Dubai and Abu Dhabi. Outside the GCC region, export opportunities are limited.

South Africa

South Africa’s Department of Trade and Industry (DTI) failed to persuade the US government to exempt the country’s steel and aluminium exports, from the tariffs, stipulated in the Section 232 proclamation. In further submissions, the ministry proposed a settlement based on 70 percent of the 2017 exports as a quota to the US. South Korea negotiated a similar quota arrangement with provisions, in late March.

Mexico

Mexican steel traders retain a cautious outlook for the second quarter. Downstream buying activity is unsettled by the aggressive pricing strategies adopted by domestic suppliers. Moreover, developments across the border in the United States continue to be watched carefully. Meanwhile, the National Chamber of Iron and Steel Industry (CANACERO) pressed the government for additional measures to protect the domestic manufacturing and steel industries from foreign competition.

BRIC STEEL PRICES INCREASE IN MARCH

BRIC steel prices may have reached their lowest point after rebounding slightly, in March.

In this month’s issue of the Developing Markets’ Steel Review, MEPS reported that the BRIC average transaction price advanced across all the flat and long products surveyed.

Chinese steel mill price offers soared, in March, as buyers rebuilt inventories following the Lunar New Year holidays. Domestic crude steel production reduced by 4 percent, in February, compared with twelve months ago. Supply may decline further in the near term, as Chinese steel mills, in Tangshan, are reportedly being ordered to reduce pollution during an international flower show between April and October.

Brazilian flat product prices are steady, this month. Hot dipped galvanized transaction values increased marginally as imports fell, in February, by 49.5 percent, month-on-month. However, domestic long product figures continued to fall as market activity remained lacklustre.

In Russia, local producers secured higher transaction prices, in March. Cold rolled coil figures rose by 4 percent, month-on-month. Long product values advanced despite order intake remaining muted.

Following the introduction of the minimum import price framework, in India, we noted that buyers remain hesitant to place orders. However, flat and long product values increased marginally, in March.

Source: MEPS – Developing Markets Steel Review – March Edition

BRIC STEEL PRICES CONTINUE TO SLIDE, IN FEBRUARY

BRIC steel prices continue to be under pressure because of weak demand, global oversupply and the recent introduction of EU trade protection measures.

In February’s issue of the Developing Markets’ Steel Review, MEPS reported that the BRIC average transaction price, slipped, this month, across flat and long products.

Brazilian long product prices reduced slightly as market activity remained muted. Following the introduction of the minimum import price framework, in India, buyers are hesitant to place orders.

Russian cold-rolled sales to the European Union are likely to contract as the authorities set preliminary antidumping duties. However, local producers largely secured higher transaction prices, in February. Steel export orders rose on the back of the weak rouble.

Furthermore, domestic transaction prices for Chinese flat and long products are expected to rise in late-February as activity ramps up, especially in the construction sector, following the holidays.

Source: MEPS – Developing Markets Steel Review – February Edition

BRIC STEEL PRICES TUMBLE FURTHER, IN JANUARY

BRIC steel prices continue to slide because of weak demand and global oversupply.

In the recent edition of the Developing Markets’ Steel Review, MEPS report that the BRIC average transaction price, softened, in January, across flat and long products.

Russian steelmakers offered discounted prices to secure mill output, in January, although we expect transaction values to rise next month. The Brazilian steel industry is being negatively affected by the poor economic climate domestically.

Turkish selling values mainly fell because of rising imports and muted demand.

However, domestic transaction prices for Chinese flat products advanced as local producers announced price hikes early, in January. As the Lunar New Year approaches, values have weakened as domestic consumption slows down.

Source: MEPS – Developing Markets Steel Review – January Edition

BRIC STEEL PRICES CONTINUE TO FALL IN DECEMBER

Steel prices in BRIC countries have slipped by an average of around 4 percent, in December.

In the recent issue of the Developing Markets’ Steel Review, MEPS reported that market activity across the developing world has softened across flat and long products areas. Amid a weak demand outlook, buyers have put further downward pressure on domestic selling prices as sales slow down, approaching year-end.

In Brazil, domestic producers have called for higher tariffs for imported material to protect market share. Meanwhile, reduced investment activity and sluggish domestic sales continued to dominate the Russian steel scene.

Chinese steel prices keep tumbling as falling raw material costs have enabled customers to secure reductions in their local market.

Low-priced imported material has put further downward pressure on South African domestic resale prices. Meanwhile, Mexican stockists have successfully secured lower transaction values following similar price reductions in the US.

Source: MEPS – Developing Markets Steel Review – December Edition