Category Archives: Steel Production News

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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Global Growth In Stainless Steel Output To Continue

Worldwide crude stainless steel production, in 2017, reached an all-time high total of nearly 48.1 million tonnes. This represents an increase of 5 percent, compared with the year earlier figure. MEPS predicts that global output will grow by a further 5 percent, in 2018, to achieve a new record high mark of around 50.5 million tonnes.


The introduction of tariffs or quotas, arising from the United States’ Section 232 action, is likely to alter the patterns of trade between the major stainless steel producing countries. Output in the United States grew by a healthy 11 percent, year-on-year, in 2017. We forecast more moderate expansion, this year.

South Korea & Taiwan

Production in South Korea and Taiwan continued its recovery, having slumped, following the Global Financial Crisis of 2008/9. Output increased by 6 percent, last year, in South Korea, to total 2.4 million tonnes. In Taiwan, production grew by nearly 9 percent, compared with the year earlier figure, to reach almost 1.4 million tonnes. Both countries are expected to record increases of around 4 percent, year-on-year, in 2018.

EU & Japan

Growth is more moderate, in the traditional stainless steelmaking centres of Japan and the European Union. Production increased at a modest pace in both markets, in 2017. Expansion is predicted to continue at a similar rate, in both places, this year.


In China, the annual growth rate in stainless steel supply slowed, to 4.7 percent, in 2017, after years of rapidly increasing output. Nevertheless, at 25.8 million tonnes, the country produced over 53 percent of the world’s crude stainless steel, last year. A further increment, of around 4 percent, year-on-year, is forecast for 2018.

Stainless steel production continues to climb most steeply in the “Others” category. India is becoming a major part of the global supply chain, while a new facility in Indonesia, commissioned last year, will also contribute significant tonnages, in the future.

Source: MEPS Stainless Steel Review


Section 232 Probe Creates Chaos In Global Steel Industry

Global Crude Steel Production Forecast to Exceed 1.7 Billion Tonnes in 2018

Provisional estimates indicate that global crude steel production, in 2017, increased by 5.3 percent, year-on-year, to reach 1.69 billion tonnes. China’s reported output growth, at 5.7 percent, resulted from rising production by the country’s major mills, following the closure of hundreds of induction furnaces. Output from these small facilities was previously not included in official statistics.

In the rest of the world, crude steel production expanded by 4.9 percent, compared with the figure recorded in the previous year. Increased output was a reflection of improving global economic conditions and reduced Chinese steel export volumes. Robust gains in steel production were registered in most regions of the world.

MEPS predicts that growth in Chinese steel production will stagnate, in 2018, with the annual outturn of crude steel forecast to be similar to the 2017 figure. Output in the rest of the world is expected to continue rising, albeit at a slower rate than in the previous year, at around 2.6 percent. Substantial expansion is envisaged, in India, Iran and Vietnam, resulting from investment in steelmaking capacity in these countries. Steady output gains are anticipated, in the United States and European Union, this year.

Global steel production growth is expected to stagnate, in 2019, before rising modestly in the subsequent two years. By 2021, China is expected to account for 48 percent of global steel output – marginally below the peak of 50 percent, recorded in 2013. India should establish itself as the second largest producing nation in the world, replacing Japan. The positions of the fourth to ninth major steel manufacturing countries – the United States, Russia, South Korea, Germany, Turkey, Brazil – are expected to be unchanged. Output gains in Iran should result in the country becoming the tenth largest steel producing nation by the start of the next decade.

Source: MEPS – World Steel Outlook to 2021

MEPS Forecasts Global Crude Steel Output at 1.7 Billion Tonnes This Year

World crude steel production is expected to expand, markedly, in 2017. Steel demand has rebounded, this year, amid an improving economic climate. A revival in investment is underway in many countries. Moreover, we note a continued firm level of consumption.

MEPS has upgraded its prediction for steel output in China and the rest of the world. Global production is forecast to surpass 1.7 billion tonnes in 2017 – up by 5 percent, year-on-year. Outside China, the largest gains, are expected to be attributed to increased output in Iran, India and Turkey. These three countries have all recorded strong export sales, this year.

A healthy performance is noted in the developed economies, with a recovery in steel supply and demand, in the EU and United States. Steelmakers worldwide, particularly scrap-based producers, have been able to raise output due to a reduction in the volume of Chinese finished and semi-finished steel exports.

The outlook for steel production and consumption, in 2018, is broadly positive. However, MEPS predicts that the current growth levels are unsustainable in the long term. The recent upturn is largely cyclical and recovering from the lows witnessed in late 2015/early 2016. Steel demand growth is expected to weaken and the problems of structural overcapacity remain, largely, unresolved. Low capacity utilisation levels, in many countries, are likely to constrain mill profitability.

Source: MEPS – World Steel Outlook to 2020

MEPS Predicts New World Record Stainless Steel Output in 2017

Global crude stainless steel production is predicted to reach a new record annual total of 48.5 million tonnes, in 2017. This would exceed the previous high figure, set last year, by nearly 6 percent.

Despite China’s efforts to control the growth of steel manufacturing, stainless steel output continues to increase at a healthy rate. This year’s expected outturn, at almost 27 million tonnes, equates to a year-on-year expansion of more than 8 percent. This figure would represent around 55 percent of the forecast worldwide total.

Production in Taiwan continues to recover, strongly. This year’s supply is expected to reach 1.35 million tonnes – nearly 7 percent higher than the 2016 total. However, this remains more than 20 percent lower than the peak figure, achieved in 2006.

South Korea’s stainless steel production is forecast to record a reasonable, year-on-year, increase of around 3.5 percent, to a total of 2.35 million tonnes. More moderate annual growth, of less than two percent, is foreseen for Japan. An outturn of around 3.15 million tonnes is predicted for 2017.

MEPS’ previous forecast for production in the United States remains in place, at 2.55 million tonnes – a gain of nearly 3 percent, compared with last year’s figure. The European Union’s annual crude stainless steel output is predicted to total 7.4 million tonnes. This would be less than 2 percent above the 2016 outturn.

Source: MEPS – Stainless Steel Review – July 2017 Issue


Following rapid growth in world steel production to 2014, the situation has changed. MEPS predicts that the high point for global steelmaking in that year will not be ov ertaken until the start of the next decade.WSOFeb17

The main reason for this change of fortunes for the steel sector is the expectation that the Chinese mills will maintain their, recently introduced strategy, of reduced investment in new capacity and the elimination of outdated production facilities. Furthermore, steelmakers in the industrialised nations are also expected to restrict output to below the 2014 peak volumes over the next five years.

Steelmaking using the blast furnace route, in 2020, is expected to be significantly below the outturn in the 2013/14 peak years. By contrast, supply from the direct reduced iron process is forecast to rise substantially over the next five years.

Despite minimal growth in output of steel, in China, between 2016 and 2020, total Asian production is projected to increase by approximately 2.5 percent – mainly by manufacturers in India and the South East of the region.

Only modest growth in steelmaking is anticipated from the developed nations of the world over the next five years.

Details of MEPS’ latest predictions for worldwide iron and steel production are contained in its new report – World Steel Outlook to 2020 – Quarter 1, 2017 edition

Source: MEPS World Steel Outlook to 2020 – Quarter 1, 2017