The MEPS Global average all
products composite steel price increased, in 2018, by 16 percent, year-on-year.
Firm economic conditions and steel demand growth supported the upturn in selling
the cyclical recovery in the global steel market appears to be reaching its
zenith, after hitting its low point in late 2015 / early 2016. Indicators
suggest that the economic upturn, worldwide, is losing momentum. Escalating trade
tensions weigh heavily on the near-term outlook. Protectionist measures have
the potential to disrupt global supply chains, inhibit end-user demand for
steel-containing goods and adversely affect business confidence and investment.
Inflationary Effects Anticipated
Slowing GDP growth rates, in the coming years, are dampening the prospects for further gains in selling figures. Nevertheless, a number of factors are expected to underpin steel prices, in the long term. Despite limited upside potential for iron ore and coking coal benchmark values, the premium for high-grade raw materials should remain elevated. Furthermore, MEPS anticipates inflationary effects from other forms of mill input expenditure, such as those for energy, electrodes, refractories and ferro-alloys.
EU & Asia
Consolidation in the European steel industry, along with trade protection measures on finished steel products, should support prices in that region, in the coming years. Meanwhile, the Chinese government’s wide-ranging plans, to cut excess steelmaking capacity and curb pollution, are expected to restrict expansion in steel output, in the long term. This should prevent the re-emergence of substantial oversupply in Asia.
The longevity of the United States’ Section 232 measures is uncertain. Many market observers believe that the import tariffs will be applied for a significant period of time. The tariffs are expected to support local selling figures at high levels, whilst they remain in effect. Nonetheless, following the rapid price gains, in 2018, market participants are expected to adapt to the new environment and selling figures are predicted to normalise, in the long term.
At the Shanghai works of Chinese steel producer Baoshan Iron & Steel Co Ltd. (Baosteel), a newly-built double cold reduction (DCR) mill supplied by Primetals Technologies commenced operation. The DCR mill is designed to process 205,000 metric tons of cold strip per year and is part of Baosteel´s Tinplate Product Structure Optimization Project. It may be run in both reduction/temper and temper mode. The processed strip will be used for the production of beverage can, metal caps, electrical components, for example. Primetals Technologies had received the order in December 2016.
Baoshan Iron & Steel Co Ltd. is part of the newly formed China Baowu Steel Group Corp Ltd, with an annual production of approximately 65.4 million metric tons (2017) the second largest steel producer in the world. Baosteel produces high-quality products for both the domestic and the world markets.
The DCR mill supplied by Primetals Technologies has an annual production capacity of 205,000 metric tons at a maximum line speed of 1,500 m/min. It consists of a two-stand UCM and is designed to perform double-cold reduction as well as one-stand temper rolling.
In the DCR process, the annealed strip, after reduction in a tandem cold mill, is reduce rolled on the No. 1 stand and temper rolled on the No. 2 stand. This process imparts the strip with its prescribed mechanical strength. In stand No. 1, work rolls with two different diameters can be used.In one-stand temper rolling, the strip is temper rolled in stand 2 to the prescribed elongation ratios to obtain the desired mechanical characteristics.
The DCR mill processes strip produced by a PLTCM. Entry strip gauges are between 0.17 mm and 0.55 mm. Exit gauges range from 0.12 mm to 0.36 mm. Strip width may vary from 700 to 1,230 mm. At a coil diameter of 2,000 mm, maximum coil weight amounts to 24.15 tons. Steel grades include DR7 to DR10.
Ternium del Atlántico SAS, has placed an order with SMS group for the supply and installation of the VCC® technology (Vertical Compact Coiler) for its bar mill in Palmar de Varela, Barranquilla, Colombia.
SMS group’s VCC® is today’s state-of-the-art solution for producing compact and torsion-free coils, and is now increasingly in demand by rebar processors. The compact coil is a crucial step forward in improving the pack-up quality of the final product. These coils have preselected dimensions that, thanks to VCC®, remain consistent for all products processed on the same line. At the same time, the compact coil size is ideal for storage, transport and handling. This is particularly beneficial when coils are reworked next to construction sites, where there is a build-up of rebar stirrups and other concrete reinforcing structures, especially in metropolitan areas with many space constraints. These are the preconditions that convinced Ternium to integrate this VCC® technology into the existing bar mill.
Once in operation, the plant will produce rebars from eight to 16 millimeters in diameter at speeds of up to 35 meters per second. The output will be 120 tons per hour with a coil weight of up to three tons.
One of the most important features of VCC® is its method of coiling the bar directly in the vertical position. Plant operators can therefore eliminate the need for turning manipulators and at the same time reduce the process cycle time, as all coils are formed in the final position. The coils are ready to be stored immediately once coiling has been completed and the coils have cooled down.
This order sets the score to 20 VCC® units supplied by SMS group worldwide since 1998 and is another important achievement demonstrating again SMS group’s expertise and position as a reliable and leading partner in the world of metals for plant supply, installation, startup and commissioning. The result is 543 facilities for wire rod, SBQ and special applications, bars and merchant products the company has supplied since 1950.
Process automation optimizes operational parameters and reduces coke consumption
Fully virtualized automation system reduces servicing costs
Primetals Technologies also upgraded blast furnace #7, which has been in operation since the beginning of 2018
EVRAZ Nizhniy Tagil Metallurgical Plant (EVRAZ NTMK), a Russian steel producer, has awarded Primetals Technologies an order to supply the automation and electrical equipment for its reconstructed blast furnace #6. The basic automation (level 1) and the process optimization (level 2) will be installed as a virtualized automation system on central, redundant servers, which will drastically reduce servicing costs, especially those for future upgrades. The new process automation will enable the operational parameters of the furnace to be optimized and coke consumption to be reduced. The order is worth several million euros. The blast furnace is scheduled to be commissioned by the middle of 2020. Primetals Technologies previously supplied the electrical equipment and automation for the blast furnace #7, which has been in operation since the beginning of March 2018.
After running for 15 years, blast furnace #6 was shut down at the start of 2018. The blast furnace will be completely demolished, including the secondary plant equipment, such as the stockhouse, hot-blast stove, gas cleaning and dedusting systems. It will be completely rebuilt, and as from 2020 is scheduled to supply the hot metal for the plant in Nizhniy Tagil together with blast furnace # 7, which was brought into operation in 2018.
With an annual production of 4.9 million metric tons of hot metal and 4.2 million metric tons of steel, EVRAZ NTMK is one of the largest steel works in Russia. The integrated iron and steel works is located in the city of Nizhniy Tagil in the Sverdlovsk Region of the Urals. It primarily produces train wheels, rails, structural steel, pipe blanks and semifinished products. Nizhniy Tagil is one of the oldest Russian steelmaking and mining centers.
A major reason for winning the order was the company’s good experience the with automation and electrical equipment Primetals Technologies had installed in blast furnace #7. In the past two years, Primetals Technologies has also received orders to install automation equipment in five blast furnaces in Brazil, Europe and India.
Dana Group is proud to announce that its sub-division DANA STEEL UAE www.danasteel.com (Division of DANA Group [www.danagroups.com]) has completed the installation of its state of art Steel Mill complex at Dubai Industrial City, Dubai UAE. This completes phase 1 of Dana Steel’s CRM Complex. The AED 500Mln investment has been done in 2 parts. Construction of both the parts have been completed and installation, commissioning of machinery is underway. Dana Group Steel Mill complex is located in Dubai Industrial Park, which is strategically situated just 35 kms from Jebel Ali Sea port.
This will be a strategic move to strengthen DANA STEEL’s position as a prominent player in Middle East Flat Steel Market. DANA STEEL is already equipped with 4 Coil Service Centres across UAE, and has a well established distribution network across Middle East & Africa. Established in 1991, today DANA Group has a well diversified portfolio with companies in the steel,oil,retail,healthcare and hospitality sectors.
The Key Highlights of both parts of DANA Steel’s Steel Mill Complex
*Continous galvanizing line[CGL]
DANA STEEL UAE will be having the Only Continuous Galvanizing Line in the Middle East having Dual Pot Technology Enabling it to Manufacture Galvanized and Aluzinc Coils in the Same Production Line.The Line will also be equipped with the Latest Vertical NOF(Non-Ox Furnace) Technology to achieve online annealing and tempering to manufacture galvanized coils in Commercial,Lock Forming Quality LFQ,Structural Grades.Also Featured in the continuous manufacturing line will SKIN PASS MILL(SPM) and TENSION LEVELLER(TL) in order to give super-flat end-products which can be used for various high precision applications like home appliances, color coating, automobile body building sector. The Installed Production Capacity will be 250,000 Mt/annum of Hot dip galvanized(GI) and Aluzinc(AZ) coils, with thickness ranging from 0.30mm to 2mm.
Continuous Color Coating Line [CCL]
DANA STEEL UAE will be the Only Continuous Color Coating Line in the Middle East having the Latest Korean Hot Lamination technology for producing Color Coated Galvanized,Aluzinc & Aluminium Coils with various patterns for precision end usage in construction and home appliances .Coil coating is a continuous online process for coating metal before fabrication into end products. The steel or aluminium substrate is delivered in coil form. The coil is positioned at the beginning of the coating line, and in one continuous online process, the coil is uncoiled, pre-cleaned, pre-treated, primer coated, baked and finally color coated and rebaked before being recoiled on the other end and packaged for shipment. The Installed Production Capacity will be 150,000 Mt/annum of Prepainted Galvanized(PPGI) Coils, Prepainted Aluzinc(PPAZ) and Prepainted Aluminum(PPAL)Coils, with thickness ranging from 0.20mm to 1.0mm.
Just last week, UAE Government had announced 10% import duty on rebars and steel coils for certain HS codes. The government has also planned on increasing tariffs on cheap imported steel as part of a coordinated action from GCC governments against alleged dumping of imported steel in local markets. Anti-dumping duty has been introduced on GCC imports for the first time, and Dana Group has strategically entered the market at this opportune time as with the help of Dana Group’s CGL and CCL project, there will be a boost to UAE’s local steel manufacturing capability.
With the introduction of anti-dumping duty on coated products, and increase in custom duty on rebars and steel coils, UAE government has hinted and invited the UAE local players to join hands and grow the UAE economy in a self-sufficient way. We are proud to stand together with UAE government on this step and we hope to play our part in strengthening UAE’s local Steel Industry, which is the backbone of the entire construction economy. ADDING VALUE TO STEEL has been our motto since inception, and with the Addition of our new State-of-the Art CRM Complex we will be poised to meet the increasing demand of the manufacturing sector in the Middle East.
Dr B.S.Dana, Chairman of Dana Group of Companies.
Dana Group is now seeking strategic partners and clients to help market its products in GCC and all across the globe. The group is also looking to partner with key suppliers and buyers for the long term. Dana Group is also open for any investment partners, so that the group can kick-start phase 2 of the project, which is the CRM complex (Cold Rolled Mill Complex).With it’s strategic location near the port and having easy access to all GCC Countries like Saudi Arabia,Oman,Kuwait,Bahrain and Also Other Neighboring Countries from Africa and the Arab World.
Feralpi Siderurgica S.p.A. has placed an order with SMS group for the supply and installation of the EBROS welding technology at its Lonato plant in Brescia, Italy.
The EBROS billet welding system is used to weld together the hot billets as they come out of the reheating furnace. This process makes ‘endless rolling’ possible, offering a considerable increase in productivity, material yield and plant utilization as well as guaranteeing a consistently high product quality.
Implementing EBROS in the existing wire rod mill, may increase Feralpi´s plant productivity by up to approximately eight percent. Furthermore, cobbles, and head and tail end cropping can be eliminated improving the product yield by at least three percent.
The latest system, which comes with an advanced transformer solution to yet better control the welding operations, includes an easier cleaning system, reduces maintenance and sparks and provides efficient deburring with a collecting bucket and a quick change system. A two-megawatt induction furnace supplied by SMS Elotherm, a company of the SMS group, will be included in the supply to ensure billet temperature equalization at the entry into stand No. 1 in order to keep the rolling temperatures within the correct range and enhance final product tolerances.
The machine will exploit the furnace capacity of 130 tons per hour and weld billets up to 150 millimeters square and 12 meters length to be rolled on the existing mill.
Commissioning of this plant is scheduled for the first quarter of 2020.
This latest order sets the score to ten EBROS units supplied by SMS group worldwide, and it further underlines SMS group´s expertise and position as a leading partner in the world of metals – having installed already 543 rolling mills for wire rod, SBQ and special applications, bars and merchant products since 1950.
SMS group is a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. It has some 14,000 employees who generate worldwide sales of about EUR 3 billion. The sole owner of the holding company SMS GmbH is the Familie Weiss Foundation.
Monterrey – México– Tenova HYL, a Tenova company leader in Direct Reduction, was recently chosen by China’s Sinosteel Equipment and Engineering as the Technology provider for a Direct Reduction (DR) Micro-Module for “Empresa Siderúrgica del Mutún” (ESM) at Puerto Suárez, municipality of Santa Cruz Department in Bolivia.
Tenova HYL’s Direct Reduction technology will be used for the first stage of the project, which will include a 250,000 metric t/year DRI facility, a 650,000 metric t/year concentration plant, a 400,000 metric t/year pelletizing facility for Mina El Mutún and a steel plant with a continuous caster and rolling mill with a total capacity of 190,000 metric t/year of long products.
This cost-effective Micro Module will use the state-of-the-art ENERGIRON Zero-Reformer (ZR) Process and will be capable of supplying the melt shop with high quality Direct Reduced Iron (DRI) with metallization levels of 94% and an adjustable high carbon content in the range of 3% to 4%.
“We are very proud to be part of this groundbreaking project that after years of efforts and planning has finally become a reality. It is very significant for us that ESM and Sinosteel chose our technology for the construction of this cornerstone in what surely is the beginning of the steelmaking industry in Bolivia”
Rubén Rodríguez, Sales Manager at Tenova HYL.
“After the recent successful projects in Asia, Africa, Europe and North America, we are glad that the first DR plant built in South America in the last 20 years will use the state-of-the-art ENERGIRON technology. We trust that the team effort among ESM, Sinosteel and Tenova will be the key for the success of this strategic project that will promote a sustainable industrial development of Bolivia”
Stefano Maggiolino, President and CEO at Tenova HYL.
The 250,000 metric t/year Micro-Module Plant is expected to be in operation in mid-2021.