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21st century steel2008-2009 Update
Alonso Ancira Altos Hornos de México
Rafael Naranjo OlmedoAcerinox
Chang Sae-Joo Dongkuk Steel Mill
Hajime Bada JFE Steel
Zhang Xiaogang Anshan Steel
Antonio Gozzi Duferco
Shen Wenrong (Bill) Jiangsu Shagang Group
Lakshmi N. Mittal ArcelorMittal
Sajjan Jindal JSW Steel
Carolin Kramer Badische Stahlwerke
Prashant Ruia Essar Steel
Xu Leijang Baosteel Group
worldsteel Board of directors 2008-2009
Masatoshi Ozawa Daido Steel
Raul Gutierrez Deacero
Park Seung-Ha Hyundai Steel Company
Ahmadali Harati Nik IMIDRO
Vinod Mittal Ispat Industries
Hideo Suzuki Nisshin Steel
Alexei Mordashov Severstal
John P. Surma United States Steel
Vladimir Lisin Novolipetsk Steel
Zhu Jimin Shougang Group
Marco Antonio Castello Branco Usiminas
Daniel R. DiMicco Nucor
Miguel Álvarez Cádiz SIDOR
Pradip K. Bishnoi Vizag Steel
Geoff Plummer OneSteel
Olof Faxander SSAB
Jarmo T. Tonteri Ovako
Sushil Kumar Roongta Steel Authority of India (SAIL)
Lee Ku-Taek POSCO
Hiroshi Tomono Sumitomo Metal Industries
Continued on inside back cover
ğM. Aydin Müderrisoglu Eregli Iron and Steel Works
contents
Cover: Tokyo International Forum © Tom McLaughlan. This publication is printed on MultiDesign paper. MultiDesign is certified by the Forestry Stewardship Council as environmentally-responsible paper.
foreword 5
economic sustainability 6
People and safety 10
environment 14
Market development 18
competition and trade 22
the future 26
worldsteel affiliated members and associate member companies 30
Continued on inside back cover
our vision
the steel industry should be profitable over the complete
business cycle. it rewards shareholders and re-invests
in new products and processes. Steel companies minimise their environmental footprint and conduct their operations in a sustainable way. the steel industry has strong growth potential in developing
and industrialised countries. The world steel industry must be free of government involvement that distorts the market and prevents fair competition. steel is a high-tech industry with skilled people working in a
safe environment. it attracts bright people to follow a career
in steel. it aims to be an accident-free industry. Steel is the most innovative, recyclable and sustainable material of the 21st century.
A sustainable steel industry in a sustainable world.
Steelisauniquelyversatilematerial.Itisinvolvedinvirtuallyeveryphaseofourlivesfromhousing,foodsupplyandtransporttoenergydelivery,machineryandhealthcare.Infact,itissoversatilethatprettywelleverythingpeopleuseeverydayiseithermadefromsteelorisprovidedbysteel.
Steelhasfacilitatedourqualityoflife,underpinnedhumankind’sdevelopmentandevenhelpedustounderstandourplanetandtheeco-systemsitsupports.
Withoutbeingawareofit,societynowdependsonsteel.Humankind’sfuturesuccessinmeetingchallengessuchasclimatechange,poverty,populationgrowth,waterdistributionandenergylimitedbyalowercarbonworlddependsonapplicationsofsteel.
Steel’sclaimtoberightforthesetimesisnotsolelybasedonitsclaimasthemostversatileman-madematerial.Recyclabilityisanotherofitskeyperformancecharacteristics.Steelcanberecycledagainandagainwithoutlossofquality.Thisdifferentiatessteelfrommanyothermaterialswherethereisalossinperformanceateachrecycling.
Infiniterecyclingmeansthatsteelisperfectlyalignedtomeetthecontinuingandincreasinglydemandingrequirementsofthe21stcentury.
Theindustrycandrawonalongheritageofcontinuoustechnologicaldevelopment,ofprocessrefinementandproductinnovation,tohelpitspreadbestpracticeandevolvetoworksuccessfullyonnewchallenges.
InOctober2008,after41yearsastheInternationalIronandSteelInstitute,wechangedournametoWorldSteelAssociation(worldsteel).Theworldforsteelhadchangedsubstantiallysince1967andsohadweasanorganisation.
Wearenowatrulyglobalorganisation,representing130oftheworld’sleadingsteelcompanies,includingsevenofthetop10producersinChina.
Ournewnameprovidesasimpledescriptionofourroleandclaritytoourpurpose.
worldsteelistherepresentativebodyofanessentialindustrythattakesaleadershiprolethroughenvironmental,socialandeconomicprogrammes.
Ouractivitiesarefocusedonhelpingtheindustrymeetsociety’srequirements.Werunlifecycleassessmentprogrammestohelpcustomersfactorindifferentsteels’performanceindifferentapplications(p.19).Wecoordinateresearchintonewsteelproductsandprocesses(p.27)becauseithasstronggrowthpotentialbothindevelopingandinindustrialisedcountries.
AndtohelptheindustrymakethemostimmediateimpactonCO
2emissionswithexistingtechnology,we
runaworldwideprogrammethatenablescompaniestoreferencetheirperformanceagainstthebestinclass(p.16).
Steelcompanieswillsucceedinthistechnologically-drivenenvironmentwheretheyhavetheskilledpeopleworkinginasafeenvironment(p.12)andthatisattractivetobrightyoungpeople(p.11).
Tomeetincreaseddemand,minimisesteel’senvironmentalfootprintandcontinueconductingoperationsinasustainablewaywillrequireamassiveinvestmentbytheindustryandnationalgovernments.Thecurrentfinancialcrisishasdonenothingtohelp.Yet,investmentwillhavetobesustainedifprogressistofollow(p.9).Thebestwaytoensurethatthishappensistoencouragedynamiccompetitioninopenandfairmarkets,sothatallproducersandmarketsaresubjecttosharedglobalpressuresthatwillencouragesharedsolutions(p.23).
IanChristmasDirectorGeneral
foreword
6
The Hermitage Plaza project in Paris includes two buildings formed by interlocking steel triangles. This diagrid structural system is extremely weight efficient and uses less steel than a conventional frame. Image courtesy of Foster + Partners, architects.
7
econoMic sustainaBility
Inthefiveyearsbeforethestartoftheglobalfinancialcrisis,thesteelindustryworldwideenjoyedaboomindemand.Thisenabledsteelcompaniestoachievealevelofprofitabilitythatfundednewinvestments,acquisitionsandcontinuedconsolidationwithintheindustry.
Muchoftheindustry’sexpenditurewentonenvironment-relatedplansandprojects:tolightenitsfootprint,aswellaslong-termprocessandproductdevelopment.
Thisvirtuouscircleofgrowingoutputandbeneficialinvestmentcametoahaltwhensteeldemandcollapsedinthethirdquarterof2008.
Whenthedownturnbegan,itwascategorisedasabankingcrisis,linkedprimarilytotheUSandEurope,wherethebankshadover-extendedinmakingloansonpropertyandbuyingmortgagesecurities.ItseemedlikelythattheUSandtheUKeconomiesmightbehardesthitandothersmightwellescapeitsworsteffects.However,thebankingcrisisquicklybecameaneconomiccrisisonaglobalscaleaffectingdemandindevelopinganddevelopedcountries,intradesurpluseconomiesaswellasthoseintradedeficit.
Thepaceofchangewasbreathtaking.Bythefirstquarterof2009,manycountrieshadofficiallyenteredrecession.
Steel,aglobalindustry,nowsawthenegativesideofglobalisation.Demandcrashedworldwide.LargeeconomiessuchasGermanyandJapanwereforatimejustasbadlyhitasotherregions,becauseoftheimpactonkeysteel-usingcustomersasmarketsfortheirgoodsdisappeared.
Monthly crude steel production, World (66 countries), September 2006 to August 2009
50
60
70
80
90
100
110
120
130
mmt
Sep 0
6
Dec 0
6
Mar
07
Jun
07
Sep 0
7
Dec 0
7
Mar
08
Jun
08
Sep 0
8
Dec 0
8
Mar
09
Jun
09
Manufacturingmarkets,especiallyautomotiveandmechanicalengineering,evaporated.Asthefinancialcrisisworsened,supplychainsde-stocked,banksrefusedtolendsocreditdriedupandbusinessconfidencesank.
Asaresult,apparentsteeluse–whichhadenjoyedover7%growthbeforethecrisis–collapsedinthefourthquarterof2008.Apparentsteelusein2008was1.8%downon2007.
Asthecrisiscontinuedinthefirsthalfof2009inmostoftheworld,apparentsteelusein2009isexpectedtogodownbyafurther8%-9%.
Thecrisishasunderlinedtheever-increasingimportanceofemergingeconomiesevenmore,duetotheirrelativeresilience.Inlate2008and2009,ChinaandIndiacontinuedtoregistergrowthinindustrialproduction.Inthedevelopedworld,steelusewasdownby30%.
Industrial production, year-on-year
China India Germany Japan US
-40
-30
-20
-10
0
10
20
30
%
2006 2007 2008 2009
Source: Oxford Economics
8
World steel capacity development
1062 1062
CAGR 3.3%
CAGR 7.9%
10951170
12451356
14531583
1713
2000 2001 2002 2003 2004 2005 2006 2007 20080
500
1000
1500
2000
mmt
0%
5%
10%
15%
20%
World steel capacity utilisation
50
60
70
80
90
100
%
May
08
88.0%84.4%
70.4%
57.5%
62.3%
61.1%
70.3%
71.7%
Jun
08
Jul 0
8
Aug 0
8
Sep 0
8
Oct 0
8
Nov 0
8
Dec 0
8
Jan
09
Feb
09
Mar
09
Avr 0
9
May
09
Jun
09
Jul 0
9
Aug 0
9
capacity
Inthepastfiveyearsglobalsteelmakingcapacitygrewatacompoundannualgrowthrate(CAGR)of7.9%,reaching1,713mmtbytheendof2008.
Mostofthisexpansioncamefromtheemergingeconomies,wheresteeldemandwasgrowingparticularlyfast.During2001-2008,Brazil,Russia,IndiaandChina(BRIC)accountedfor89%ofworldsteelcapacityexpansion,ofwhichChinahadthelion’sshare.
Assteeldemandcollapsedinlate2008,plantcapacityutilisationratesfellfromthe85%-90%rangethatcharacterisedthepreviousfiveyears,tobelow60%inDecember2008.
Newprojectshavebeendelayedorcancelledandmanyplantsidled.However,insomecasesexpansionplanshavesimplybeendelayedandnewcapacitywillcomeonstreaminthenextfewyears.Copingwithovercapacitywillbeakeyindustrychallenge.
recovery
Emergingeconomies,includingChinaandIndia,startedtoimproveinthefirstquarterof2009.Signsofrecoveryalsostartedtoshowindevelopedeconomiesinthesecondhalfof2009.
Somerestorationofconsumerandbusinessconfidencecouldbeseeneverywhere.Surveysindevelopedanddevelopingcountriesshowedthatconsumerswerestartingtoperceiveanimprovementintheeconomicsituation.Theyaremoreoptimisticaboutthefutureandspendingpatternsarebeingadjustedaccordingly.
TheUShousingmarketshowedaremarkablereboundinJuly2009.Germanmanufacturingshowedthestartofanexportrecovery.ByAugust,therewasbroadconsensusthattheworstofthecrisiswasoverandthattheworldeconomywasontheroadtorecovery.
Amajorfactorhasbeenthegovernmentstimuluspackagesandmonetary-easingpoliciespursuedeverywhereintheworld.
9
NAFTA
India
AfricaandMiddleEast
EU(27)
Asiaex.China&India
CIS
China
OtherAmerica
economic sustainability
the china effect
Duringtheeconomiccrisis,ChinaimpressedtheworldwithitsGDPgrowthof7.1%inthefirsthalfof2009andover8%GDPgrowthexpectedfor2009.TheincreaseddemandfromChinahelpedrecoveryinotherAsianeconomies,includingSouthKoreaandTaiwan,China.
ThisreboundwaslargelyattributabletothesuccessoftheUS$586billiondomesticstimuluspackageannouncedattheendof2008tooffsettheslumpinexternaldemandforChinesegoods.However,thejumpstartfromtheChinesegovernmentstimuluspoliciescannotbemaintainedforever.Withnostrongrecoveryinthedevelopedeconomiesforecast,akeychallengewillbehowtomaintaingrowthwithoutthesupportofavibrantexportmarket.
EventhoughstimuluspackagespulledtheglobaleconomyoutoftheworstrecessionsinceWorldWarII,questionsremainastohowstableandresilienttherecoverywillbe.Indevelopedeconomies,thereboundispartlyexplainedbytheendofmassivedestockingandstartofstockaccumulation.Theimmediatechallengeishowmomentumcanbesustainedifgovernmentsreinintheireffortstoboostspendingandtheinventoryrebuildingprocessisover.
Investmentandinfrastructurespendingwillcontinuetopullsteeldemandintheemergingeconomies.Indevelopedeconomies,weakhousingmarketsandinvestmentwillmakegrowthlesssteel-intensive.Theoverallimplicationofthecrisisforthesteelindustrywillbelessgrowthinsteeldemandandanincreasedimportanceoftheemergingeconomies.
Effortstoovercomethecrisiswillmaketheindustrystrongerinthelongterm.Steelcompanieswithsoundstructuresandhealthyfinanceswillemergepreparedfortheupturnasitdevelops.
Theindustryhasalreadyspentbillionsofdollarsonconsolidation,restructuring,reorganisingandupgrading.Thisprocessmustbeallowedtocontinuesothataftertherecessioncompaniesthatcontinuetoservetheircustomersarefitter,leanerandcompetitive.Itisimportantthatthereisafreeandfairmarketforsteel.Governmentsmustresistanymeasuresorsupportfortheirsteelindustrythatprovidesunfairadvantage.
Monthly crude steel production, year-on-year by region, July 2008 to August 2009
-70
-60
-50
-40
-30
-20
-10
0
10
20
30%
Jul 0
8
Sep 0
8
Nov 0
8
Jan
09
Mar
09
May
09
Jul 0
9
10
11
PeoPle and safety
Successfulorganisationsarethosethatdeveloptheirmostimportantresource:thepeopletheyemploy.Onewaytodothisisbyadoptinginnovativetraininganddevelopmentpracticesthathaveameasurableimpactonperformance.
Inthesteelindustry,thereisconstantpressuretoinnovateandimplementadvancesinproductionprocesses.Steelcompaniesmustalsoensurethatemployeeshavetheskillstoexploittheseimprovements.Thisiscrucialtoproductivity,jobsatisfactionandemployeeretention.
Thegrowthofthesteelindustryalsoincreasestheneedtodevelopthenextgenerationofsteelindustryprofessionals.Theindustryrecognisesthatitisimportanttomanageknowledgeofmetallurgyandsteelmaking,particularlywhenmoreprofessorsandexpertsareretiringthanarejoiningtheindustry.
Promoting industry knowledge
Althoughthesteelindustryemployspeoplewithdiverseskillsandcapabilities,steelcompaniesaroundtheworldfaceashortageoftalentinmetallurgy,materialsscience,physics,chemistry,engineeringandmathematics.Asaresult,theindustryhastosecureitsworkforcefromanincreasinglysmallerpoolofpotentialrecruits.
Recognisingthistrend,theindustryhasintroducedmanyinitiativestoattract,developandretaintalentedpeopleaswellasimprovetheindustry’simage.Onesuchinitiative,steeluniversity.org,playsanimportantrole.
steeluniversity.orgisafreeon-lineinitiativedevelopedbyworldsteel.Withfinancialandtechnicalsupportfromworldsteelmembercompanies,itprovideshighlyinteractivee-learningresourcesonsteeltechnologies.Theycoverallaspectsoftheironandsteelmakingprocessesthroughtosteelproducts,theirapplicationsandrecycling.
steeluniversity.orggivesstudentstheopportunitytostudyandapplythebasicscientific,metallurgicalandengineeringprinciples,thatunderpintheproductionanduseofsteel.Atitsheartisaseriesofrealistic,game-likesimulationsofthemainsteelmakingoperations.Studentscaneventestwhattheyhavelearnedastheyprogressthroughthemodules.
Theresourcesareintendedforusebyundergraduatestudents,theirteachers,lecturersandprofessorsandalsobyemployeesandtheirtrainersinsteelcompanies.
extract from the electric arc furnace steelmaking module
Theelectricarcfurnace(EAF)isthemajorproductionrouteforrecyclingsteelscrap,oftenintohigherqualitysteel.Thestepsintheprocessinvolve:
• Selecttheappropriatetypeofscrapandquantitiesforproductionorder
• Dividethescrapintomixedbatches• Chargethescrapintothefurnacewhereitis
meltedusingahighvoltageelectriccurrent• Refinetheproductwiththeinjectionof
appropriateelementsandalloys• Deliverthemoltensteeltotheladle.
Studentlearningoutcomesforthismoduleinclude:
• UnderstandthefunctionofanEAF• Identifythebroadrangeofsteelscrap• Describethechemicalreactionsthattakeplace
duringtherefiningprocess• Understandthedifferentstrategiesfor
maximisingyield.
12
the annual steelmaking challenge
Toencouragegreateruseofsteeluniversity.orgeachyearworldsteelrunsasteelmakingchallenge.Thechallengeisbasedononeormoreofthesteelmakingsimulations.Participantscompeteagainstotherteamsandindividualsina24-hourworldwidecompetition.
In2008,thechallengeinvolvedthemanufactureofsteelplatesfortheproductionof25windturbinetowersforanoffshorewindfarm.Takingontheroleofplaterollingmillmanager,thechallengewastosupplyanorderofsteelplatesforthe25towersbuiltfromthreeseparatelyrolledsections.
Theparticipantswererequiredtoselecttheappropriatesteelgradeandthenmanagetheproductionoftheplatestomeetthecorrectmechanicalanddimensionalpropertyconstraints.Onceasuccessfulresultwasobtained,theteamfocusedonoptimisingtheprocessingtoachievethelowestcostfortheorder.
TheindustrywinnerswerefromBaosteelinChina.France’sEcoleNationaleSupérieuredesMinesdeSt-Etienneprovidedtheacademicchampions.
In 2008:
Totalnumberofteams 478
Totalcompletedattempts 16,446
Totalsuccessfulattempts 1,513
Averagecompletedattemptsperentrant 34
Breakdown of attempts by country
China4,143
South Korea2,605
Russia1,979
India1,291
Brazil929
India1,291
Other 2,544
Mexico 450
Belgium 575
Taiwan 621
Argentina 649
UK 660
Promoting excellence in safety and health
“Nothingismoreimportantthanthesafetyandhealthofpeoplewhoworkintheironandsteelindustry.”TheworldsteelBoardofDirectorsrecognisethatthisguidingprincipleneedstobeattheheartofeverydecision,processandactiontakeninasteelcompany.
Thereisastrongcorrelationbetweenimprovedperformanceonsafetyandhealthissuesandimprovedperformanceonkeybusinessindicatorssuchasproductqualityandconsistency,processcontrolefficiency,profitabilityandemployeemotivation.Withinvolvementfrommanymembercompanies,worldsteelmanagesarangeofactivitiesfocusedonpromotingexcellenceinsafetyandhealthpractices.
Historically,steelmakinghasbeenconsideredadangerousprocessandaccidentswerethoughttobeinevitable.Today,steelcompaniesrecognisethatthisperceptionisnotappropriateforamodernandtechnically-advancedindustry.Seniorexecutives,andindeedeveryoneworkinginasteelplant,beitemployeeorcontractor,recognisethatanaccident-freeenvironmentrequiresastrongcommitmentfromthetop.Aculturemustbesetwhereeveryoneunderstandsthatsafetyandhealthisthenumberonepriority.
Steelcompaniesstrivetoimprovetheirsafetyandhealthperformancewithvariousprogrammesandinitiatives.Thisworkstartsbyrecordinglost-timeinjuriesandfatalities.Somecompaniesandsteelplantshavebeengoingformanyyearswithoutarecordedincident.Thesecompaniesknowthatsuchperformancerequiresexcellenceinallaspectsoftheiroperations,andcontinuedvigilence.
12002 2003 2004 2005 2006 2007 2008
2
3
4
5
6
7
Total lost time injury frequency rate (LTIFR)
Lost
tim
e in
jurie
s p
er m
illio
n ho
urs
Employee
Contractor
Total
13
sharing experience and good practice
In1999,worldsteeldevelopedAccident-FreeSteel,aninitiativethatbroughttogethersafetyspecialistsandlinemanagersfromworldsteelmembercompanies.Throughaseriesofregionalseminars,membersexchangedideas,shareinformationandstatistics,anddevelopedprogrammestodemonstratehowtohaveanaccident-freeenvironmentinasteelplant.
Thisinitiativecontinuestoday.Onceayear,seniorsafetyandhealthmanagersfrommembercompaniesmeettodiscusswaystoimprovesafetyandhealthperformanceandtoexchangeexperiencesonseriousaccidentsandfatalities.
worldsteel safety and health principles
worldsteelrecentlypublishedguidelinestohelpcompaniesimplementsixprinciplesforimprovedsafetyperformance.Adoptingtheseprinciplesatthehighestlevel,membercompaniesdemonstratetheircommitmenttoaninjury-freeandhealthyworkplace.
Theguidelinesarechallengingandrequiresignificantefforttoimplement.The24-pagepublicationhasbeentranslatedintomorethan10languageswiththousandsofcopiesdistributedtomembercompanyemployees.
people and safety
Belowaresomeexamplesoftheimplicationsoftheprinciplesandhoweachemployeecanbeinvolvedintheiradoptionandimplementation.
Onprinciple2–managementresponsibility
• Ifleadersdonotvisiblychange,nothingwill.• Includesafetyandhealthresultsinperformance
assessmentsandothercareeradvancementdecisions.
Onprinciple4–workingsafelyisaconditionofemployment
• Everyemployeeisempoweredtostopanyworkorprocessiftheybelieveittobeunsafeorunhealthy.
excellence recognition award
TheworldsteelSafetyandHealthRecognitionAwardgivesmembercompaniestheopportunitytoshowcasespecificeffortstheyhavemadetoeliminateincidentsandinjuries,andtosharethemwithothercompanies.
In2008fivemembercompaniesreceivedrecognitionfortheireffortsinaddressingthreekeycriteria:
• Howthepracticeorprogrammedemonstratedandappliedtheworldsteelsafetyandhealthprinciples.
• Howtheprojectwasabletodemonstratemeasurableimprovementandquantifytheimprovement.
• Howtheprogrammewasabletodemonstrateitsrelevanceandapplicabilitytoothermembercompanies.
six fundamental principles
• Allinjuriesandwork-relatedillnessescanandmustbeprevented.
• Managementisresponsibleandaccountableforsafetyandhealthperformance.
• Employeeengagementandtrainingisessential.• Workingsafelyisaconditionofemployment.• Excellenceinsafetyandhealthsupports
excellentbusinessresults.• Safetyandhealthmustbeintegratedintoall
businessmanagementprocesses.
14
Detail from the masterplan study of a North Sea ring of offshore wind farms, Zeekracht. Image courtesy of OMA (Office for Metropolitan Architecture).
15
environMent
technology focused on environmental improvements
Efficientenergyuseisoneofthesteelindustry’skeypriorities,asithasbeenoverthepastthreedecades.Duringthose30yearssteelcompanieshavehalvedtheenergyconsumedpertonneofsteelproduced.
Lookingtothefuture:
• Steeldemandcoulddoubleoverthenext40yearstoapproximately2.5billiontonnesayear,basedontheexpectedgrowthindevelopingcountries.
• Steelhasanimportantroleincreatinglowcarbonintensityconstruction,housingandtransport.
• Thedifferenceincarbonemissionintensityinsteelproductionbetweenvariouscountriescanbereducedbysharingbestpracticesandtechnology.
• Maximisingend-of-lifesteelrecyclingandusingby-productsfromsteelmakingwillreduceCO2
emissions.
• Thebestplantsintheworldarealreadyoperatingclosetotheoptimumthatexistingtechnologyallows.Therefore,developmentofbreakthroughsteelmakingtechnologiesisvitalifglobalsteelmakingCO2
intensityistobereducedinthelongterm.
• Implementationofappropriatenewtechnologiesrequiressignificantmajorinvestmentinresearchanddevelopment,testinginpilotplantsandcarefulup-scalingtocommercialvolumes.
• Inthelongterm,atrulysustainablesolutionwilldependonnearcarbon-freeelectricitygeneration.
Thereare3,000differentgradesofsteelavailabletoachievespecificproperties.Everyyear,morearedevelopedwithuniquedesignsthatcanminimisetheimpactontheenvironment.
Themainphysicalby-productfromsteelmakingisslag.Whenusedincementproduction,slagreducesCO2
emissionsfromtheprocess.Slagcanalsobeusedasabaseinroadbuilding.Itisalsosometimesusedasfertiliser.
Itispossibletomakesteelwithnearlynowastegoingtolandfill.Currentmaterialefficiencyrateshavereached97%andsomecompanieshaveaninternalrecyclingandby-productusagerateofnearly98%.
Combustiblegasesproducedduringsteelmakingarereusedasanenergysourcetogeneratepower.Theyarealsousedasasourceofheatforotherprocesses.
worldsteelrecentlypublishedreportsonmaintenanceandyield.Projectsonby-productsandwatermanagementwillbecompletedinthecomingmonths.Theseareallkeyissuesfortheindustryinreducingitsenvironmentalfootprint.
reducing co2 emissions
In2008,worldsteelsetupaCO2datacollection
programme.Itenableseverysteel-producingcompanyintheworldtosubmititsCO2
emissionsusingastandardisedmethodology.
0
20
40
60
80
100%
1975 1980 1985 1990 1995 2000 2005
Indexed energy consumption/t crude steel produced in North America, Japan and Europe
16
Theemissionsinclusionsareclassifiedasfollows:
ScopeI: Direct CO2 emissions from steel production (e.g. coke making, iron making, reheat furnaces)
ScopeII:CO2 emissions from upstream processes such as purchased electricity or credits for selling electricity or steam, particularly for recycled steelmaking, casting and reheating
ScopeIII: Other emissions or credits related to purchased goods such as pre-processed raw materials or credits from by-
products (slag) sold to other industries that enable them to reduce their CO2 emissions.
ThemeasurementframeworkcoversallkeypointsthatinfluenceCO
2emissionsandenergyuse.In2008,over
180steel-producingsitescontributedtotheexercise.ThedatabasenowholdsCO2
andenergyintensitydatafornearly40%ofglobalsteelproductioncapacity.worldsteelanalysesthedataandpreparesareporttothecompanies.Thereportenablesacompanytoseehoweachofitsplantscomparestoothersworldwide.
TheworldsteelClimateActionrecognitionprogrammelaunchedin2009recognisessteelproducerswhohavefulfilledtheircommitmenttoparticipateintheworldsteelCO2
emissionsdatacollectionprogramme.Two-thirdsoftheworldsteelmembershiptookpartinthefirstroundofdatacollection,whichendedearlierthisyear.
CO2 emission boundaries
SCOPE IDirect CO 2emissions in the following facilities:
Sintering
Cokemaking
Iron-making
Steel-making
RefiningCasting
+ hot
rolling
Pelletising
SCOPE II SCOPE III
• Oxygen and steam• Burnt lime• Pellets and pig iron• Graphite electrodes• Credits for by-productgas
Cold rolling(only
for CO 2
datacollec-tion)
Furtherpro-
cessing(only
for CO 2
datacollec-tion)Scrap
not included
CO2 emissions from purchased electricity (g CO2/kWh)
CO2 emissions from purchased materials
Further
processing
(only for CO2
data
collection)
Cold
rolling
(only
for CO2
data
collection)
17
TheClimateActionprogrammeisopentoallsteelproducers,membersandnon-membersofworldsteelalike.Recognitioncanbeobtainedatacorporateleveloratasitelevel,aslongasCO2
emissionsdataformorethan90%ofthecrudesteelproductionofthecompanyorthesiteissubmitted.Therecognitionisvalidfortwoyears.
ThemodernsteelindustryhaspushedsteelproductionprocessesveryclosetotheirtheoreticalminimumCO2
intensitypertonneofsteeloutput.Someminorgainscanbemadethroughtheincreaseduseofscrapinprimaryproduction.However,scrapavailabilityitselfisalimitingfactor.
worldsteelestimatesthat,basedoncurrentprocesstechnologiesandwithmorescrapavailable,theEAFshareofproductioncouldreach43%ofglobalsteeloutputby2050,upfrom35%today.Alongwithsomeotherchanges,theincreaseinscraprecoverycouldleadtoareductionof200milliontonnesofCO2
.
Production efficiency
Everysteelcompanyandeverysteel-producingcountryisatadifferentpointofmaturityanddevelopment.worldsteel’svisionistohelpsteelmakersachievebest-in-classperformancebyeffectiveandefficientuseoftheirassets.
However,thisisstillnotenoughtomeettheefficiencyimprovementtargetstheindustryneedstomake,giventheprobabledoublingindemandforsteelproductsoverthenext40years.
worldsteelencouragescompaniesandgovernmentstodevelop,testandintroducethenextgenerationofsteelmakingusingbreakthroughtechnologiesforasustainablefuture(seep.27).
scrap steel
Therearetwomainsourcesofsteelscrap:excessmaterialfromsteelproductionanddownstreammanufacturing,andthesteelattheendofaproduct’slife.
100%ofscrapfromsteelproductionanddownstreamprocessingiscollectedandrecycleddirectlyintosteelproduction.End-of-lifescraphastobecollectedandpreparedasaconsistentandrecycle-readymaterial.
End-of-lifecollectionratesvarysignificantlyacrossregionsandsectors.Averagesteelrecyclingratesareveryhighcomparedtoanyothermaterial.However,thereisstillroomforimprovementandthisisakeypriorityforthesteelindustry.
In2007,ore-basedsteelproductionused31%ofallscraptoproduce75%ofallsteel.TheEAFrouteused69%ofallavailablescraptoproduce25%ofallsteel.
Assumingthatsteelproductionandusedoublesoverthenext40years,scrapavailabilitycouldgrowtoapproximately1.6billiontonnesayear.Thisisbasedonarecoveryrateincreasefromthe83%recordedin2007toaprojected90%in2050.
Sector Recoveryrate
2007(%)
Recoveryrate
2050(%)
Lifecycle
inyears
Construction 85 90 40-70
Automotive 85 90 7-15
Machinery 90 95 10-20
Electricaland
domestic
appliances
50 65 4-10
Weightedglobal
average83 90 N/A
Scrap recovery rates
environment
18
The Future Steel Vehicle will combine alternative powertrains and advanced high-strength steels to reduce the vehicle’s life cycle footprint.
19
Market develoPMent
developing sustainable products
Tenyearsago,thesocialandenvironmentalfootprintofacorporationanditsproductswereafterthoughtstotherealbusinessofcompetingforpositioninthemarketplace.Economicimpactwasoftenonlymeasuredbythebalancesheetandshareprice.
Buttheworldhaschanged.Today,lifecycleassessment(LCA)andcorporateresponsibilityranknearthetopofissuesthatallcompaniesmustaddress.Aplethoraofregulations,standardsandassessmentscreatethepotentialforaddedcosts.Corporatesocialandenvironmentalperformanceisincreasinglydrivingpurchasedecisionsbybusinesscustomerswhoseektoensurethattheirsuppliers’performancealignswiththeirowngoals.
Consequently,steel-usingcustomersareincreasinglydemandinginformationaboutthesustainabilityperformanceofsteelandthecompaniesthatmakesteel.
Fornearly15years,worldsteelhasplayedaleadingroleindefiningtheindustry’sprogresstowardsustainability.CoreactivitiesincludethedevelopmentoftheauthoritativeglobalLCIforsteel,thebi-annualSustainabilityReportthattrackstheindustry’sperformanceagainst11social,economicandenvironmentalindicators,andinitiativesthatproduceindustryconsensusandactionontrendsandissues.
Inthisway,worldsteelhelpsmembercompaniesto:
• ensurethatsteelisaccuratelyandpositivelyrepresentedinLCA-basedstudies
• makemoreinformeddecisionsintheidentificationofmarketopportunities,andthedevelopmentandmarketingofproducts
• respondtocustomerswhoneedLCAdatafortheirownoperating,complianceandmarketingactivities
• supporttechnologyassessmentandthedevelopmentofprocessandenvironmentalimprovementprogrammes
• increasepublicawarenessofsteelasanecessaryandpositivecontributortothegrowthofeconomiesaroundtheworld.
lca: enabling informed decisions
Anaccurateunderstandingoftheimpactamaterialhasongreenhousegas(GHG)emissionsandtheenvironmentisbasedonthetotalemissionsthroughoutallphasesoftheproductlife,includingproduction,useandend-of-life(recyclingordisposal).
Thisapproachisbasedonaninternationallystandardisedmethodology(ISO14040series).Itprovidessystematicbenchmarkingandanalysisoftheknownenvironmentalburdensofindustrialprocesses,suchastotallifetimeGHGemissions,energyconsumptionandwaterconsumption.
TheLCAforsteelisbasedontheworldsteellifecycleinventory(LCI)thatrepresentstheglobalenvironmentalprofileofsteel.
ThethirdroundofLCIdatacollectionwillbecompletedin2009,enablingthedevelopmentofanup-to-dateglobalprofilefor14steelproducts.ThisuniquedatabaseservesasthebasisforLCAstudiesofproductsthatusesteel.
Inaseriesofenvironmentalcasestudies,worldsteeldemonstratesthebenefitsoftoday’shigh-performancesteels.Todate,worldsteelhaspublishedcasestudiesonwindenergy,bridges,automotivesteels,foodcansandnaturalgaspipelines.Thesecasestudiesareavailableonworldsteel.org.
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Raw material extraction
Steel production
Manufacturing
Use phase End of life/Recycling
Pre-consumer scrap
Post-consumer scrap
Steel’s life cycle
requests for worldsteel lci data
worldsteelreceivesmoreandmorerequestsforLCIdataeachyear.Recentexamplesinclude:
• acontractoronagovernmentprojectintheUSevaluatingtheenvironmentalimpactofmaterialsforamajorpowergenerationproject
• aEuropeangovernmentupdatingitstaxstructuresonmaterialsinaconsumerproductcategory
• afurnituremanufacturerinAsiacomparingtheenvironmentalimpactsofwoodandsteel
• amanufacturingfirminIndiaseeking“greener”productionprocesses
• acivilengineeringfirminEuropecomparingtheLCAsforalternativematerialsforabridge
• adesignerofarailsysteminNorthAmericaseekingtocomplywithlocalenvironmentallaws
• acarmakerinAsiacomparingtheconsequencesofchoosinganewgenerationofsteeloverstandardgrades.
ThecommonthreadintheserequestsisthegrowingimportancethatLCAstudiesplayinthedesignandspecificationofmaterialsallovertheworld.
0
50
100
150
200
250
300
350
400
450
2005 2006 2007 2008 2009
Number of requests for LCI data since 2005
21
market development
living steel’s third international architecture competition
TheLivingSteelinternationalcompetitionforsustainablehousingstimulatesinnovationinconstruction.Nowinitsthirdyear,thecompetitionaddressestheeconomic,environmentalandsocialaspirationsofagrowingworldpopulation.
Forthe2008competition,architectswereaskedtocreateenergyefficient,single-familydetachedhomesforemployeesofSeverstalinCherepovets,Russia.TheconstructionhadtominimiseGHGemissionsandbeabletowithstandtemperaturesrangingfrom-49°Cto39°C.Thehomesalsohadtobeaffordabletobuildandbuy.
PeterStutchburyArchitectswonfirstprizeinthe2008competition.AnotherAustralianfirm,BlighVollerNieldArchitecture,andCanadianarchitectsRVTRToronto,receivedhonourablementionsfromthejury.
Thewinningfirmreceivesa€50,000prizeandwillbeginworkingwithSeverstalandalocalRussianarchitecttodefinethedesignforconstructioninCherepovets.LivingSteelplanstoshowcaseademonstrationbuildinginlate2009.
The12finalistswerechosenoutof246proposalsfrom52countries.
Manufacturing
advanced steels in housing and automotive designs
Sustainabilityplaysanimportantroleinworldsteel’sotherindustrymarketdevelopmentprogrammes.WorldAutoSteelusesLCAtodemonstratethatadvancedhigh-strengthsteelsandoptimisedvehicledesigncanreducetotallifecycleGHGemissionswhilemaintainingsafetyandaffordability.
WorldAutoSteelhaslaunchedPhase2ofitsFutureSteelVehicle(FSV)programme.Itisaimedatcreatinglightweight,environmentally-friendlysteeldesignsforfuturebatteryelectric,plug-inhybrid,andfuelcellvehicles.Itwillusetheneweststeelgradesandtechnologiesavailable.
Internationalcompetitionsmanagedbyworldsteel’sconstructionprogramme,LivingSteel,demonstratehowsteelcanbeusedininnovativehousingdesigntoproduceunique,environmentallyefficientandaffordablehousing.
Rendering of the winning project for Cherepovets (see box).
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The biggest bulk carrier in the world, the MS Berge Stahl, can carry up to 360,000 tonnes of iron ore. It hauls ore, mainly from Brazil, to ThyssenKrupp Steel in Germany. Photo courtesy of BW Maritime
23
coMPetition and trade
a competitive steel industry worldwide
Oneoftheindustry’sdefiningtrendsoverthelast20orsoyearshasbeenthedeclineinstateownershiparoundtheworld,exceptinChina.Governmentaftergovernmenthassoldoffitsinterestentirelyoropenedupmarketstocompetition.
Themovetoamoremarket-drivenstructureinmanycountrieshascoincidedwithsomeothersignificanttrends.Theseincludeglobalisationandafourfoldincreaseinsteeltradedinternationally.
Thereisalsoamuchstrongerfocusondeliveringcustomer-specifiedsolutions,whichrequiressteelsupplierstoworkcloselywiththeircustomers.
Today,40%oftheworld’ssteelistradedinternationally.Thedangerremainsthatgovernmentswillseektosupportthedomesticindustryinawaythatisanti-competitive.worldsteelhasalong-standingandwell-supportedpositiononbehalfofitsmembersinpromotingfreeandfairtrade.
TheWTOhasconsistentlywarnedthattradebarriersusedbycountriestoprotecttheirindustriesriskdoingmoreharmthangood.
SomeactionsarepermittedunderWTOrules.Theseincludecountervailingactionsagainstunfairtradepracticeswhicharenecessarytomaintainfaircompetition.However,tit-for-tatpoliciesaredangerous,astheGreatDepressionofthe1930sshowed,becausetheyexacerbatethedownwardspiralininternationaltrade.Ifgovernmentsseektoprotectinefficientoperatorsovertheshort-term,theiractionswillinevitablyputcustomercompaniesatalong-termdisadvantage.
worldsteelisanactiveparticipantonplatformswheretheseissuesarediscussed,promotingsteel’smessagesonsustainabilityandfreeandfairtrade.
oecd steel committee
TheOECDSteelCommitteeisthemaingovernmentforumforthediscussionofglobalissuesfacingthesteelindustry.Allthemajorsteel-producingcountriesincludingBRICarerepresentedasmembersorobserversofthecommittee.
TheOECDGoverningCouncildecidedsomeyearsagotoreducetheactivitiesoftheorganisationinindividualindustrialsectorsandasaresulthasreducedthelevelofresourcesavailabletotheSteelCommittee.
Tofillthisgap,worldsteelnowprovidestheexpertreportsthatwereformerlypreparedbytheOECDSecretariat.Twiceayear,worldsteelproducesanoverviewoftheoutlookforsteeldemandbasedonthemostrecentshortrangeoutlooktogetherwithareportonrawmaterialtrendsandareportonsteelmakingcapacitydevelopmentsandutilisation.ItmakesthesereportsavailabletotheOECDSteelCommittee.
TheOECDSteelCommitteefulfilsanimportantrolebutitisworthreiteratingthatitisaforumfordiscussionandincreasedunderstandingratherthanfornegotiationonparticulartopics.
raw materials
Thelasttwoyearshavebeenarollercoaterridefortheindustryasironore,cokingcoalandscrappriceswentthroughtheroofandthenfellastherecessiontookhold.Atthesametime,thesteelindustrywatchedwithconsiderableconcernasBHPBillitonattemptedtotakeoverRioTinto.Amergeroftwoofthethreecompanieswhodominatemorethan75%oftheworldmarketforseaborneironorecouldonlyhaveledtoanunacceptableconcentrationandcontrolofthemarket.
Thesteelindustryrespondedvigorously.Asaresult,theEuropeanCommissionissuedastatementofobjectionswhichheavilyinfluencedBHPBillitonintowithdrawingitsbid.
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However,earlierthisyeartheissuewasbackonthetable.BHPBillitonandRioTintoannouncedapossiblemergeroftheirWesternAustralianironoreinterestsintoajointventure(JV).
worldsteelagainimmediatelyissuedastatementpointingoutthatthisprojectedJVdidnothingtoallaythecompetitionissuesthatwereofconcerninthepreviousbidattempt.worldsteelcalledoncompetitionauthoritiestoseriouslyexaminetheobviousimplicationsforfuturepricingregimesandthecompetitiveenvironmentforironore.
worldsteelhassupportedtheconsolidationofsteelbusinessesbutnottotheextentofendangeringcompetition.Eventhelargeststeelcompanyintheworldtodayaccountsforlessthan15%oftotalworldsteelproduction.Weawaitthecompetitionauthoritiesrulingonthisnewthreat.
Shares of seaborne iron ore market
2006 2007 2008
Vale 36.10% 36.1% 32.80%
RioTinto 19% 19.30% 18.60%
BHPBilliton 14.20% 13.8% 17.10%
Total 69.30% 69.2% 68.50%
Orepriceincrease 19% 9.50% 79.88%(Australian
finetoAsia)
Orepriceindex2003=100
238.8 261.5 470.4
Source: UNCTAD
climate change
Climatechangeisaglobalissuethatrequiresaglobalsolution.worldsteeladvancesthecaseforaglobalapproachforsteel.
GovernmentsthataresigatoriestotheUNFrameworkConventiononClimateChange(UNFCCC)arenegotiatingcommitmentstoreduceGHGemissionsafter2012.
TheobjectiveistohaveagreementinCopenhageninDecember2009(COP15).WorkingwithotherbusinessorganisationsundertheumbrellaoftheInternationalChamberofCommerce(ICC),worldsteelwasactiveatCOP13inBaliandCOP14inPoznan.
TheWarsawdialoguesetupbythePolishgovernmentwithsupportfromJapanandtheEuropeanCommissionisanotherimportantchannelfordiscussionontheroleofsteelinclimatechange.
worldsteel’skeymessagestogovernmentshavebeenthatallsteel-producingcountriesneedtobeinvolvedinsettingcommitmentsandtimetablesforfutureactions.
Theresponsibilitylieswithgovernmentstosettherightframeworkandpoliciesforpositiveactionbythesteelindustryonclimatechange.Therightapproachwillavoidcostdifferencesindifferentcountries,whichincreasestheseriousproblemofcarbonleakageandwillnotreduceglobalGHGemissions.
Policiestoassisttechnologytransfer,CleanDevelopmentMechanismprojectsorotherfinancialincentivesshouldnotdistortfaircompetitionintheindustry.
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Governmentsmustsupportresearchanddevelopmentofbreakthroughtechnologies.Themajorexpenditurerequiredcannotcomefromindustryalone.Governmentfundingneedstobeavailableintermsofprimaryresearchandinthemoresignificantsumsforpilotplants,toprovethetechnicalandeconomicalfeasibilityofnewtechnologies.Already,majorgovernmentalsupportisinplaceintheEUandJapan.Moresupportandnewinitiativesbyothergovernmentsareneeded.
worldsteelhasworkedwiththeInternationalEnergyAgencyonpapersfortheG8onopportunitiesforCO
2reduction.worldsteel’sinputhasbeentoprovide
knowledgeaboutsteelatatechnicallevel.
TheWorldBusinessCouncilforSustainableDevelopmenthasagreedtoamemorandumofunderstandingwithworldsteel.Itpermitsworldsteeltoworkwiththecouncilonclimatechangeissueseventhoughmembershipisrestrictedtocompanies.
Finally,ontechnologytransfer,emissionsreductionandbreakthroughtechnology,worldsteelworkswiththeAsiaPacificPartnershipthroughitsmembercompanies.
asia-Pacific Partnership on clean development and climate
TheAsia-PacificPartnershiponCleanDevelopmentandClimateaimstoacceleratethedevelopmentanddeploymentofcleanenergytechnologies.
ThepartnercountriesareAustralia,Canada,China,India,Japan,KoreaandtheUS.Theyhaveagreedtoworktogetherandwithprivatesectorpartnerstomeetgoalsforenergysecurity,nationalairpollutionreductionandclimatechangeinwaysthatpromotesustainableeconomicgrowthandpovertyreduction.
Thepartnershipfocusesonexpandinginvestmentandtradeincleanerenergytechnologies,goodsandservicesinkeymarketsectors.Itsmembershaveapprovedeightpublic-privatesectortaskforces,includingoneforsteel.
Thesteeltaskforce’sobjectivesareto:
• developsector-relevantbenchmarkandperformanceindicators
• facilitatethedeploymentofbestpracticesteeltechnologies
• increasecollaborationbetweenrelevantpartnershipcountrygovernment,researchandindustrysteel-relatedinstitutions
• developprocessestoreduceenergyusage,airpollutionandGHGemissionsfromsteelproduction
• increaserecyclingacrossthepartnership.
Actionwillfocusonsecuringimprovedbenchmarkingandreporting,energyandmaterialefficienciesandtechnologydevelopmentanddeployment.
competition and trade
26
Design for a new high speed train station in Florence, Italy. Image courtesy of Foster + Partners, architects.
27
working for the future
Invirtuallyeveryphaseofourlives,steelplaysanessentialrole.Therails,roadsandvehiclesthatmakeupourtransportsystemsusesteel.Steelprovidesastrongframeworkandconnectionsinthebuildingswherewework,learnandlive.Itprotectsanddeliversourwaterandfoodsupply.Itisabasiccomponentintechnologiesthatgenerateandtransmitenergy.
Steelplaysacriticalrolesimplybecausenoothermaterialhasthesameuniquecombinationofstrength,formabilityandversatility.Consequently,asnationsaroundtheworldseektoimprovetheirstandardsoflivingandliftpopulationsoutofpoverty,itisinevitablethatthedemandforsteelwillincrease.
Evenasitaddressestheneedsandchallengesoftoday’seconomicenvironment,thesteelindustryislookingaheadatthechallengesthatarejustoverthehorizon.Materialsthatarestrongerandmeethigherenvironmentalstandardswillbeneeded.
Newgenerationsofsteelcontinuetobedevelopedthatmakeitpossibleformanufacturersandbuilderstoimplementdurable,lightweightdesigns.Furthermore,steelcanbeendlesslyrecycledwithoutlossofstrength,durabilityoranyofitsotherdistinctiveproperties.
Thesteelindustryisworkingondeliveringlong-termsolutions,whilecontinuingtomeetitscustomers’requirementsoftoday.worldsteel’sfourbuildingblocksunderpintheindustry’sdirectionforthefuture.Theyareto:
• reduceCO2intensitypertonneofsteel
• spreadbestpracticeacrosstheindustry• researchanddevelopbreakthroughtechnologiesfor
steelmaking• usesteelordevelopnewsteelproductsin
applicationsmakingahighimpactonendproductlifecycleperformanceandsustainability.
ThefirststeptowardsreducingCO2emissions
hasbeentoestablishacommonmethodologyformeasuringCO2
intensity.Seepages15-16formoreaboutthemeasurementframework.
Breakthrough technologies
TomakeasignificantdifferenceinCO2intensity,
newsteelmakingtechniquesareneeded.In2003,worldsteellaunchedtheCO2
BreakthroughCoordinationProgrammetoexchangeinformationonnewtechnologiesthatcanberesearchedanddevelopedinagloballycoordinatedway.Theprogrammereflectsthecommitmentofthesteelindustrytorespondtothechallengeofclimatechange.
Ore-basedsteelmakingusingblastfurnaceshashighercarbonintensitypertonneofsteelproducedthantheEAFroute,sothefocusisontheblastfurnaceroutefirst.
ThisisthebiggestcollaborativeR&Dprojectcoordinationeverundertakenbythesteelindustry.
Researchistakingplacein:
• theEU(ultra-lowCO2steelmaking,orULCOS,
supportedby48EUcompaniesand15EUgovernments)
• theUS(theAmericanIronandSteelInstitute)• Canada(theCanadianSteelProducersAssociation)• SouthAmerica(ArcelorMittalBrazil)• Japan(JapaneseIronandSteelFederation)• Korea(POSCO)• China(Baosteel)andTaiwan(ChinaSteel)and• Australia(BluescopeSteel/OneSteelandCSIRO
coordination).
Thevariousprogrammescallonarangeofindustrialexpertisefromsteelproducers,energygenerators,plantdesignersandequipmentmanufacturers.Theyalsocallonscientificexpertisefromgovernment-fundedmaterialsresearchandacademicinstitutions.
the future
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TheprogrammeshaveidentifiedthemostpromisingsteelmakingtechnologiesthatpotentiallyreduceCO2
emissionstoatmospherebymorethan50%.Researchisnowfocusedonfeasibilityatvariouslevelsofproduction,fromlaboratoryworktopilotplantdevelopmentandeventuallycommercialimplementation.
AsignificantamountofCO2willstillbeproducedif
carbonisusedasthereducingagentforironore.Onetechniquefordealingwiththegasistocaptureitandstoreit.Thisiscalledcarboncaptureandstorage(CCS).
Thiswillrequiretechnicalsolutionsforcleaningthegasandtransportingitthroughpipesintostoragesites.Thesearenotalwaysconvenientlylocatednearproductionfacilities.Storageoptionsincludeexhaustedgasfields,oldcoalminesorsalineaquifers.CCSwillrequireinter-governmentalcooperationonpoliciesandregulationstoallowtransferofthegastosuitablesites.
Coal-basedironmakingtechnologiesassociatedwithCCSarethemostlikelycandidatesfordevelopment.Hydrogenandelectrolysisarefurtherintothefuture,asthesetechnologieswillrequirere-engineeringofsteelproductionandthedevelopmentofnewprocessesfromfirstprinciples(seebox).
technologies of the future
TopgasrecyclingincombinationwithCCSBlastfurnacetopgasrecyclingreliesonseparationoftheoffgasessothattheusefulcomponentscanberecycledintothefurnaceasareducingagent.TheCO2
hastobecaptured,transportedandstored.
Smeltingreduction(HISARNA)incombinationwithCCSHISARNAisbasedonbath-smelting.Itcombinescoalpreheatingandpartialpyrolysisinareactor,ameltingcyclonefororemeltingandasmeltervesselforfinalorereductionandironproduction.CCSisalsoakeyrequirementforthisprocess.
NewdirectreductionincombinationwithCCSTherewouldbeasinglesourceofCO2
fromthedirectreductionfurnace.Theoff-gaseswouldbestoredusingCCS.
AlkalineelectrolysisofironoreElectrolysisiscommonlyusedtoproducemetalsotherthansteel.Forsteelmaking,largeamountsofelectricitywouldbeneeded.TheprocesswoulddependonaCO2
-leanelectricitysourcesuchashydroornuclearpower.
MoltenoxideelectrolysisMoltenoxideelectrolysisworksbypassinganelectriccurrentthroughmoltenslagfedwithironoxide.Theironoxidebreaksdownintoliquidironandoxygengas.Nocarbondioxideisproduced.ThisprocesswoulddependonaCO2
-leanelectricitysource.
HydrogenflashsmeltingIronisreducedfromironoreathightemperatures(above1,300°C)andwithveryshortreactiontimes.NoCO2
isemittedbutproducinghydrogenrequireslargeamountsofCO
2-leanelectricity.
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the future
Material shift
Thematerialshiftinvolvesreplacingothermaterialswithsteeltoachievehigherstructuralperformanceatlowercostsandwithlessenergy.
Forexample,thereisgreatpotentialforsteelframingtoreplaceconcreteinbuildings.Steelframescanbepre-assembledoff-site.Thishelpstominimisewasteandtransportofmaterials.Withtherightdesign,steelframingoffersbetterearthquakeresistanceandhighend-of-lifecomponentreuseandrecycling.
Comparedtoaconcrete-framedbuilding,steelframingcanreduceCO2
emissionsbyabout20%overthelifecycleofabuilding.Steeldoesnotrotorsplitanditwillnotbeconsumedbymouldortermites.Steeloffersthehigheststrength-to-weightratioofanybuildingmaterial.
new steel shift
Inthenewsteelshift,traditionalmildsteelsgivewaytonewadvancedsteels,suchashigh-strengthsteels.TheseinnovativesteelshelpreduceCO2
emissionsoverthelifecycleofmanyproducts.
Forexample,replacingtheconventionalsteelofatypicalfive-passengervehiclewithadvancedhigh-strengthsteel(AHSS)resultsinalifetimeGHGemissionsreductionof6%.ThissavinginemissionsismorethanthetotalamountofCO2
emittedduringtheproductionofallthesteelinthevehicle.
Forbridges,highperformancesteelsenablelongerspanlengths,lessmaintenanceandlongerservicelife.Asaresultoverthelifecycleofabridgetheuseofhigh-performancesteelcanresultinasmuchas40%inemissionsreductioncomparedtotraditionalsteels.
Whereelectricalenergyisgenerated,electricalsteelsareused.Continuousdevelopmentandincreasedapplicationofnewelectricalsteelgradeshavereducedenergylossintransformers.ThismeanslessCO2
emissionsoverthelifecycleofeveryapplication.
use shift
Theuseshiftdescribesachangefromoneapplicationthatusessteel,toanotherapplicationthatservesthesamepurposebutislessGHGintensive.
Forexample,thedependencyonfossilfuelscanbesignificantlyreducedbyalternativesourcesofenergysuchaswind-generatedpower.Steelsrepresentapproximately85%ofallmaterialsusedtoconstructawindturbine,excludingthefoundation.Producing1kWhofelectricitywithwindinsteadofcoalreducesemissionsbyasmuchas80%.
Steelisalsocriticalforhigh-speedrailtravel.ItisexpectedthatmoreTravellersincreasinglypreferthismodeoftransportoverairtravelforjourneysofbetween1and2.5hours.High-speedtraintracksusesteelrailsmeasuringupto120minonecontinuousstretch.Forshortdistances,substitutingairtravelbyrailreducesemissionsbyupto90%perpassengerkm.
BridgesElectrical steelsPassenger cars
New steel shiftReplacing steel with
new steel grades
Use shiftReplacing one steel
application with another application
Material shiftReplacing other
materials with steel
PackagingSteel framing
Wind energyHigh speed rail
The examples shown here only represent a few steel
applications. All three shifts may apply to all applications,
multiplying the total benefits of using steel.
future steel use
ChoosingsteeloverothermaterialsoffersarangeofCO
2reductionsolutions.Therearethreestrategiesthat
reduceemissionsthroughtheuseofsteel.
30
worldsteel affiliated MeMBers and associate MeMBer coMPanies
affiliated members
ABM-AssociaçãoBrasileiradeMetalurgiaeMateriais
AmericanIronandSteelInstitute(AISI)
APEAL
TheAfricanIronandSteelAssociation
ArabIronandSteelUnion
ArcelorMittalResearch
ArgentineSteelProducersAssociation
(CIS-CentrodeIndustrialesSiderurgicos)
ASMET,TheAustrianSocietyforMetallurgy&Materials
AssociationforIron&SteelTechnology(AIST)
AssociationofFinnishSteelandMetalProducers
AssociationoftheHungarianIronandSteelIndustry
(MagyarVas-ésAcélipariEgyesülés-MVAE)
AustralianSteelInstitute
CANACERO
CanadianSteelProducersAssociation(CSPA)
CentredeRecherchesMétallurgiques(CRM)
CentroNacionaldeInvestigacionesMetalúrgicas(CENIM)
CentroSviluppoMaterialiSpA(CSM)
ChinaChamberofCommerceforMetallurgyIndustry
ChinaIron&SteelAssociation(CISA)
TheChineseSocietyforMetals(CSM)
EUROFER
FEDERACCIAI
FédérationFrançaisedel’Acier(F.F.A.)
GroupementdelaSidérurgie/StaalindustrieVerbond(GSV)
HutniczaIzbaPrzemysłowo-HandlowaHIPH
(PolishSteelAssociation)
TheIndianInstituteofMetals
TheInstituteofMaterials,Minerals&Mining
InstitutoAçoBrasil(BrazilianSteelInstitute)
InstitutoLatinoamericanodelFierroyelAcero(ILAFA)
InternationalMetallurgistsUnion
IronandSteelFederationSMN
TheIronandSteelInstituteofJapan
IronandSteelInstituteofThailand
TheJapanIronandSteelFederation(JISF)
Jernkontoret
KoreaIronandSteelAssociation(KOSA)
MalaysianIron&SteelIndustryFederation(MISIF)
RomanianSteelProducers’Union-UniRomSider
SouthAfricanIronandSteelInstitute(SAISI)
SouthEastAsiaIronandSteelInstitute(SEAISI)
Staalinfocentrum/CentreInformationAcier
StahlinstitutVDEh(SteelInstituteVDEh)
TheSteelFederation(Hutnictvíželeza,a.s.-HZ)
SteelManufacturersAssociation(SMA)
SwereaMEFOS
TaiwanSteelandIronIndustriesAssociation
TurkishIronandSteelProducersAssociation(TISPA)
UKSteel
UnióndeEmpresasSiderúrgicas(UNESID)
WirtschaftsvereinigungStahl
associate member companies
AcciaieriaArvedi
AcciaierieBertoliSafau
ACERINOX
AichiSteelCorporation
AsilÇelikA.S.
BaoshanIron&SteelCo.,Ltd.StainlessSteelBusinessUnit
BentelerSteel/Tube
BÖHLERUDDEHOLM
CapeGate
CapeTownIron&SteelWorks(CISCO)
CogneAcciaiSpeciali
ColumbusStainless
DaidoSteel
DeutscheEdelstahlwerke(DEW)
DillingerHüttenwerke
DufercoBelgium
Electrotherm
ERAMET
GeorgsmarienhütteHolding
GerdauAçosEspeciaisPiratini
HalyvourgikiInc.
JindalSteelandPower
JSL
LatrobeSpecialtySteelCompany
NakayamaSteelWorks
NatSteelHoldings
Nedstaal
NipponKinzoku
NipponMetalIndustry
NipponYakinKogyo
NorthAmericanStainless(NAS)
OsakaSteel
Outokumpu
PanchmahalSteel
QatarSteelCompany
SanyoSpecialSteel
SIDETUR
SIJSlovenianSteelGroup
TangEngIronWorks
ThainoxStainless
TheTimkenCompany
UGITECH
VirajGroup
WalsinLihwaCorp.,YenshueiPlant
YiehUnitedSteelCorporation(YUSCO)
ZhangjiagangPohangStainlessSteel(ZPSS)
worldsteel affiliated MeMBers and associate MeMBer coMPanies
Jorge Johannpeter Gerdau
Jürgen R. Großmann Georgsmarienhütte Holding
Andrey Varichev Metalloinvest Management Company
Wang Yifang Handan Iron and Steel Group
Igor Syry Metinvest Holding
Herbert Eichelkraut Hüttenwerke Krupp Mannesmann
Shoji Muneoka Nippon Steel
Hiroshi Sato Kobe Steel
Alexander Frolov Evraz Group
Song Lanxiang Laiwu Steel Group
Paul O’Malley BlueScope Steel
Ahmed Abdel Aziz Ezz EZZ Steel
Victor F. Rashnikov Magnitogorsk Iron & Steel Works
Francisco Rubiralta CELSA Group
Chang Chia-Juch China Steel
Murray McClean Commercial Metals Company
Benjamin Steinbruch Companhia Siderúrgica Nacional
Kirby Adams Corus Group
Sakari Tamminen Rautaruukki
B. Muthuraman Tata Steel
Fabio Riva Riva Fire
Paolo Rocca Techint Group
Klaus Harste Saarstahl
Daniel Novegil Ternium Hylsa
Wolfgang Leese Salzgitter
Karl-Ulrich KöhlerThyssenKrupp
Hassan Al-Ghannam Al-Buainain Saudi Basic Ind. Corp. (HADEED)
Dmitry Pumpyanskiy TMK
Benedikt Niemeyer Schmolz + Bickenbach Group
Jiri Cienciala Třinecké železárny
worldsteel Board of directors 2008-2009
Ian Christmas World Steel Association
Wolfgang Eder voestalpine
Deng Qiling Wuhan Steel Group
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WorldSteelAssociation
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Belgium
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