A SOUTH AFRICAN PERSPECTIVE A SOUTH AFRICAN PERSPECTIVE SASSDA-KZN/TIKZN REGINAL MEMBER Information Sharing Breakfast Seminar

5 September 2013

THE HISTORY OF STAINLESS STEEL THE HISTORY OF STAINLESS STEEL WHO? WHAT? WHEN?

THE HISTORY OF STAINLESS STEEL THE HISTORY OF STAINLESS STEEL 18th century scientists make a succession of discoveries critical to the

invention of stainless steels.

1751 – Axel Frederick Cronstedt, a Swedish scientist discovers nickel

1778 – Karl Wilhelm Scheelen, also Swedish discovers molybdenum

1797 – Nicolas Louis Vauquelin, a Frenchman discovers chromium

THE HISTORY OF STAINLESS STEELTHE HISTORY OF STAINLESS STEELAUSTENITIC GRADES AUSTENITIC GRADES

* 1912 – Edwin Maurer and Beno Strauss of Germany were granted the patentto produce chromium-nickel stainless steels.

* Early 1950’s (Korean War) – commercial development of the chromium-nickel-manganese grades.

THE HISTORY OF STAINLESS STEELTHE HISTORY OF STAINLESS STEELMARTENSITIC GRADES MARTENSITIC GRADES

1913 – In England the first commercial heat of martensitic stainless steel is cast in Sheffield by Harry Bearley.

The term ‘stainless’ steel is coined by Bearley’s colleague – Stuart.

These martensitic stainless steels are soon used in the production of knives whose blades remain sharp and rust free.

THE HISTORY OF STAINLESS STEELTHE HISTORY OF STAINLESS STEELFERRITIC GRADES FERRITIC GRADES

1915 – Frederick M Becket and Christian Dantsizen of America develop another type of stainless steel, namely ferritics.

THE HISTORY OF STAINLESS STEELTHE HISTORY OF STAINLESS STEELDUPLEX GRADESDUPLEX GRADES

1930 – Avesta in Sweden makes the first cast of what are now known as duplex stainless steels.Improvements in steel making technology have resulted in more widespread use of duplex stainless steels over the last 30 years.

THE STAINLESS STEEL FAMILY TREETHE STAINLESS STEEL FAMILY TREE

STAINLESS STEELS APPLICATIONSSTAINLESS STEELS APPLICATIONS

STAINLESS STEEL IN SOUTH AFRICA STAINLESS STEEL IN SOUTH AFRICA

South Africa has 75% of the world’s reserves of chromium.South Africa has the capacity to satisfy 50% of the world’s demand for ferrochrome (of which 75% is used for the manufacture of stainless steel).Production of ferrochrome started by RMB Alloys at Middelburg in 1964. In 1965 Southern Cross Steel was built at the same site to create a unique and totally integrated speciality steel manufacturing unit.The first stainless steel ingot was cast in 1966.A major expansion of the mill, now known as Middelburg Steel & Alloys (or MS&A), took place in the early 1980’s with the new plant producing thin gauge cold rolled stainless steel.Further expansion commenced in the mid 1990’s, following the acquisition of the stainless steel division of Middelburg Steel & Alloys by Columbus JV– including a new steel plant, an upgraded hot mill, additional cold rolling (including BA finish) capacity and various finishing lines.Following acquisition of a majority share of Columbus JV by Acerinox in 2002, cold rolled capacity was expanded further.

3CR123CR12(A South African success story)(A South African success story)

3CR12 was developed in the late 1970’s/early 1980’s by Middelburg Steel & Alloys to provide a weldable, low cost utility ferritic stainless steel, to fill the gap between carbon steels and traditional stainless steels.

3CR12 contains 11/12% Cr and is weldable up to thicknesses of 30mm (compared to, typically, a maximum of 3mm for conventional ferritic stainless steels). Typical areas of use include:

- mining industry (especially “corrosion : abrasion” applications); - non-aesthetic architectural/structural applications; - transport industry (coal wagons, bus components, rail coaches); - sugar industry (replacing T430 ferritic stainless steel due to

weldability problems); - and many more.

TYPICAL 3CR12 APPLICATIONS:TYPICAL 3CR12 APPLICATIONS:COAL WAGONSCOAL WAGONS

First prototype installed on the Richards Bay coal line in 1984/1985Previous material of construction lasted 8/12 years2012 inspection of initial prototype 3CR12 wagons- average material loss: 10µ/yr

- no localised corrosion (even under areas of coal build-up) Anticipated life of 3CR12 wagons: 65 yearsUsed widely in South Africa, Australia, China, the USA and various European countries

Source: Columbus Stainless

TYPICAL 3CR12 APPLICATIONS: TYPICAL 3CR12 APPLICATIONS: ELECTRIFICATION MASTSELECTRIFICATION MASTS

Installed in 1982 on the Port Elizabeth sea front

2012 inspection - uniform discoloura- tion (with time) - no measurable thickness loss - no evidence of pitting

Source: Columbus Stainless

STAINLESS STEEL – THE CURRENT STATUSSTAINLESS STEEL – THE CURRENT STATUSA GLOBAL PERSEPECTIVEA GLOBAL PERSEPECTIVE

(Source: ISSF)

COMPOUND ANNUAL GROWTHCOMPOUND ANNUAL GROWTH

(Source: ISSF)

REGIONAL SHARE OF STAINLESS STEELREGIONAL SHARE OF STAINLESS STEELPRODUCTIONPRODUCTION

(Source: ISSF)

STAINLESS CRUDE STEEL PRODUCTIONSTAINLESS CRUDE STEEL PRODUCTIONBY GRADE CATEGORYBY GRADE CATEGORY

STAINLESS STEEL – THE CURRENT STATUSSTAINLESS STEEL – THE CURRENT STATUSA SOUTH AFRICAN PERSEPECTIVEA SOUTH AFRICAN PERSEPECTIVE

APPARENT DOMESTIC CONSUMPTIONAPPARENT DOMESTIC CONSUMPTION1991 - 20121991 - 2012

Tons

IMPORTS OF STAINLESS STEEL IMPORTS OF STAINLESS STEEL CONSUMERWARE: 2008-2012CONSUMERWARE: 2008-2012

STAINLESS STEEL – THE NEXT 100 YEARSSTAINLESS STEEL – THE NEXT 100 YEARS GLOBALLY

- continued significant levels of growth overall

- continued development of duplex grades, for both technical and cost reasons

- possible continuation of CrMn (200 series), and certain ferritic grades substitution for CrNi (300 series) grades

- growth in ‘structural’ usage – durability/design life/ sustainability; impact strength (seismic events); fire resistance; strength characteristics (duplex grades)

- role of China (and India)?

STAINLESS STEEL – THE NEXT 100 YEARSSTAINLESS STEEL – THE NEXT 100 YEARS SOUTH AFRICA

- continued growtho GDP per capitao industrialisationo infrastructure development

- government policyo beneficiated exportso local industry support (eg. catalytic convertors)

- import questiono government policyo competitiveness of local manufacturers

- sub-Saharan Africa opportunities

THANK YOUTHANK YOU