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MINEX Metallurgical Co. Ltd. “Market Survey of Minex Range of Treatment Alloys in Steel Sector in India, till 2017, Analyzing the value creating platform in this sector and strategy to be followed. ”

MINEX Metallurgical Co

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MINEX Metallurgical Co. Ltd.Market Survey of Minex Range of Treatment Alloys in Steel Sector in India, till 2017, Analyzing the value creating platform in this sector and strategy to be followed.

You are what your deep, driving desire is. As your desire is, so is your will. As your will is, so is your deed. As your deed is, so is your destiny.

Presence of Minex in Steel Industry

Raw Material

Processes = Hot Metal

SMS = Crude Steel

Continuous Casting and Finished Goods

Minex Treatment Alloys

Metallurgical Process Involved

Understanding of Metallurgical ProcessesIntegrated Steel Plant Blast Furnace Basic Oxygen Furnace Ladle Treatment Continuous Casting Rolling Flat or Long Products Through BOF, broad steel specifications can be achieved. Secondary Steel Refining is done through Ladle Treatment and Various other furnaces like Degassers and Decarburizes. Mini Steel Plants Electric Arc Furnace Ladle Treatment Continuous Casting Rolling Mostly Long Products EAF is basically a metal melting furnace, with no substantial refining required. Crude Steel obtained from EAF is used for producing special steels.

Effect of Impurity Elements S : Segregates during solidification; Hot shortness dueto formation of FeS during solidification; Sulphide inclusions lower weldability and corrosion resistance; Development of tears and cracks while reheating.

P : Segregates during solidification; impairs plasticproperties.

Si and Mn : Si reduces drawing capacity of steel. Mnincreases strength without affecting ductility and reduces hot shortness.

Gases : N impairs plastic properties; Increases

embrittlement at lower temperatures. H causes defects such as flakes, fish-scale fracture. Excess O2 causes formation of blowholes and oxide inclusions. weakens intra-granular bonds; Stress Concentrators. during reheating of steels as their melting points are much lower than that of steel reheat temperature.

Inclusions : Inclusions present at grain boundaries Tramp Elements : (Cu, Zn, Sb etc.) Create problem Note: Whether Carbon or Alloyed ones, all steels contain impurities and these impurities are to be controlled during Steelmaking.

Secondary Steel Refining Important for Continuous Casting which requires stringent Quality Control. Harmful Impurities in Steel: S,P,O,N & H. O and S forms inclusion. Treatment of liquid steel is done in special units, LF (ladle furnace), VAD (Vacuum Arc Degasser), CAS-OB unit etc. .

LF (Ladle Furnace) Deoxidation and Composition Adjustments Temperature Adjustments by Arc Heating (graphite electrodes) Bath Stirring by Argon purging from bottom/top lancing For improved utilization of Aluminum, its wires are used CAS-OB (Composition Adjustment by Sealed Ar Bubbling) Temperature can be raised by exothermic heat supplied by aluminum oxidation. Dissolution is faster because of high turbulence and stirring VD: Vacuum Degassing VOD: Vacuum-Oxygen Decarburization IGP: Inert Gas Purging IM: Injection Metallurgy AOD: Argon-Oxygen Decarburization

Degassing Decarburization Desulphurization Reheating Alloying Additions

Inert Gas (Ar) Degassing Stirring = Homogenization of Temperature and Composition Faster Oxidation and Floatation of Inclusions Deoxidation Addition of strong oxide formers (Mn, Si, Al, Ca as ferromanganese, ferrosilicon, silico-manganese, aluminum, calcium silicide) in the ladle. Ca > Al > Si > Mn (Decreasing strength of deoxidizers) Decarburization Carbon content below 20ppm Desulphurization Levels below 0.01% required during secondary steelmaking It is done by addition of a synthetic slag. Deep desulphurization can be done by the injection of powders like Calcium Silicide. Vacuum-oxygen Decarburization Developed for stainless steel refining Used for the production of ultra-low carbon steels (RH-OB also used)

Vacuum Degassing Desulphurization Heating Alloying Melt Homogenization Ar Injection good homogenization, fast processing, inclusion removal RH Degasser (Melt Circulation) Vacuum Arc Degassing Heating done by the arc with graphite electrodes. Heating, degassing, slag treatment and alloy adjustments are done without interrupting the vacuum. Argon-oxygen Decarburization Dilution of Oxygen with Argon lowers the partial pressure of CO, which helps in preferential removal of CO without oxidizing Chromium Bath. C content less than 0.03% required in all SS grades

Primary Steelmaking BOF/EAF + of Al wire feedings Additions Ar Purging Arc Heating Argon Stirring Additions Arc/Chemical Heating Ar Injection

Ladle Treatment

Ladle Furnace

Vacuum Degassing

Ladle Holding

Ca Treatment

Tundish

Continuous Casting

Alloying Elements and their EffectElements Aluminum Boron Effects Deoxidizer, Grain refiner and occasionally alloying agent in steel Increases hardenability

CarbonChromium Lead Manganese Molybdenum Nickel

Increases hardenability and strengthIncreases corrosion and wear resistance , Also mild hardening agent, Oxidation resistance Increases machinability Counteracts bitterness of Sulphur, Acts as deoxidizer, combines with Sulphur improves hot-working properties Deep hardening, Raises creep strength and hot hardness, Enhances corrosion resistance and increases wear resistance Increases strength and toughness

PhosphorousSilicon Sulphur Titanium Tungsten

Increases Strength and Machinability and atmospheric Corrosion ResistanceDeoxidizer, Helps electrical and magnetic properties, improves hardness and oxidation resistance Increases machinability but damages hot-forming characteristics Forms carbides, Reduces hardness in stainless steel Increases wear resistance and raises hot strength and hot hardness

VanadiumCalcium

Increases hardenability(CaSi) Potent deoxidizer and desulphurizer, Controls the shape, size and distribution of oxide and sulphide inclusions

Steel Industry : Parameters, Growth and Prospects

Steel Industry : Some facts India stands fifth in the world with the production of 66.80 million tons of crude steel. Per capita consumption of steel in India is 49 kg against the world average of 182 kg. India aspires to produce 276 million tonne of steel and become the second largest producer of steel by 2015-2016. The steel demand drivers in India are manufacturing, construction and auto sector.

% Production share of secondary steel producers has increased. % share of Alloy Steel Production has increased. 38 EAFs with the installed capacity of 18.04mtpa. 1114 units of Induction furnaces with capacity of 24.40mtpa. Observed and Expected CAGR is around 8%.

General StrategiesBusiness Tools Acquisition of natural resources Technology buying and process innovation Production of new and improved grades of steel Equipment Modification and Plant Expansion Mergers and Acquisitions

Technology Innovations Low Ash Cokes Futuristic Technology for alternate reductants like Hydrogen Process Simulators

Production & CapacityPlant Size- wise Producers Main Producers Major Producers Other Producers Process-wise Process BOF EAF IF Capacity 38.06mtpa 18.04mtpa 24.40mtpa Capacity 28.9mtpa 26.6mtpa 25mtpa

Main ProducersSAIL Tata Steel VIZAG Steel

Installed Capacity15.81mtpa 6.8mtpa 6.3mtpa

Major producers Essar Steel Limited JSPL JSW Ispat Industries Ltd. Bhushan Power & Steel Ltd. Bhushan Steel Ltd. Other Producers

Installed Capacity 8.6mtpa 3mtpa 10mtpa 3mtpa 2mtpa 25mtpa

Other Producers Producers with less than 0.5mtpa installed capacity Production units are widely distributed Stainless and Special Steel Producers majorly come in this category Their share of production and products are not mapped properly.

Categorization of Steel ProductsSteel

Form/Shape/Size Semi-finished : Ingots/blooms/B illets/Slabs/Thin Slabs

Composition Non-Alloyed Steel: Mild(0.6%) C Steel Alloyed Steel : Stainless Steel, SiliconElectrical Steel and High Speed Steel

End Use Structural Steel Construction Steel Deep Drawing Steel Forging Quality Rail Steel

Finished : Long and Flat products

New and Improved Grades of SteelConstruction Fire resistant Steel Vibration Damping Sheets Manufacturing Auto Dual phase Steel TRIP Steel

Weather resistant SteelsSpecial type of wide flanged beams Seismic resistant

AHSS GradeNano Steel Ultra fine grain Steel

New Grades of Steel : Examples Quenched Tempered Plate for Gun Carriage DMR 249 Grade B Q&T for Aircraft Carrier Roof / rock bolt Fe 600 TMT Rebars for Mines and Tunnel

Thin Gauge High Strength HR Coil for high strength LPG Customized CR products for electrolytic precipitator Nitrovan Steel Plates for ATM Chest Cr V 110 UTA Rails for high speed rails API X 80 / 100 Grade HR Coil and Pipes for Oil & Gas Sector CRGO Silicon Steel for Electric Transformers

VARIOUS SHAPES Wide Flange & Parallel Flange Sections Cold Formed Structural Sections Hollow Structural Tubes High Tensile Wire Ropes

Growth Parameters of Steel Industry Production Product Range and Quality Raw Material Improvement and its Cost Business Tools and Market Demand Global Scenario and Industrial Policy

Prospects of the Industry Increase in Production Capacity Business and Technology Innovation Product Up gradation and Quality Improvement Cost Reduction Reducing Raw Material Requirement and Improving its Quality

Process Feasibility FactorsCost of Installation and Operation Production Capacity and Quality Energy Requirements Environmental and labor Legislations Sustainability and Compatibility with other units Raw Material Requirement

Minex Metallurgical Co. Ltd.

Factors affecting Minex Processes Adopted Production Capacity Product Quality Product SpecificationsModifications and Expansions Market Demand and Cost Improvement

Minex and Steel Industry Proportionate rise in demand of Minex products as steel industry grows. Capacity expansion, simultaneously with customer and market identification. Product innovation is needed to cater to the new and improved grades of steel. Process innovation in steel plants necessitates the product up gradation.

Tata Steel is coming up with a new Thin Slab Caster which would increase their requirement of Calcium. By modifying existing on-line purging system at RSP, the consumption of deoxidizers (Al and Si-Mn) is observed to be decreased by 14% and 23%.

Categorization of Minex Products for Steel Industry Broadly: Alloying Products and Refining Products Alloying Products: Micro Alloys and Alloying Elements Refining Products: Deoxidizers/Desulphurizers /Inclusion Modifiers Minex Cored Wire, a type of product in the above categories

Product Analysis Ferro Chrome Cr 50-70 % Steel Industry : Largest Consumer; Stainless Steel (10-20% Cr) Chrome below 56% = Charge Chrome, produced from an ore with lower chrome content HC Ferro-Chrome Produced from higher grade ore Used in Engineering Steel with high Cr to Fe ratio and minimum levels of other elements such as S, P and Ti LC Ferro Chrome Used during steel production to correct chrome % without causing undesirable variations in C and trace element percentages Low cost alternative to metallic chrome for uses in super alloys and other special melting applications

Ferro Manganese Desulphurizing agent and a Deoxidizer Make the slag more fluid; Component of the alloy All steels contain Mn : 0.05-2%, reaching to 12% in some cases

Ferro Niobium Worlds largest deposit of Niobium is in Brazil Mineral : Pyrochlore. Processed: Output is Ferro-Niobium with 65% niobium oxide. End Uses: Carbon Steel(30%); HSLA(22%); Alloy Steel(14%); Stainless and Heat resisting steel(13%) Effects Impacts doubling strength and toughness Weight reduction due to grain refining in carbon and HSLA steel First use in carbon pipelines, construction and automobiles Added to stainless steel to stop embrittlement after welding

Ferro Silico ManganeseDeoxidizer and alloying element Standard grade : 14-16% Si; 65-68% Mn and 2% C Special grade : Si up to 30%, used in manufacture of stainless steel Deoxidation with SiMn results in cleaner steel Liquid Manganese Silicate formed coagulates and separates easier from the melt Adds less P, C and N to steel

Ferro Silicon Remove oxygen from steel and alloying element Basis for manufacture of pre-alloys like Magnesium Ferro Silicon Special grades (low Al, high purity and low C) Used in production special steels Keep both the content of inclusions and C content into the final steels at very low level

Ferro TitaniumTitanium content 70% Low residual, low melting point titanium alloy Cleansing Agent Highly reactive with S, C, O and N, forming insoluble compounds and sequestering them in slag Grain Refiner Promotes grain structure with steel matrix Improves malleability of carbon steel thereby increasing its versatility

Nickel High melting point, high resistance to corrosion and oxidation, excellent heat resistant properties and a good alloying ability with many other metals Applications : Aerospace, military construction and consumer products Stainless steel production consumes around 65% of the Nickel produced.

Forecast for Minex ProductsProduct CaSi/CaFe (0.5/0.35 kg/t) = Ca(0.15kg/t) Steel Production 80.5mtpa %Steel Treated 30% = 24.15mtpa Consumption per year 3622.5 tons (20112012) 5580 tons (20152016) 12420 tons (20152016) 32200 tons (20112012) 49600 tons (20152016) 110400 tons (2015-2016)

124mtpa 276mtpa Aluminum wires (0.4kg/t) 80.5mtpa 124mtpa 276mtpa

30% = 37.2mtpa 30% = 82.8 100% 100% 100%

Strategy Ahead Almost all major players are customers of Minex but with increasing share of secondary producers in production, some strategy is required to cover the small-scale and low-end producers. There is a growth in share of alloy steel production due to development of new and improved grades of steel. Minex should come up with some solution for such producers. Even major producers are not completely relying on Minex products because of the availability of product in domestic market and low-cost imports. This necessitates the technology improvement in production.

Market Intelligence should certainly be increased with adopting better policies to reach the market. Technological roadmapping and a mechanism for periodic surveying of new markets and technology should be done

Peer Review: Products, Technology and Market Strategies There seems no big competitor for Minex in its range of products but other sellers are existing and their mapping is essential. Certain parameters like technology being used outside India, cost determination, market strategies and product range can be salient. Online and Physical marketing can be one of the factor in terms of reaching the markets.